To require the Secretary of Education to verify that individuals have made a commitment to serve in the Armed Forces or in public service, or otherwise are a borrower on an eligible loan which has been submitted to a guaranty agency for default aversion or is already in default, before such individuals obtain a consolidation loan for purposes specified under section 455(o) of the Higher Education Act of 1965.

Bill: 113-hr-4579
Sponsor: full_name: Rep. Salmon, Matt [R-AZ-5]
Introduced: 2014-05-06
Policy area: Education
Subjects: Government employee pay, benefits, personnel management

Government lending and loan guarantees

Higher education

Military personnel and dependents

National Guard and reserves

Student aid and college costs
Latest action: action_date: 2014-06-13
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2014-05-06
action_desc: Introduced in House
text: <p>Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Secretary of Education to verify that individuals who are applying for Direct Consolidation loans on the following bases are in fact: </p> <ul> <li>currently eligible for income contingent repayment or income-based repayment of a loan that has been submitted to a guaranty agency for default aversion or is already in default;</li> <li>employed in a public service job and thereby eligible to participate in the public service loan forgiveness program; or</li> <li>a member of a regular or reserve component of the Armed Forces and thereby eligible to benefit from the no accrual of interest for active duty service members program. </li> </ul>

tv_txt: I 113th CONGRESS 2d Session H. R. 4579 IN THE HOUSE OF REPRESENTATIVES May 6, 2014 Mr. Salmon (for himself, Mr. Hastings of Florida , Mr. Roe of Tennessee , Mr. Garcia , Mr. Guthrie , Mr. Hunter , Mr. Walberg , Mr. Murphy of Florida , and Mr. Engel ) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To require the Secretary of Education to verify that individuals have made a commitment to serve in the Armed Forces or in public service, or otherwise are a borrower on an eligible loan which has been submitted to a guaranty agency for default aversion or is already in default, before such individuals obtain a consolidation loan for purposes specified under section 455(o) of the Higher Education Act of 1965.

1. Required verification Section 428C of the Higher Education Act of 1965 ( 20 U.S.C. 1078–3 ) is amended— (1) in subsection (a)(3)(B)(i)(V)(aa), by inserting before the period at the end the following: in a case in which the Secretary verifies that the individual is currently eligible for income contingent repayment or income-based repayment and that the loan(s) in question have been submitted to the guaranty agency for default aversion or if the loan is already in default ; (2) in subsection (a)(3)(B)(i)(V)(bb), by inserting before the period at the end the following: in a case in which the Secretary verifies with documentation that the individual is, at the time of the application, employed in a public service job, as that term is defined in section 455(m)(3) ; (3) in subsection (a)(3)(B)(i)(V)(cc), by inserting before the period at the end the following: in a case in which the Secretary verifies that the individual is a member of a regular or reserve component of the Armed Forces by contacting the Secretary of the military department or the Secretary of Homeland Security, as the case may be, having jurisdiction over the Armed Force in which the individual claims to be a member ; and (4) in subsection (b)(5), by inserting after the second sentence the following: In addition, the Secretary shall not offer any loans offered under this paragraph unless the Secretary has received verification described in subsection (a)(3)(B)(i)(V) (aa)–(cc), as applicable. .