Sec. 333. Pause payment process
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Part D of title IV ( 20 U.S.C. 1087a et seq. ), as amended by section 331, is further amended by adding at the end the following: The Secretary shall establish a single, streamlined pause payment process available in a single application with respect to loans made under this part that replaces the deferment and forbearance options and their respective applications that are available to borrowers before the effective date of the Affordable Loans for Any Student Act and provides temporary relief from repayment of such loans in accordance with this section.
Notwithstanding any other provision of this Act, a borrower of a loan made under this part that desires to receive temporary relief from repayment with respect to such loan shall request relief in accordance with the pause payment process established by the Secretary under subsection (a), which shall include the options to select a temporary cessation of payments and to make smaller payments than the monthly payments required under the borrower’s repayment plan. A borrower of a loan made under this part who meets the requirements described in paragraph
(2)shall be eligible for a pause payment, during which periodic installments of principal need not be paid, and 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 and be added to the balance of interest due but not be capitalized, 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 subparagraph (A)(ii). A borrower of a loan made under this part shall be eligible for a pause payment 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 (as such term is defined in section 435(a)) the student is attending; or in the case of a parent borrower, the borrower or the student on whose behalf the loan was borrowed is carrying at least one-half the normal full-time work load, in accordance with clause (i); during which the borrower is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary; during which the borrower is serving in a medical or dental internship or residency program; during which the borrower is in a rehabilitation training program for individuals with disabilities approved by the Secretary; during which the borrower— 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 the service; or qualifies for partial repayment of the borrower’s loans under a provision of chapter 109 or 1609 of title 10, United States Code; during which the borrower 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 the service; during which the borrower is serving in— an approved national service position (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )) in an Americorps program (defined for purposes of this subparagraph as a program carried out under subtitle C or E of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12571 et seq. , 12611 et seq.) or title I of the Domestic Volunteer Service Act of 1973 ( 42 U.S.C. 4951 et seq. )); in the Peace Corps; or in a teaching position that would qualify for teacher loan forgiveness under section 428J or 460; not in excess of a total period of 3 years of repayment of a loan during which the Secretary determines, in accordance with regulations prescribed under section 435(o), that the borrower has experienced or will experience an economic hardship, such as experiencing financial difficulties, having unexpected or significant medical expenses, or being unable to find full-time employment; during which a borrower’s ability to make payments, as determined by the Secretary, has been adversely affected by— any major disaster or emergency declared by the President under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency 34 Assistance Act ( 42 U.S.C. 5170 , 5191); a local emergency, as declared by the appropriate government agency; or a military mobilization; during which the borrower is awaiting a determination by the Secretary of the borrower’s request for a pause payment, change in repayment plan, loan forgiveness or cancellation, or consolidation loan; or during which the borrower is experiencing other exceptional circumstances for which pause payment under this section is in the best interest of the borrower, as determined by the Secretary through regulation. . Section 455 ( 20 U.S.C. 1087e ) is amended— in subsection (e)(7)(B)(i), by striking is in deferment and inserting is under pause payment pursuant to section 460B ; by striking subsection
(f)and inserting the following: reserved ; and in subsection (l)— by striking and all that follows through Program.— Using funds and inserting the following: ; and Program.—Using funds by striking paragraph (2).
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Sec. 333
Pause payment process
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