Title: Student Loan Relief for Feds Act
Policy area: Education

Summary:
Student Loan Relief for Feds Act
This bill makes federal student loans eligible for deferment during federal government shutdowns. Specifically, the bill allows affected federal, state, and District of Columbia employees and contractors to apply for deferment on their student loan payments during a shutdown and for three months after the shutdown has ended.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 781 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 781

   To require the Secretary of Education to provide a deferment for 
   certain student loans of Federal employees subject to a lapse in 
         discretionary appropriations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 24, 2019

   Mr. Perlmutter (for himself and Mr. Hurd of Texas) introduced the 
 following bill; which was referred to the Committee on Education and 
                                 Labor

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Education to provide a deferment for 
   certain student loans of Federal employees subject to a lapse in 
         discretionary appropriations, 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 ``Student Loan Relief for Feds Act''.

SEC. 2. SPECIAL DEFERMENT FOR FEDERAL EMPLOYEES DURING LAPSE IN 
              APPROPRIATIONS.

    (a) Special Deferment.--Part G of the Higher Education Act of 1965 
(20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

``SEC. 493E. SPECIAL DEFERMENT FOR FEDERAL EMPLOYEES DURING LAPSE IN 
              APPROPRIATIONS.

    ``(a) Effect on Principal and Interest.--A borrower of a loan made, 
insured, or guaranteed under part B or part D, who meets the 
requirements described in subsection (b) shall be eligible for a 
deferment, during which--
            ``(1) periodic installments of principal need not be paid; 
        and
            ``(2) in the case of a--
                    ``(A) loan made, insured, or guaranteed under part 
                B, the Secretary shall repay any interest owed; and
                    ``(B) loan made under part D, interest shall not 
                accrue.
    ``(b) Eligibility.--A borrower of a loan described in subsection 
(a) shall be eligible for a deferment during--
            ``(1) any period in which such borrower is an employee--
                    ``(A) of a Federal agency that is subject to a 
                lapse in discretionary appropriations;
                    ``(B) of a private entity that has a contract with 
                a Federal agency subject to a lapse in discretionary 
                appropriations who is not paid during such period due 
                to such lapse in discretionary appropriations;
                    ``(C) who is an employee of a State or other 
                Federal grantee--
                            ``(i) whose compensation is advanced or 
                        reimbursed in whole or in part by the Federal 
                        Government, and
                            ``(ii) who is furloughed due to a lapse in 
                        Federal discretionary appropriations; or
                    ``(D) who is furloughed due to a lapse in Federal 
                discretionary appropriations as an employee of the 
                District of Columbia Courts, the Public Defender 
                Service for the District of Columbia, or the District 
                of Columbia government; and
            ``(2) the 3 months after the date on which the lapse in 
        discretionary appropriations described in subparagraphs (A) 
        through (D) of paragraph (1) applicable to such employee has 
        ended.''.
    (b) Effect of Shutdown Deferment on Public Service Loan 
Forgiveness.--Section 455(m) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(m)) is amended by adding at the end the following:
            ``(5) Treatment of missed monthly payments during special 
        deferment.--For purposes of calculating the 120 monthly 
        payments on an eligible Federal Direct Loan under paragraph 
        (1)(A), the Secretary shall treat an unpaid payment on a loan 
        under a repayment plan described in clauses (i) through (iv) of 
        paragraph (1)(A) that occurs during a deferment under section 
        493E as if such monthly payment was made on the loan.''.
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