[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4281 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4281
To establish a student loan forgiveness plan for certain borrowers who
are employed at a qualified farm or ranch.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 8, 2024
Mr. Murphy (for himself and Ms. Smith) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish a student loan forgiveness plan for certain borrowers who
are employed at a qualified farm or ranch.
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 ``Student Loan Forgiveness for Farmers
and Ranchers Act''.
SEC. 2. LOAN FORGIVENESS FOR FARMERS AND RANCHERS.
(a) Amendment to the HEA.--Part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by adding at
the end the following:
``SEC. 460A. LOAN FORGIVENESS FOR FARMERS AND RANCHERS.
``(a) Qualified Farm or Ranch.--In this section, the term
`qualified farm or ranch' means a farm or ranch with a farm number
(within the meaning given the term in section 718.2 of title 7, Code of
Federal Regulations, as in effect on the date of enactment of the
Student Loan Forgiveness for Farmers and Ranchers Act).
``(b) In General.--The Secretary shall cancel the balance of
interest and principal due, in accordance with subsection (c), on any
eligible Federal Direct Loan not in default for a borrower who--
``(1) at the time of initial entrance into the agricultural
student loan forgiveness program--
``(A) is--
``(i) employed full-time or part-time as
farmer or rancher with an AD-20347 form on file
with the Department of Agriculture that is
current on the date of the initial entrance; or
``(ii) employed full-time or part-time as
an employee or manager of a qualified farm or
ranch; and
``(B) is--
``(i) a beginning farmer or rancher (as
defined under section 343(a) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)));
``(ii) an individual from a population that
is underrepresented in the agricultural
profession (as determined by the Secretary),
such as minorities or women;
``(iii) a socially disadvantaged farmer or
rancher (as defined in section 355(e) of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2003(e))); or
``(iv) a veteran farmer or rancher (as
defined in section 2501(a) of the Food,
Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 2279(a)));
``(2) makes 120 monthly payments on the eligible Federal
Direct Loan after the date of enactment of the Student Loan
Forgiveness for Farmers and Ranchers Act, pursuant to any one
or a combination of--
``(A) payments under an income-based repayment plan
under section 493C;
``(B) payments under a standard repayment plan
under section 455(d)(1)(A), based on a 10-year
repayment period;
``(C) monthly payments under a repayment plan under
subsection (d)(1) or (g) of section 455 of not less
than the monthly amount calculated under section
455(d)(1)(A), based on a 10-year repayment period; or
``(D) payments under an income contingent repayment
plan under section 455(d)(1)(D);
``(3) is employed full-time as an employee or manager of a
qualified farm or ranch at the time of such forgiveness; and
``(4) has been employed full-time as an employee or manager
of a qualified farm or ranch during the period in which the
borrower makes each of the qualifying payments described in
paragraph (2).
``(c) Loan Cancellation Amount.--After the conclusion of the
employment period described in subsection (b), the Secretary shall
cancel the obligation to repay the balance of principal and interest
due as of the time of such cancellation, on the eligible Federal Direct
Loans made to the borrower under this part.
``(d) Removal From the Program.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall remove a borrower from the agricultural student loan
forgiveness program if the borrower--
``(A) was less than 40 years old when the borrower
entered the agricultural student loan forgiveness
program, and that borrower fails to be employed full-
time as an employee or manager of a qualified farm or
ranch for a cumulative period of more than 7 years
after entering the program; or
``(B) was 40 years old or older when the borrower
entered the agricultural student loan forgiveness
program, and that borrower fails to be employed full-
time as an employee or manager of a qualified farm or
ranch for a cumulative period of more than 3 years
after entering the program.
``(2) Exception for military service.--The Secretary shall
not consider any of the following as a period of time counting
toward removal from the agricultural student loan forgiveness
program for purposes of paragraph (1):
``(A) Time serving on active duty during a war or
other military operation or national emergency.
``(B) Time performing qualifying National Guard
duty during a war or other military operation or
national emergency.
``(C) The 180-day period following the
demobilization date for the service described in
subparagraph (A) or (B).
``(3) Readmission prohibited.--The Secretary shall not
allow a borrower who has been removed from the agricultural
student loan forgiveness program under this section to be
readmitted to the program, unless the Secretary finds that the
borrower has experienced exceptional circumstances.
``(e) Eligible Federal Direct Loan.--The term `eligible Federal
Direct Loan' means a Federal Direct Stafford Loan, Federal Direct PLUS
Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct
Consolidation Loan.''.
(b) Regulations.--Not more than 180 days after the date of
enactment of this Act, the Secretary of Education, in consultation with
the Secretary of Agriculture, shall promulgate final regulations to
carry out the amendment made by subsection (a), including regulations
relating to the process of tracking and verifying work as an employee
or manager of a qualified farm or ranch for purposes of section 460A of
the Higher Education Act of 1965 (as added by this Act).
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