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Code · BILL · 116th Congress · H.R. 3027 (Introduced in House) — To establish student loan borrowers’ rights to basic consumer protections, reasonable and flexible repayment options,... · Sec. 103

Sec. 103. Prohibition of collection of student loans through certain offsets or through wage garnishment

306 words·~1 min read·/bill/116/hr/3027/ih/section-103

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Section 3716(c)(3)(A) of title 31, United States Code, is amended— in clause (i), by striking except as provided in clause
(ii)and inserting except as provided in clauses
(ii)and
(iii); and by adding at the end the following new clause: Notwithstanding clause (i), any payments due to an individual under Federal benefits programs cited under clause
(i)shall not be subject to offset under this subsection if the offset is for payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.). . Section 3720A(a) of title 31, United States Code, is amended— by striking Any Federal agency and inserting
(1)Except as provided in paragraph (2), any Federal agency ; and by adding at the end the following new paragraph: Any past-due legally enforceable debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.) shall not be subject to notification under paragraph (1), and any refund of Federal taxes paid by the individual shall not be subject to reduction under subsection
(c)for such debt. . Section 3720D(a) of title 31, United States Code, is amended— by striking Notwithstanding and inserting:
(1)Except as provided in paragraph
(2)and notwithstanding ; and by adding at the end the following new paragraph: Any delinquent nontax debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.) shall not be subject to collection under this section through garnishment of disposable pay of the individual. .
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Sec. 103
Prohibition of collection of student loans through certain offsets or through wage garnishment
U.S.C.§ 1070
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