Title: COVID–19 Perkins Loan Relief Act
Policy area: Education

Summary:
COVID-19 Perkins Loan Relief Act
This bill suspends payments and interest on Federal Perkins Loans through September 30, 2020. (Currently, payments and interest are suspended on certain Federal Direct Loans and Federal Family Education Loans through this period.)
Specifically, the Department of Education (ED) must require holders of Federal Perkins Loans to (1) suspend the accrual of interest on such loans until September 30, 2020, and (2) confirm to ED that no interest has accrued on such loans as of March 13, 2020. ED must make suspended interest payments to holders of such loans on behalf of borrowers.
Further, ED must require institutions of higher education to (1) suspend all payments due from borrowers through September 30, 2020; (2) suspend all involuntary collections; (3) notify borrowers, within 15 days, that their loan payments have been suspended and interest has been waived; and (4) carry out a program, beginning on August 1, 2020, to provide not fewer than six notices to borrowers that normal payment obligations will resume.
Additionally, ED must

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7294 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7294

    To suspend Federal Perkins Loans repayments during the COVID-19 
                   pandemic, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 22, 2020

Ms. Porter (for herself, Ms. Stefanik, Mrs. Trahan, Ms. Adams, and Mrs. 
Lee of Nevada) introduced the following bill; which was referred to the 
Committee on Education and Labor, and in addition to the Committees on 
  the Judiciary, and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To suspend Federal Perkins Loans repayments during the COVID-19 
                   pandemic, and for other purposes.

    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 ``COVID-19 Perkins Loan Relief Act''.

SEC. 2. LOWERING RATES FOR BORROWERS WITH FEDERAL PERKINS LOANS.

    (a) Suspension of Interest.--
            (1) Suspension of interest.--The Secretary of Education 
        shall require holders of Federal Perkins Loans to suspend the 
        accrual of interest on such loans during the COVID-19 pandemic.
            (2) Requirements.--Under the program and effective as of 
        March 13, 2020, all holders of Federal Perkins Loans shall--
                    (A) provide that no interest shall accrue on 
                Federal Perkins Loans until September 30, 2020; and
                    (B) provide a report to the Secretary of Education 
                not later than 30 days after the date of the enactment 
                of this Act confirming that no interest has accrued on 
                such loans as of March 13, 2020.
            (3) Repayment of interest.--The Secretary of Education 
        shall make payments to the holders of Federal Perkins Loans on 
        behalf of each borrower of such a Federal Perkins Loan in an 
        amount equal to the total amount of the interest suspended 
        under paragraph (1) with respect to such Federal Perkins Loan.
    (b) Suspension of Payments.--
            (1) In general.--Notwithstanding any other provision of the 
        Higher Education Act of 1965 (20 U.S.C. 1071 et seq.), the 
        Secretary of Education shall require institutions of higher 
        education to suspend all payments due from borrowers through 
        September 30, 2020.
            (2) Consideration of payments.--Notwithstanding any other 
        provision of the Higher Education Act of 1965 (20 U.S.C. 1001 
        et seq.), the Secretary of Education shall deem each month for 
        which a loan payment was suspended under this subsection as if 
        the borrower of the loan had made a qualified payment for the 
        purpose of any loan forgiveness program and loan rehabilitation 
        program authorized under the Higher Education Act of 1965 (20 
        U.S.C. 1071 et seq.).
            (3) Reporting to consumer reporting agencies.--During the 
        period in which the borrower payments on a loan are suspended 
        under this subsection, the Secretary of Education shall ensure 
        that, for the purpose of reporting information about the loan 
        to a consumer reporting agency, any payment that has been 
        suspended is treated as if it were a regularly scheduled 
        payment made by a borrower.
    (c) Suspension of Involuntary Collection.--
            (1) Collection by institutions.--Notwithstanding any other 
        provision of the Higher Education Act of 1965 (20 U.S.C. 1071 
        et seq.), the Secretary of Education shall require that 
        institutions of higher education to suspend all involuntary 
        collection related to Federal Perkins Loans, through September 
        30, 2020, including collecting a past due Federal Perkins Loan, 
        assign any Federal Perkins Loan to a collection agency, or 
        litigating with respect to such loan.
            (2) Collection by secretary.--During the period beginning 
        on the date of the enactment of this section and ending on 
        September 30, 2020, the following provisions may not apply with 
        respect to a Federal Perkins Loan:
                    (A) A wage garnishment authorized under section 
                488A of the Higher Education Act of 1965 (20 U.S.C. 
                1095a) or section 3720D of title 31, United States 
                Code.
                    (B) A reduction of tax refund by amount of debt 
                authorized under section 3720A of title 31, United 
                States Code, or section 6402(d) of the Internal Revenue 
                Code of 1986.
                    (C) A reduction of any other Federal benefit 
                payment by administrative offset authorized under 
                section 3716 of title 31, United States Code (including 
                a benefit payment due to an individual under the Social 
                Security Act or any other provision described in 
                subsection (c)(3)(A)(i) of such section).
                    (D) Any other involuntary collection activity by 
                the Secretary of Education.
    (d) Notice to Borrowers and Transition Period.--To inform borrowers 
of the actions taken in accordance with this section and ensure an 
effective transition, the Secretary of Education shall require 
institutions of higher education to--
            (1) not later than 15 days after the date of the enactment 
        of this Act, notify borrowers--
                    (A) of the actions taken in accordance with this 
                section for whom payments have been suspended and no 
                interest shall accrue;
                    (B) of the actions taken in accordance with 
                subsection (c) for whom collections have been 
                suspended;
                    (C) of the option to continue making payments 
                toward principal; and
                    (D) that the program under this section shall only 
                be provided during the COVID-19 pandemic; and
            (2) beginning on August 1, 2020, carry out a program to 
        provide not less than 6 notices by postal mail, telephone, or 
        electronic communication to borrowers indicating when the 
        borrower's normal payment obligations will resume.
    (e) Waivers.--In carrying out this section, the Secretary of 
Education may waive the application of--
            (1) subchapter I of chapter 35 of title 44, United States 
        Code (commonly known as the ``Paperwork Reduction Act'');
            (2) the master calendar requirements under section 482 of 
        the Higher Education Act of 1965 (20 U.S.C. 1089);
            (3) negotiated rulemaking under section 492 of the Higher 
        Education Act of 1965 (20 U.S.C. 1098a); and
            (4) the requirement to publish the notices related to the 
        system of records of the agency before implementation required 
        under paragraphs (4) and (11) of section 552a(e) of title 5, 
        United States Code (commonly known as the ``Privacy Act of 
        1974''), except that the notices shall be published not later 
        than 180 days after the date of enactment of this Act.
    (f) Effective Date.--This section shall take effect as if included 
in the enactment of the CARES Act (Public Law 116-136).
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