[Congressional Record Volume 168, Number 102 (Wednesday, June 15, 2022)]
[Senate]
[Page S2961]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                JOINT CONSOLIDATION LOAN SEPARATION ACT

  Mr. KELLY. Mr. President, I ask unanimous consent that the Health, 
Education, Labor, and Pensions Committee be discharged from further 
consideration of S. 1098, and the Senate proceed to its immediate 
consideration.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 1098) to amend the Higher Education Act of 1965 
     to authorize borrowers to separate joint consolidation loans.

  There being no objection, the committee was discharged, and the 
Senate proceeded to consider the bill.
  Mr. KELLY. I ask unanimous consent that the Warner substitute 
amendment at the desk be agreed to; the bill, as amended, be considered 
read a third time and passed; and that the motion to reconsider be 
considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5097), in the nature of a substitute, was agreed 
to as follows:

                (Purpose: In the nature of a substitute)

       At the appropriate place, insert the following:

     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).''.

  The bill (S. 1098), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed.

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