[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3160-S3161]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1673. Mr. LEE submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to
establish a new Directorate for Technology and Innovation in the
National Science Foundation, to establish a regional technology hub
program, to require a strategy and report on economic security,
science, research, innovation, manufacturing, and job creation, to
establish a critical supply chain resiliency program, and for other
purposes; which was ordered to lie on the table; as follows:
At the end of title I of division F, insert the following:
Subtitle D--Fiscal Accountability
SEC. 6131. SIMPLIFICATION OF FEDERAL STUDENT LOANS.
(a) Termination.--Section 451 of the Higher Education Act
of 1965 (20 U.S.C. 1087a) is amended--
(1) in subsection (a), by adding at the end the following:
``No sums may be expended after September 30, 2028, with
respect to loans under this part for which the first
disbursement is after such date, except Federal Direct
simplification loans under section 460A.''; and
(2) by adding at the end, the following:
``(d) Termination of Authority To Make New Loans.--
Notwithstanding subsection (a) or any other provision of
law--
``(1) no new loans may be made under this part after
September 30, 2028, except Federal Direct simplification
loans under section 460A; and
``(2) no funds are authorized to be appropriated, or may be
expended, under this Act, or any other Act to make loans
under this part for which the first disbursement is after
September 30, 2028, except Federal Direct simplification
loans under section 460A, or as expressly authorized by an
Act of Congress enacted after the date of enactment of the
United States Innovation and Competition Act of 2021.
``(e) Student Eligibility Beginning With Award Year 2024.--
``(1) New borrowers.--No loan may be made under this part
to a new borrower for which the first disbursement is after
June 30, 2024, except Federal Direct simplification loans
under section 460A.
``(2) Borrowers with outstanding balances.--Subject to
paragraph (3), with respect to a borrower who, as of July 1,
2024, has an outstanding balance of principal or interest
owing on a loan made under this part that is not a Federal
Direct simplification loan under section 460A, such borrower
may--
``(A) in the case of such a loan made to the borrower for
enrollment in a program of undergraduate education, borrow
loans made under this part that are not Federal Direct
simplification loans under section 460A for any program of
undergraduate education through the close of September 30,
2028;
``(B) in the case of such a loan made to the borrower for
enrollment in a program of graduate or professional
education, borrow loans made under this part that are not
Federal Direct simplification loans under section 460A for
any program of graduate or professional education through the
close of September 30, 2028; and
``(C) in the case of such a loan made to the borrower on
behalf of a dependent student for the student's enrollment in
a program of undergraduate education, borrow loans made under
this part that are not Federal Direct simplification loans
under section 460A on behalf of such student through the
close of September 30, 2028.
``(3) Loss of eligibility.--A borrower described in
paragraph (2) who borrows a Federal Direct simplification
loan made under section 460A for which the first disbursement
is made before September 30, 2028, shall lose the borrower's
eligibility to borrow a loan under this part that is not a
Federal Direct simplification loan under section 460A in
accordance with paragraph (2).''.
(b) Federal Direct Simplification Loans.--Part D of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et
seq.) is amended by adding at the end the following:
``SEC. 460A. FEDERAL DIRECT SIMPLIFICATION LOANS.
``(a) In General.--Beginning on July 1, 2024, except as
provided in section 451(d), the Secretary shall make loans to
borrowers under this section. Loans made under this section
shall be known as Federal Direct simplification loans.
``(b) Federal Direct Simplification Loans.--The provisions
of this part shall apply with respect to Federal Direct
simplification loans, except that Federal Direct
simplification loans shall be made in accordance with the
following:
``(1) The applicable rate of interest on a loan made under
this section shall, for loans disbursed during any 12-month
period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) a rate equal to the high yield of the 10-year
Treasury note auctioned at the final auction held prior to
such June 1; plus
``(B) 3.6 percent.
``(2) Interest on a loan made under this section shall
begin to accrue on the date the loan is disbursed.
``(3) The maximum--
``(A) annual amount of loans under this section an
undergraduate student may borrow in any academic year (as
defined in section 481(a)(2)) or its equivalent shall be
equal to $7,500; and
``(B) aggregate amount of loans under this section an
undergraduate student may borrow shall be equal to $30,000.
``(4) The maximum--
``(A) annual amount of loans under this section a graduate
or professional student may borrow in any academic year (as
defined in section 481(a)(2)) or its equivalent shall be
equal to $12,500; and
``(B) aggregate amount of loans under this section a
graduate or professional student may borrow shall be equal to
$50,000.
``(5) The only length of repayment--
``(A) for a loan borrowed by an undergraduate student shall
be 15 years; and
``(B) for a loan borrowed by a graduate or professional
student shall be 25 years.
``(6) Repayment on a loan made under this section shall
begin--
``(A) after 125 percent of the normal time for completion
of the program of study for which the borrower receives the
loan under this section; or
``(B) if the borrower withdraws from the program of study
before the borrower completes the program, 6 months after the
date the borrower withdraws.
``(7) The Secretary shall not repay or cancel any
outstanding balance of principal or interest due on a Federal
Direct simplification loan as part of a student loan
forgiveness program, including such a program under section
455(m) and section 493C.
``(c) Authorization To Limit Loan Amounts.--An institution
of higher education that is required under State law to
enroll all eligible applicants for an academic year may limit
the amount of loans under this section that a student may
borrow for such academic year to not more than the tuition
and fees at such institution for such academic year.
``(d) Loan Fee.--The Secretary shall not charge the
borrower of a loan made under this part an origination fee.
``(e) Repayment.--A borrower of a loan made under this
section may accelerate without penalty repayment of the whole
or any part of the loan.''.
SEC. 6132. PHASING OUT LOAN FORGIVENESS.
The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended--
(1) in section 455--
(A) in subsection (d)(1), in the matter preceding
subparagraph (A), by inserting ``(except a Federal Direct
simplification loan)''
[[Page S3161]]
after ``borrower of a loan made under this part'';
(B) in subsection (e), by adding at the end the following:
``(9) Federal direct simplification loans.--Income
contingent repayment shall not be available for a Federal
Direct simplification loan.''; and
(C) in subsection (m), by adding at the end the following:
``(5) Elimination of loan forgiveness.--
``(A) In general.--Notwithstanding any other provision of
this Act and subject to subparagraph (B), with respect to any
loan made on or after July 1, 2024, the Secretary may not
cancel any outstanding balance of principal and interest due
on the loan for the borrower of the loan pursuant to this
subsection.
``(B) Loans for continuing program of study.--In the case
of a borrower whose first loan for a program of study is made
prior to July 1, 2024, the Secretary may repay or cancel any
outstanding balance of principal and interest due on the
subsequent loans for that borrower for the same program of
study pursuant to this subsection for--
``(i) loans made during the time it takes to complete that
program of study; or
``(ii) loans made before July 1, 2028;
whichever occurs earlier.''; and
(2) in section 493C, by adding at the end the following:
``(f) Elimination of Loan Forgiveness.--
``(1) In general.--Notwithstanding any other provision of
this Act and subject to paragraph (2), with respect to any
loan made on or after July 1, 2024, the Secretary may not
repay or cancel any outstanding balance of principal and
interest due on the loan for the borrower of the loan
pursuant to this section.
``(2) Loans for continuing program of study.--In the case
of a borrower whose first loan for a program of study is made
prior to July 1, 2024, the Secretary may repay or cancel any
outstanding balance of principal and interest due on the
subsequent loans for that borrower for the same program of
study pursuant to this section for--
``(A) loans made during the time it takes to complete that
program of study; or
``(B) loans made before July 1, 2028;
whichever occurs earlier.''.
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