Cancellation of student loan indebtedness for survivors of victims of the September 11, 2001, attacks

(a)

Definitions

For purposes of this section: (1)

Eligible public servant

The term eligible public servant means an individual who, as determined in accordance with regulations of the Secretary— (A)served as a police officer, firefighter, other safety or rescue personnel, or as a member of the Armed Forces; and (B)died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001. (2)

Eligible victim

The term eligible victim means an individual who, as determined in accordance with regulations of the Secretary, died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001. (3)

Eligible parent

The term eligible parent means the parent of an eligible victim if— (A)the parent owes a Federal student loan that is a consolidation loan that was used to repay a PLUS loan incurred on behalf of such eligible victim; or (B)the parent owes a Federal student loan that is a PLUS loan incurred on behalf of an eligible victim. (4)

Secretary

The term Secretary means the Secretary of Education. (5)

Federal student loan

The term Federal student loan means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965. (b)

Relief From Indebtedness

(1)

In general

The Secretary shall provide for the discharge or cancellation of— (A)the Federal student loan indebtedness of the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary, including any consolidation loan that was used jointly by the eligible public servant and his or her spouse to repay the Federal student loans of the spouse and the eligible public servant; (B)the portion incurred on behalf of the eligible victim (other than an eligible public servant), of a Federal student loan that is a consolidation loan that was used jointly by the eligible victim and his or her spouse, as determined in accordance with regulations of the Secretary, to repay the Federal student loans of the eligible victim and his or her spouse; (C)the portion of the consolidation loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim; and (D)the PLUS loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim. (2)

Method of discharge or cancellation

A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled by the method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to such loan. (c)

Facilitation of Claims

The Secretary shall— (1)establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published within 90 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and (2)take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness under this section. (d)

Availability of Funds for Payments

Funds available for the purposes of making payments to lenders in accordance with section 437(a) for the discharge of indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans as required by this section. (e)

Applicable to Outstanding Debt

The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation loans) on which amounts were owed on September 11, 2001. Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.