This bill would allow members of the Armed Forces and National Guard to defer payments of principal on certain federal student loans for up to 180 days beginning when they receive a call or order to duty in connection to a war, military operation, or national emergency and ending on their first day of service. Current law also allows the deferment of principal payments during the period of service and for 180 days after their demobilization date.
Individuals whose call to duty is cancelled before their first day of service could defer payments of principal under the following circumstances:
If the cancellation is due to a service training injury, payments could be deferred for what would have been their service period;
If the cancellation is for any other reason, payments could be deferred for 14 days after the cancellation.
The Secretary of Defense would be directed to increase the rates of educational assistance payable to members of the selected reserve through the GI Bill. The increase will be equal or greater than the percentage by which the average cost of undergraduate tuition increased over the prior year. Current law bases this increase on the Consumer Price Index (CPI).
Upon the request of an active duty military consumer or an individual acting on their behalf, consumer reporting agencies would be required to:
Include an active duty freeze alert in the file of that consumer and also provide that alert with any credit score generated in using that file for at least 12 months;
Exclude the consumer for two years from any list of consumers prepared by the agency and provided to any third party to offer credit or insurance to the consumer as part of a transaction that wasn’t initiated by the consumer;
Refer the active duty freeze alert information to each of the other consumer reporting agencies that compile and maintain files on consumers on a nationwide basis.
Each active duty freeze alert would be required to notify prospective users of the consumer’s credit report that the consumer doesn’t authorize the following:
The establishment of any new credit plan or extension of credit in the consumer’s name;
The issuance of an additional credit card on an existing credit account requested by a consumer;
Any increase in the credit limit on an existing credit account requested by a consumer.