[117th Congress Public Law 200]
[From the U.S. Government Publishing Office]
[[Page 136 STAT. 2219]]
Public Law 117-200
117th Congress
An Act
To amend the Higher Education Act of 1965 to authorize borrowers to
separate joint consolidation loans. <<NOTE: Oct. 11, 2022 - [S.
1098]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Joint
Consolidation Loan Separation Act. 20 USC 1001 note.>>
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
[[Page 136 STAT. 2220]]
(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) <<NOTE: Notification.>> 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) <<NOTE: Determination.>> the
Secretary determines that authorizing
each individual borrower to apply
separately under
[[Page 136 STAT. 2221]]
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).''.
Approved October 11, 2022.
LEGISLATIVE HISTORY--S. 1098:
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CONGRESSIONAL RECORD, Vol. 168 (2022):
June 15, considered and passed Senate.
Sept. 20, 21, considered and passed House.
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