Sec. 4. Minimum relief for Federal and private student loan borrowers as a result of the COVID–19 national emergency
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Not later than 270 days after the last day of the COVID–19 emergency period, the Secretaries concerned shall jointly carry out a program under which a qualified borrower, with respect to the covered loans and private education of loans of such qualified borrower, shall receive in accordance with subsection
(c)an amount equal to the lesser of the following: The total amount of each covered loan and each private education loan of the borrower; or $10,000. Not later than 270 days after the last day of the COVID–19 emergency period, the Secretaries concerned shall notify each qualified borrower of— the requirements to provide loan relief to such borrower under this section; and the opportunity for such borrower to make an election under subsection (c)(1) with respect to the application of such loan relief to the covered loans and private education loans of such borrower. Not later than 45 days after a notice is sent under subsection (b), a qualified borrower may elect to apply the amount determined with respect to such borrower under subsection
(a)to— any covered loan of the borrower; any private education loan of the borrower; and any combination of the loans described in subparagraphs
(A)and (B). In the case of a qualified borrower who does not make an election under paragraph
(1)before the date described in such paragraph, the Secretaries concerned shall apply the amount determined with respect to such borrower under subsection
(a)in order of the covered loan or private education loan of the qualified borrower with the highest interest rate. In case of two or more covered loans or private education loans described in subparagraph
(A)with equal interest rates, the Secretaries concerned shall apply the amount determined with respect to such borrower under subsection
(a)first to the loan with the highest principal. Contractors of the Secretary of Education and lenders and guaranty agencies holding loans made, insured, or guaranteed under part B shall report, to the satisfaction of the Secretary of Education, the information necessary to calculate the amount to be applied under subsection (a). Holders and servicers of private education loans shall report, to the satisfaction of the Secretary of the Treasury, the information necessary to calculate the amount to be applied under subsection (a). The Secretaries concerned shall enter into a memorandum of understanding to carry out this section. In this section: The term covered loan means— a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq.); a loan made under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.); and a Federal Perkins Loan made pursuant to part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.). 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. The term private education loan has the meaning given the term in section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ). The term qualified borrower means a borrower of a covered loan or a private education loan. The term Secretaries concerned means— the Secretary of Education, with respect to covered loans and borrowers of such covered loans; and the Secretary of the Treasury, with respect to private education loans and borrowers of such private education loans.
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Sec. 4
Minimum relief for Federal and private student loan borrowers as a result of the COVID–19 national emergency
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