Student Loan De­fer­ment Act of 2019

Bill: 116-hr-4119
Sponsor: full_name: Rep. Lawson, Al, Jr. [D-FL-5]
Introduced: 2019-07-30
Policy area: Education
Subjects: Government Accountability Office (GAO)

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2019-07-30
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-07-30
action_desc: Introduced in House
text: <p><b>Student Loan Deferment Act of 2019</b></p> <p>This bill extends the grace period for the repayment of Federal Direct Loans to one year, and it freezes the interest rate at zero percent during such period.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4119 IN THE HOUSE OF REPRESENTATIVES July 30, 2019 Mr. Lawson of Florida (for himself, Ms. Tlaib , and Mr. Vargas ) 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 extend the interest-free grace period certain loans, and for other purposes.

1. Short title This Act may be cited as the Student Loan De­fer­ment Act of 2019 . 2. Interest-free grace period (a) Repayment period (1) Extension of grace period Section 428(b)(7)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b)(7)(A) ) is amended by striking 6 months and inserting 1 year . (2) Perkins Section 464(c)(1)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(c)(1)(A) ) is amended— (A) by striking nine months and inserting 1 year ; and (B) by striking 9 months and inserting 1 year . (b) Interest rates Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended by adding at the end the following: (11) In school and grace period rules Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan made under this part for which the first disbursement is made on or after July 1, 2020, the applicable rate of interest for interest which accrues— (A) prior to the beginning of the repayment period of the loan; or (B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(1)(M) or 427(a)(2)(C), shall be equal to zero percent. .