[Congressional Record Volume 143, Number 160 (Thursday, November 13, 1997)]
[Senate]
[Pages S12591-S12592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. TORRICELLI:
  S. 1534. A bill to amend the Higher Education Act of 1965 to delay 
the commencement of the student loan repayment period for certain 
students called to active duty in the Armed Forces; to the Committee on 
Labor and Human Resources.

[[Page S12592]]

            the veterans' student loan deferment act of 1997

  Mr. TORRICELLI: Mr. President, I rise today to introduce the 
Veterans' Student Loan Deferment Act of 1997. This important 
legislation will amend the Higher Education Act to preserve the 6-month 
grace period for repayment of federal student loans for reservists who 
have been called into active duty.
  Throughout my career as a public official, I have always supported 
the brave men and women who serve our nation in the Reserve Components. 
These forces represent all 50 States and four territories, and truly 
embody our forefathers' vision of the American citizen-soldier. 
Reservists are active participants in the full spectrum of U.S. 
military operations, from the smallest of contingencies to full-scale 
theater war, and no major operation can be successful without them.
  However, under current law, students who receive orders to serve with 
our military in places like Bosnia are returning home to discover that 
they have lost the six month grace period on their federal student 
loans and must begin making repayments immediately. I believe it is 
patently unfair and inconsistent with our increased reliance on the 
Reserve Forces to call up these students to serve in harm's way and, at 
the same time, to keep the clock running on the six month grace period 
for paying-back student loans. Enactment of my legislation would 
eliminate this serious inequity confronting students in the Reserves.
  Mr. President, hundreds upon hundreds of New Jerseyans have been 
involved in Operation Joint Endeavor in Bosnia to date. Many of these 
courageous individuals had to withdraw from classes in order to serve 
their nation in uniform. Although the Department of Education can grant 
deferments to these students, federal law prohibits reinstating their 
grace period, so interest continues to accrue on their loans whenever 
they are not attending classes. It is important to note that this 
legislation will not provide these veterans with any special treatment 
or benefit. My legislation will simply guarantee that the repayment 
status on their student loans will be the same when they return home as 
when they left for service.
  I feel very strongly that students should not be punished for serving 
in the Reserves, and believe that when they are called to serve our 
country, their focus should be on the mission, not on the status of 
their student loans. I am proud to offer this legislation on behalf of 
the hundreds of thousands of Reservists in the United States, and look 
forward to working with my colleagues to ensure its passage. I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1534

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DELAY IN COMMENCEMENT OF REPAYMENT PERIOD.

       (a) Federal Stafford Loans and Federal Direct Stafford/Ford 
     Loans.--Section 428(b)(7) of the Higher Education Act of 1965 
     (20 U.S.C. 1078(b)(7)) is amended by adding at the end the 
     following:
       ``(D) There shall be excluded from the 6 month period that 
     begins on the date on which a student ceases to carry at 
     least one-half the normal full-time academic workload as 
     described in subparagraph (A)(i) any period not to exceed 3 
     years during which a borrower who is a member of a reserve 
     component of the Armed Forces named in section 10101 of title 
     10, United States Code, is called or ordered to active duty 
     for a period of more than 30 days (as defined in section 
     101(d)(2) of such title).''.
       (b) Federal Perkins Loans.--Section 464(c) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087dd(c)) is amended by 
     adding at the end the following:
       ``(7) There shall be excluded from the 9 month period that 
     begins on the date on which a student ceases to carry at 
     least one-half the normal full-time academic workload as 
     described in paragraph (1)(A) any period not to exceed 3 
     years during which a borrower who is a member of a reserve 
     component of the Armed Forces named in section 10101 of title 
     10, United States Code, is called or ordered to active duty 
     for a period of more than 30 days (as defined in section 
     101(d)(2) of such title).''.
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