To require the Secretary of Education to provide a deferment for certain student loans of Federal employees subject to a lapse in discretionary appropriations, and for other purposes.

Bill: 116-hr-672
Sponsor: full_name: Rep. Loebsack, David [D-IA-2]
Introduced: 2019-01-17
Policy area: Education
Subjects: Appropriations

Government employee pay, benefits, personnel management

Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2019-01-17
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-01-17
action_desc: Introduced in House
text: <p>This bill makes federally owned student loans of federal employees eligible for deferment during governmental shutdowns. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 672 IN THE HOUSE OF REPRESENTATIVES January 17, 2019 Mr. Loebsack (for himself, Mr. Harder of California , and Mr. Gomez ) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To require the Secretary of Education to provide a deferment for certain student loans of Federal employees subject to a lapse in discretionary appropriations, and for other purposes.

1. Deferment for Federal employees during government shutdowns (a) Shutdown deferment (1) Effect on principal and interest Notwithstanding any other provision of law, a borrower of a loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq.; 1087a et seq.) who meets the requirements described in paragraph (2) shall be eligible for a deferment, during which— (A) periodic installments of principal need not be paid; and (B) in the case of a— (i) loan made, insured, or guaranteed under part B of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq.), the Secretary shall repay any interest owed; and (ii) loan made under part D of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.), interest shall not accrue. (2) Eligibility A borrower of a loan described in paragraph (1) shall be eligible for a deferment during any period of not less than 15 consecutive days in which such borrower is an employee of a Federal agency that is subject to a lapse in discretionary appropriations. (b) Effect of shutdown deferment on public service loan forgiveness (1) In general Notwithstanding any other provision of law, for purposes of section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) )— (A) the Secretary of Education shall treat an unpaid monthly payment on a loan during a deferment period described in subsection (a)(2) as if such monthly payment has been made on the loan if, during the reimbursement period, the borrower of such loan— (i) makes each monthly payment due on such loan for each month of such reimbursement period; (ii) pays the amount of such unpaid monthly payment; and (iii) not later than the day on which the first monthly payment is due during such reimbursement period, pays any other amounts that were due on such loan as of the day before the deferment period; and (B) with respect to a borrower who does not pay the amount of any such unpaid monthly payment on a loan during such reimbursement period, beginning with the first monthly payment due on such loan after the reimbursement period and for each succeeding monthly payment until the total amount of such unpaid monthly payments on such loan are paid, the amount of the monthly payment due on such loan shall equal— (i) the monthly payment due on such loan for such month; and (ii) the amount of 1 unpaid monthly payment on such loan. (2) Definitions For purposes of paragraph (1): (A) Deferment The term deferment period , when used with respect to a borrower, means the period in which the borrower is in the deferment described in subsection (a)(2). (B) Monthly payment The term monthly payment means a monthly payment under section 455(m)(1)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(1)(A) ). (C) Reimbursement period The term reimbursement period , when used with respect to a borrower, means a period that is— (i) equal to the number of days of the deferment period of the borrower; and (ii) begins on the day after such deferment period.