Student Loan Relief Act of 2019

Bill: 116-hr-4749
Sponsor: full_name: Rep. Clay, Wm. Lacy [D-MO-1]
Introduced: 2019-10-18
Policy area: Education
Subjects: Government information and archives

Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2019-10-18
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-10-18
action_desc: Introduced in House
text: <p><b>Student Loan Relief Act of 2019</b></p> <p>This bill temporarily authorizes the Department of Education to reissue student loans disbursed within a certain timeframe so that borrowers may obtain reduced interest rates.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4749 IN THE HOUSE OF REPRESENTATIVES October 18, 2019 Mr. Clay introduced the following bill; which was referred to the Committee on Education and Labor A BILL To provide temporary authority to the Secretary of Education to reissue certain student loans to reduce interest rates paid by borrowers, and for other purposes.

1. Short title This Act may be cited as the Student Loan Relief Act of 2019 . 2. Temporary authority to reduce student loan interest rates Part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.) is amended by inserting after section 459B the following new section: 459C. Temporary authority to reissue student loans to reduce interest rates (a) Temporary authority To reissue student loans To reduce interest rates Notwithstanding section 455(b)(9)(C) or any other provision of this Act, for the 10-year period beginning on the date of enactment of the Student Loan Relief Act of 2019 , the Secretary is authorized to reissue a loan which was made under this part on or after the date that was 20 years before the date of enactment of the Student Loan Relief Act of 2019 , and before the date that is 10 years after such date of enactment, in order to permit the borrower to obtain a reduced interest rate in accordance with this section. (b) Eligibility (1) In general The Secretary shall reissue a loan under this section for a borrower who— (A) has an outstanding balance on one or more loans made under this part; and (B) submits to the Secretary, at such time and in such manner as the Secretary may require, a completed application for the loan to be reissued with an interest rate reduction in accordance with this section. (2) Limitation If a borrower has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, the borrower shall not be eligible to have a loan reissued under this section unless the borrower has completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud. (c) Reduced interest rate For each loan reissued by the Secretary under this section on or after the date of enactment of the Student Loan Relief Act of 2019 , and before the date that is 10 years after such date of enactment, the applicable rate of interest shall, for loans reissued during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1. (d) Terms of reissuance A loan reissued by the Secretary under this section shall— (1) have the same terms (other than applicable rate of interest) as the terms of the loan before reissuance, including the terms related to eligibility for consolidation of such loan in accordance with this title; (2) have an applicable reduced rate of interest on the loan calculated in accordance with subsection (c) , and such rate shall be fixed for the remaining period of the loan; (3) not require the execution of a new promissory note and shall not result in the extension of the duration of the note; and (4) not be reissued more than one time under this section. (e) Duties of the Secretary As soon as practicable after the date of enactment of the Student Loan Relief Act of 2019 , the Secretary shall take such steps as may be necessary to— (1) notify borrowers of the availability of the program authorized under this section, and the termination date for such program; and (2) allow borrowers to easily determine whether reissuance of a loan under this section will reduce the interest rates and overall costs of the outstanding loans of the borrower, before the borrower applies for such reissuance. .