Number 32--Update 3, May 2003:
Defense Authorization Approved by House Includes Measure to Provide Troops with Student Loan Relief

Bipartisan Measure Ensures America's HEROES Do Not Face Unnecessary Financial Burdens While Serving the Nation

WASHINGTON, D.C. - In a measure authorizing funding for the nation's defense, the U.S. House of Representatives yesterday acknowledged the unique situation facing troops called to serve the nation while participating in federal student loan programs by including a measure to allow the Secretary of Education to provide loan relief and flexibility to these military personnel.

The measure, included as an amendment to the bill authorizing FY2004 appropriations for the Department of Defense (H.R. 1588), is identical to legislation introduced by Rep. John Kline (R-MN) to provide student loan relief for U.S. military reservists called to active duty. The measure, mirroring H.R. 1412, the Higher Education Relief Opportunities for Students Act of 2003 (HEROES), would ensure support for military personnel by allowing the U.S. Secretary of Education to provide the appropriate assistance and flexibility to our men and women in uniform as they transfer in and out of postsecondary education during a time of war.

Members of the House united in 2001 and unanimously passed similar legislation providing the Secretary of Education waiver authority in the midst of the tragedy of September 11th. The measure passed on the House floor today continues this support for military personnel, allowing the Secretary to address the needs of those serving now, and provide flexibility and relief for those who may need it in the future.

"I am pleased the HEROES Act was incorporated into the Defense Authorization bill. The men and women of our armed services, National Guard, and reserves deserve to know they will not face additional academic and financial burdens because of their service. We must not allow any doubt of our continued support for our men and women in uniform," said Rep. Kline.

Many of the men and women serving our nation overseas are U.S. military reservists who are college and university students participating in federal financial aid programs. The HEROES legislation approved as a part of the DOD authorization extends waiver authority that allows the U.S. Secretary of Education to excuse such military personnel from their federal student loan obligations while they are on active duty. For example, the families of military reservists who left their jobs when called to active duty could be relieved from making student loan payments during the time of service, and the families of borrowers serving on active duty could be given relief from collection calls from lenders while the conflict is taking place.

"We are asking a great deal of our men and women in the military. They are continuing to move forward with Operation Iraqi Freedom and are doing so with great distinction. Their lives are being disrupted and we need to give them our full support," said Rep. Howard P. "Buck" McKeon (R-CA), chairman of the 21st Century Competitiveness Subcommittee. "The last thing these men and women need to worry about is making student loan payments or worry about how they will re-enroll in school when they return."

"I applaud the leadership of Congressman Kline, and the resolve of this Congress, as we all work together to support our troops defending freedom overseas," said Rep. John Boehner (R-OH), chairman of the Education & the Workforce Committee. "Providing the Secretary of Education with the flexibility to grant financial relief for the men and women serving overseas will provide critical support at a time when it is needed the most."

HEROES also allows the Secretary of Education to quickly react to situations not yet existing in order to provide the flexibility and protections necessary to best assist military personnel with the transition to and from postsecondary education as they work to serve our nation. Additionally, the bill asks postsecondary institutions to provide a full refund of tuition and fees to students for the period they were not able to complete because of their service, and minimizes requirements for reapplication, making it easier for military personnel to reenter their postsecondary education when they return from active duty. It would also ask lending institutions holding or servicing federal student loans to provide all available benefits, deferrals, and flexibility to ensure the men and women of our armed services are not placed in financial hardship because of their service to the nation.

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