[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3748 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3748

To amend the Federal Direct Loan Program to provide that interest shall 
  not accrue on Federal Direct Loans for active duty service members.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2007

 Mrs. Davis of California (for herself, Mr. Davis of Illinois, and Ms. 
   Hirono) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Direct Loan Program to provide that interest shall 
  not accrue on Federal Direct Loans for active duty service members.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemember Student Loan Interest 
Relief Act''.

SEC. 2. NO ACCRUAL OF INTEREST FOR ACTIVE DUTY SERVICE MEMBERS.

    Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) 
is amended by adding at the end the following:
    ``(n) No Accrual of Interest for Active Duty Service Members.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part, and except as provided in paragraph (3), interest on 
        a loan made under this part shall not accrue for an eligible 
        borrower.
            ``(2) Eligible borrower.--In this subsection, the term 
        `eligible borrower' means an individual who is--
                    ``(A) serving on active duty during a war or other 
                military operation or national emergency; or--
                    ``(B) performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency.
            ``(3) Limitation.--An individual who qualifies as an 
        eligible borrower under this subsection may receive the benefit 
        of this subsection for not more than 60 months.''.

SEC. 3. CONSOLIDATION LOANS.

    Section 428C(b)(5) of the Higher Education Act of 1965 (20 U.S.C. 
1078-3(b)(5)) is amended by inserting after the first sentence the 
following: ``In addition, in the event that a borrower chooses to 
obtain a consolidation loan for the purposes of using the no accrual of 
interest for active duty service members program offered under section 
455(n), the Secretary shall offer any such borrower who applies for it, 
a Federal Direct Consolidation loan.''.
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