[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1098 Enrolled Bill (ENR)]
S.1098
One Hundred Seventeenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the third day of January, two thousand and twenty two
An Act
To amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans.
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 ``Joint Consolidation Loan Separation
Act''.
SEC. 2. SEPARATING JOINT CONSOLIDATION LOANS.
(a) In General.--Section 455(g) of the Higher Education Act of 1965
(20 U.S.C. 1087e(g)) is amended--
(1) by striking ``A borrower'' and inserting the following:
``(1) In general.--A borrower''; and
(2) by adding at the end the following:
``(2) Separating joint consolidation loans.--
``(A) In general.--
``(i) Authorization.--A married couple, or 2
individuals who were previously a married couple, and who
received a joint consolidation loan as such married couple
under subparagraph (C) of section 428C(a)(3) (as such
subparagraph was in effect on June 30, 2006), may apply to
the Secretary, in accordance with subparagraph (C) of this
paragraph, for each individual borrower in the married
couple (or previously married couple) to receive a separate
Federal Direct Consolidation Loan under this part.
``(ii) Eligibility for borrowers in default.--
Notwithstanding any other provision of this Act, a married
couple, or 2 individuals who were previously a married
couple, who are in default on a joint consolidation loan
may be eligible to receive a separate Federal Direct
Consolidation Loan under this part in accordance with this
paragraph.
``(B) Secretarial requirements.--Notwithstanding section
428C(a)(3)(A) or any other provision of law, for each
individual borrower who applies under subparagraph (A), the
Secretary shall--
``(i) make a separate Federal Direct Consolidation Loan
under this part that--
``(I) shall be for an amount equal to the product
of--
``(aa) the unpaid principal and accrued unpaid
interest of the joint consolidation loan (as of the
date that is the day before such separate
consolidation loan is made) and any outstanding
charges and fees with respect to such loan; and
``(bb) the percentage of the joint
consolidation loan attributable to the loans of the
individual borrower for whom such separate
consolidation loan is being made, as determined--
``(AA) on the basis of the loan obligations
of such borrower with respect to such joint
consolidation loan (as of the date such joint
consolidation loan was made); or
``(BB) in the case in which both borrowers
request, on the basis of proportions outlined
in a divorce decree, court order, or settlement
agreement; and
``(II) has the same rate of interest as the joint
consolidation loan (as of the date that is the day
before such separate consolidation loan is made); and
``(ii) in a timely manner, notify each individual
borrower that the joint consolidation loan had been repaid
and of the terms and conditions of their new loans.
``(C) Application for separate direct consolidation loan.--
``(i) Joint application.--Except as provided in clause
(ii), to receive separate consolidation loans under this
part, both individual borrowers in a married couple (or
previously married couple) shall jointly apply under
subparagraph (A).
``(ii) Separate application.--An individual borrower in
a married couple (or previously married couple) may apply
for a separate consolidation loan under subparagraph (A)
separately and without regard to whether or when the other
individual borrower in the married couple (or previously
married couple) applies under subparagraph (A), in a case
in which--
``(I) the individual borrower certifies to the
Secretary that such borrower--
``(aa) has experienced an act of domestic
violence (as defined in section 40002 of the
Violence Against Women Act of 1994 (34 U.S.C.
12291) from the other individual borrower;
``(bb) has experienced economic abuse (as
defined in section 40002 of the Violence Against
Women Act of 1994 (34 U.S.C. 12291) from the other
individual borrower; or
``(cc) is unable to reasonably reach or access
the loan information of the other individual
borrower; or
``(II) the Secretary determines that authorizing
each individual borrower to apply separately under
subparagraph (A) would be in the best fiscal interests
of the Federal Government.
``(iii) Remaining obligation from separate
application.--In the case of an individual borrower who
receives a separate consolidation loan due to the
circumstances described in clause (ii), the other non-
applying individual borrower shall become solely liable for
the remaining balance of the joint consolidation loan.''.
(b) Conforming Amendment.--Section 428C(a)(3)(B)(i)(V) of the
Higher Education Act of 1965 (20 U.S.C. 1078-3(3)(B)(i)(V)) is
amended--
(1) by striking ``or'' at the end of item (bb);
(2) by striking the period at the end of item (cc) and
inserting ``; or''; and
(3) by adding at the end the following:
``(dd) for the purpose of separating a joint
consolidation loan into 2 separate Federal Direct
Consolidation Loans under section 455(g)(2).''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.