Student Loan Forgiveness for Farmers and Ranchers Act
Bill: S.5296 | Sponsor: Sen. Murphy, Christopher (D-CT)
Policy area: Education

Summary:
Student Loan Forgiveness for Farmers and Ranchers Act
This bill establishes a student loan forgiveness program for certain farmers or ranchers.
Specifically, to receive loan forgiveness under this bill, a borrower must (1) make 120 monthly loan payments under a specified repayment plan while employed full-time at a qualified farm or ranch; and (2) fall within certain categories of individuals such as a beginner farmer or rancher, an individual underrepresented in the agricultural profession, or a veteran farmer or rancher.

To establish a student loan forgiveness plan for certain borrowers who 
               are employed at a qualified farm or ranch.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Forgiveness for Farmers 
and Ranchers Act''.

SEC. 2. LOAN FORGIVENESS FOR FARMERS AND RANCHERS.

    (a) Amendment to the HEA.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following:

``SEC. 460A. LOAN FORGIVENESS FOR FARMERS AND RANCHERS.

    ``(a) Qualified Farm or Ranch.--In this section, the term 
`qualified farm or ranch' means a farm or ranch with a farm number 
(within the meaning given the term in section 718.2 of title 7, Code of 
Federal Regulations, as in effect on the date of enactment of the 
Student Loan Forgiveness for Farmers and Ranchers Act).
    ``(b) In General.--The Secretary shall cancel the balance of 
interest and principal due, in accordance with subsection (c), on any 
eligible Federal Direct Loan not in default for a borrower who--
            ``(1) at the time of initial entrance into the agricultural 
        student loan forgiveness program--
                    ``(A) is--
                            ``(i) employed full-time or part-time as 
                        farmer or rancher with an AD-20347 form on file 
                        with the Department of Agriculture that is 
                        current on the date of the initial entrance; or
                            ``(ii) employed full-time or part-time as 
                        an employee or manager of a qualified farm or 
                        ranch; and
                    ``(B) is--
                            ``(i) a beginning farmer or rancher (as 
                        defined under section 343(a) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1991(a)));
                            ``(ii) an individual from a population that 
                        is underrepresented in the agricultural 
                        profession (as determined by the Secretary), 
                        such as minorities or women;
                            ``(iii) a socially disadvantaged farmer or 
                        rancher (as defined in section 355(e) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 2003(e))); or
                            ``(iv) a veteran farmer or rancher (as 
                        defined in section 2501(a) of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990 (7 U.S.C. 2279(a)));
            ``(2) makes 120 monthly payments on the eligible Federal 
        Direct Loan after the date of enactment of the Student Loan 
        Forgiveness for Farmers and Ranchers Act, pursuant to any one 
        or a combination of--
                    ``(A) payments under an income-based repayment plan 
                under section 493C;
                    ``(B) payments under a standard repayment plan 
                under section 455(d)(1)(A), based on a 10-year 
                repayment period;
                    ``(C) monthly payments under a repayment plan under 
                subsection (d)(1) or (g) of section 455 of not less 
                than the monthly amount calculated under section 
                455(d)(1)(A), based on a 10-year repayment period; or
                    ``(D) payments under an income contingent repayment 
                plan under section 455(d)(1)(D);
            ``(3) is employed full-time as an employee or manager of a 
        qualified farm or ranch at the time of such forgiveness; and
            ``(4) has been employed full-time as an employee or manager 
        of a qualified farm or ranch during the period in which the 
        borrower makes each of the qualifying payments described in 
        paragraph (2).
    ``(c) Loan Cancellation Amount.--After the conclusion of the 
employment period described in subsection (b), the Secretary shall 
cancel the obligation to repay the balance of principal and interest 
due as of the time of such cancellation, on the eligible Federal Direct 
Loans made to the borrower under this part.
    ``(d) Removal From the Program.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall remove a borrower from the agricultural student loan 
        forgiveness program if the borrower--
                    ``(A) was less than 40 years old when the borrower 
                entered the agricultural student loan forgiveness 
                program, and that borrower fails to be employed full-
                time as an employee or manager of a qualified farm or 
                ranch for a cumulative period of more than 7 years 
                after entering the program; or
                    ``(B) was 40 years old or older when the borrower 
                entered the agricultural student loan forgiveness 
                program, and that borrower fails to be employed full-
                time as an employee or manager of a qualified farm or 
                ranch for a cumulative period of more than 3 years 
                after entering the program.
            ``(2) Exception for military service.--The Secretary shall 
        not consider any of the following as a period of time counting 
        toward removal from the agricultural student loan forgiveness 
        program for purposes of paragraph (1):
                    ``(A) Time serving on active duty during a war or 
                other military operation or national emergency.
                    ``(B) Time performing qualifying National Guard 
                duty during a war or other military operation or 
                national emergency.
                    ``(C) The 180-day period following the 
                demobilization date for the service described in 
                subparagraph (A) or (B).
            ``(3) Readmission prohibited.--The Secretary shall not 
        allow a borrower who has been removed from the agricultural 
        student loan forgiveness program under this section to be 
        readmitted to the program, unless the Secretary finds that the 
        borrower has experienced exceptional circumstances.
    ``(e) Eligible Federal Direct Loan.--The term `eligible Federal 
Direct Loan' means a Federal Direct Stafford Loan, Federal Direct PLUS 
Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct 
Consolidation Loan.''.
    (b) Regulations.--Not more than 180 days after the date of 
enactment of this Act, the Secretary of Education, in consultation with 
the Secretary of Agriculture, shall promulgate final regulations to 
carry out the amendment made by subsection (a), including regulations 
relating to the process of tracking and verifying work as an employee 
or manager of a qualified farm or ranch for purposes of section 460A of 
the Higher Education Act of 1965 (as added by this Act).
                                 <all>