How HR 8045 changes current law

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill establishes new procedures for federal student loans, eliminating interest on loans and creating a new Education Affordability Trust Fund, while modifying existing loan terms and limits.

• 20 U.S.C. 1087a(a)

  There are hereby made available → After using funds available from the Education Affordability Trust Fund in accordance with section 494A, there are hereby made available

  This specifies that the funds made available for loans will first utilize the resources from the new Education Affordability Trust Fund.

• 20 U.S.C. 1087a(a)

  and (2) → (2)

  This simplifies the list by removing the conjunction before an item in the series.

• 20 U.S.C. 1087a(a)

  ; and (3) to make loans under section 460A(b)

  This adds a provision to allow loans under a new section 460A(b) regarding loan modifications.

• 20 U.S.C. 1087e(e)

  (9) Special rule for refinanced loans.--For purposes of paragraph (7), the period of time during which a borrower of a Federal Direct Consolidation Loan made under section 460A(b) has made monthly payments shall be calculated in the manner described in section 493C(f).

  This introduces a special calculation rule for borrowers of refinanced loans under the new section 460A.

• 20 U.S.C. 1087e(q)(1)

  (H) For purposes of subparagraph (E), the period of time during which a borrower of a Federal Direct Consolidation Loan made under section 460A(b) has made monthly payments shall be calculated in the manner described in section 493C(f).

  This establishes the same calculation rule for repayment assistance plans related to loans under section 460A.

• 20 U.S.C. 1098e(a)(2)(B)

  does not include → a Federal Direct Consolidation Loan under section 460A, and does not include

  This clarifies that certain loans made under the new section 460A are excluded from being considered as excepted consolidation loans.

• 20 U.S.C. 1098e

  (f) Special Rule for Refinanced Loans.--

  This creates a new section outlining rules specifically for loans refinanced under section 460A.