II
110th CONGRESS
2d Session
S. 2895
IN THE SENATE OF THE UNITED STATES
April 21, 2008
Mr. Dodd (for himself, Mr. Kennedy, Mr. Brown, Mrs. Murray, Mr. Sanders, and Mrs. Clinton) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Higher Education Act of 1965 to maintain eligibility, for Federal PLUS loans, of borrowers who are 90 or more days delinquent on mortgage loan payments, or for whom foreclosure proceedings have been initiated, with respect to their primary residence.
Short title
This Act may be cited as
the PLUS Loan Borrower Protection Act
of 2008
.
Special rules for Federal PLUS loans
Section 428B(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1078–2(a)(3)) is amended—
by striking
Whenever
and inserting the following:
Parent borrowers
Whenever
; and
by adding at the end the following:
Extenuating circumstances
In general
For purposes of determining if a borrower has an adverse credit history under paragraph (1)(A) on the basis of a delinquency or foreclosure related to a mortgage loan, an extenuating circumstance exists if, during the period beginning January 1, 2007 and ending December 31, 2012, the borrower is 90 or more days delinquent on mortgage loan payments, or foreclosure proceedings have been initiated, with respect to the primary residence of the borrower.
Definition
The term mortgage loan means an extension of credit that is secured by the primary residence of the borrower.
.