[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.