College Loan Deferment for Recovery Act

Bill: 115-hr-4597
Sponsor: full_name: Rep. MacArthur, Thomas [R-NJ-3]
Introduced: 2017-12-07
Policy area: Education
Subjects: Drug, alcohol, tobacco use

Higher education

Interest, dividends, interest rates

Long-term, rehabilitative, and terminal care

Student aid and college costs
Latest action: action_date: 2017-12-07
text: Referred to the House Committee on Education and the Workforce.

Summaries:
action_date: 2017-12-07
action_desc: Introduced in House
text: <p><b>College Loan Deferment for Recovery Act</b></p> <p>This bill amends the Higher Education Act of 1965 to allow borrowers to defer student loans while they are enrolled in a drug treatment program and during the 30 days after completing the program.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 4597 IN THE HOUSE OF REPRESENTATIVES December 7, 2017 Mr. MacArthur (for himself, Ms. Esty of Connecticut , Mr. Foster , and Mr. Carson of Indiana ) 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 allow for the deferment of certain student loans during a period in which a borrower is enrolled in a drug treatment program.

1. Short title This Act may be cited as the College Loan Deferment for Recovery Act . 2. Student loan deferment for borrowers enrolled in a drug treatment program (a) Direct Loans Section 455(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f) ) is amended— (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: (3) Deferment for borrowers enrolled in a drug treatment program (A) Effect on principal and interest A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest shall not accrue. (B) Eligibility A borrower of a loan made under this part shall be eligible for a deferment during— (i) any period in which such borrower is enrolled in a drug treatment program; and (ii) the 30 days after such period. (C) Drug treatment program defined In this paragraph, the term drug treatment program means a program certified or licensed by a State to provide drug treatment in the State. (D) Applicability This paragraph shall apply with respect to loans— (i) made on or after the date of the enactment of this paragraph; or (ii) in repayment on the date of the enactment of this paragraph. . (b) Terms of Federally Insured Student Loans Section 427(a)(2)(C) of the Higher Education Act of 1965 ( 20 U.S.C. 1077(a)(2)(C) ) is amended— (1) in clause (ii), by striking ; or and inserting a semicolon; (2) in clause (iii), by inserting or after the semicolon; and (3) by inserting after clause (iii) the following: (iv) in which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period. . (c) FFEL program Section 428(b)(1)(M) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b)(1)(M) ) is amended— (1) in clause (iii), by striking or (II); or and inserting or (II); ; (2) in clause (iv), by inserting or after the semicolon; and (3) by adding at the end the following: (v) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period; . (d) Federal Perkins loans Section 464(c)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(c)(2) ) is amended— (1) in subparagraph (A)— (A) in clause (iv), by striking ; or and inserting a semicolon; (B) in clause (v), by inserting or after the semicolon; and (C) by inserting after clause (v) the following: (vi) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period; . (e) Interest on unsubsubsidized Stafford Loans Section 428H(e)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–8(e)(2) ) is amended— (1) in subparagraph (A), by striking Interest and inserting, Except as provided in subparagraph (C), interest ; and (2) by adding at the end the following: (C) Interest shall not accrue on a loan deferred under section 428(b)(1)(M)(v) or 427(a)(2)(C)(iv). . (f) Applicability The amendments made by this Act shall apply with respect to loans— (1) made on or after the date of the enactment of this Act; or (2) in repayment on the date of the enactment of this Act.