H.R. 5523, Pay Down, Upskill Act of 2021
Summary
House bill 5523, the Pay Down, Upskill Act of 2021, was introduced in the House of Representatives on October 8, 2021 by Mr. LAMB and referred to the Committee on Education and Labor. Section 2 has the Secretary of Education carry out a Pay Down or Upskill Education Benefit Program giving each eligible individual, upon application and approval, a benefit to repay student loans or pay educational expenses. An eligible individual must be not younger than 18 years of age and not older than 65 years of age on the application date. The total benefit may not exceed $10,000, and an application must be submitted before the date that is 5 years after enactment.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 117Hr5523Ih Bills 117Hr5523Ih
- Case
- Bills Bills 117Hr5523Ih Bills 117Hr5523Ih
Cite this document
“H.R. 5523, Pay Down, Upskill Act of 2021.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr5523ih-bills-117hr5523ih/
, SHA-256 4ad5e038368511dcc41d9e96c5dce5f0bfcb0588e8f5d708e4ddb0b98ac833af.Full text
I
117TH CONGRESS
1ST SESSION
H. R. 5523
To help Americans pay down student loan debt or pay for education or
training to develop or improve workforce skills.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 8, 2021
Mr. LAMB introduced the following bill; which was referred to the Committee
on Education and Labor
A BILL
To help Americans pay down student loan debt or pay for
education or training to develop or improve workforce skills.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Pay Down, Upskill
5 Act of 2021’’.
6 SEC. 2. PAY DOWN OR UPSKILL EDUCATION BENEFIT PRO-
7 GRAM.
8 (a) PROGRAM ESTABLISHED.—
kjohnson on DSK79L0C42PROD with BILLS
9 (1) IN GENERAL.—The Secretary of Education
10 shall carry out a program, known as the ‘‘Pay Down
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
2
1 or Upskill Education Benefit Program’’, to provide
2 to each eligible individual, upon application and ap-
3 proval, an education benefit to—
4 (A) repay all or part of the qualifying stu-
5 dent loans of the eligible individual, in accord-
6 ance with subsection (b); or
7 (B) pay all or part of the qualified edu-
8 cational expenses of the eligible individual, in
9 accordance with subsection (c).
10 (2) ELIGIBLE INDIVIDUAL.—An individual shall
11 be an ‘‘eligible individual’’ for purposes of this Act
12 if the individual—
13 (A) is not younger than 18 years of age
14 and not older than 65 years of age on the date
15 that the individual applies for an education ben-
16 efit under this Act; and
17 (B) received any credit or refund allowed
18 or made to the individual by reason of section
19 6428B of the Internal Revenue Code of 1986
20 (as added by section 9601 of the American Res-
21 cue Plan Act of 2021 (Public Law 117–2)).
22 (3) EDUCATION BENEFIT AMOUNT.—The
23 amount of an education benefit provided to an eligi-
24 ble individual in accordance with this Act shall be—
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
3
1 (A) the amount of the qualified student
2 loans of the individual; or
3 (B) the amount of the qualified edu-
4 cational expenses of the individual,
5 except that the maximum amount of the total edu-
6 cation benefit provided to an eligible individual shall
7 not exceed $10,000.
8 (4) NOTICE TO THE PUBLIC.—Not later than 6
9 months after the date of enactment of this Act, the
10 Secretary shall publicly announce the program estab-
11 lished under this Act, including by posting informa-
12 tion about such program on the website of the De-
13 partment of Education. The Secretary shall update
14 and maintain such information as may be necessary.
15 (5) DEADLINE FOR APPLICATIONS.—To be con-
16 sidered for an education benefit under this section,
17 an eligible individual shall submit an application in
18 accordance with this section before the date that is
19 5 years after the date of the enactment of this Act.
20 (b) USE OF EDUCATION BENEFIT TO PAY DOWN
21 STUDENT LOAN REPAYMENT.—
22 (1) APPLICATION BY ELIGIBLE INDIVIDUALS.—
23 An eligible individual who desires to apply the edu-
24 cation benefit of the individual under this section to
kjohnson on DSK79L0C42PROD with BILLS
25 the repayment of qualified student loans shall sub-
•HR 5523 IH
VerDate Sep 11 2014 20:27 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
4
1 mit, in a manner prescribed by the Secretary, an ap-
2 plication to the Secretary that—
3 (A) identifies, or permits the Secretary to
4 identify, the holder or holders of such loans;
5 (B) indicates, or permits the Secretary to
6 determine, the amounts of principal and inter-
7 est outstanding on the loans;
8 (C) specifies, if the outstanding balance is
9 greater than the amount of the maximum edu-
10 cation benefit under subsection (a)(3), which of
11 the loans the individual prefers to be paid by
12 the Secretary; and
13 (D) contains or is accompanied by such
14 other information as the Secretary may require.
15 (2) DISBURSEMENT OF LOAN REPAYMENTS.—
16 Upon receipt of an application that complies with
17 paragraph (1) from an eligible individual, the Sec-
18 retary shall, as promptly as practicable, repay the
19 amount of the education benefit of the individual de-
20 termined under subsection (a)(3) by—
21 (A) disbursing such amount by check or
22 other means that is payable to the holder of the
23 loan and requires the endorsement or other cer-
24 tification by the eligible individual; or
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
5
1 (B) in the case of a loan held by the Sec-
2 retary, cancelling such amount.
3 (3) APPLICATION OF REPAID AMOUNTS.—If the
4 amount repaid under paragraph (2) is less than the
5 principal and accrued interest on any qualified stu-
6 dent loan, such amount shall be applied according to
7 the specified priorities of the eligible individual.
8 (4) REPORTS BY HOLDERS.—Any holder receiv-
9 ing a loan payment pursuant to this subsection shall
10 submit to the Secretary such information as the Sec-
11 retary may require to verify that such payment was
12 applied in accordance with this subsection and any
13 regulations prescribed to carry out this subsection.
14 (5) NOTIFICATION OF INDIVIDUAL.—The Sec-
15 retary, upon repaying the education benefit of an eli-
16 gible individual, shall notify the individual of the
17 amount paid for each outstanding loan and the date
18 of payment.
19 (6) AUTHORITY TO AGGREGATE PAYMENTS.—
20 The Secretary may, by regulation, provide for the
21 aggregation of payments to holders under this sub-
22 section.
23 (7) DEFINITION OF HOLDER.—As used in this
24 subsection, the term ‘‘holder’’ with respect to any
kjohnson on DSK79L0C42PROD with BILLS
25 qualified student loan means the original lender or,
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
6
1 if the loan is subsequently sold, transferred, or as-
2 signed to some other person, and such other person
3 acquires a legally enforceable right to receive pay-
4 ments from the borrower, such other person.
5 (c) USE OF EDUCATION BENEFIT FOR EDUCATIONAL
6 EXPENSES TO UPSKILL.—
7 (1) APPLICATION BY ELIGIBLE INDIVIDUAL.—
8 An eligible individual who desires to apply the edu-
9 cation benefit of the individual under this section to
10 the payment of qualified educational expenses shall,
11 on a form prescribed by the Secretary, submit an
12 application to the eligible institution in which the
13 student will be enrolled that contains such informa-
14 tion as the Secretary may require to verify the indi-
15 vidual’s eligibility for such benefit.
16 (2) SUBMISSION OF REQUESTS FOR PAYMENT
17 BY INSTITUTIONS.—An eligible institution that re-
18 ceives one or more applications that comply with
19 paragraph (1) shall submit to the Secretary a state-
20 ment, in a manner prescribed by the Secretary,
21 that—
22 (A) identifies each eligible individual filing
23 an application under paragraph (1) for a dis-
24 bursement of the individual’s education benefit
kjohnson on DSK79L0C42PROD with BILLS
25 under this subsection;
•HR 5523 IH
VerDate Sep 11 2014 20:27 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
7
1 (B) specifies the amounts for which such
2 eligible individuals are, consistent with para-
3 graph (6), qualified for disbursement under this
4 subsection;
5 (C) certifies that—
6 (i) in the case of an eligible institution
7 that is an institution of higher education—
8 (I) the institution has in effect a
9 program participation agreement
10 under section 487 of the Higher Edu-
11 cation Act of 1965 (20 U.S.C. 1094);
12 and
13 (II) the institution’s eligibility to
14 participate in any of the programs
15 under title IV of such Act (20 U.S.C.
16 1070 et seq.) has not been limited,
17 suspended, or terminated; and
18 (ii) in the case of an eligible institu-
19 tion that is not an institution of higher
20 education, meets the requirements of sub-
21 section (d)(1)(B); and
22 (D) contains such provisions concerning fi-
23 nancial compliance as the Secretary may re-
24 quire.
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
8
1 (3) DISBURSEMENT OF PAYMENTS.—Upon re-
2 ceipt of a statement from an eligible institution that
3 complies with paragraph (2), the Secretary shall dis-
4 burse the total amount of the education benefit for
5 which eligible individuals who have submitted appli-
6 cations to that institution under paragraph (1) are
7 scheduled to receive. Such disbursement shall be
8 made by check or other means that is payable to the
9 institution and requires the endorsement or other
10 certification by the eligible individual.
11 (4) REFUND RULES.—The Secretary shall, by
12 regulation, provide for the refund to the Secretary
13 (and the crediting to the education benefit of an eli-
14 gible individual) of amounts disbursed to institutions
15 for the benefit of eligible individuals who withdraw
16 or otherwise fail to complete the period of enrollment
17 for which the assistance was provided. Such regula-
18 tions shall be consistent with the fair and equitable
19 refund policies required of institutions pursuant to
20 section 484B of the Higher Education Act of 1965
21 (20 U.S.C. 1091b). Amounts refunded to the Sec-
22 retary pursuant to this paragraph may be used by
23 the Secretary to fund additional education benefits
24 for eligible individuals under this Act.
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
9
1 (5) MAXIMUM BENEFIT FOR A PERIOD OF EN-
2 ROLLMENT.—The portion of an eligible individual’s
3 total available education benefit that may be dis-
4 bursed under this subsection for any period of en-
5 rollment shall not exceed the difference between—
6 (A) the tuition and fees charged to the eli-
7 gible individual for such period of enrollment;
8 and
9 (B) the student’s estimated financial as-
10 sistance for such period under part A of title IV
11 of the Higher Education Act of 1965 (20
12 U.S.C. 1070 et seq.).
13 (d) DEFINITIONS.—In this section:
14 (1) ELIGIBLE INSTITUTION.—The term ‘‘eligi-
15 ble institution’’ means—
16 (A) an institution of higher education—
17 (i) that has the meaning given such
18 term in section 101 of the Higher Edu-
19 cation Act of 1965 (20 U.S.C. 1001); or
20 (ii) that is a provider on a list of eligi-
21 ble providers of training services under
22 section 122(d) of the Workforce Innovation
23 and Opportunity Act (29 U.S.C. 3152(d));
24 or
kjohnson on DSK79L0C42PROD with BILLS
25 (B) an entity that offers a program—
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
10
1 (i) that is provided by a provider on
2 a list of eligible providers of training serv-
3 ices under section 122(d) of the Workforce
4 Innovation and Opportunity Act (29
5 U.S.C. 3152(d)); or
6 (ii) that is provided by a provider that
7 is not on a list described in clause (i) but
8 that, upon petition to the Secretary of
9 Labor by an eligible individual, the Sec-
10 retary determines based on indicators of
11 performance under section 116 of the
12 Workforce Innovation and Opportunity Act
13 (29 U.S.C. 3141) has, for at least the five
14 previous years, a record of good outcomes
15 as defined by the State plan submitted
16 under section 102 or 103 of such Act (29
17 U.S.C. 3112; 3113) with respect to such
18 provider.
19 (2) QUALIFIED EDUCATIONAL EXPENSES.—The
20 term ‘‘qualified educational expenses’’ means the
21 cost of tuition and fees charged to an eligible indi-
22 vidual for full-time or part-time enrollment at an eli-
23 gible institution in an education or training program
24 that results in a recognized postsecondary credential.
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
11
1 (3) QUALIFIED STUDENT LOANS.—The term
2 ‘‘qualified student loans’’ means—
3 (A) any loan made, insured, or guaranteed
4 under part B, part D, or part E of title IV of
5 the Higher Education Act of 1965 (20 U.S.C.
6 1070 et seq.) before the date of enactment of
7 this Act, including—
8 (i) loans made to a parent borrower
9 on behalf of a dependent student under
10 part B or part D of such Act, if such par-
11 ent borrower is an eligible individual under
12 this Act;
13 (ii) consolidation loans made under
14 such Act; and
15 (iii) any grant treated as a loan under
16 such part D in accordance with section
17 258(e), section 420M(c), or section 807(d)
18 of such Act;
19 (B) a private education loan, as defined in
20 section 140(a) of the Truth in Lending Act (15
21 U.S.C. 1650(a)), that—
22 (i) was expressly for the cost of at-
23 tendance (as defined in section 472) at an
24 institution of higher education partici-
kjohnson on DSK79L0C42PROD with BILLS
25 pating in a loan program under part B,
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5523.IH H5523
12
1 part D, or part E of title IV of the Higher
2 Education Act of 1965 (20 U.S.C. 1070 et
3 seq.), as of the date that the loan was dis-
4 bursed; and
5 (ii) was made before the date of en-
6 actment of this Act; and
7 (C) any loan made pursuant to title VII or
8 VIII of the Public Health Service Act (42
9 U.S.C. 292a et seq.) before the date of the en-
10 actment of this Act.
11 (4) RECOGNIZED POSTSECONDARY CREDEN-
12 TIAL.—The term ‘‘recognized postsecondary creden-
13 tial’’ has the meaning given such term in section 3
14 of the Workforce Innovation and Opportunity Act
15 (29 U.S.C. 3102).
16 (5) SECRETARY.—The term ‘‘Secretary’’ means
17 the Secretary of Education.
Æ
kjohnson on DSK79L0C42PROD with BILLS
•HR 5523 IH
VerDate Sep 11 2014 05:21 Oct 13, 2021 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H5523.IH H5523
File and source
- File
- BILLS_bills-117hr5523ih_bills-117hr5523ih.pdf
- Size
- 246,525 bytes
- SHA-256
- 4ad5e038368511dcc41d9e96c5dce5f0bfcb0588e8f5d708e4ddb0b98ac833af
- Original
- www.govinfo.gov