Student Loan Forgiveness for Frontline Health Workers Act
Bill: S.3828 | Sponsor: Sen. Whitehouse, Sheldon (D-RI)
Policy area: Education

Summary:
Student Loan Forgiveness for Frontline Health Workers Act
This bill establishes temporary programs to provide federal and private student loan forgiveness to certain frontline health care workers. Frontline health care workers are those individuals who have made significant contributions to the medical response (e.g., patient care, medical research, or testing) to the COVID-19 national emergency.
Specifically, the Department of Education (ED) must carry out a program to forgive the outstanding balance of principal and interest due on federal student loans for borrowers who are frontline health care workers.
Additionally, the Department of the Treasury must carry out a program to repay in full the outstanding balance of principal and interest due on certain private student loans for borrowers who are frontline health care workers.
ED and Treasury must coordinate to ensure that eligibility determinations are consistent across both programs and that frontline health care workers who are eligible for both programs may apply for loan forgiveness with a single application. Further, such programs must be available to frontline health care workers who were borrowers of eligible loans and who died as a result of COVID-19.
The bill specifies the notification requirements related to the availability of these programs.
ED, Treasury, and the Department of Health and Human Services must jointly establish an intergovernmental working group to assist with the administration of these programs, including the development of the application process.
The bill also excludes discharged student loan debt under these programs from an individual's gross income.

To provide student loan forgiveness to health care workers who are on 
                the front line in response to COVID-19.

    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 
Frontline Health Workers Act''.

SEC. 2. FEDERAL STUDENT LOAN FORGIVENESS FOR FRONTLINE HEALTH CARE 
              WORKERS.

    (a) Forgiveness Required.--Notwithstanding any other provision of 
law, the Secretary of Education shall carry out a program in accordance 
with this Act to forgive the outstanding balance of interest and 
principal due on the applicable eligible Federal student loans of 
borrowers who are frontline health care workers.
    (b) Method of Loan Forgiveness.--In carrying out the loan 
forgiveness program required under subsection (a), as soon as 
practicable after the Secretary of Education has confirmed that an 
applicant is a frontline health care worker who is a borrower of an 
eligible Federal student loan, the Secretary of Education shall--
            (1) through the holder of a loan, assume the obligation to 
        repay the outstanding balance of interest and principal due on 
        the applicable eligible Federal student loans of the borrower 
        made, insured, or guaranteed under part B of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); and
            (2) cancel the outstanding balance of interest and 
        principal due on the applicable eligible Federal student loans 
        of the borrower made under part D or part E of such title.
    (c) Repayment Refunds Prohibited.--Nothing in this section shall be 
construed to authorize any refunding of any eligible Federal student 
loan repayment made before the date a borrower's loans are forgiven in 
accordance with this section.
    (d) Exclusion From Taxable Income.--The amount of a borrower's 
eligible Federal student loans forgiven under this section shall not be 
included in the gross income of the borrower for purposes of the 
Internal Revenue Code of 1986.
    (e) Notice to Borrowers in Statements.--With each billing statement 
sent to a borrower during the two-year period beginning on the 15th day 
after the date of enactment of this Act, the Secretary of Education 
shall include, and shall require each holder of eligible Federal 
student loans to include, a notice informing the borrower of the 
availability of the Federal student loan forgiveness and private 
student loan repayment programs for frontline health care workers under 
this Act, including where to find information about how to qualify as a 
frontline health care worker, how to apply to such programs, and the 
application deadline for such programs.

SEC. 3. PRIVATE STUDENT LOAN REPAYMENT FOR FRONTLINE HEALTH CARE 
              WORKERS.

    (a) Repayment Required.--Notwithstanding any other provision of 
law, the Secretary of the Treasury shall carry out a program in 
accordance with this Act under which the Secretary of the Treasury 
shall repay in full the outstanding balance of principal and interest 
due on the applicable eligible private student loans of borrowers who 
are frontline health care workers.
    (b) Method of Loan Repayment.--In carrying out the program required 
under subsection (a), as soon as practicable after the Secretary of the 
Treasury has confirmed that an applicant is a frontline health care 
worker who is a borrower of an eligible private student loan, the 
Secretary of the Treasury shall pay to the private educational lender 
of each of the applicable eligible private student loans of the 
borrower an amount equal to the sum of the unpaid principal, accrued 
unpaid interest, and late charges of such applicable eligible private 
student loans, as calculated on the date of the repayment of such loans 
by the Secretary of the Treasury, in order to discharge the borrower 
from any remaining obligation to the private educational lender with 
respect to such applicable eligible private student loans.
    (c) Repayment Refunds Prohibited.--Nothing in this section shall be 
construed to authorize any refunding of any repayment of a loan made 
before the date a borrower's loans are paid by the Secretary of the 
Treasury in accordance with this section.
    (d) Exclusion From Taxable Income.--The amount of a borrower's 
eligible private student loans paid by the Secretary of the Treasury 
under this section shall not be included in the gross income of the 
borrower for purposes of the Internal Revenue Code of 1986.
    (e) Notice to Borrowers in Statements.--Section 128(e) of the Truth 
in Lending Act (15 U.S.C. 1638(e)) is amended by adding at the end the 
following new paragraph:
            ``(12) Notice required along with billing statements.--With 
        each billing statement sent to the borrower during the two-year 
        period beginning on the 15th day after the date of enactment of 
        the Student Loan Forgiveness for Frontline Health Workers Act, 
        the private educational lender shall include a notice informing 
        the borrower of the availability of the Federal student loan 
        forgiveness and private student loan repayment programs for 
        frontline health care workers under the Student Loan 
        Forgiveness for Frontline Health Workers Act, including where 
        to find information about how to qualify as a frontline health 
        care worker, how to apply to such programs, and the application 
        deadline for such programs.''.

SEC. 4. COORDINATED PROGRAM REQUIREMENTS.

    The Secretaries concerned shall jointly develop the programs 
required under section 2 and section 3 of this Act, and shall 
coordinate and consult with one another in carrying out such programs 
to ensure that--
            (1) determinations of eligibility are uniform and 
        consistent across both programs;
            (2) frontline health care workers who are borrowers of both 
        eligible Federal student loans and eligible private student 
        loans may apply for both loan forgiveness under section 2 and 
        loan repayment under section 3 with submission of only one 
        application;
            (3) borrowers with outstanding eligible Federal student 
        loans and borrowers with outstanding eligible private student 
        loans are notified of the availability of both programs 
        required under this Act; and
            (4) such programs are made available to frontline health 
        care workers who were borrowers of eligible Federal student 
        loans, eligible private student loans, or both, and who died as 
        a result of the coronavirus, to relieve the families and 
        estates of such deceased frontline health care workers of the 
        burden of the student loans of the such workers.

SEC. 5. NOTICE TO THE PUBLIC.

    Not later than 15 days after the date of enactment of this Act, the 
Secretaries concerned, in consultation with institutions of higher 
education and lenders and holders of Federal student loans and private 
education loans, shall take such actions as may be necessary to ensure 
that borrowers who have outstanding eligible Federal student loans, 
outstanding eligible private student loans, or both, are aware of the 
loan forgiveness and loan repayment programs authorized by this Act. 
Such information shall--
            (1) be presented in a form that is widely available to the 
        public, especially to borrowers with eligible Federal student 
        loans, eligible private student loans, or both;
            (2) be easily understandable; and
            (3) clearly notify borrowers that to be considered for loan 
        forgiveness or loan repayment (or both) under this Act, 
        borrowers must submit an application to the Secretaries 
        concerned, and must do so during the application period 
        described in section 6.

SEC. 6. APPLICATION AND DETERMINATION OF ELIGIBILITY.

    (a) Application Period.--An individual may apply for loan 
forgiveness under section 2, loan repayment under section 3, or both, 
by submitting an application to the Secretaries concerned during the 
period that begins on the date that is 60 days after the date of 
enactment of this Act and that ends on the date that is 2 years after 
the end of the qualifying period.
    (b) Determination of Eligibility.--
            (1) Development of application.--Not later than 60 days 
        after the date of enactment of this Act, the Secretaries 
        concerned shall jointly, in consultation with the Secretary of 
        Health and Human Services and the Intergovernmental Working 
        Group (in accordance with section 7), develop one application 
        for borrowers of both eligible Federal student loans and 
        eligible private student loans to apply for loan forgiveness or 
        loan repayment, or both, under this Act.
            (2) Application requirements.--The application required 
        under paragraph (1) may only include such information as is 
        necessary for the Secretaries concerned to make a determination 
        of whether the applicant--
                    (A) is a frontline health care worker, without 
                consideration of the period of time the applicant 
                served as such a worker; and
                    (B) is a borrower of an applicable eligible Federal 
                student loan, an applicable eligible private student 
                loan, or both.
            (3) Determination.--Not later than 30 days after the date 
        on which the Secretaries concerned receive an application from 
        an individual in accordance with this Act, the Secretaries 
        concerned shall--
                    (A) confirm that such individual is a frontline 
                health care worker who is a borrower of an applicable 
                eligible Federal student loan, an applicable eligible 
                private student loan, or both, then notify the 
                individual of such confirmation, and grant the 
                individual loan forgiveness or loan repayment, or both, 
                in accordance with sections 2 and 3 of this Act; or
                    (B) determine that such individual is not a 
                frontline health care worker who is a borrower of an 
                applicable eligible Federal student loan, an eligible 
                private student loan, or both, then deny such 
                application, and provide a notification to the 
                individual that includes--
                            (i) that the application was denied;
                            (ii) the reason for such denial; and
                            (iii) if the application was denied because 
                        the Secretaries concerned determined that the 
                        applicant was not a frontline health care 
                        worker, an explanation that the individual may 
                        appeal the denial to the Intergovernmental 
                        Working Group within 30 days of the date of 
                        such denial, and information on how the 
                        applicant may submit such an appeal.
            (4) Treatment after successful appeal.--In the case that an 
        individual appeals the denial of an application to the 
        Intergovernmental Working Group in accordance with section 7, 
        and the individual is determined by the Intergovernmental 
        Working Group to be a frontline health care worker, the 
        Secretaries concerned shall grant the individual loan 
        forgiveness or loan repayment, or both, in accordance with 
        sections 2 and 3 of this Act not later than 30 days after the 
        Secretaries concerned are notified of the outcome of the appeal 
        by the Intergovernmental Working Group.

SEC. 7. INTERGOVERNMENTAL WORKING GROUP.

    (a) Establishment.--Not later than 30 days after the date of the 
enactment of this Act, the Secretaries concerned and the Secretary of 
Health and Human Services shall jointly establish an Intergovernmental 
Working Group to assist, in accordance with this section, with the 
administration of the programs required under this Act.
    (b) Membership.--The Intergovernmental Working Group shall have 9 
members, of whom--
            (1) five members shall be selected by the Secretary of 
        Health and Human Services from employees of the Department of 
        Health and Human Services who are knowledgeable concerning the 
        education, training, employment, and medical practices of 
        health care professionals and the health care workforce;
            (2) two members shall be selected by the Secretary of 
        Education from employees of the Department of Education who are 
        knowledgeable concerning eligible Federal student loans and the 
        administration of such loans; and
            (3) two members shall be selected by the Secretary of the 
        Treasury from employees of the Department of the Treasury who 
        are knowledgeable concerning eligible private student loans, 
        the administration of such loans, and private educational 
        lenders.
    (c) Duties.--The Intergovernmental Working Group established under 
this section shall--
            (1) develop a procedure or list of requirements to 
        determine whether an individual has made significant 
        contributions to the medical response to the qualifying 
        emergency for purposes of determining whether the individual is 
        a frontline health care worker as defined in section 9(1)(C);
            (2) determine what information an individual needs to 
        provide for the Secretaries concerned to determine whether the 
        individual has made significant contributions to the medical 
        response to the qualifying emergency for purposes of 
        determining whether the individual is a frontline health care 
        worker as defined in section 9(1)(B);
            (3) not later than 15 days after the date on which the 
        Council is established, report the information described in 
        paragraphs (1) and (2) to the Secretaries concerned for 
        inclusion in the application developed in accordance with 
        section 6(b)(1);
            (4) not later than 60 days after the date on which the 
        Council is established, develop a process by which--
                    (A) an applicant who is denied loan forgiveness or 
                loan repayment (or both) under this Act by the 
                Secretaries concerned because of a determination that 
                the applicant is not a frontline health care worker 
                may, within 30 days of the date of such denial, submit 
                an appeal of such denial to the Intergovernmental 
                Working Group; and
                    (B) the Intergovernmental Working Group will review 
                the appeal and make a determination with respect to 
                whether the applicant is a frontline health care 
                worker; and
            (5) upon the request for an appeal by an applicant 
        described in paragraph (4), using the appeals process developed 
        under such paragraph, determine within 30 days after submission 
        of the appeal by the applicant, whether the applicant is a 
        frontline health care worker, and notify the Secretaries 
        concerned and the applicant of the outcome of such appeal 
        within 15 days of such determination.

SEC. 8. TERMINATION OF AUTHORITY.

    The authority of the Secretaries concerned to carry out the loan 
forgiveness program under section 2 and loan repayment program under 
section 3, and the authority of the Intergovernmental Working Group to 
carry out the activities authorized under section 7, shall cease on the 
date that is 180 days after the end date of the application period 
described in section 6(a).

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Applicable loan.--For the purposes of this Act, the 
        term ``applicable loan'', when used with respect to an eligible 
        Federal student loan or an eligible private student loan, 
        means--
                    (A) in the case of a frontline health care worker 
                who has obtained a graduate education degree or 
                certificate--
                            (i) any eligible Federal student loan for 
                        the graduate education of such worker 
                        (including a consolidation loan, to the extent 
                        that such consolidation loan was used to repay 
                        loans for graduate education); and
                            (ii) any eligible private student loan for 
                        the graduate education of such worker; or
                    (B) in the case of a frontline health care worker 
                who has not obtained a graduate education degree or 
                certificate--
                            (i) any eligible Federal student loan for 
                        the undergraduate education of such worker 
                        (including a consolidation loan, to the extent 
                        that such consolidation loan was used to repay 
                        loans for undergraduate education), provided 
                        that such loan was used for undergraduate 
                        education in a relevant health care program of 
                        study that is necessary for an individual to 
                        enter or advance within the specific health 
                        care-related occupation of the worker; and
                            (ii) any eligible private student loan for 
                        the undergraduate education of such worker, 
                        provided that such loan was used for 
                        undergraduate education in a relevant health 
                        care program of study that is necessary for an 
                        individual to enter or advance within the 
                        specific health care-related occupation of the 
                        worker.
            (2) Coronavirus.--The term ``coronavirus'' has the meaning 
        given the term in section 506 of the Coronavirus Preparedness 
        and Response Supplemental Appropriations Act, 2020 (Public Law 
        116-123).
            (3) COVID-related health care services.--The term ``COVID-
        related health care services'' means any health care services 
        that relate to--
                    (A) the diagnosis, prevention, or treatment of the 
                coronavirus, including through telehealth services;
                    (B) the assessment or care of the health of a human 
                being related to an actual or suspected case of the 
                coronavirus, including through telehealth services; or
                    (C) patient care in a setting where there is a 
                reasonable expectation of risk of exposure to the 
                coronavirus.
            (4) Eligible federal student loan.--The term ``eligible 
        Federal student loan'' means any loan made, insured, or 
        guaranteed under part B, part D, or part E of title IV of the 
        Higher Education Act of 1965 before the date of enactment of 
        this Act, including a consolidation loan under such title.
            (5) Eligible private student loan.--The term ``eligible 
        private student loan'' means a private education loan, as 
        defined in section 140(a) of the Truth in Lending Act (15 
        U.S.C. 1650(a)), that was expressly for the cost of attendance 
        (as defined in section 472) at an institution of higher 
        education participating in a loan program under part B, part D, 
        or part E of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1070 et seq.), as of the date that the loan was 
        disbursed, and that was made before the date of enactment of 
        this Act.
            (6) Frontline health care worker.--The term ``frontline 
        health care worker'' means an individual who, in exchange for 
        payment or as a volunteer, for any period during a qualifying 
        emergency--
                    (A) is--
                            (i) a doctor, medical resident, medical 
                        intern, medical fellow, nurse, home health care 
                        worker, mental health professional, or other 
                        health care professional who is licensed, 
                        registered, or certified under Federal or State 
                        law to provide health care services and who 
                        provides COVID-related health care services;
                            (ii) a student enrolled at an institution 
                        of higher education in a medical, nursing, or 
                        other relevant health care program of study who 
                        provides COVID-related health care services;
                            (iii) a laboratory worker who conducts, 
                        evaluates, or analyzes coronavirus testing;
                            (iv) a medical researcher who conducts 
                        research related to the prevention, treatment, 
                        or cure of the coronavirus; or
                            (v) an emergency medical services worker 
                        who responds to health emergencies or 
                        transports patients to hospitals or other 
                        medical facilities; or
                    (B) does not meet the requirements of any of the 
                clauses under subparagraph (A), but is a health care 
                professional who is licensed, registered, or certified 
                under Federal or State law to provide health care and 
                has made significant contributions to the medical 
                response to the qualifying emergency.
            (7) Graduate education.--The term ``graduate education'' 
        means a postbaccalaureate program of study at an institution of 
        higher education that--
                    (A) leads to a master's degree;
                    (B) leads to a doctoral degree; or
                    (C) does not lead to a graduate degree, but awards 
                or is necessary to obtain a professional certification 
                or licensing credential that is required for 
                employment.
            (8) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (9) Private educational lender.--The term ``private 
        educational lender'' has the meaning given the term in section 
        140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
            (10) Qualifying emergency.--The term ``qualifying 
        emergency'' means--
                    (A) a public health emergency related to the 
                coronavirus declared by the Secretary of Health and 
                Human Services pursuant to section 319 of the Public 
                Health Service Act (42 U.S.C. 247d);
                    (B) an event related to the coronavirus for which--
                            (i) the President declared a major disaster 
                        or an emergency under section 401 or 501, 
                        respectively, of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C. 5170 and 5191); or
                            (ii) the Governor of a State or territory 
                        of the United States declared an emergency; or
                    (C) a national emergency related to the coronavirus 
                declared by the President under section 201 of the 
                National Emergencies Act (50 U.S.C. 1601 et seq.).
            (11) Secretaries concerned.--The term ``Secretaries 
        concerned'' means--
                    (A) the Secretary of Education, with respect to 
                eligible Federal student loans and borrowers of such 
                loans; and
                    (B) the Secretary of the Treasury, with respect to 
                eligible private student loans and borrowers of such 
                loans.
            (12) Undergraduate education.--The term ``undergraduate 
        education'' means a postsecondary program of study at an 
        institution of higher education that--
                    (A) leads to an associate's degree;
                    (B) leads to a baccalaureate degree; or
                    (C) does not lead to an associate's or 
                baccalaureate degree, but awards or is necessary to 
                obtain a certification or licensing credential that is 
                required for employment.
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