Title: 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.
Policy area: Education

Summary:
This bill makes federally owned student loans of federal employees eligible for deferment during governmental shutdowns.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 672 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 672

   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 17, 2019

  Mr. Loebsack (for himself, Mr. Harder of California, and Mr. Gomez) 
 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. DEFERMENT FOR FEDERAL EMPLOYEES DURING GOVERNMENT SHUTDOWNS.

    (a) Shutdown Deferment.--
            (1) Effect on principal and interest.--Notwithstanding any 
        other provision of law, a borrower of a loan made, insured, or 
        guaranteed under part B or D of the Higher Education Act of 
        1965 (20 U.S.C. 1071 et seq.; 1087a et seq.) who meets the 
        requirements described in paragraph (2) shall be eligible for a 
        deferment, during which--
                    (A) periodic installments of principal need not be 
                paid; and
                    (B) in the case of a--
                            (i) loan made, insured, or guaranteed under 
                        part B of the Higher Education Act of 1965 (20 
                        U.S.C. 1071 et seq.), the Secretary shall repay 
                        any interest owed; and
                            (ii) loan made under part D of the Higher 
                        Education Act of 1965 (20 U.S.C. 1087a et 
                        seq.), interest shall not accrue.
            (2) Eligibility.--A borrower of a loan described in 
        paragraph (1) shall be eligible for a deferment during any 
        period of not less than 15 consecutive days in which such 
        borrower is an employee of a Federal agency that is subject to 
        a lapse in discretionary appropriations.
    (b) Effect of Shutdown Deferment on Public Service Loan 
Forgiveness.--
            (1) In general.--Notwithstanding any other provision of 
        law, for purposes of section 455(m) of the Higher Education Act 
        of 1965 (20 U.S.C. 1087e(m))--
                    (A) the Secretary of Education shall treat an 
                unpaid monthly payment on a loan during a deferment 
                period described in subsection (a)(2) as if such 
                monthly payment has been made on the loan if, during 
                the reimbursement period, the borrower of such loan--
                            (i) makes each monthly payment due on such 
                        loan for each month of such reimbursement 
                        period;
                            (ii) pays the amount of such unpaid monthly 
                        payment; and
                            (iii) not later than the day on which the 
                        first monthly payment is due during such 
                        reimbursement period, pays any other amounts 
                        that were due on such loan as of the day before 
                        the deferment period; and
                    (B) with respect to a borrower who does not pay the 
                amount of any such unpaid monthly payment on a loan 
                during such reimbursement period, beginning with the 
                first monthly payment due on such loan after the 
                reimbursement period and for each succeeding monthly 
                payment until the total amount of such unpaid monthly 
                payments on such loan are paid, the amount of the 
                monthly payment due on such loan shall equal--
                            (i) the monthly payment due on such loan 
                        for such month; and
                            (ii) the amount of 1 unpaid monthly payment 
                        on such loan.
            (2) Definitions.--For purposes of paragraph (1):
                    (A) Deferment.--The term ``deferment period'', when 
                used with respect to a borrower, means the period in 
                which the borrower is in the deferment described in 
                subsection (a)(2).
                    (B) Monthly payment.--The term ``monthly payment'' 
                means a monthly payment under section 455(m)(1)(A) of 
                the Higher Education Act of 1965 (20 U.S.C. 
                1087e(m)(1)(A)).
                    (C) Reimbursement period.--The term ``reimbursement 
                period'', when used with respect to a borrower, means a 
                period that is--
                            (i) equal to the number of days of the 
                        deferment period of the borrower; and
                            (ii) begins on the day after such deferment 
                        period.
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