Joint Consolidation Loan Separation Act
This bill allows two borrowers, who had previously received a joint consolidation loan for their federal student loan debt, to submit a joint application to the Department of Education to sever their consolidated loan into two separate loans. One borrower may submit a separate application in the event that the individual is experiencing domestic or economic abuse from the other individual borrower or is unable to reasonably reach or access the loan information of the other borrower.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2460 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2460
To amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 13, 2021
Mr. Price of North Carolina (for himself, Mr. Murphy of North Carolina,
and Ms. Stevens) introduced the following bill; which was referred to
the Committee on Education and Labor
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Joint Consolidation Loan Separation
Act''.
SEC. 2. SEPARATING JOINT CONSOLIDATION LOANS.
(a) In General.--Section 455(g) of the Higher Education Act of 1965
(20 U.S.C. 1087e(g)) is amended--
(1) by striking ``A borrower'' and inserting the following:
``(1) In general.--A borrower'';
(2) in the first sentence, insert ``(other than a Federal
Direct Consolidation Loan separated from a joint consolidation
loan under paragraph (2) of this subsection)'' after ``under
this part''; and
(3) by adding at the end the following:
``(2) Separating joint consolidation loans.--
``(A) In general.--A married couple, or 2
individuals who were previously a married couple, and
who received a joint consolidation loan as such married
couple under subparagraph (C) of section 428C(a)(3) (as
such subparagraph was in effect on June 30, 2006), may
apply to the Secretary, in accordance with subparagraph
(C) of this paragraph, for each individual borrower in
the married couple (or previously married couple) to
receive a separate Federal Direct Consolidation Loan
under this part.
``(B) Secretarial requirements.--Notwithstanding
section 428C(a)(3)(A) or any other provision of law,
for each individual borrower who applies under
subparagraph (A), the Secretary shall--
``(i) award a separate Federal Direct
Consolidation Loan under this part that--
``(I) shall be for an amount equal
to the product of--
``(aa) the unpaid principal
and accrued unpaid interest of
the joint consolidation loan
(as of the date that is the day
before such separate
consolidation loan is made);
and
``(bb) the percentage of
the joint consolidation loan
attributable to the loans of
the individual borrower for
whom such separate
consolidation loan is being
made, as determined on the
basis of the loan obligations
of such borrower with respect
to such joint consolidation
loan (as of the date such joint
consolidation loan was made);
and
``(II) has the same rate of
interest as the joint consolidation
loan (as of the date that is the day
before such separate consolidation loan
is made); and
``(ii) in order to discharge such
individual borrower from any remaining
obligation with respect to the percentage of
the joint consolidation loan described in
clause (i)(I)(bb)--
``(I) cancel the outstanding
balance of interest and principal due
on such percentage, in the case of such
a loan held by the Secretary; and
``(II) through the holder of the
loan, assume the obligation to repay
the outstanding balance of interest and
principal due on such percentage, in
the case of such a loan made, insured,
or guaranteed under part B;
``(iii) ensure that such individual
borrower shall not be held liable for the
repayment of the percentage of the joint
consolidation loan that is not described in
clause (i)(I)(bb);
``(iv) in a case in which a payment was
made under section 455(m)(1)(A) on the joint
consolidation loan during a period in which the
individual borrower for whom such separate
consolidation loan is being made was employed
in a public service job described in section
455(m)(1)(B), treat such payment as if such
payment were made on the separate consolidation
loan; and
``(v) in a case in which a payment was made
under an income contingent repayment plan or an
income-based repayment plan described in
subparagraph (D) or (E) of section 455(d)(1),
respectively, on the joint consolidation loan,
treat such payment as if such payment were made
on such separate consolidation loan.
``(C) Application for separate direct consolidation
loan.--
``(i) Joint application.--Except as
provided in clause (ii), to receive separate
consolidation loans under this part, both
individual borrowers in a married couple (or
previously married couple) shall jointly apply
under subparagraph (A).
``(ii) Separate application.--An individual
borrower in a married couple (or previously
married couple) may apply for a separate
consolidation loan under subparagraph (A)
separately and without regard to whether or
when the other individual borrower in the
married couple (or previously married couple)
applies under subparagraph (A), in a case in
which--
``(I) the individual borrower has
experienced from the other individual
borrower--
``(aa) domestic violence
(as defined in section 40002(a)
of the Violence Against Women
Act of 1994 (42 U.S.C.
13925(a))); or
``(bb) economic abuse
(including behaviors that
control such borrower's ability
to acquire, use, and maintain
access to money, credit, or the
joint financial obligations of
both borrowers);
``(II) the individual borrower
certifies, on a form approved by the
Secretary, that such borrower is unable
to reasonably reach or access the loan
information of the other individual
borrower; or
``(III) the Secretary determines
that authorizing each individual
borrower to apply separately under
subparagraph (A) would be in the best
fiscal interests of the Federal
Government.''.
(b) Conforming Amendment.--Section 428C(a)(3)(B)(i)(V) of the
Higher Education Act of 1965 (20 U.S.C. 1078-3(3)(B)(i)(V)) is
amended--
(1) by striking ``or'' at the end of item (bb);
(2) by striking the period at the end of item (cc) and
inserting ``; or''; and
(3) by adding at the end the following:
``(dd) for the purpose of
separating a joint
consolidation loan into 2
separate Federal Direct
Consolidation Loans under
section 455(g)(2), except that
such separated Federal Direct
Consolidation Loan may not
consolidate such loan with the
loans described in section
428C(a)(4).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Labor.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line