S.Amdt. 2525

This amendment was submitted by Mr. Kim and Mr. Blumenthal. It aims to strike section 82002 and replace it with new rules regarding student loan deferments and forbearances.

The amendment sets up a sunset on unemployment and economic hardship deferments. Specifically, a borrower who receives a loan on or after the later of July 1, 2027, or the date of a determination under section 82002(c) of the One Big Beautiful Bill Act, will not be eligible to defer that loan for unemployment or economic hardship.

Additionally, the amendment limits forbearance for loans made on or after July 1, 2027. Borrowers may only be eligible for a forbearance that does not exceed 9 months during any 24-month period.

The changes will not apply until the Chief Operating Officer for the Office of Federal Student Aid certifies in writing to the Secretary of Education and specific congressional committees that the implementation will not cause additional financial hardship for specific groups of people. These protected groups include those on active military duty or qualifying National Guard duty during a war, military operation, or national emergency, individuals receiving cancer treatment, people enrolled in a physical or mental impairment rehabilitation program, or those who became unemployed in the 180 days before the certification.