Title: Rural Revitalization Now Act
Policy area: Education

Summary:
Rural Revitalization Now Act
This bill establishes a program to provide up to $50,000 in student loan forgiveness for each borrower who lives and works in a qualifying area for eight or more years. Qualifying areas are cities or towns that are defined based on population size, population loss over the last 10 years, potential economic benefit, or designation as a major disaster area within the last 5 years.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8835 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 8835

 To amend the Higher Education Act of 1965 to provide for a relocation 
 and retention student loan repayment program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 2, 2020

 Ms. Finkenauer (for herself and Mr. Delgado) introduced the following 
 bill; which was referred to the Committee on Education and Labor, and 
  in addition to the Committee on 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 amend the Higher Education Act of 1965 to provide for a relocation 
 and retention student loan repayment program, 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 ``Rural Revitalization Now Act''.

SEC. 2. RELOCATION AND RETENTION STUDENT LOAN PROGRAM.

    Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) 
is amended by adding at the end the following:
    ``(r) Relocation and Retention Student Loan Repayment Program.--
            ``(1) In general.--
                    ``(A) Enrolled loan amount.--A borrower may elect 
                to enroll any combination of principal and accrued 
                interest that has not been capitalized on eligible 
                loans not in default as an enrolled loan balance under 
                the program under this subsection in an amount that is 
                equal to--
                            ``(i) an amount agreed to by the borrower, 
                        Secretary, and sponsoring entity (or a 
                        combination of such sponsoring entities); and
                            ``(ii) except as provided in paragraph 
                        (3)(B)(ii), the lesser of the following:
                                    ``(I) $50,000.
                                    ``(II) The total amount of eligible 
                                loans of such borrower.
                    ``(B) Cancellation or repayment required.--The 
                Secretary shall cancel or repay an amount determined 
                under paragraph (2)(A) of the balance due on any 
                enrolled loan balance not in default for a borrower 
                who--
                            ``(i) has maintained residence in a 
                        qualifying area during a 12-month period and 
                        such borrower attests that such residence is a 
                        primary residence; and
                            ``(ii) demonstrates to the Secretary in the 
                        agreement under paragraph (2)(A) that a 
                        sponsoring entity certified in accordance with 
                        paragraph (3)(A) (or a combination of such 
                        sponsoring entities) will, except as provided 
                        in paragraph (3)(B)(ii), match the amounts 
                        cancelled or repaid by the Secretary as 
                        payments made by such sponsoring entity (or a 
                        combination of such sponsoring entities) 
                        towards the repayment of the enrolled loan 
                        balance.
                    ``(C) Certification.--The Secretary shall establish 
                a user-friendly, simplified, and electronic process 
                using the online portal required under paragraph (5)(B) 
                through which a borrower who makes an election to 
                enroll eligible loans into an enrolled loan balance 
                under subparagraph (A) shall annually certify 
                enrollment in the program under this subsection.
                    ``(D) No payments required by borrower.--A borrower 
                may not be required to make payments with respect to 
                the enrolled loan balance (or payments on the interest 
                that accrues on the total amount of such enrolled loan 
                balance) during any 12-month period in which the 
                borrower is enrolled in the program under this 
                subsection.
            ``(2) Schedule.--
                    ``(A) Agreement.--Subject to subparagraph (B), the 
                Secretary shall enter into an agreement with a borrower 
                and sponsoring entity (or a combination of such 
                sponsoring entities) to cancel or repay an amount with 
                respect to each 12-month period described under 
                paragraph (1)(B)(i) such that over the period of 96 
                months the total amount of cancellation under paragraph 
                (1) is equal to an amount that, except as provided in 
                paragraph (3)(B)(ii), is equal to the lesser of the 
                following:
                            ``(i) $25,000 toward the enrolled loan 
                        balance, plus the interest that accrues on the 
                        total amount of the enrolled loan balance under 
                        paragraph (1)(A).
                            ``(ii) Half of the total amount of the 
                        enrolled loan balance, plus the interest that 
                        accrues on the total amount of the enrolled 
                        loan balance under paragraph (1)(A).
                    ``(B) Increased cancellation amounts over time.--
                The Secretary shall establish a standardized 
                cancellation or repayment schedule for purposes of the 
                program under this subsection such that over the course 
                of 8 cancellations or repayments of the enrolled loan 
                balance under paragraph (1), the total amount cancelled 
                or repaid with respect to each 12-month period 
                increases.
                    ``(C) Number of cancellations.--A borrower--
                            ``(i) may receive during a 12-month period 
                        for which the borrower is certified not more 
                        than one cancellation or repayment under 
                        paragraph (1); and
                            ``(ii) may not receive more than 8 such 
                        cancellations or repayments.
                    ``(D) Prohibition on pressuring borrowers.--
                            ``(i) In general.--A private education loan 
                        debt collector or creditor may not pressure a 
                        borrower of a private loan to elect to apply 
                        any amount received pursuant to paragraph (1) 
                        to any private education loan.
                            ``(ii) Violations.--A violation of this 
                        subparagraph is deemed--
                                    ``(I) an unfair, deceptive, or 
                                abusive act or practice under Federal 
                                law in connection with any transaction 
                                with a consumer for a consumer 
                                financial product or service under 
                                section 1031 of the Consumer Financial 
                                Protection Act of 2010 (12 U.S.C. 
                                5531); and
                                    ``(II) with respect to a violation 
                                by a debt collector, an unfair or 
                                unconscionable means to collect or 
                                attempt to collect any debt under 
                                section 808 of the Federal Debt 
                                Collection Practices Act (15 U.S.C. 
                                1692f).
                            ``(iii) Pressure defined.--In this 
                        subparagraph, the term `pressure' means any 
                        communication, recommendation, or other similar 
                        communication, other than providing basic 
                        information about a borrower's options, urging 
                        a borrower to make an election described in 
                        clause (i).
                    ``(E) Unenrollment.--A borrower who no longer 
                resides in a qualifying area after receiving a 
                cancellation or repayment under this subsection shall 
                be unenrolled from the program under this subsection 
                and the remaining enrolled loan balance of such 
                borrower shall be included in the eligible loans from 
                which such enrolled loan balance derived. Such 
                unenrollment shall not preclude a borrower from 
                enrolling the eligible loans of the borrower into an 
                appropriate loan forgiveness or repayment program, 
                including such a program in which the borrower is, at 
                the time of such unenrollment, already enrolled or 
                participating in.
                    ``(F) Regulations.--The Secretary shall issue such 
                regulations as are necessary to allow borrowers to 
                concurrently enroll in the program under this 
                subsection with respect to an enrolled loan balance and 
                a loan forgiveness or repayment program with respect to 
                the other eligible loans of the borrower not so 
                enrolled. In the case of a borrower described in 
                subparagraph (E), the Secretary shall establish through 
                regulation a process by which the remaining enrolled 
                loan balance of such borrower is included in to the 
                eligible loans from which such enrolled loan balance 
                derived and may be enrolled in an appropriate loan 
                forgiveness or repayment program if the borrower would 
                otherwise be eligible for such program.
            ``(3) Sponsoring entities.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Commerce and the Secretary of 
                Labor, shall carry out a program to certify States, 
                counties, localities, territories, Tribes, nonprofit 
                entities, and qualifying partnerships that are able to 
                provide funding to borrowers for purposes of this 
                subsection. Such program shall include standard 
                requirements relating to the treatment of default by a 
                sponsoring entity and the ability of a sponsoring 
                entity to be certified or recertified after such a 
                default.
                    ``(B) Matching funds.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a sponsoring entity (or a 
                        combination of such sponsoring entities) shall 
                        match (except with respect to the interest that 
                        accrues on the total amount of the enrolled 
                        loan balance under paragraph (1)(A)) the 
                        amounts cancelled or repaid by the Secretary 
                        under paragraph (1) as payments made by such 
                        sponsoring entity towards the repayment of the 
                        enrolled loan balance.
                            ``(ii) Exceptions.--
                                    ``(I) Extreme financial hardship.--
                                In the case of a sponsoring entity (or 
                                a combination of such sponsoring 
                                entities) with an extreme financial 
                                hardship that demonstrates such 
                                hardship to the Secretary, through a 
                                process determined by the Secretary, 
                                the sponsoring entity and the Secretary 
                                may agree to match amounts such that 
                                the total amount repaid or cancelled 
                                under this subsection is less than the 
                                amount described in paragraph (1)(A), 
                                so long as the total amount repaid with 
                                respect to each 12-month period 
                                increases.
                                    ``(II) Additional payments.--A 
                                sponsoring entity (or a combination of 
                                such sponsoring entities) may provide 
                                more than the match required under 
                                clause (i) if the Secretary determines 
                                that, over the course of providing more 
                                than the matching amount of the 
                                repayments or cancellations under 
                                paragraph (1), the total amount repaid 
                                by such sponsoring entity with respect 
                                to each 12-month period increases.
                            ``(iii) Interest.--The Secretary shall 
                        cancel or repay the interest that accrues on 
                        the total amount of the enrolled loan balance 
                        under paragraph (1)(A), regardless of whether 
                        an exception under clause (ii) applies with 
                        respect to such an enrolled loan balance.
                    ``(C) Default.--In the case of a borrower for which 
                a sponsoring entity (or a combination of such 
                sponsoring entities) offers to provide loan 
                cancellation or repayment under this subsection and 
                subsequently defaults on such offer, such borrower may 
                not be held responsible for repayment of the amount 
                such sponsoring entity (or a combination of such 
                sponsoring entities) offered to provide such borrower.
                    ``(D) Rules of construction.--Nothing in this 
                subsection shall preclude--
                            ``(i) the Secretary from establishing a 
                        process to financially assist a sponsoring 
                        entity (or a combination of such sponsoring 
                        entities) that defaults on loan cancellation or 
                        repayment (as described in subparagraph (C)) so 
                        long as such process does not hold a borrower 
                        responsible for any repayments with respect to 
                        such a default; or
                            ``(ii) a sponsoring entity (or a 
                        combination of such sponsoring entities) from 
                        establishing reciprocal agreements, partnering, 
                        collaborating, or otherwise coordinating with 
                        other sponsoring entities to provide matching 
                        funds as required under subparagraph (B)(i) and 
                        avoid default.
                    ``(E) Guidance.--The Secretary shall issue guidance 
                to assist sponsoring entities (or a combination of such 
                sponsoring entities) with establishing preference and 
                developing criteria to select borrowers for sponsorship 
                under this subsection and to select borrowers to 
                receive additional payments under subparagraph 
                (B)(ii)(II).
            ``(4) Tax treatment of cancelled or repaid amounts.--For 
        purpose of the Internal Revenue Code of 1986, no amount shall 
        be included in any person's gross income by reason of the 
        discharge under this subsection of any indebtedness.
            ``(5) Department activities.--
                    ``(A) Information for borrowers.--The Secretary 
                shall establish on the public website of the Department 
                of Education, and periodically update--
                            ``(i) a list of qualifying areas;
                            ``(ii) a list of sponsoring entities 
                        certified under paragraph (3)(A) available with 
                        respect to such qualifying areas; and
                            ``(iii) contact information for such 
                        sponsoring entities.
                    ``(B) Online portal.--The Secretary shall establish 
                an online portal through the public website of the 
                Department of Education for borrowers to--
                            ``(i) certify enrollment in the program 
                        under this section;
                            ``(ii) check the status of an enrollment 
                        certification under this section and the 
                        deadlines with respect to such certifications;
                            ``(iii) check the enrollment status of such 
                        borrower with respect to the program under this 
                        section; and
                            ``(iv) view the amount of assistance the 
                        borrower has received or will receive with 
                        respect to the enrolled loan balance of the 
                        borrower and the dates on which such amounts 
                        were received or will be received.
                    ``(C) Outreach.--The Secretary shall develop and 
                implement an outreach plan to notify--
                            ``(i) potential sponsoring entities of the 
                        certification process under paragraph (3)(A);
                            ``(ii) sponsoring entities of 
                        recertification requirements under this 
                        subsection; and
                            ``(iii) borrowers (including prospective 
                        borrowers) of eligible loans of the program 
                        under this subsection, including the benefits 
                        of such program and how to meet the 
                        requirements to participate in such program.
            ``(6) Definitions.--In this subsection:
                    ``(A) Eligible loan.--The term `eligible loan' 
                means a Federal Direct Stafford Loan, Federal Direct 
                PLUS Loan, or Federal Direct Unsubsidized Stafford 
                Loan, a Federal Direct Consolidation Loan, Federal 
                Family Education Loan, Federal Perkins Loan, or a 
                private education loan.
                    ``(B) Private education loan.--The term `private 
                education loan' has the meaning given the term in 
                section 140 of the Truth in Lending Act (15 U.S.C. 
                1650).
                    ``(C) Qualifying area.--The term `qualifying area' 
                means--
                            ``(i) any city or town which has a 
                        population of less than 20,000 inhabitants 
                        other than a city or town in a densely settled 
                        area or adjacent to, or closely associated 
                        with, one or more cities or towns which, 
                        considered collectively, do not meet the 
                        criteria of this subparagraph;
                            ``(ii) any city or town which has a 
                        population of greater than or equal to 20,000 
                        inhabitants and less than 100,000 inhabitants 
                        that with respect to which, during the most 
                        recent 10-year period, the net population loss 
                        from the area equals or exceeds 0 percent of 
                        the population of the area other than a city or 
                        town in a densely settled area or adjacent to, 
                        or closely associated with, one or more cities 
                        or towns which, considered collectively, do not 
                        meet the criteria of this subparagraph;
                            ``(iii) any city or town which has a 
                        population of greater than or equal to 100,000 
                        inhabitants and less than 150,000 inhabitants 
                        that--
                                    ``(I) with respect to which, during 
                                the most recent 10-year period, the net 
                                population loss from the area equals or 
                                exceeds 0 percent of the population of 
                                the area;
                                    ``(II) the Secretary of Education, 
                                in consultation with the Secretary of 
                                Commerce, determines would economically 
                                benefit from serving as a qualifying 
                                geographic area; and
                                    ``(III) is not in a densely settled 
                                area or adjacent to, or closely 
                                associated with, one or more cities or 
                                towns which, considered collectively, 
                                do not meet the criteria of this 
                                subparagraph; or
                            ``(iv) any city or town not described in 
                        clauses (i) through (iii) which has a 
                        population of less than 300,000 inhabitants--
                                    ``(I) that is included in a major 
                                disaster declared by the President 
                                under section 401 of the Robert T. 
                                Stafford Disaster Relief and Emergency 
                                Assistance Act (42 U.S.C. 5170) (not 
                                including the major disaster declared 
                                by reason of the novel coronavirus 
                                (COVID-19)) during the five-year period 
                                preceding the date on which a borrower 
                                is enrolled in the program under this 
                                subsection;
                                    ``(II) that--
                                            ``(aa) the Secretary of 
                                        Education, in consultation with 
                                        the Secretary of Commerce, 
                                        determines would economically 
                                        benefit from serving as a 
                                        qualifying geographic area; or
                                            ``(bb) the Secretary of 
                                        Education, in consultation with 
                                        the Secretary of Commerce and 
                                        the Secretary of Housing and 
                                        Urban Development, determines 
                                        would support community 
                                        recovery by serving as a 
                                        qualifying geographic area; and
                                    ``(III) is not adjacent to, or 
                                closely associated with, one or more 
                                cities or towns which, considered 
                                collectively, do not meet the criteria 
                                of this subparagraph.
                    ``(D) Fair debt collection practices act terms.--
                The terms `creditor' and `debt collector' have the 
                meaning given those terms, respectively, under section 
                803 of the Fair Debt Collection Practices Act (15 
                U.S.C. 1692a).''.
                                 <all>