[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2895 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2895

To amend the Higher Education Act of 1965 to maintain eligibility, for 
Federal PLUS loans, of borrowers who are 90 or more days delinquent on 
 mortgage loan payments, or for whom foreclosure proceedings have been 
          initiated, with respect to their primary residence.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 21, 2008

    Mr. Dodd (for himself, Mr. Kennedy, Mr. Brown, Mrs. Murray, Mr. 
  Sanders, and Mrs. Clinton) introduced the following bill; which was 
 read twice and referred to the Committee on Health, Education, Labor, 
                              and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to maintain eligibility, for 
Federal PLUS loans, of borrowers who are 90 or more days delinquent on 
 mortgage loan payments, or for whom foreclosure proceedings have been 
          initiated, with respect to their primary residence.

    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 ``PLUS Loan Borrower Protection Act of 
2008''.

SEC. 2. SPECIAL RULES FOR FEDERAL PLUS LOANS.

    Section 428B(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 
1078-2(a)(3)) is amended--
            (1) by striking ``Whenever'' and inserting the following:
                    ``(A) Parent borrowers.--Whenever''; and
            (2) by adding at the end the following:
                    ``(B) Extenuating circumstances.--
                            ``(i) In general.--For purposes of 
                        determining if a borrower has an adverse credit 
                        history under paragraph (1)(A) on the basis of 
                        a delinquency or foreclosure related to a 
                        mortgage loan, an extenuating circumstance 
                        exists if, during the period beginning January 
                        1, 2007 and ending December 31, 2012, the 
                        borrower is 90 or more days delinquent on 
                        mortgage loan payments, or foreclosure 
                        proceedings have been initiated, with respect 
                        to the primary residence of the borrower.
                            ``(ii) Definition.--The term `mortgage 
                        loan' means an extension of credit that is 
                        secured by the primary residence of the 
                        borrower.''.
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