1. Short title
This Act may be cited as the “Protecting Seniors with Student Loans Act of 2018”.
Protecting Seniors with Student Loans Act of 2018
A BILL
To prevent low-income seniors from losing benefits due to defaulted student loan debt by increasing the amount of benefits exempted from garnishment.
2. Modification of exemption from administrative offset
In general— Section 3716(c)(3)(A) of title 31, United States Code, is amended—
in clause (i), by striking “clause (ii)” and inserting “clauses (ii) and (iii)”;
in clause (ii), by striking “An amount” and inserting “Except as provided in clause (iii), an amount”; and
by adding at the end the following:
“(iii)
“(I) For a claim of the Department of Education that is subject to collection by administrative offset under this section—
“(aa) an amount of $14,196 which a debtor may receive under Federal benefit programs cited under clause (i) within a 12-month period shall be exempt from offset under this subsection; and
“(bb) in applying the exemption under item (aa), the disbursing official shall—
“(AA) reduce the exemption amount for the 12-month period by the amount of all Federal benefit payments made during such 12-month period which are not subject to offset under this subsection; and
“(BB) apply a prorated amount of the exemption to each periodic benefit payment to be made to the debtor during the applicable 12-month period.
“(II) For purposes of subclause (I), the amount of a periodic benefit payment shall be the amount after any reduction or deduction required under the laws authorizing the program under which such payment is authorized to be made (including any reduction or deduction to recover any overpayment under such program).
“(III) The Secretary of the Treasury shall annually adjust the amount of the exemption under subclause (I)(aa) to reflect the change in the Consumer Price Index for All Urban Consumers published by the Department of Labor.”
Applicability— The amendments made by this section shall apply to the collection of a claim by an administrative offset taken after the date of enactment of this Act relating to a claim that arises before, on, or after the date of enactment of this Act.