To amend the Higher Education Act of 1965 to allow soldiers to serve their country without being disadvantaged financially by Federal student aid programs.

May 6, 2003

Mr. MCINTYRE (for himself, Mr. RYAN of Ohio, Mr. EVANS, Mr. WILSON of South Carolina, Mr. BOSWELL, and Mr. LEACH) introduced the following bill; which was referred to the Committee on Education and the Workforce

To amend the Higher Education Act of 1965 to allow soldiers to serve their country without being disadvantaged financially by Federal student aid programs.

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 `Fairness for America's Servicemen and Women in Higher Education Act of 2003'.

SEC. 2. REFUND POLICY.

Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091b(b)(2)) is amended by adding at the end the following:

`(D) STUDENTS ON ACTIVE DUTY DURING A WAR OR NATIONAL EMERGENCY- Notwithstanding subparagraphs (A), (B), and (C), a student who withdraws from an institution of higher education to serve on active duty during a war or national emergency shall not be required to repay any grant assistance that is otherwise required to be repayed under this section.'.

SEC. 3. DEFERMENT DURING ACTIVE DUTY.

(a) FFEL SUBSIDIZED LOANS- Section 428(b)(1)(M) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended--

(1) in clause (ii), by striking `or' after the semicolon;

(2) in clause (iii), by inserting `or' after the semicolon; and

(3) by inserting after clause (iii) the following:

`(iv) during which the borrower--

`(I) is a member of a regular component on active duty during a war or during a national emergency declared by the President or Congress, and receives compensation described in section 112(a) of the Internal Revenue Code of 1986;

`(II) is on active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, 12304, 12306, 12307, or 12406, or chapter 15 of title 10, United States Code, or any other provision of law, during a war or during a national emergency declared by the President or Congress, regardless of the location at which such active duty service is performed; or

`(III) in the case of a member of the National Guard, is on full-time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 12402 of title 10, United States Code, or section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.'.

(b) DIRECT SUBSIDIZED LOANS- Section 455(f)(2) of such Act (20 U.S.C. 1087e(f)(2)) is amended--

(1) by striking the period at the end of subparagraph (C) and inserting `; and'; and

(2) by adding at the end the following new subparagraph:

`(D) during which the borrower--

`(i) is a member of a regular component on active duty during a war or during a national emergency declared by the President or Congress, and receives compensation described in section 112(a) of the Internal Revenue Code of 1986;

`(ii) is on active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, 12304, 12306, 12307, or 12406, or chapter 15 of title 10, United States Code, or any other provision of law, during a war or during a national emergency declared by the President or Congress, regardless of the location at which such active duty service is performed; or

`(iii) in the case of a member of the National Guard, is on full-time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 12402 of title 10, United States Code, or section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.'.

(c) CONSOLIDATION LOANS- Section 428C(b)(4)(C)(ii) of the Higher Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii)) is amended--

(1) in subclause (II), by striking `or' after the semicolon;

(2) in subclause (III), by striking `or (II)' and inserting `, (II) or (III)';

(3) by redesignating subclause (III) (as so amended) as subclause (IV); and

(4) by inserting after subclause (II) the following:

`(III) by the Secretary, in the case of a consolidation loan of a student who is on an active duty deferment under section 428(b)(1)(M)(iv); or'.

(d) FFEL UNSUBSIDIZED LOANS- Section 428H(e) of the Higher Education Act of 1965 (20 U.S.C. 1078-8(e)) is amended by adding at the end the following:

`(C) Notwithstanding subparagraph (A), interest on loans made under this section for which payments of principal are deferred because the student is on an active duty deferment under section 428(b)(1)(M)(iv) shall be paid by the Secretary.'.

(e) DIRECT UNSUBSIDIZED LOANS- Section 455(f) of such Act (20 U.S.C. 1087e(f)) is amended by adding at the end the following:

`(5) INTEREST DURING ACTIVE DUTY DEFERMENTS- Notwithstanding paragraph (1)(B), interest on loans under this part for which payments of principal are deferred because the student is on an active duty deferment under paragraph (2)(D) shall be paid by the Secretary.'.

(f) PERKINS LOANS- Section 464(c)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is amended--

(1) in clause (iii), by striking `or' after the semicolon;

(2) in clause (iv), by inserting `or' after the semicolon; and

(3) by inserting after clause (iv) the following:

`(v) during which the borrower--

`(I) is a member of a regular component on active duty during a war or during a national emergency declared by the President or Congress, and receives compensation described in section 112(a) of the Internal Revenue Code of 1986;

`(II) is on active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, 12304, 12306, 12307, or 12406, or chapter 15 of title 10, United States Code, or any other provision of law, during a war or during a national emergency declared by the President or Congress, regardless of the location at which such active duty service is performed; or

`(III) in the case of a member of the National Guard, is on full-time National Guard duty (as defined in section 101(d)(5) of title 10, United States Code) under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 12402 of title 10, United States Code, or section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.'.

(g) EFFECTIVE DATE- The amendments made by this section shall apply with respect to loans for which the first disbursement is made on or after July 1, 1993, to an individual who is a new borrower (within the meaning of section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) on or after such date.

END