1. Short title
This Act may be cited as the “Student Loan Deferment Act of 2019”.
Student Loan Deferment Act of 2019
A BILL
To amend the Higher Education Act of 1965 to extend the interest-free grace period certain loans, and for other purposes.
2. Interest-free grace period
Repayment period—
Extension of grace period— Section 428(b)(7)(A) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7)(A)) is amended by striking “6 months” and inserting “1 year”.
Perkins— Section 464(c)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(1)(A)) is amended—
by striking “nine months” and inserting “1 year”; and
by striking “9 months” and inserting “1 year”.
Interest rates— Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)) is amended by adding at the end the following:
“(11) In school and grace period rules—Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan made under this part for which the first disbursement is made on or after July 1, 2020, the applicable rate of interest for interest which accrues—
“(A) prior to the beginning of the repayment period of the loan; or
“(B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(1)(M) or 427(a)(2)(C),”