GPA Act

Bill: 115-hr-3560
Sponsor: full_name: Rep. Aguilar, Pete [D-CA-31]
Introduced: 2017-07-28
Policy area: Education
Subjects: Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2017-07-28
text: Referred to the House Committee on Education and the Workforce.

Summaries:
action_date: 2017-07-28
action_desc: Introduced in House
text: <p><strong>Grace Period Alleviation Act or the GPA Act</strong></p> <p>This bill amends the Higher&nbsp;Education Act of 1965 to allow a borrower of a Federal Direct Stafford Loan (whether subsidized or unsubsidized) to elect a one-year grace period before beginning repayment on the loan.</p> <p>The Department of Education, through a loan modification process,&nbsp;must pay to each borrower who received a Federal Direct Stafford Loan for which the first disbursement was made between July 1, 2012, and July 1, 2014, an amount equal to the amount of interest that accrued on the loan prior to the beginning of the repayment period.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 3560 IN THE HOUSE OF REPRESENTATIVES July 28, 2017 Mr. Aguilar introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To amend the Higher Education Act of 1965 to give borrowers an option to extend the grace period prior to the beginning of the repayment period, and for other purposes.

1. Short title This Act may be cited as the Grace Period Alleviation Act or the GPA Act . 2. Grace period adjustments Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— (1) in subsection (b), by adding at the end the following: (11) Repayment of interest The Secretary, through a loan modification process, shall pay to each borrower who received a Federal Direct Stafford Loan for which the first disbursement was made during the period between July 1, 2012, and July 1, 2014, an amount equal to the amount of interest that accrued on such loan prior to the beginning of the repayment period. ; and (2) by adding at the end the following: (r) Election of extended grace period (1) In general The Secretary shall provide an opportunity for each borrower who receives a Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan to elect a 12-month grace period before beginning repayment on the loan. The Secretary shall— (A) notify each such borrower of the opportunity for such an election not later than 45 days before the start of the borrower’s repayment period on the loan; (B) advise each such borrower of the financial consequences of electing such 12-month grace period; and (C) not require such a borrower to accept a 12-month grace period, unless the borrower specifically elects such 12-month grace period not later than 14 days before the start of the borrower’s repayment period on the loan. (2) Application of section 428(b)(7) With respect to each borrower who makes an election for a 12-month grace period under paragraph (1) of this subsection, section 428(b)(7) shall be applied— (A) in subparagraph (A), as if or, in the case of a student who makes an election under section 455(r)(1), 12 months were inserted after 6 months ; and (B) in subparagraph (D), as if or, in the case of a student who makes an election under section 455(r)(1), the 12-month period were inserted after 6-month period . .