Us Congress Senate Bill SB409

Us Congress 2023-2024 Regular Session

• Introduced: 2/14/23
• Refer: 2/14/23

Caption

Terrorism Survivors Student Loan Deferment Act of 2023

Impact

If enacted, SB409 would expand the deferment options available under the existing federal student loan programs by introducing a specific clause for victims of terrorism. This amendment serves to lessen the financial burden on those adversely affected by terrorist acts, potentially encouraging recovery and reintegration into educational pursuits. It also aligns federal educational policy with trauma-informed approaches, recognizing the unique challenges faced by individuals in such circumstances.

Summary

SB409, formally known as the Terrorism Survivors Student Loan Deferment Act of 2023, aims to amend the Higher Education Act of 1965 to provide a deferment on federally insured student loans for individuals designated as victims of terrorist attacks. The bill allows for a deferment period of not more than one year for these individuals, which offers critical relief during a challenging time following such traumatic events. This provision is particularly significant for students who may be unable to meet their financial obligations due to the repercussions of a terrorist attack.

Contention

The bill may spark discussions on a range of issues, such as the criteria for designating victims of terrorist attacks and the administrative processes involved in implementing these deferments. There may be concerns regarding the adequacy of anti-fraud measures to prevent abuse of the deferment provisions. Additionally, discussions regarding the broader implications for federal student loan programs and potential consequences on funding and resource allocations within higher education may arise, as the federal entity responsible for enforcing this law must maintain rigorous oversight.