PRIA, Government Policy, Made Personal

Summary

The Secretary may pay the interest and any special allowance that builds up on one or more qualifying student loans for an eligible officer. To be eligible the officer must be on active duty, have not completed more than three years of active-duty service, owe one or more qualifying loans, and not be in default on those loans. Qualifying loans are federal student loans made under parts B, D, or E of Title IV of the Higher Education Act of 1965. Payments can be made for any 36 consecutive months while the officer is eligible. The Secretary must work with the Secretary of Education and may repay the Department of Education for the loan payments and reasonable administrative costs. "Special allowance" means the payment defined in section 438 of the Higher Education Act.

Title 33, §3078

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(a)Authority

The Secretary may pay the interest and any special allowances that accrue on one or more student loans of an eligible officer, in accordance with this section.

(b)Eligible officers

An officer is eligible for the benefit described in subsection (a) while the officer—

(1)is serving on active duty;

(2)has not completed more than three years of service on active duty;

(3)is the debtor on one or more unpaid loans described in subsection (c); and

(4)is not in default on any such loan.

(c)Student loans

The authority to make payments under subsection (a) may be exercised with respect to the following loans:

(1)A loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.).

(2)A loan made under part D of such title (20 U.S.C. 1087a et seq.).

(3)A loan made under part E of such title (20 U.S.C. 1087aa et seq.).

(d)Maximum benefit

Interest and any special allowance may be paid on behalf of an officer under this section for any of the 36 consecutive months during which the officer is eligible under subsection (b).

(e)Coordination with Secretary of Education

(1)In general

The Secretary shall consult with the Secretary of Education regarding the administration of this section.

(2)Reimbursement authorized

The Secretary is authorized to reimburse the Secretary of Education—

(A)for the funds necessary to pay interest and special allowances on student loans under this section (in accordance with section 428(o), 455(l), and 464(j) of the Higher Education Act of 1965 (20 U.S.C. 1078(o), 1087e(l), and 1087dd(j)); and

(B)for any reasonable administrative costs incurred by the Secretary of Education in coordinating the program under this section with the administration of the student loan programs under parts B, D, and E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.).

(f)Special allowance defined

In this section, the term ‘special allowance’ means a special allowance that is payable under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–1).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Higher Education Act of 1965, referred to in subsecs. (c) and (e)(2)(B), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Parts B, D, and E of title IV of the Act are classified generally to parts B (§ 1071 et seq.), D (§ 1087a et seq.), and E (§ 1087aa et seq.), respectively, of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see section 1 of Pub. L. 89–329, set out as a

Short Title

note under section 1001 of Title 20 and Tables.

§3078 Interest Payment Program