Section 1 Short title
This Act may be cited as the “College Loan Deferment for Recovery Act”.
College Loan Deferment for Recovery Act
A BILL
To amend the Higher Education Act of 1965 to allow for the deferment of certain student loans during a period in which a borrower is enrolled in a drug treatment program.
Sec. 2 Student loan deferment for borrowers enrolled in a drug treatment program
by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and
by inserting after paragraph (2) the following:
“(3) Deferment for borrowers enrolled in a drug treatment program
“(A) Effect on principal and interest—A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest shall not accrue.
“(B) Eligibility—A borrower of a loan made under this part shall be eligible for a deferment during—
“(i) any period in which such borrower is enrolled in a drug treatment program; and
“(ii) the 30 days after such period.
“(C) Drug treatment program defined—In this paragraph, the term “drug treatment program” means a program certified or licensed by a State to provide drug treatment in the State.
“(D) Applicability—This paragraph shall apply with respect to loans—
“(i) made on or after the date of the enactment of this paragraph; or
“(ii) in repayment on the date of the enactment of this paragraph.”
Terms of Federally Insured Student Loans— Section 427(a)(2)(C) of the Higher Education Act of 1965 (20 U.S.C. 1077(a)(2)(C)) is amended—
in clause (ii), by striking “; or” and inserting a semicolon;
in clause (iii), by inserting “or” after the semicolon; and
by inserting after clause (iii) the following:
“(iv) in which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period.”
FFEL program— Section 428(b)(1)(M) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended—
in clause (iii), by striking “or (II); or” and inserting “or (II);”;
in clause (iv), by inserting “or” after the semicolon; and
by adding at the end the following:
“(v) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period;”
Federal Perkins loans— Section 464(c)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(2)) is amended—
in subparagraph (A)—
in clause (iv), by striking “; or” and inserting a semicolon;
in clause (v), by inserting “or” after the semicolon; and
by inserting after clause (v) the following:
“(vi) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period;”
Interest on unsubsubsidized Stafford Loans— Section 428H(e)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078–8(e)(2)) is amended—
in subparagraph (A), by striking “Interest” and inserting, “Except as provided in subparagraph (C), interest”; and
by adding at the end the following:
“(C) Interest shall not accrue on a loan deferred under section 428(b)(1)(M)(v) or 427(a)(2)(C)(iv).”
Applicability— The amendments made by this Act shall apply with respect to loans—
made on or after the date of the enactment of this Act; or
in repayment on the date of the enactment of this Act.