[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1098 Engrossed in Senate (ES)]
<DOC>
117th CONGRESS
2d Session
S. 1098
_______________________________________________________________________
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).''.
Passed the Senate June 15, 2022.
Attest:
Secretary.
117th CONGRESS
2d Session
S. 1098
_______________________________________________________________________
AN ACT
To amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans.