Sec. 101. Federal student loan cancellation and forgiveness for Federal Pell Grant recipients
980 words·~4 min read·
/bill/117/s/4459/is/section-101·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended by adding at the end the following: Beginning not later than 180 days after the date of enactment of the Student Debt Relief and College Affordability Act , the Secretary shall cancel the amount determined under paragraph
(2)of interest and principal due, in accordance with paragraph (3), on eligible Federal Direct Loans that are in repayment status on or after such date of enactment for a borrower who received a Federal Pell Grant. The amount determined under this paragraph is equal to— if the total amount of Federal Pell Grants received by the borrower is equal to or less than the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower, the total amount of Federal Pell Grants received by the borrower; or if the total amount of Federal Pell Grants received by the borrower is more than the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower, the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower. The Secretary shall cancel the obligation to repay the amount determined under paragraph
(2)of principal and interest due on the date of cancellation on the eligible Federal Direct Loans made to the borrower under this part. In this subsection, the term eligible Federal Direct Loan means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan. A borrower shall not receive a total amount of loan cancellation and loan forgiveness, if applicable, under this subsection, section 493E, and section 470, that exceeds the total amount of Federal Pell Grants received by the borrower. . Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. ) is amended by adding at the end the following: Beginning not later than 180 days after the date of enactment of the Student Debt Relief and College Affordability Act , the Secretary shall forgive, in accordance with this section, the amount determined under subsection
(b)of the student loan obligation on loans made, insured, or guaranteed under this part that are in repayment status on or after such date of enactment for a borrower who received a Federal Pell Grant. To provide loan forgiveness under paragraph (1), the Secretary is authorized to carry out a program through the holder of the loan, to assume the obligation to repay the amount determined under subsection
(b)for loans made, insured, or guaranteed under this part. The amount determined under this subsection is equal to— if the total amount of Federal Pell Grants received by the borrower is equal to or less than the student loan obligation on the date of forgiveness of loans made, insured, or guaranteed under this part received by the borrower, the total amount of Federal Pell Grants received by the borrower; or if the total amount of Federal Pell Grants received by the borrower is more than the student loan obligation on the date of forgiveness of loans made, insured, or guaranteed under this part received by the borrower, the student loan obligation on the date of forgiveness of loans made, insured, or guaranteed under this part received by the borrower. A borrower shall not receive a total amount of loan forgiveness and loan cancellation, if applicable, under this section, section 455(r), and section 470, that exceeds the total amount of Federal Pell Grants received by the borrower. . Part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq. ) is amended by adding at the end the following: Beginning not later than 180 days after the date of enactment of the Student Debt Relief and College Affordability Act , the Secretary shall cancel the amount determined under subsection
(b)of interest and principal due, in accordance with subsection (c), on loans made under this part that are in repayment status on or after such date of enactment for a borrower who received a Federal Pell Grant. The amount determined under this subsection is equal to— if the total amount of Federal Pell Grants received by the borrower is equal to or less than the interest and principal due on the date of cancellation on loans made under this part received by the borrower, the total amount of Federal Pell Grants received by the borrower; or if the total amount of Federal Pell Grants received by the borrower is more than the interest and principal due on the date of cancellation on loans made under this part, the interest and principal due on the date of cancellation on loans made under this part received by the borrower. The Secretary shall pay to each institution for each fiscal year an amount equal to the aggregate of the amounts of loans from its student loan fund which are canceled pursuant to this section for such year, minus an amount equal to the aggregate of the amounts of any such loans so canceled which were made from Federal capital contributions to its student loan fund provided by the Secretary under section 468. None of the funds appropriated pursuant to section 461(b) shall be available for payments pursuant to this subsection. To the extent feasible, the Secretary shall pay the amounts for which any institution qualifies under this subsection not later than 3 months after the institution files an institutional application for campus-based funds. A borrower shall not receive a total amount of loan cancellation and loan forgiveness, if applicable, under this section, section 455(r), and section 493E, that exceeds the total amount of Federal Pell Grants received by the borrower. .
Connectionstraces to 3
Traces to 3 documents
Citation graph
cites case law
Sec. 101
Federal student loan cancellation and forgiveness for Federal Pell Grant recipients
Cites 3Cited by 0 across 0 sources