Military Spouse Student Loan Deferment Act

Bill: 116-hr-7433
Sponsor: full_name: Rep. Stefanik, Elise M. [R-NY-21]
Introduced: 2020-06-30
Policy area: Education
Subjects: Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Marriage and family status

Military personnel and dependents

Student aid and college costs

Unemployment
Latest action: action_date: 2020-06-30
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2020-06-30
action_desc: Introduced in House
text: <p><b>Military Spouse Student Loan Deferment Act</b></p> <p>This bill allows certain military spouses to defer payment on their federal student loans for 90 days. Specifically, borrowers are eligible to receive this deferment if (1) their spouse is an active duty service member of the Armed Forces, (2) they have lost their employment due to a permanent change in duty station of their spouse, and (3) they provide certain documentation to the Department of Education. Loan interest shall not accrue during the deferment period.</p> <p />

tv_txt: I 116th CONGRESS 2d Session H. R. 7433 IN THE HOUSE OF REPRESENTATIVES June 30, 2020 Ms. Stefanik (for herself and Mr. Norcross ) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to provide student loan deferment for dislocated military spouses, and for other purposes.

1. Short title This Act may be cited as the Military Spouse Student Loan Deferment Act . 2. Student loan deferment for dislocated military spouses (a) In general Section 455(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f) ) is amended— (1) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (2) by inserting after paragraph (3) the following: (4) Deferment for dislocated military spouses (A) Duration and effect on principal and interest A borrower of a loan made, insured, or guaranteed under this part or part B who meets the requirements of subparagraph (B) shall be eligible for a deferment for a period of 90 days, during which periodic installments of principal need not be paid, and interest shall not accrue. (B) Eligibility A borrower of a loan made, insured, or guaranteed under this part or part B shall be eligible for a deferment under subparagraph (A) if the borrower— (i) is the spouse of a member of the Armed Forces serving on active duty; and (ii) has experienced a loss of employment as a result of relocation to accommodate a permanent change in duty station of such member. (C) Documentation and approval (i) In general A borrower may establish eligibility for a deferment under subparagraph (A) by providing to the Secretary— (I) the documentation described in clause (ii); or (II) such other documentation as the Secretary determines appropriate. (ii) Documentation The documentation described in this clause is— (I) evidence that the borrower is the spouse of a member of the Armed Forces serving on active duty; (II) evidence that a military permanent change of station order was issued to such member; and (III) (aa) evidence that the borrower is eligible for unemployment benefits due to a loss of employment resulting from relocation to accommodate such permanent change in duty station; or (bb) a written certification, or an equivalent as approved by the Secretary, that the borrower is registered with a public or private employment agency due to a loss of employment resulting from relocation to accommodate such permanent change in duty station. . (b) Effective date The amendments made by subsection (a) shall take effect 90 days after the date of the enactment of this Act.