Title: No Double Debt for Disaster Survivors Act of 2021
Policy area: Education

Summary:
No Double Debt for Disaster Survivors Act of 2021
This bill directs the Department of Education to discharge the outstanding federal student loan debt for a borrower who received, on or after January 1, 2020, a Small Business Administration (SBA) disaster loan. Further, the bill specifies that the amount of student loan debt discharged may not exceed the amount of the SBA disaster loan.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6125 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 6125

To authorize the Secretary of Education to discharge or cancel Federal 
 student loan liability for borrowers of disaster loans under section 
 7(b) of the Small Business Act made on or after January 1, 2020, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 2, 2021

   Mr. Carter of Louisiana introduced the following bill; which was 
            referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To authorize the Secretary of Education to discharge or cancel Federal 
 student loan liability for borrowers of disaster loans under section 
 7(b) of the Small Business Act made on or after January 1, 2020, 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 ``No Double Debt for Disaster 
Survivors Act of 2021''.

SEC. 2. TREATMENT OF LOANS FOR SBA DISASTER LOAN RECIPIENTS.

    (a) Discharge for SBA Disaster Loan Recipients.--
            (1) FFEL and federal direct loans.--Section 437 of the 
        Higher Education Act of 1965 (20 U.S.C. 1087) is amended--
                    (A) in the section header, by inserting ``; other 
                repayment'' before the period; and
                    (B) by adding at the end the following new 
                subsection:
    ``(e) Loans of SBA Disaster Loan Recipients.--If a borrower who 
received a loan made, insured, or guaranteed under this part also 
received, on or after January 1, 2020, a loan made under section 7(b) 
of the Small Business Act (15 U.S.C. 636(b)), the Secretary shall 
discharge the borrower's liability on the loan under this part by 
repaying the lesser of--
            ``(1) the amount owed on the loan under this part; or
            ``(2) an amount owed on the loan under this part that is 
        equal to the amount of the loan received by the borrower that 
        is made under section 7(b) of the Small Business Act (15 U.S.C. 
        636(b)).''.
            (2) Perkins loans.--Section 464(c)(1)(F) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087dd(c)(1)(F)) is amended--
                    (A) by moving clauses (i) through (iv) two ems to 
                the left;
                    (B) by striking ``or'' at the end of clause (iii);
                    (C) by inserting ``or'' after the semicolon in 
                clause (iv); and
                    (D) by adding at the end the following new clause:
                            ``(v) if the borrower received, on or after 
                        January 1, 2020, a loan made under section 7(b) 
                        of the Small Business Act (15 U.S.C. 636(b)), 
                        except that the amount of liability to repay a 
                        loan that is cancelled under this clause shall 
                        not exceed the amount of the loan made under 
                        section 7(b) of the Small Business Act (15 
                        U.S.C. 636(b)) that is received by the 
                        borrower;''.
    (b) Procedures for Discharge for SBA Disaster Loan Recipients.--
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 
et seq.) is amended by inserting after section 493D the following:

``SEC. 493E. PROCEDURES FOR DISCHARGE FOR SBA DISASTER LOAN RECIPIENTS.

    ``(a) Procedures.--The Secretary, in consultation with the 
Administrator of the Small Business Administration, shall develop and 
implement a procedure to--
            ``(1) identify borrowers of loans under part B, part D, and 
        part E of this title who have received, on or after January 1, 
        2020, a loan made under section 7(b) of the Small Business Act 
        (15 U.S.C. 636(b));
            ``(2) provide any certifications or affidavits needed to 
        enable such borrowers to document eligibility for discharge or 
        cancellation of student loans made, insured, or guaranteed 
        under part B, part D, or part E of this title in accordance 
        with section 437 or section 464(c); and
            ``(3) discharge or cancel student loans made, insured, or 
        guaranteed under part B, part D, and part E of this title, in 
        accordance section 437 or section 464(c), as soon as 
        practicable after the date of enactment of the No Double Debt 
        for Disaster Survivors Act of 2021, or, in the case of a 
        borrower who receives a loan made under section 7(b) of the 
        Small Business Act (15 U.S.C. 636(b)) after the date of 
        enactment of such Act, the date on which the borrower receives 
        such loan.
    ``(b) Reports.--
            ``(1) Initial report.--Not later than 6 months after the 
        date of enactment of the No Double Debt for Disaster Survivors 
        Act of 2021, the Secretary and the Administrator of the Small 
        Business Administration jointly shall report and provide 
        feedback to Congress on the progress made in developing and 
        implementing the procedures required under subsection (a), 
        including how such procedures will reduce waste, fraud, and 
        abuse.
            ``(2) Annual reports.--Not later than one year after the 
        date of enactment of the No Double Debt for Disaster Survivors 
        Act of 2021 and annually thereafter, the Secretary shall report 
        to Congress on--
                    ``(A) the number of individuals with loans 
                discharged under section 437(e), cancelled under 
                section 464(c)(1)(F)(v), or both; and
                    ``(B) the total dollar amount of loans discharged 
                or cancelled in accordance with such sections.''.
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