Sec. 226. Deferment on loans made on or after July 1, 2023
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Part D of title IV ( 20 U.S.C. 1087e et seq. ) is further amended by adding at the end the following: A borrower (other than a borrower described in section 455(d)(6)(E)) of a loan made under this part on or after July 1, 2023— who meets the requirements described in subsection
(b)shall be eligible for a deferment on such loan during which installments of principal need not be paid and, as specified in paragraph (2), interest shall not accrue, or shall accrue and be paid by the borrower; and may not be eligible for a deferment or forbearance under section 455(f) or any other provision of this Act (other than forbearance under section 455(l), forbearance under section 685.205(a) of title 34, Code of Federal Regulations (or successor regulations), or deferment under section 493D). With respect to a deferment period described in subparagraphs
(A)through
(D)of subsection (b)(1), interest— shall not accrue, in the case of a— Federal Direct Stafford Loan; or a Federal Direct Consolidation Loan that consolidated only Federal Direct Stafford Loans, or a combination of such loans and Federal Stafford Loans for which the student borrower received an interest subsidy under section 428; or shall accrue or be paid by the borrower, in the case of a Federal Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in clause (i)(II). With respect to a deferment period described in subparagraph
(E)or
(F)of subsection (b)(1), or paragraph (2), (3)(A), or (4), interest shall accrue or be paid by the borrower, in the case of any loan made under this part. With respect to a deferment period described in paragraph (3)(B) or paragraph (5), interest shall not accrue, in the case of any loan made under this part. Any borrower described in subsection
(a)shall be eligible for a deferment on a loan made under this part on or after July 1, 2023— during any period during which the borrower— is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined by the eligible institution the borrower is attending; is pursuing a course of study pursuant to— an eligible graduate fellowship program in accordance with subsection (g); or an eligible rehabilitation training program for individuals with disabilities in accordance with subsection (i); is serving on active duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service; is performing qualifying National Guard duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service; is a member of the National Guard who is not eligible for a post-active duty deferment under section 493D and is engaged in active State duty for a period of more than 30 consecutive days beginning— the day after 6 months after the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution); or the day after the borrower ceases enrollment on at least a half-time basis, for a loan in repayment; or is serving in a medical or dental internship or residency program, the successful completion of which is required to begin professional practice or service, or is serving in a medical or dental internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training; during a period sufficient to enable the borrower to resume honoring the agreement to repay the outstanding balance of principal and interest on the loan after default, if— the borrower signs a new agreement to repay such outstanding balance; the deferment period is limited to 120 days; and such deferment is not granted for consecutive periods; during a period of administrative deferment— described in paragraphs
(1)through
(4)of subsection (j); or described in subsection (j)(5); in the case of a borrower of an excepted PLUS Loan or an excepted Consolidation Loan, during a period described in subsection (k); or during a period in which such borrower is receiving treatment for cancer (in this paragraph referred to as the treatment period ), and the 6-month period after such treatment period (in this paragraph referred to as the post-treatment period ), except that, notwithstanding subsection (a), interest shall not accrue during any such treatment period or post-treatment period. A deferment granted by the Secretary— under subparagraph
(F)of subsection (b)(1) shall be renewable at 12 month intervals; and under subparagraph
(F)of subsection (b)(1) shall equal the length of time remaining in the borrower’s medical or dental internship or residency program. The Secretary shall determine the eligibility of a borrower for a deferment under paragraph (1), (2), or
(4)of subsection (b), based on— the receipt of a request for a deferment from the borrower, and documentation of the borrower’s eligibility for the deferment; receipt of a completed loan application that documents the borrower’s eligibility for a deferment; receipt of a student status information documenting that the borrower is enrolled on at least a half-time basis; or the Secretary’s confirmation of the borrower’s half-time enrollment status, if the confirmation is requested by the institution of higher education. The Secretary shall— notify a borrower of a loan made under this part— the granting of a deferment under this subsection on such loan; and the option of the borrower to continue making payments on the outstanding balance of principal and interest on such loan in accordance with subsection (f); at the time the Secretary grants a deferment to a borrower of a loan made under this part, and not less frequently than once every 180 days during the period of such deferment, provide information to the borrower to assist the borrower in understanding— the effect of granting a deferment on the total amount to be paid under the income-based repayment plan under 460A; interest shall not accrue, or shall accrue or be paid by the borrower, as specified in subsection (a)(2); the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower; and the borrower’s option to discontinue the deferment at any time. A borrower may make payments on the outstanding balance of principal and interest on a loan made under this part during any period of deferment granted under this subsection. A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(i) during any period for which an authorized official of the borrower’s graduate fellowship program certifies that the borrower meets the requirements of paragraph
(2)and is pursuing a course of study pursuant to an eligible graduate fellowship program. A borrower meets the requirements of this subparagraph if the borrower— holds at least a baccalaureate degree conferred by an institution of higher education; has been accepted or recommended by an institution of higher education for acceptance on a full-time basis into an eligible graduate fellowship program; and is not serving in a medical internship or residency program, except for a residency program in dentistry. The Secretary shall treat, in the same manner as required under section 428(b)(4), any course of study at a foreign university that is accepted for the completion of a recognized international fellowship program by the administrator of such a program as an eligible graduate fellowship program. Requests for deferment of repayment of loans under this subsection by students engaged in graduate or postgraduate fellowship-supported study (such as pursuant to a Fulbright grant) outside the United States shall be approved until completion of the period of the fellowship, in the same manner as required under section 428(b)(4). A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(ii) during any period for which an authorized official of the borrower’s rehabilitation training program certifies that the borrower is pursuing an eligible rehabilitation training program for individuals with disabilities. The Secretary may grant a deferment to a borrower without requiring a request and documentation from the borrower under subsection
(d)for— a period during which the borrower was delinquent at the time a deferment is granted, including a period for which scheduled payments of principal and interest were overdue at the time such deferment is granted; a period during which the borrower was granted a deferment under this subsection but for which the Secretary determines the borrower should not have qualified; a period necessary for the Secretary to determine the borrower’s eligibility for the cancellation of the obligation of the borrower to repay the loan under section 437; a period during which the Secretary has authorized deferment due to a national military mobilization or other local or national emergency; or a period not to exceed 60 days, during which interest shall accrue but not be capitalized, if the Secretary reasonably determines that a suspension of collection activity is warranted to enable the Secretary to process supporting documentation relating to a borrower’s request— for a deferment under this subsection; for a change in repayment plan under section 455(d)(6); or to consolidate loans under this part. A qualified borrower shall be eligible for deferments under paragraphs
(3)through (5). In this subsection, the term qualified borrower means a borrower of an excepted PLUS Loan or an excepted consolidation loan. A qualified borrower shall be eligible for a deferment during periods, not to exceed 3 years in total, during which the qualified borrower experiences an economic hardship described in subparagraph (B). An economic hardship described in this clause is a period during which the qualified borrower— is receiving payment under a means-tested benefit program; is employed full-time and the monthly gross income of the qualified borrower does not exceed the greater of— the minimum wage rate described in section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ); or an amount equal to 150 percent of the poverty line; or demonstrates that the sum of the qualified borrower’s monthly payments on the qualified borrower’s excepted PLUS Loan or an excepted consolidation loan is not less than 20 percent of the qualified borrower’s monthly gross income. To be eligible to receive a deferment under this subparagraph, a qualified borrower shall submit to the Secretary— for the first period of deferment under this subparagraph, evidence showing the monthly gross income of the qualified borrower; and for a subsequent period of deferment that begins less than one year after the end of a period of deferment granted under this subparagraph— evidence showing the monthly gross income of the qualified borrower; or the qualified borrower’s most recently filed Federal income tax return, if such a return was filed in either of the two tax years preceding the year in which the qualified borrower requests the subsequent period of deferment. A qualified borrower shall be eligible for a deferment for periods during which the qualified borrower is seeking, and is unable to find, full-time employment. To be eligible to receive an deferment under this subparagraph, a qualified borrower shall submit to the Secretary— evidence of the qualified borrower’s eligibility for unemployment benefits; or for requests submitted after the initial request, written confirmation, or an equivalent as approved by the Secretary, that the qualified borrower has made at least six diligent attempts during the preceding six-month period to secure full-time employment. The following terms shall apply to a deferment under this subparagraph: The first deferment granted to a qualified borrower under this subparagraph may be for a period of unemployment beginning not more than 6 months before the date on which the Secretary receives the qualified borrower’s request for deferment and may be granted for a period of up to 6 months after that date. Deferments under this subparagraph shall be renewable at 6-month intervals beginning after the expiration of the first period of deferment under clause (i). To be eligible to renew a deferment under this subparagraph, a qualified borrower shall submit to the Secretary the information described in subparagraph (B)(i). The period of all deferments granted to a borrower under this subparagraph may not exceed 3 years in aggregate. A qualified borrower shall be eligible for a deferment during periods in which the qualified borrower is unable to make scheduled loan payments due to high medical expenses, as determined by the Secretary. To be eligible to receive a deferment under this subparagraph, a qualified borrower shall— submit to the Secretary documentation demonstrating that making scheduled loan payments would be an extreme economic hardship to the borrower due to high medical expenses, as determined by the Secretary; and resubmit such documentation to the Secretary not less frequently than once every 3 months. No administrative fee or other fee may be charged to the borrower in connection with the granting of a deferment under this subsection. No adverse information relating to a borrower may be reported to a consumer reporting agency solely because of the granting of a deferment under this subsection. The Secretary shall not, through regulation or otherwise, authorize additional deferment options or periods of deferment other than the deferment options and periods of deferment authorized under this subsection. In this section: The term eligible graduate fellowship program , when used with respect to a course of study pursued by the borrower of a loan under this part, means a fellowship program that— provides sufficient financial support to graduate fellows to allow for full-time study for at least six months; requires a written statement from each applicant explaining the applicant’s objectives before the award of that financial support; requires a graduate fellow to submit periodic reports, projects, or evidence of the fellow’s progress; and in the case of a course of study at an institution of higher education outside the United States described in section 102, accepts the course of study for completion of the fellowship program. The term eligible rehabilitation training program for individuals with disabilities , when used with respect a course of study pursued by the borrower of a loan under this part, means a program that— is necessary to assist an individual with a disability in preparing for, securing, retaining, or regaining employment; is licensed, approved, certified, or otherwise recognized as providing rehabilitation training to disabled individuals by— a State agency with responsibility for vocational rehabilitation programs, drug abuse treatment programs, mental health services programs, or alcohol abuse treatment programs; or the Secretary of Veterans Affairs; and provides or will provide the borrower with rehabilitation services under a written plan that— is individualized to meet the borrower’s needs; specifies the date on which the services to the borrower are expected to end; and requires a commitment of time and effort from the borrower that prevents the borrower from being employed at least 30 hours per week, either because of the number of hours that must be devoted to rehabilitation or because of the nature of the rehabilitation. The terms excepted PLUS loan and excepted consolidation loan have the meanings given such terms in section 460A. The term family size means the number that is determined by counting— the borrower; the borrower’s spouse; the borrower’s children, including unborn children who are expected to be born during the period covered by the deferment, if the children receive more than half their support from the borrower; and another individual if, at the time the borrower requests a deferment under this section, the individual— lives with the borrower; receives more than half of the individual’s support (which may include money, gifts, loans, housing, food, clothes, car, medical and dental care, and payment of college costs) from the borrower; and is expected to receive such support from the borrower during the relevant period of deferment. The term full-time , when used with respect to employment, means employment for not less than 30 hours per week that is expected to continue for not less than three months. The term means-tested benefit program means— a State public assistance program under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit; or a mandatory spending program of the Federal Government, other than a program under this title, under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as— the supplemental security income program under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq. ); the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ); the program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ); the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ); and other programs identified by the Secretary. The term monthly gross income , when used with respect to a borrower, means— the gross amount of income received by the borrower from employment and other sources for the most recent month; or one-twelfth of the borrower’s adjusted gross income, as recorded on the borrower’s most recently filed Federal income tax return. Nothing in this section shall be construed to impact a borrower’s eligibility to receive the benefit of section 455(o). . Section 493D(a) ( 20 U.S.C. 1098f(a) ) is amended by inserting , or section 460B after 464(c)(2)(A)(iii) .