text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Fairness for America's Servicemen 
  and Women in Higher Education Act of 2003''.
  
  SEC. 2. REFUND POLICY.
  
      Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 
  1091b(b)(2)) is amended by adding at the end the following:
                      ``(D) Students on active duty during a war or 
                  national emergency.--Notwithstanding subparagraphs (A), 
                  (B), and (C), a student who withdraws from an 
                  institution of higher education to serve on active duty 
                  during a war or national emergency shall not be 
                  required to repay any grant assistance that is 
                  otherwise required to be repayed under this section.''.
  
  SEC. 3. DEFERMENT DURING ACTIVE DUTY.
  
      (a) FFEL Subsidized Loans.--Section 428(b)(1)(M) of the Higher 
  Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended--
              (1) in clause (ii), by striking ``or'' after the semicolon;
              (2) in clause (iii), by inserting ``or'' after the 
          semicolon; and
              (3) by inserting after clause (iii) the following:
                              ``(iv) during which the borrower--
                                      ``(I) is a member of a regular 
                                  component on active duty during a war 
                                  or during a national emergency declared 
                                  by the President or Congress, and 
                                  receives compensation described in 
                                  section 112(a) of the Internal Revenue 
                                  Code of 1986;
                                      ``(II) is on active duty under 
                                  section 688, 12301(a), 12301(d), 
                                  12301(g), 12302, 12304, 12306, 12307, 
                                  or 12406, or chapter 15 of title 10, 
                                  United States Code, or any other 
                                  provision of law, during a war or 
                                  during a national emergency declared by 
                                  the President or Congress, regardless 
                                  of the location at which such active 
                                  duty service is performed; or
                                      ``(III) in the case of a member of 
                                  the National Guard, is on full-time 
                                  National Guard duty (as defined in 
                                  section 101(d)(5) of title 10, United 
                                  States Code) under a call to active 
                                  service authorized by the President or 
                                  the Secretary of Defense for a period 
                                  of more than 30 consecutive days under 
                                  section 12402 of title 10, United 
                                  States Code, or section 502(f) of title 
                                  32, United States Code, for purposes of 
                                  responding to a national emergency 
                                  declared by the President and supported 
                                  by Federal funds.''.
      (b) Direct Subsidized Loans.--Section 455(f)(2) of such Act (20 
  U.S.C. 1087e(f)(2)) is amended--
              (1) by striking the period at the end of subparagraph (C) 
          and inserting ``; and''; and
              (2) by adding at the end the following new subparagraph:
                      ``(D) during which the borrower--
                              ``(i) is a member of a regular component on 
                          active duty during a war or during a national 
                          emergency declared by the President or 
                          Congress, and receives compensation described 
                          in section 112(a) of the Internal Revenue Code 
                          of 1986;
                              ``(ii) is on active duty under section 688, 
                          12301(a), 12301(d), 12301(g), 12302, 12304, 
                          12306, 12307, or 12406, or chapter 15 of title 
                          10, United States Code, or any other provision 
                          of law, during a war or during a national 
                          emergency declared by the President or 
                          Congress, regardless of the location at which 
                          such active duty service is performed; or
                              ``(iii) in the case of a member of the 
                          National Guard, is on full-time National Guard 
                          duty (as defined in section 101(d)(5) of title 
                          10, United States Code) under a call to active 
                          service authorized by the President or the 
                          Secretary of Defense for a period of more than 
                          30 consecutive days under section 12402 of 
                          title 10, United States Code, or section 502(f) 
                          of title 32, United States Code, for purposes 
                          of responding to a national emergency declared 
                          by the President and supported by Federal 
                          funds.''.
      (c) Consolidation Loans.--Section 428C(b)(4)(C)(ii) of the Higher 
  Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii)) is amended--
              (1) in subclause (II), by striking ``or'' after the 
          semicolon;
              (2) in subclause (III), by striking ``or (II)'' and 
          inserting ``, (II) or (III)'';
              (3) by redesignating subclause (III) (as so amended) as 
          subclause (IV); and
              (4) by inserting after subclause (II) the following:
                      ``(III) by the Secretary, in the case of a 
                  consolidation loan of a student who is on an active 
                  duty deferment under section 428(b)(1)(M)(iv); or''.
      (d) FFEL Unsubsidized Loans.--Section 428H(e) of the Higher 
  Education Act of 1965 (20 U.S.C. 1078-8(e)) is amended by adding at the 
  end the following:
              ``(C) Notwithstanding subparagraph (A), interest on loans 
          made under this section for which payments of principal are 
          deferred because the student is on an active duty deferment 
          under section 428(b)(1)(M)(iv) shall be paid by the 
          Secretary.''.
      (e) Direct Unsubsidized Loans.--Section 455(f) of such Act (20 
  U.S.C. 1087e(f)) is amended by adding at the end the following:
              ``(5) Interest during active duty deferments.--
          Notwithstanding paragraph (1)(B), interest on loans under this 
          part for which payments of principal are deferred because the 
          student is on an active duty deferment under paragraph (2)(D) 
          shall be paid by the Secretary.''.
      (f) Perkins Loans.--Section 464(c)(2)(A) of the Higher Education 
  Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is amended--
              (1) in clause (iii), by striking ``or'' after the 
          semicolon;
              (2) in clause (iv), by inserting ``or'' after the 
          semicolon; and
              (3) by inserting after clause (iv) the following:
                              ``(v) during which the borrower--
                                      ``(I) is a member of a regular 
                                  component on active duty during a war 
                                  or during a national emergency declared 
                                  by the President or Congress, and 
                                  receives compensation described in 
                                  section 112(a) of the Internal Revenue 
                                  Code of 1986;
                                      ``(II) is on active duty under 
                                  section 688, 12301(a), 12301(d), 
                                  12301(g), 12302, 12304, 12306, 12307, 
                                  or 12406, or chapter 15 of title 10, 
                                  United States Code, or any other 
                                  provision of law, during a war or 
                                  during a national emergency declared by 
                                  the President or Congress, regardless 
                                  of the location at which such active 
                                  duty service is performed; or
                                      ``(III) in the case of a member of 
                                  the National Guard, is on full-time 
                                  National Guard duty (as defined in 
                                  section 101(d)(5) of title 10, United 
                                  States Code) under a call to active 
                                  service authorized by the President or 
                                  the Secretary of Defense for a period 
                                  of more than 30 consecutive days under 
                                  section 12402 of title 10, United 
                                  States Code, or section 502(f) of title 
                                  32, United States Code, for purposes of 
                                  responding to a national emergency 
                                  declared by the President and supported 
                                  by Federal funds.''.
      (g) Effective Date.--The amendments made by this section shall 
  apply with respect to loans for which the first disbursement is made on 
  or after July 1, 1993, to an individual who is a new borrower (within 
  the meaning of section 103 of the Higher Education Act of 1965 (20 
  U.S.C. 1003)) on or after such date.
target: Fairness for America's Servicemen and Women in Higher Education Act of 2003 - Amends the Higher Education Act of 1965 (HEA) to revise title IV student loan and grant assistance repayment provisions with respect to individuals who serve on active duty during a war or national emergency.Exempts students who withdraw from higher education institutions to serve on active duty during a war or national emergency from requirements to repay certain title IV grant assistance.Defers repayments of principal, and directs the Secretary of Education to make interest payments, on specified types of student loans during a war or national emergency when a borrower is: (1) a member of a regular component on active duty, and receives specified compensation; (2) on active duty, regardless of the location at which such active duty service is performed; or (3) on full-time National Guard duty under a call to active service for a period of more than 30 consecutive days to respond to a national emergency.
feat_title: To amend the Higher Education Act of 1965 to allow soldiers to serve their country without being disadvantaged financially by Federal student aid programs.