Sec. 2. Payments for Federal student loan borrowers as a result of a national emergency
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Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by inserting after section 493D the following: In this section: The term coronavirus has the meaning given the term in section 506 of the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 ( Public Law 116–123 ). The term income-driven repayment means— income-based repayment authorized under section 493C for loans made, insured, or guaranteed under part B or part D; or income contingent repayment authorized under section 455(e) for loans made under part D.
The term involuntary collection means— a wage garnishment authorized under section 488A of this Act or section 3720D of title 31, United States Code; a reduction of tax refund by amount of debt authorized under section 3720A of title 31, United States Code; a reduction of any other Federal benefit payment by administrative offset authorized under section 3716 of title 31, United States Code (including a benefit payment due to an individual under the Social Security Act or any other provision described in subsection (c)(3)(A)(i) of such section); and any other involuntary collection activity.
For purposes of this Act, the term COVID–19 emergency period means the period that begins upon the date of the enactment of this Act and ends upon the date of the termination by the Federal Emergency Management Administration of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID–19) pandemic. Effective on the date of the enactment of this section, during the COVID–19 emergency period and the 6-month period immediately following, the Secretary of Education shall for each borrower of a loan made, insured, or guaranteed under part B, D, or E, pay the total amount due for such month on the loan, based on the payment plan selected by the borrower or the borrower’s loan status.
With respect to any loan in repayment during the COVID–19 national emergency period and the 6-month period immediately following, interest due on loans made, insured, or guaranteed under part B, D, or E during such period shall not be capitalized at any time during the COVID–19 national emergency period and the 6-month period immediately following. Any payment made by the Secretary of Education under this section shall be considered by the Secretary of Education, or by a lender with respect to a loan made, insured, or guaranteed under part B— as a qualifying payment under the public service loan forgiveness program under section 455(m), if the borrower would otherwise qualify under such section; in the case of a borrower enrolled in an income-driven repayment plan, as a qualifying payment for the purpose of calculating eligibility for loan forgiveness for the borrower in accordance with section 493C(b)(7) or section 455(d)(1)(D), as the case may be; and in the case of a borrower in default, as an on-time monthly payment for purposes of loan rehabilitation pursuant to section 428F(a).
During the period in which the Secretary of Education is making payments on a loan under paragraph (1), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment made by the Secretary is treated as if it were a regularly scheduled payment made by a borrower. Not later than 15 days following the date of enactment of this section, and monthly thereafter during the COVID–19 national emergency period and the 6-month period immediately following, the Secretary of Education shall provide a notice to all borrowers of loans made, insured, or guaranteed under part B, D, or E— informing borrowers of the actions taken under this section; providing borrowers with an easily accessible method to opt out of the benefits provided under this section; and notifying the borrower that the program under this section is a temporary program and will end 6 months after the COVID–19 national emergency period ends.
During the COVID–19 national emergency period and the 6-month period immediately following, the Secretary of Education, or other holder of a loan made, insured, or guaranteed under part B, D, or E, shall immediately take action to halt all involuntary collection related to the loan. During the period in which the Secretary of Education is making payments on a loan under paragraph (1), the Secretary, or a lender or guaranty agency for a loan made under part B, shall grant the borrower forbearance as follows:
A temporary cessation of all payments on the loan other than the payments of interest and principal on the loan that are made under paragraph (1). For borrowers who are delinquent but who are not yet in default before the date on which the Secretary begins making payments under paragraph (1), the retroactive application of forbearance to address any delinquency. . Section 428(c)(8) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(c)(8) ) is amended by striking and for which and all that follows through this subsection .
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Sec. 2
Payments for Federal student loan borrowers as a result of a national emergency
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