Servicemember Higher Education Protection Act
This bill amends the Higher Education Act of 1965 to modify provisions related to student loans for members of the military and their spouses.
The Department of Education (ED) shall make available a simplified disclosure and enrollment form for student loan borrowers who are performing eligible military service.
The bill establishes, within the office of the Student Loan Ombudsman, a military and veteran point of contact.
The bill modifies processes for determining disability with respect to discharging a borrower's student loans. A borrower whose loan is discharged under these processes shall not be subject to certain reinstatement provisions.
Under current law, borrowers serving on active duty are eligible for certain student loan interest subsidies and deferment. The bill extends such eligibility to borrowers performing other specified military service and their spouses.
The bill specifies how lump sum payments made through eligible repayment programs shall be treated for purposes of determining a borrower's eligibility for public service loan forgiveness.
Without requiring a request from the borrower, ED must ensure that certain student loan interest does not accrue for an eligible military borrower serving in an area of hostilities.
With respect to the National Student Loan Data System, ED must: (1) integrate certain data related to the military and veteran status of borrowers, and (2) include information regarding Public Health Service loans.
ED shall use specified information to ensure that an active duty borrower is not charged interest in excess of a maximum rate on certain student loans.
The bill limits the allowable interest rate on certain student loan debt incurred during military service for the purpose of consolidating or refinancing student loans incurred before service.
The bill establishes a working group to improve resources available from the Department of Defense's tuition assistance programs.