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.

Bill: 114-hr-2677
Sponsor: full_name: Rep. Salmon, Matt [R-AZ-5]
Introduced: 2015-06-04
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: 2015-11-16
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2015-06-04
action_desc: Introduced in House
text: <p>This bill amends the Higher Education Act of 1965, with respect to eligibility for consolidation loans, to require verification of a borrower's status by the Department of Education in the following cases:</p> <ul> <li>for obtaining income-contingent or -based repayment, and only if the loan has been submitted to the guaranty agency for default aversion or where the loan is already in default;</li> <li>for the purposes of using the public service loan forgiveness program; or</li> <li>for the purpose of using the no accrual of interest benefit for active duty service members.</li> </ul>

tv_txt: I 114th CONGRESS 1st Session H. R. 2677 IN THE HOUSE OF REPRESENTATIVES June 4, 2015 Mr. Salmon (for himself, Mr. Engel , Mr. Guthrie , Mr. Hastings , Mr. Hunter , Mr. Payne , and Mr. Walberg ) 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.

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 semicolon 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 semicolon 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. .