[Congressional Record Volume 168, Number 102 (Wednesday, June 15, 2022)]
[Senate]
[Pages S2975-S2976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 5097. Mr. KELLY (for Mr. Warner (for himself, Mr. Cornyn, Mr.
Rubio, and Ms. Smith)) proposed an amendment to the bill S. 1098, to
amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans; as follows:
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
[[Page S2976]]
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).''.
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