Division B — Providing Relief to Students, Institutions of Higher Education, Local Educational Agencies, and State Vocational Rehabilitation Agencies
B Providing Relief to Students, Institutions of Higher Education, Local Educational Agencies, and State Vocational Rehabilitation Agencies
I Higher Education Provisions
Sec. 101 Definitions
A Cares Act Amendments
Sec. 111 Application of campus-based aid waivers
Sec. 112 Supplemental Educational Opportunity Grants for emergency aid
Sec. 113 Extension of Federal work-study during a qualifying emergency
Sec. 114 Service obligations for teachers and other professionals
“(c) Federal Perkins Loans—Notwithstanding section 465 of the Higher Education Act of 1965 (20 U.S.C. 1087ee), the Secretary shall waive the requirements of such section in regard to full-time service and shall consider an incomplete year of service of a borrower as fulfilling the requirement for a complete year of service under such section, if the service was interrupted due to a qualifying emergency.”
Sec. 115 Continuing education at affected foreign institutions
“(A) the name of the foreign institution;
“(B) the name of the institution of higher education located in the United States that has entered into a written arrangement with such foreign institution; and
“(C) information regarding the nature of such written arrangement, including which coursework or program requirements are accomplished at each respective institution.”
“(e) Definition of covered period
“(1) In general—In this section, the term covered period, when used with respect to a foreign institution of higher education, means the period—
“(A) beginning on the first day of—
“(i) a qualifying emergency; or
“(ii) a public health emergency, major disaster or emergency, or national emergency declared by the applicable government authorities in the country in which the foreign institution is located; and
“(B) ending on the later of—
“(i) subject to paragraph (2), the last day of the payment period, for purposes of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), following the end of any qualifying emergency or any emergency or disaster described in subparagraph (A)(ii) applicable to the foreign institution; or
“(ii) June 30, 2022.
“(2) Special rule for certain payment periods—For purposes of subparagraph (B)(i), if the following payment period for an award year ends before June 30 of such award year, the covered period shall be extended until June 30 of such award year.”
Sec. 116 Funding for HBCU capital financing; endowment challenge grants
“(C) the institution may pay, without penalty, any periodic installment of principal or interest required under the loan agreement for such loan.”
Sec. 117 Waiver authority for institutional aid
Sec. 118 Scope of modifications to required and allowable uses
“(1) In general—Notwithstanding”
“(2) Waiver of GEAR UP matching requirement
“(A) In general—Notwithstanding section 404C(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a–23(b)), the Secretary shall waive, for the duration of the period described in subparagraph (B), any requirement for an eligible entity (as defined in section 404A(c) (20 U.S.C. 1070a–21(c))) to provide a percentage of the cost of the program authorized under chapter 2 of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–21 et seq.) from State, local, institutional, or private funds.
“(B) Description of period—The period described in this subparagraph is the period beginning on the first day of a qualifying emergency and ending on September 30 of the fiscal year following the end of the qualifying emergency.”
“(d) Scope of authority—Notwithstanding subsection (a), the Secretary may not modify the required or allowable uses of funds for grants awarded under chapter I or II of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–11 et seq.; 1070a–21 et seq.), in a manner that deviates from the overall purpose of the grant program, as provided in the general authorization, findings, or purpose of the grant program under the applicable statutory provision cited in such chapter.”
B Financial Aid Access
Sec. 121 Emergency financial aid grants excluded from need analysis
Sec. 122 Facilitating access to financial aid for recently unemployed students
Sec. 123 Student eligibility for higher education emergency relief fund and other higher education funds
Sec. 124 Distance education
Sec. 125 Requirements for teach-out plans and teach-out agreements
C Federal Student Loan Relief
1 Temporary Relief for Federal Student Borrowers
Sec. 131 Expanding loan relief to all Federal student loan borrowers
“(2) Federal student loan—The term Federal student loan means a loan—
“(A) made under part B, part D, or part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.), and held by the Department of Education;
“(B) made, insured, or guaranteed under part B of such title, or made under part E of such title, and not held by the Department of Education; or
“(C) made under—
“(i) subpart II of part A of title VII of the Public Health Service Act (42 U.S.C. 292q et seq.); or
“(ii) part E of title VIII of the Public Health Service Act (42 U.S.C. 297a et seq.).”
Sec. 132 Extending the length of borrower relief due to the coronavirus emergency
“(a) Suspension of payments
“(1) In general—During the period beginning on March 13, 2020, and ending on September 30, 2021, the Secretary or, as applicable, the Secretary of Health and Human Services, shall suspend all payments due on Federal student loans.
“(2) Transition period—For one additional 30-day period beginning on the day after the last day of the suspension period described in subsection (a), the Secretary or, as applicable, the Secretary of Health and Human Services, shall ensure that any missed payments on a Federal student loan by a borrower during such additional 30-day period—
“(A) do not result in collection fees or penalties associated with late payments; and
“(B) are not reported to any consumer reporting agency or otherwise impact the borrower’s credit history.
“(3) Determination of compensation—The Secretary or, as applicable, the Secretary of Health and Human Services shall—
“(A) with respect to a holder of a Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2)—
“(i) determine any losses for such holder due to the suspension of payments on such loan under paragraph (1); and
“(ii) establish reasonable compensation for such losses; and
“(B) not later than 60 days after the date of enactment of the Pandemic Education Response Act, with respect to a borrower who made a payment on a Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2) during the period beginning on March 13, 2020, and ending on such date of enactment, the Secretary shall pay to the borrower, an amount equal to the lower of—
“(i) the amount paid by the borrower on such loan during such period; or
“(ii) the amount that was due on such loan during such period.
“(4) Recertification—A borrower who is repaying a Federal student loan pursuant to an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e) shall not be required to recertify the income or family size of the borrower under such plan prior to December 31, 2021.”
Sec. 133 No interest accrual
“(b) Providing interest relief
“(1) No accrual of interest
“(A) In general—During the period described in subparagraph (D), interest on a Federal student loan shall not accrue or shall be paid by the Secretary (or the Secretary of Health and Human Services) during—
“(i) the repayment period of such loan;
“(ii) any period excluded from the repayment period of such loan (including any period of deferment or forbearance);
“(iii) any period in which the borrower of such loan is in a grace period; or
“(iv) any period in which the borrower of such loan is in default on such loan.
“(B) Direct Loans and Department of Education held FFEL and Perkins Loans—For purposes of subparagraph (A), interest shall not accrue on a Federal student loan defined in section 3502(a)(2)(A).
“(C) FFEL and Perkins loans not held by the Department of Education and HHS Loans—For purposes of subparagraph (A)—
“(i) in the case of a Federal student loan defined in section 3502(a)(2)(B), the Secretary shall pay, on a monthly basis, the amount of interest due on the unpaid principal of such loan to the holder of such loan, except that any payments made under this clause shall not affect payment calculations under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–1); and
“(ii) in the case of a Federal student loan defined in section 3502(a)(2)(C), the Secretary of Health and Human Services shall pay, on a monthly basis, the amount of interest due on the unpaid principal of such loan to the holder of such loan.
“(D) Period described
“(i) In general—The period described in this clause is the period beginning on March 13, 2020, and ending on the later of—
“(I) September 30, 2021; or
“(II) the day following the date of enactment of the Pandemic Education Response Act that is 2 months after the national U–5 measure of labor underutilization shows initial signs of recovery.
“(ii) Definitions—In this subparagraph:
“(I) National U–5 measure of labor underutilization—The term national U–5 measure of labor underutilization means the seasonally-adjusted, monthly U–5 measure of labor underutilization published by the Bureau of Labor Statistics.
“(II) Initial signs of recovery—The term initial signs of recovery means that the average national U–5 measure of labor underutilization for months in the most recent 3-consecutive-month period for which data are available—
“(aa) is lower than the highest value of the average national U–5 measure of labor underutilization for a 3-consecutive-month period during the period beginning in March 2020 and the most recent month for which data from the Bureau of Labor Statistics are available by an amount that is equal to or greater than one-third of the difference between—
“(AA) the highest value of the average national U–5 measure of labor underutilization for a 3-consecutive-month period during such period; and
“(BB) the value of the average national U–5 measure of labor underutilization for the 3-consecutive-month period ending in February 2020; and
“(bb) has decreased for each month during the most recent 2 consecutive months for which data from the Bureau of Labor Statistics are available.
“(E) Other definitions—In this paragraph:
“(i) Default—The term default—
“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, has the meaning given such term in section 435(l) of the Higher Education Act of 1965 (20 U.S.C. 1085);
“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, has the meaning given such term in section 674.2 of title 34, Code of Federal Regulations (or successor regulations); or
“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), has the meaning given such term in section 721 or 835 of the Public Health Service Act (42 U.S.C. 292q, 297a), as applicable.
“(ii) Grace period—The term grace period means—
“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, the 6-month period after the date the student ceases to carry at least one-half the normal full-time academic workload, as described in section 428(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7));
“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, the 9-month period after the date on which a student ceases to carry at least one-half the normal full-time academic workload, as described in section 464(c)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(1)(A)); and
“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), the 1-year period described in section 722(c) of the Public Health Service Act (42 U.S.C. 292r(c)) or the 9-month period described in section 836(b)(2) of such Act (42 U.S.C. 297b(b)(2)), as applicable.
“(iii) Repayment period—The term repayment period means—
“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, the repayment period described in section 428(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7));
“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, the repayment period described in section 464(c)(4) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(4)); or
“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), the repayment period described in section 722(c) or 836(b)(2) of the Public Health Service Act (42 U.S.C. 292r(c), 297b(b)(2)), as applicable.
“(2) Interest refund in lieu of retroactive applicability—By not later than 60 days after the date of enactment of the Pandemic Education Response Act, the Secretary or, as applicable, the Secretary of Health and Human Services, shall, for each Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2) for which interest was not paid by such Secretary pursuant to paragraph (1) during the period beginning on March 13, 2020 and ending on such date of enactment—
“(A) determine the amount of interest due (or that would have been due in the absence of being voluntarily paid by the holder of such loan) on such loan during the period beginning March 13, 2020, and ending on such date of enactment; and
“(B) refund the amount of interest calculated under subparagraph (A), by—
“(i) paying the holder of the loan the amount of the interest calculated under subparagraph (A), to be applied to the loan balance for the borrower of such loan; or
“(ii) if there is no outstanding balance or payment due on the loan as of the date on which the refund is to be provided, providing a payment in the amount of the interest calculated under subparagraph (A) directly to the borrower.
“(3) Suspension of interest capitalization
“(A) In general—With respect to any Federal student loan, interest that accrued but had not been paid prior to March 13, 2020, and had not been capitalized as of such date, shall not be capitalized.
“(B) Transition—The Secretary or, as applicable, the Secretary of Health and Human Services, shall ensure that any interest on a Federal student loan that had been capitalized in violation of subparagraph (A) is corrected and the balance of principal and interest due for the Federal student loan is adjusted accordingly.”
Sec. 134 Notice to borrowers
“(B) that—
“(i) a borrower of a Federal student loan made, insured, or guaranteed under part B or D of title IV of the Higher Education Act of 1965 may be eligible to enroll in an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e), including a brief description of such repayment plans; and
“(ii) in the case of a borrower of a Federal student loan defined in section 3502(a)(2)(C) or made under part E of title IV of the Higher Education of 1965, the borrower may be eligible to enroll in such a repayment plan if the borrower consolidates such loan with a loan described in clause (i) of this subparagraph, and receives a Federal Direct Consolidation Loan under part D of the Higher Education of 1965 (20 U.S.C. 1087a et seq.); and”
“(3) in a case in which the accrual of interest on Federal student loans is suspended under subsection (b)(1) beyond September 30, 2021, during the 2-month period beginning on the date on which the national U–5 measure of labor underutilization shows initial signs of recovery (as such terms are defined in subsection (b)(1)(D)) carry out a program to provide not less than 6 notices by postal mail, telephone, or electronic communication to borrowers—
“(A) indicating when the interest on Federal student loans of the borrower will resume accrual and capitalization; and
“(B) the information described in paragraph (2)(B).”
Sec. 135 Implementation
“(i) Implementation
“(1) Information verification
“(A) In general—To facilitate implementation of this section, information for the purposes described in subparagraph (B), shall be reported—
“(i) by the holders of Federal student loans defined in section 3502(a)(2)(B) to the satisfaction of the Secretary; and
“(ii) by the holders of Federal student loans defined in section 3502(a)(2)(C) to the satisfaction of the Secretary of Health and Human Services.
“(B) Purposes—The purposes of the information reported under subparagraph (A) are to—
“(i) verify, at the borrower level, the payments that are provided or suspended under this section; and
“(ii) calculate the amount of any interest due to the holder for reimbursement of interest under subsection (b).
“(2) Coordination—The Secretary shall coordinate with the Secretary of Health and Human Services to carry out the provisions of this section with respect to Federal student loans defined in section 3502(a)(2)(C).”