110 HR 3748 IH: Servicemember Student Loan Interest U.S. House of Representatives 2007-10-04 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.
I 110th CONGRESS 1st Session H. R. 3748 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.
1.
Short title
This Act may be cited as the Servicemember Student Loan Interest Relief Act.
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. .
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..