113 S2448 IS: Servicemember Higher Education Protection Act
U.S. Senate
2014-06-05
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Servicemember Higher Education Protection Act
.
2.
Except as otherwise expressly provided, wherever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision
of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
3.
Benefits for borrowers who are members of the Armed Forces
Section 131(f) is amended to read as
follows:
(f)
Benefits for members of the Armed Forces
(1)
(A)
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs,
shall create a revised and updated searchable Internet website that—
(i)
contains information, in simple and understandable terms, about all Federal and State student
financial assistance, readmission requirements under section 484C, and
other student services, for which members of the Armed Forces (including
members of the National Guard and Reserves), veterans, and the dependents
of such members or veterans may be eligible; and
(ii)
is easily accessible through the Internet website described in subsection (e)(3).
(B)
Not later than 365 days after the date of the enactment of the Servicemember Higher Education Protection Act, the Secretary shall make publicly available the revised and updated Internet
website described in
subparagraph (A).
(C)
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs,
shall make the availability of the Internet website
described in subparagraph (A) widely known to members of the Armed Forces
(including members of the National Guard and Reserves), veterans, the
dependents of such members or veterans, States, institutions of higher
education, and the general public.
(D)
In this paragraph, the term Federal and State student financial assistance means any grant, loan, work assistance, tuition assistance, scholarship, fellowship, or other form
of financial aid for pursuing a postsecondary education that is—
(i)
administered, sponsored, or supported by the Department of Education, the Department of Defense,
the Department of Veterans Affairs, or a State; and
(ii)
available to members of the Armed Forces (including members of the National Guard and Reserves),
veterans, or the dependents of such members or veterans.
(2)
(A)
The Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection
and the heads of any other relevant Federal agencies, shall create a
simplified disclosure and enrollment form for borrowers who are performing
eligible military service (as defined in section 481(d)).
(B)
The disclosure and enrollment form described in subparagraph (A) shall include—
(i)
information about the benefits and protections under title IV and under the Servicemembers Civil
Relief Act (50 U.S.C. App. 501 et seq.) that are available to such
borrowers because of their status as borrowers who are performing eligible
military service (as defined in section 481(d)); and
(ii)
an opportunity for the borrower, by completing the enrollment form, to invoke certain protections,
activate certain benefits, and enroll in certain programs that may be
available to that borrower, which shall include the opportunity—
(I)
to invoke applicable protections that are available under the Servicemembers Civil Relief Act
(50 U.S.C.
App. 501 et seq.), as such protections relate to Federal student loans
under title IV; and
(II)
to activate or enroll in any other applicable benefits that are available to such borrower under
this Act due to the borrower's status as a borrower who is performing
eligible military service (as defined in section 481(d)), such as
eligibility for a deferment or
eligibility for a period during which interest shall not accrue.
(C)
Not later than 365 days after the date of the enactment of the Servicemember Higher Education Protection Act, the Secretary shall make available to eligible institutions, eligible lenders, and personnel at
the Department of Defense and other Federal agencies that provide services
to borrowers who are members of the Armed Forces or the
dependents of such members or individuals performing eligible military
service, the disclosure and enrollment form
described in subparagraph (A).
(D)
(i)
SCRA interest rate limitation
The completion of the disclosure and enrollment form created pursuant to subparagraph (A) by the
borrower of a loan made, insured, or guaranteed under part B or part D of
title IV who is otherwise subject to the interest rate limitation in
subsection (a) of section 207 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 527(a)) and submittal of
such form to the Secretary shall be considered, for purposes of such
section, provision to the creditor of written notice as described in
subsection (b)(1) of such section.
(ii)
The Secretary shall provide each such disclosure and enrollment form completed and submitted by a
borrower of a loan made, insured, or guaranteed under part B of title IV
who is otherwise subject to the interest rate limitation in subsection (a)
of section 207 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 527(a)) to any applicable
eligible lender under part B of title IV so as to satisfy the provision to
the lender of written notice as described in subsection (b)(1) of such
section.
.
4.
POC in the FSA Ombudsman for members of the Armed Forces and veterans
Section 141(f) (20 U.S.C. 1018(f)) is amended—
(1)
by redesignating paragraph (4) as paragraph (5); and
(2)
by inserting after paragraph (3) the following:
(4)
Military and Veteran Point of Contact
(A)
The Chief Operating Officer, in consultation with the Secretary, shall appoint a designated
military and veteran point of contact within the office of the Student
Loan Ombudsman.
(B)
The designated military and veteran point of contact described in subparagraph (A) shall—
(i)
monitor the complaints received from the Ombudsman under paragraph (3)(A) from, and provide timely
assistance to, members of
the Armed Forces (including members of the National Guard and Reserves),
veterans, and their dependents;
(ii)
coordinate with other agencies, including the Department of Defense, the Department of Veterans
Affairs, and the Bureau of Consumer Financial Protection, to ensure that
members of the Armed Forces, veterans, and the dependents of members of
the Armed Forces and
veterans, who are students, borrowers, or potential borrowers, are aware
of the availability and functions of the Ombudsman; and
(iii)
issue to the Committee on Health, Education, Labor, and Pensions of the Senate, the Committee on
Education and the Workforce of the House of Representatives, the Committee
on Veterans' Affairs of the Senate, the Committee on Veterans' Affairs of
the House of Representatives, the Committee on Armed Services of the
Senate, and the Committee on Armed Services of the House of
Representatives an annual report on the challenges that such members of
the Armed Forces, veterans, and dependents are facing
as students, borrowers, and potential borrowers.
.
5.
Disability determinations
(a)
Amendment to the Higher Education Act of 1965
Section 437(a)(2) (20 U.S.C. 1087(a)(2)) is amended to read as follows:
(2)
Disability determinations
(A)
A borrower who has been assigned a disability rating of 100 percent (or a combination of ratings
equaling 100 percent or more) by the Secretary of Veterans Affairs or the
Secretary of Defense for a service-connected disability (as defined in
section 101 of title 38, United States Code) and who
provides documentation of such rating to the Secretary of
Education, shall be considered permanently and totally disabled for the
purpose of discharging such borrower's loans under this subsection, and
such borrower shall not be required to present any additional
documentation for purposes of this subsection.
(B)
A disability rating described in subparagraph
(A), or similar determination of unemployability by the Secretary of
Veterans
Affairs or the Department of Defense, transmitted in accordance with
subparagraph (C) shall be considered sufficient documentation for purposes
of this subsection.
(C)
Not later than 180 days after the date of enactment of the Servicemember Higher Education Protection Act, the Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans
Affairs, shall create a system through which the applicable disability
ratings (or alternative means of transmitting a determination of
unemployability) shall be automatically transmitted from the Department of
Defense or the Department of Veterans Affairs, as the case may be, to the
Department of Education and shall satisfy the documentation requirement
described in this paragraph. The Secretary shall have the authority to
enter into any agreements necessary to implement the requirements of this
paragraph.
.
(b)
(1)
Not later than 90 days after the date of the enactment of this Act, the Secretary of Education
shall submit to the appropriate committees of Congress a report that
includes a plan to carry out the activities described under section
437(a)(2)(C) of the Higher Education Act
of 1965 (20 U.S.C. 1087(a)(2)), as amended by this section.
(2)
If the Secretary of Education has not carried out the activities described under section
437(a)(2)(C)
of the Higher Education Act
of 1965, as amended by this section, by the date that is 1 year after the
date of
enactment of
this Act, the Secretary of Education shall submit, by such date, a report
that includes an explanation of why those activities have not been
implemented and a description of any legislative changes that are
necessary to allow for the implementation of such activities.
6.
Loan deferment for borrowers performing military service and certain spouses of members of the
Armed Forces
(a)
Section 428(b)(1)(M) (20 U.S.C. 1078(b)(1)(M)) is amended—
(1)
by redesignating clause (iv) as clause (v);
(2)
in clause (iii), by striking the borrower—
and all that follows through described in subclause (I) or (II); or
and inserting the borrower is performing eligible military service,
and for the 180-day period following the demobilization date for such
eligible military service;
; and
(3)
by inserting after clause (iii) the following:
(iv)
not in excess of 180 days after the effective movement date listed on the military orders of a
borrower's spouse if that spouse is a member of the Armed Forces who has
received military orders for a
permanent change of station; or
.
(b)
Section 455(f)(2) (20 U.S.C. 1087e(f)(2)) is amended—
(1)
by redesignating subparagraph (D) as subparagraph (E);
(2)
in subparagraph (C), by striking the borrower—
and all that follows through described in clause (i) or (ii); or
and inserting the borrower is performing eligible military service, and for the
180-day
period following the demobilization date for such eligible military
service;
and
(3)
by inserting after subparagraph (C) the following:
(D)
any period not in excess of 180 days after the effective movement date listed on the military
orders of a
borrower's spouse if that spouse is a member of the Armed Forces who has
received military orders for a
permanent change of station; or
.
(c)
(1)
Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is amended—
(A)
by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively;
(B)
in clause (iii), by striking the borrower—
and all that follows through described in subclause (I) or (II);
and inserting during which the borrower is performing eligible military service,
and for the 180-day period following the demobilization date for such
eligible military service;
; and
(C)
by inserting after clause (iii) the following:
(iv)
not in excess of 180 days after the effective movement date listed on the military orders of a
borrower's spouse if that spouse is a member of the Armed Forces who has
received military orders for a
permanent change of station; or
.
(2)
Section 465(a)(2)(D) (20 U.S.C. 1087ee(a)(2)(D)) is amended by striking qualifies for special pay under section 310 of title 37, United States Code, as an area of
hostilities
and inserting is eligible military service
.
(d)
Section 481(d) (20 U.S.C. 1088(d)) is amended—(1)by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; and(2)by inserting after paragraph (1) the following:
(2)Eligible military serviceThe term eligible military service—(A)in the case of a member of a regular component of the Armed Forces, means full-time duty in the
Armed Forces, other than active duty for training (as defined in section
101 of title 38, United States Code);(B)in the case of a member of the reserve components of the Armed Forces, means service on active duty
under a call or order to active duty under section 688, 12301(a),
12301(d), 12301(g), 12302, or 12304 of title 10, United States Code, or
section 712 of title 14, United States Code;(C)in the case of a member of the Army National Guard of the United States or Air National Guard of
the United States, means, in addition to service described in subparagraph
(B), full-time service—(i)in the National Guard of a State for the purpose of organizing, administering, recruiting,
instructing, or training the National Guard; or(ii)in the National Guard under section 502(f) of title 32, United States Code, when authorized by the
President or the
Secretary of Defense for the purpose of responding to a national emergency
declared by the President and supported by Federal funds;(D)in the case of a servicemember who is a commissioned officer of the Public Health Service or the
National Oceanic and Atmospheric Administration, active service; and(E)does not include any period during which an individual—(i)was assigned full-time by the Armed Forces to a civilian institution for a course of education that
was substantially the same as established courses offered to civilians;(ii)serves as a cadet or midshipman at one of the military service academies of the United States; or(iii)serves under the provisions of section 12103(d) of title 10, United States Code, pursuant to an
enlistment in the Army National Guard or the Air National Guard, or as a
Reserve for service in the Army Reserve, Navy Reserve, Air Force Reserve,
Marine Corps Reserve, or Coast Guard Reserve..
7.
Public service loan forgiveness
Section 455(m) (20 U.S.C. 1087e(m)) is amended—
(1)
by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and
(2)
by inserting after paragraph (2) the following:
(3)
For purposes of this subsection, if a borrower has enrolled in a repayment plan described in
paragraph (1)(A) and makes a lump sum payment through a student loan
repayment program under section 2171 of
title 10, United States Code, or a similarly structured eligible repayment
program (as determined by the Secretary), the Secretary will treat the
borrower as having made a number of qualifying payments equal to the
lesser
of—
(A)
the number, rounded to the nearest whole number, equal to the quotient of—
(i)
such lump sum payment; divided by
(ii)
the monthly payment amount that the borrower would have otherwise made under the repayment plan
described in paragraph (1)(A) selected by the borrower; or
(B)
12 payments.
.
8.
Accrual of interest for members of the Armed Forces subject to hostile fire or imminent danger
Section 455(o) is amended—
(1)
by striking paragraph (1) and inserting the following:
(1)
Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), the
Secretary shall not charge interest on a loan made to a borrower under
this part for which the first disbursement is made on or after October 1,
2008, during the period in which a borrower who is performing eligible
military service (as defined in section 481(d)) is serving in an area of
hostilities in which service qualifies for special pay
under section 310 of title 37, United States Code.
;
(2)
by striking paragraph (3) and inserting the following:
(3)
Implementation of accrual of interest provision for members of the Armed Forces
(A)
The Secretary shall enter into any necessary agreements, including agreements with
the Commissioner of Revenue and the Secretary of Defense—
(i)
to ensure that interest does not accrue for borrowers described in paragraph (1), in accordance
with this
subsection; and
(ii)
to obtain or provide any information necessary to implement clause (i) without requiring a request
from the borrower.
(B)
(i)
Not later than 90 days after the date of the enactment of the Servicemember Higher Education Protection Act, the Secretary shall submit to the appropriate committees of Congress a report that
includes a plan to implement the accrual of interest provision described
in subparagraph (A).
(ii)
If the Secretary has not implemented the accrual of interest provision described in
subparagraph (A) by the date that is 1
year after the date of enactment of the Servicemember Higher Education Protection Act, the Secretary shall submit, by such date, a report that includes an explanation of why
such provision has not been implemented and a description of any
legislative changes that are necessary to allow for the implementation of
such provision.
; and
(3)
in paragraph (4), by striking who qualifies as an eligible military borrower under this subsection
and inserting described in paragraph (1)
.
9.
National Student Loan Data System
(a)
Amendment to the Higher Education Act of 1965
Subsection (h) of section 485B (20 U.S.C. 1092b(h)) is amended to read as follows:
(h)
(1)
The Secretary shall integrate the National Student Loan Data System with the Federal Pell Grant
applicant
and recipient databases as of January 1, 1994, and any other databases
containing information on participation in programs under this title.
(2)
Department of Defense Information
(A)
In order to incorporate the military and veteran status of borrowers into the National Student Loan
Data System, the Secretary shall integrate the National Student Loan Data
System with information from—
(i)
the Department of Defense, including the Defense Manpower Data Center; and
(ii)
the Department of Veterans Affairs, including data about veterans who are eligible for educational
assistance under laws administered by the Secretary of Veterans Affairs.
(B)
Memoranda of understanding
The Secretary shall enter into any memoranda of understanding or other agreements that are
necessary to carry out this paragraph.
.
(b)
(1)
Not later than 90 days after the date of the enactment of this Act, the Secretary of Education
shall submit to the appropriate committees of Congress a report that
includes a plan to implement the Department of Defense data integration
provision described under section 485B(h)(2) of the Higher Education Act
of 1965, as amended by this section.
(2)
If the Secretary of Education has not implemented the Department of Defense data integration
provision described under section 485B(h)(2) of the Higher Education Act
of 1965, as amended by this section, by the date that is 1 year after the
date of
enactment of
this Act, the Secretary of Education shall submit, by such date, a report
that includes an explanation of why such provision has not been
implemented and a description of any legislative changes that are
necessary to allow for the implementation of such provision.
10.
Program participation agreements
Section 487(a) is amended by adding at the
end the following:
(30)
In the case of an institution that enrolls during an academic year more than 100 students who are
veterans, the institution shall
certify that the institution has developed and implemented a plan to
ensure the success of veterans at that institution. To the extent
practicable, the institution shall make the plan, and associated
policies, public and accessible to students who are veterans. Such plan
shall include the following:
(A)
The designation of certain faculty or staff at the institution who will serve as a point of contact
for veterans—
(i)
within campus offices, including the admissions office; and
(ii)
during any orientation process for newly enrolled students.
(B)
The establishment of a working group that will be responsible for veterans' issues.
(C)
A description of disability services that are available to meet the needs of disabled students who
are veterans.
(D)
A plan for how the institution will identify students who are veterans through the application
process, or through other processes, to provide better assistance in the
receipt of educational
assistance under laws administered by the Secretary of Veterans Affairs or
the Secretary of Defense.
(E)
A description of how the institution will evaluate and maximize the number of credits students can
receive from military training and service.
.
11.
Extending the protections for student loans for active duty borrowers
Section 493D (20 U.S.C. 1098f) is amended—
(1)
in the section heading, by inserting and protections for active duty borrowers
before the period at the end;
(2)
by redesignating subsection (b) as subsection (c); and
(3)
by inserting after subsection (a) the following:
(b)
(1)
The Secretary shall utilize information the Secretary receives regarding the active duty
status of borrowers from the
Secretary of Defense for any purpose under this title to ensure that the
interest rate charged on any loan made under part D of
title IV for borrowers who are subject to section
207(a)(1) of the Servicemembers
Civil
Relief Act (50 U.S.C. App. 527(a)(1)) does not exceed the maximum interest
rate set forth in such section.
(2)
SCRA interest rate limitation notice requirements
The submittal by the Secretary of Defense to the Secretary of Education of information that informs
the Secretary of Education that an individual with a
student loan under part D of title IV has been or is being
called to military service (as defined in section 101 of the
Servicemembers Civil Relief Act (50 U.S.C. 511)) shall be considered, for
purposes of subjecting such student loan to the provisions of section 207
of the Servicemembers Civil Relief Act (50 U.S.C. App. 527), provision by
the borrower to the creditor of written notice and a copy of military
orders as described in subsection (b)(1) of such section.
(3)
Not later than 180 days after the date of enactment of the Servicemember Higher Education Protection Act, the Secretary, in consultation with the Department
of Defense, shall establish a procedure to implement
this subsection.
.
12.
Modification of limitation on rate of interest on student loans during and immediately after period
of military service
(a)
Extension of period of applicability of limitation on rate of interest on student loans incurred
before service
Section 207(a)(1) of the Servicemembers Civil
Relief Act (50 U.S.C. App. 527(a)(1)) is amended—
(1)
in subparagraph (A), by inserting or a student loan
after nature of a mortgage
; and
(2)
in the paragraph heading,
by inserting on debt
incurred before service
after Limitation to 6
percent
.
(b)
Debt entered into during military service To consolidate or refinance
student
loans incurred before military service
Subsection (a) of section 207 of such Act (50 U.S.C. App. 527) is amended—
(1)
by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively;
(2)
by inserting
after paragraph (1) the following new paragraph (2):
(2)
Limitation to 6
percent on debt incurred during service to consolidate or refinance
student
loans incurred before service
An obligation or liability bearing
interest at a rate in excess of 6 percent per year that is incurred
by a
servicemember, or the servicemember and the servicemember's spouse
jointly,
during military service to consolidate or refinance one or more
student loans
incurred by the servicemember before such military service shall
not bear an
interest at a rate in excess of 6 percent during the period of
military
service and one year thereafter.
;
(3)
in paragraph (3),
as redesignated by paragraph (1) of this subsection, by inserting or
(2)
after paragraph (1)
; and
(4)
in paragraph (4),
as so redesignated, by striking paragraph (2)
and inserting
paragraph (3)
.
(c)
Implementation
of limitation
Subsection (b) of such section is amended—
(1)
in paragraph (1),
by striking the interest rate limitation in subsection (a)
and
inserting an interest rate limitation in paragraph (1) or (2) of
subsection (a)
; and
(2)
in paragraph
(2)—
(A)
in the paragraph
heading, by striking as of
date of order to active duty
; and
(B)
by inserting
before the period at the end the following: in the case of an obligation
or liability covered by subsection (a)(1), or as of the date the
servicemember
(or servicemember and spouse jointly) incurs the obligation or liability
concerned under subsection (a)(2)
.
(d)
Subsection (d) of such section is amended by adding at
the end the following new paragraph:
(3)
The term student loan means the
following:
(A)
A Federal student
loan made, insured, or guaranteed under title IV of the Higher
Education Act of
1965 (20 U.S.C. 1070 et seq.).
(B)
A private student
loan as that term is defined in section 140(a) of the Truth in
Lending Act (15
U.S.C.
1650(a)).
.
13.
Working group on improvement of resources available to members of the Armed Forces and their
spouses in using tuition assistance programs of the Department of Defense
(a)
The Secretary of Defense, the Secretary of Education, the Secretary of Veterans Affairs, and the
Director of the Bureau of Consumer Financial Protection shall jointly, and
in consultation with the heads of such other departments and agencies of
the Federal Government as such officials consider appropriate, establish
and maintain a working group to assess and improve the resources available
to education service officers and other personnel of the Federal
Government who provide assistance to members of the Armed Forces and their
spouses in using or seeking to use the tuition assistance programs of the
Department of Defense.
(b)
In improving resources as described in subsection (a), the working group shall provide for the
inclusion of the following in such resources:
(1)
Information on the benefits and protections for members of the Armed Forces and their dependents
provided in this Act and the amendments made by this Act.
(2)
Consumer information, resources, and tools created and maintained by the working group pursuant to
this section.
(3)
Information on the availability of consumer protection measures, including the complaint system
established pursuant to Executive Order 13607 (77 Fed. Reg. 25861;
relating to establishing principles of excellence for educational
institutions serving servicemembers, veterans, spouses, and other family
members).
(4)
Such other information or resources as the working group considers appropriate.
14.Exception for Servicemembers Civil Relief ActSection 428(d) (20 U.S.C. 1078(d)) is amended by striking “section 207 of the Servicemembers Civil
Relief Act (50 U.S.C. App. 527)” and inserting “the Servicemembers Civil
Relief Act (50 U.S.C. App. 501 et seq.)”.