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I
116TH CONGRESS
1ST SESSION H. R. 4119
To amend the Higher Education Act of 1965 to extend the interest-free
grace period certain loans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 30, 2019
Mr. LAWSON of Florida (for himself, Ms. TLAIB, and Mr. VARGAS) introduced
the following bill; which was referred to the Committee on Education and
Labor
A BILL
To amend the Higher Education Act of 1965 to extend
the interest-free grace period certain loans, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
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 ‘‘Student Loan Defer-
4
ment Act of 2019’’.
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SEC. 2. INTEREST-FREE GRACE PERIOD.
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(a) REPAYMENT PERIOD.—
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(1) EXTENSION
OF
GRACE
PERIOD.—Section
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428(b)(7)(A) of the Higher Education Act of 1965
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•HR 4119 IH
(20 U.S.C. 1078(b)(7)(A)) is amended by striking
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‘‘6 months’’ and inserting ‘‘1 year’’.
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(2) PERKINS.—Section 464(c)(1)(A) of the
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Higher
Education
Act
of
1965
(20
U.S.C.
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1087dd(c)(1)(A)) is amended—
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(A) by striking ‘‘nine months’’ and insert-
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ing ‘‘1 year’’; and
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(B) by striking ‘‘9 months’’ and inserting
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‘‘1 year’’.
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(b) INTEREST RATES.—Section 455(b) of the Higher
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Education Act of 1965 (20 U.S.C. 1087e(b)) is amended
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by adding at the end the following:
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‘‘(11) IN SCHOOL AND GRACE PERIOD RULES.—
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Notwithstanding the preceding paragraphs of this
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subsection, with respect to any Federal Direct Staf-
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ford Loan or Federal Direct Unsubsidized Stafford
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Loan made under this part for which the first dis-
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bursement is made on or after July 1, 2020, the ap-
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plicable rate of interest for interest which accrues—
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‘‘(A) prior to the beginning of the repay-
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ment period of the loan; or
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‘‘(B) during the period in which principal
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need not be paid (whether or not such principal
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is in fact paid) by reason of a provision de-
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•HR 4119 IH
scribed
in
section
428(b)(1)(M)
or
1
427(a)(2)(C),
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shall be equal to zero percent.’’.
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Æ
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