I 111th CONGRESS 1st Session H. R. 2561 IN THE HOUSE OF REPRESENTATIVES May 21, 2009 Mr. Kind (for himself, Mrs. Biggert, Mr. Altmire, and Mr. Hunter) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend section 484B of the Higher Education Act of 1965 to forgive certain loans for servicemembers who withdraw from an institution of higher education as a result of service in the uniformed services, and for other purposes.

1.

Short title

This Act may be cited as the Help Student Soldiers Act.

2.

Loan forgiveness for servicemembers

Section 484B(e) of the Higher Education Act of 1965 (20 U.S.C. 1091b(e)) is amended to read as follows— (e)

Loan forgiveness for servicemembers

(1)

Loan forgiveness authorized

Whenever a student’s withdrawal from an institution of higher education is necessitated by reason of service in the uniformed services, the Secretary shall, with respect to the payment period or period of enrollment for which such student did not receive academic credit as a result of such withdrawal— (A)waive the amounts the student is required to return for such payment period or period of enrollment under subsection (b)(2); and (B)carry out a program— (i)through the holder of the loan, to assume the obligation to repay— (I)the outstanding principal and accrued interest on any loan assistance awarded to the student under part B for such payment period or period of enrollment; minus (II)any amount of such loan assistance returned by the institution in accordance with subsection (b)(1) for such payment period or period of enrollment; and (ii)to cancel— (I)the outstanding principal and accrued interest on the loan assistance awarded to the student under part D or E for such payment period or period of enrollment; minus (II)any amount of such loan assistance returned by the institution in accordance with subsection (b)(1) for such payment period or period of enrollment. (2)

PLUS loans

Notwithstanding paragraph (1), the Secretary may not provide loan forgiveness under this subsection for any excepted PLUS loan. (3)

Reimbursement for cancellation of Perkins loans

The Secretary shall pay to each institution for each fiscal year an amount equal to the aggregate of the amounts of Federal Perkins loans in such institutions’s student loan fund which are cancelled pursuant to paragraph (1)(B)(ii) for such fiscal year, minus an amount equal to the aggregate of the amounts of any such loans so canceled which were made from Federal capital contributions to its student loan fund provided by the Secretary under section 468. None of the funds appropriated pursuant to section 461(b) shall be available for payments pursuant to this paragraph. To the extent feasible, the Secretary shall pay the amounts for which any institution qualifies under this paragraph not later than 3 months after the institution files an institutional application for campus-based funds. (4)

Loan eligibility and limits for students

Any amounts that are returned by an institution in accordance with subsection (b)(1), or forgiven or waived by the Secretary under this subsection, with respect to a payment period or period of enrollment for which a student did not receive academic credit as a result of withdrawal necessitated by reason of service in the uniformed services, shall not be included in the calculation of a student’s annual or aggregate loan limits for assistance under this title, or otherwise affect the student’s eligibility for grants or loans under this title. (5)

Definitions

In this subsection: (A)

Excepted PLUS loan

The term excepted PLUS loan has the meaning given such term in section 493C. (B)

Service in the Uniformed Services

The term service in the uniformed services has the meaning given such term in section 484C(a). (6)

Effective date

This subsection shall take effect on July 1, 2010. .