Section 1 Short title
This Act may be cited as the “B-On-Time Student Loan Relief Act of 2014”.
B-On-Time Student Loan Relief Act of 2014
A BILL
To amend the Higher Education Act of 1965 to direct the Secretary of Education to award interest-free student loans to certain students, and for other purposes.
Sec. 2 B-On-Time Loans and Loan Forgiveness
Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended by adding at the end the following new part:
“J B-On-Time Loans
“499A. Loan requirements
“(a) In general—The Secretary shall carry out a program to—
“(1) award loans with an applicable rate of interest of zero to eligible students for study at an institution of higher education; and
“(2) forgive the outstanding principal on such loans awarded to students who meet the requirements of subsection (c).
“(b) Student eligibility for loans—To be eligible to receive a loan under subsection (a)(1), a student shall meet any requirements that the Secretary may require, which shall include requirements that the student—
“(1)
“(A) has graduated on or after the 2013–2014 school year from a secondary school in the United States or a secondary school operated by the Department of Defense, or its equivalent; or
“(B) has earned an associate’s degree from an institution of higher education on or after May 1, 2013;
“(2) has not earned a bachelor’s degree;
“(3) is enrolled as a full-time student in an undergraduate degree or certificate program at an institution of higher education; and
“(4) has completed a FAFSA and meets the requirements of section 484(a).
“(c) Student eligibility for loan forgiveness—To be eligible to receive loan forgiveness under subsection (a)(2), a student shall meet any requirements that the Secretary may require, which shall include requirements that the student—
“(1) receives a bachelor’s degree within a set timeframe, as determined by the Secretary;
“(2) while enrolled at the program of study at an institution of higher education for which the student received a loan under subsection (a)(1)—
“(A) has maintained a certain grade point average; or
“(B) has majored in a science, technology, engineering, or mathematics field; and
“(3) meets any other requirements as determined by the Secretary.
“(d) Priority—The Secretary shall award loans under subsection (a)(1) and grant loan forgiveness under subsection (a)(2) on a first-come, first-served basis, and subject to the availability of appropriations.
“(e) Rule of Construction—Nothing in this section shall be construed to prohibit a student from applying for other financial assistance under this title.
“(f) Authorization of appropriations—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each succeeding fiscal year through fiscal year 2024.”