Student Loan Relief for Feds Act

Bill: 116-hr-781
Sponsor: full_name: Rep. Perlmutter, Ed [D-CO-7]
Introduced: 2019-01-24
Policy area: Education
Subjects: Appropriations

District of Columbia

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: 2019-01-24
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-01-24
action_desc: Introduced in House
text: <p><b>Student Loan Relief for Feds Act</b></p> <p>This bill makes federal student loans eligible for deferment during federal government shutdowns. Specifically, the bill allows affected federal, state, and District of Columbia employees and contractors to apply for deferment on their student loan payments during a shutdown and for three months after the shutdown has ended.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 781 IN THE HOUSE OF REPRESENTATIVES January 24, 2019 Mr. Perlmutter (for himself and Mr. Hurd of Texas ) 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. Short title This Act may be cited as the Student Loan Relief for Feds Act . 2. Special deferment for Federal employees during lapse in appropriations (a) Special deferment Part G of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by adding at the end the following: 493E. Special deferment for Federal employees during lapse in appropriations (a) Effect on principal and interest A borrower of a loan made, insured, or guaranteed under part B or part D, who meets the requirements described in subsection (b) shall be eligible for a deferment, during which— (1) periodic installments of principal need not be paid; and (2) in the case of a— (A) loan made, insured, or guaranteed under part B, the Secretary shall repay any interest owed; and (B) loan made under part D, interest shall not accrue. (b) Eligibility A borrower of a loan described in subsection (a) shall be eligible for a deferment during— (1) any period in which such borrower is an employee— (A) of a Federal agency that is subject to a lapse in discretionary appropriations; (B) of a private entity that has a contract with a Federal agency subject to a lapse in discretionary appropriations who is not paid during such period due to such lapse in discretionary appropriations; (C) who is an employee of a State or other Federal grantee— (i) whose compensation is advanced or reimbursed in whole or in part by the Federal Government, and (ii) who is furloughed due to a lapse in Federal discretionary appropriations; or (D) who is furloughed due to a lapse in Federal discretionary appropriations as an employee of the District of Columbia Courts, the Public Defender Service for the District of Columbia, or the District of Columbia government; and (2) the 3 months after the date on which the lapse in discretionary appropriations described in subparagraphs (A) through (D) of paragraph (1) applicable to such employee has ended. . (b) Effect of shutdown deferment on public service loan forgiveness Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended by adding at the end the following: (5) Treatment of missed monthly payments during special deferment For purposes of calculating the 120 monthly payments on an eligible Federal Direct Loan under paragraph (1)(A), the Secretary shall treat an unpaid payment on a loan under a repayment plan described in clauses (i) through (iv) of paragraph (1)(A) that occurs during a deferment under section 493E as if such monthly payment was made on the loan. .