S 1653 IS

107th CONGRESS

1st Session

S. 1653

To provide student loan forgiveness to the surviving spouses of the victims of the September 11, 2001, tragedies.

IN THE SENATE OF THE UNITED STATES

November 8, 2001

Mr. SCHUMER (for himself and Mrs. CLINTON) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

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A BILL

To provide student loan forgiveness to the surviving spouses of the victims of the September 11, 2001, tragedies.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `September 11 Surviving Spouse Student Loan Relief Act'.

SEC. 2. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES.

(a) DEFINITIONS- For purposes of this section:

(1) ELIGIBLE SPOUSE- The term `eligible spouse' means the spouse of an individual who served as a policeman, fireman, other safety or rescue personnel, member of the Armed Forces, or any other individual, who died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001, as determined in accordance with regulations of the Secretary.

(2) SECRETARY- The term `Secretary' means the Secretary of Education.

(3) FEDERAL STUDENT LOAN- The term `Federal student loan' means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 20 U.S.C. 1087a et seq., and 20 U.S.C. 1087aa et seq.).

(b) IN GENERAL- The Secretary shall provide for the discharge or cancellation of the Federal student loan indebtedness of an eligible spouse in the same manner that the Federal student loan indebtedness of a student borrower is required to be discharged or canceled under sections 437(a), 455(a)(1), and 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 20 U.S.C. 1087e(a)(1), and 20 U.S.C. 1087dd(c)(1)(F)), as applicable.

(c) FACILITATION OF CLAIMS- The Secretary shall--

(1) by regulation, establish procedures for the filing of applications for discharge or cancellation under this section that shall be prescribed and published not later than 30 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and

(2) take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness for eligible spouses under this section.

(d) AVAILABILITY OF FUNDS FOR PAYMENTS- Funds available for the purposes of making payments to lenders in accordance with section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 1087(a)) for the discharge of indebtedness of student borrowers shall be available for making payments to lenders under such section for a student borrower who is an eligible spouse.

(e) NO DELAY IN REGULATIONS- Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c) and 20 U.S.C. 1098a) shall not apply to the regulations required by this section.