What This Bill Does
This bill allows student loan borrowers who are victims of terrorist attacks to pause their loan payments for up to one year. The bill modifies federal student loan programs to add this new deferment option (a temporary pause in payments). It requires the head of the federal agency investigating a terrorist attack to identify who qualifies as a victim.
Who It Affects
Student loan borrowers who are designated as victims of terrorist attacks by the federal agency investigating the attack.
Key Provisions
* Borrowers designated as victims of terrorist attacks can defer federally insured student loans for no more than one year (Sec. 2(a))
* Borrowers designated as victims of terrorist attacks can defer FFEL Program loans (a type of federal education loan) for no more than one year (Sec. 2(b))
* Borrowers designated as victims of terrorist attacks can defer Direct Loans for no more than one year (Sec. 2(c))
* Borrowers designated as victims of terrorist attacks can defer Federal Perkins Loans for no more than one year (Sec. 2(d))
* The head of the federal agency investigating a terrorist attack must designate which individuals are victims (Sec. 2(e))
* The Secretary of Education must set up anti-fraud protections to prevent false claims (Sec. 2(f))
What Changes
Federal law will add victim status from a terrorist attack as a new reason borrowers can temporarily pause payments on four types of federal student loans. A federal agency official will decide who qualifies as a victim based on their investigation of the attack.
Important Definitions
The bill defines a victim of a terrorist attack as an individual officially designated as such by the head of the federal agency handling the investigation of that attack.
II
118TH CONGRESS
1ST SESSION
S. 409
To amend the Higher Education Act of 1965 to provide student loan
deferment for victims of terrorist attacks.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 14, 2023
Mr. RUBIO introduced the following bill; which was read twice and referred
to the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Higher Education Act of 1965 to provide
student loan deferment for victims of terrorist attacks.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Terrorism Survivors
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Student Loan Deferment Act of 2023’’.
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SEC. 2. STUDENT LOAN DEFERMENT FOR VICTIMS OF TER-
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RORIST ATTACKS.
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(a) TERMS
OF
FEDERALLY
INSURED
STUDENT
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LOANS.—Section 427(a)(2)(C) of the Higher Education
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Act of 1965 (20 U.S.C. 1077(a)(2)(C)) is amended—
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•S 409 IS
(1) in clause (iii), by striking ‘‘or’’ after the
1
semicolon;
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(2) in clause (iv), by striking the period at the
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end and inserting ‘‘; or’’; and
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(3) by adding at the end the following:
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‘‘(v) not in excess of 1 year due to the
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borrower being a victim of a terrorist at-
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tack;’’.
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(b) FFEL PROGRAM.—Section 428(b) of the Higher
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Education Act of 1965 (20 U.S.C. 1078(b)) is amended—
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(1) in paragraph (1)(M)—
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(A) in clause (iv), by striking ‘‘or’’ after
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the semicolon;
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(B) in clause (v), by inserting ‘‘or’’ after
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the semicolon; and
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(C) by adding at the end the following:
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‘‘(vi) not in excess of 1 year due to
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the borrower being a victim of a terrorist
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attack as described in paragraph (10);’’;
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and
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(2) by adding at the end the following:
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‘‘(10) DEFERMENT FOR VICTIMS OF TERRORIST
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ATTACKS.—For purposes of deferment under para-
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graph (1)(M)(vi), a victim of a terrorist attack is an
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individual who is designated as a victim of a ter-
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•S 409 IS
rorist attack by the head of the Federal agency that
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is handling the investigation of the attack.’’.
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(c) DIRECT LOANS.—Section 455 of the Higher Edu-
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cation Act of 1965 (20 U.S.C. 1087e) is amended—
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(1) in subsection (e)(7)(B)(i), by inserting ‘‘or
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due to the borrower being a victim of a terrorist at-
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tack’’ after ‘‘section 435(o)’’; and
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(2) in subsection (f)—
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(A) in paragraph (2)—
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(i) in subparagraph (C), by striking
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‘‘clause (i) or (ii); or’’ and inserting
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‘‘clause (i) or (ii);’’;
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(ii) in subparagraph (D), by striking
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the period at the end and inserting ‘‘; or’’;
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and
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(iii) by adding at the end the fol-
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lowing:
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‘‘(E) not in excess of 1 year due to the
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borrower being a victim of a terrorist attack as
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described in paragraph (6).’’; and
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(B) by adding at the end the following:
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‘‘(6) DEFERMENT FOR VICTIMS OF TERRORIST
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ATTACKS.—For purposes of deferment under para-
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graph (2)(E), a victim of a terrorist attack is an in-
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dividual who is designated as a victim of a terrorist
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•S 409 IS
attack by the head of the Federal agency that is
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handling the investigation of the attack.’’.
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(d) FEDERAL PERKINS LOANS.—Section 464(c)(2)
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of the Higher Education Act of 1965 (20 U.S.C.
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1087dd(c)(2)) is amended—
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(1) in subparagraph (A)—
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(A) in clause (v), by striking ‘‘or’’ after the
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semicolon;
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(B) in clause (vi), by inserting ‘‘or’’ after
9
the semicolon; and
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(C) by inserting after clause (vi) the fol-
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lowing:
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‘‘(vii) not in excess of 1 year due to
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the borrower being a victim of a terrorist
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attack as described in subparagraph (D);’’;
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and
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(2) by adding at the end the following:
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‘‘(D) For purposes of deferment under subpara-
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graph (A)(vii), a victim of a terrorist attack is an in-
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dividual who is designated as a victim of a terrorist
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attack by the head of the Federal agency that is
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handling the investigation of the attack.’’.
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(e) DESIGNATING
VICTIMS
OF
TERRORIST
AT-
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TACKS.—The head of the Federal agency that is handling
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the investigation of a terrorist attack, or has handled the
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•S 409 IS
investigation of a terrorist attack, shall designate the indi-
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viduals who are victims of such terrorist attack.
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(f) ANTI-FRAUD PROTECTIONS.—The Secretary of
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Education shall establish anti-fraud protections in car-
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rying out the amendments made by this Act.
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Æ
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