[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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