Deferment; forbearance

(a) Heading amendment Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by striking the subsection heading and inserting the following: Deferment; forbearance. (b) Sunset of economic hardship and unemployment deferments Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.1087e(f)) is amended— (1) in paragraph (2)— (A) in subparagraph (B), by striking not in and inserting subject to paragraph (7), not in; and (B) in subparagraph (D), by striking not in and inserting subject to paragraph (7), not in; and (2) by adding at the end the following: (7) Sunset of unemployment and economic hardship deferments A borrower who receives a loan made under this part on or after July 1, 2025, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).. (c) Forbearance on loans made under this part on or after July 1, 2025 Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following: (8) Forbearance on loans made under this part on or after July 1, 2025 A borrower who receives a loan made under this part on or after July 1, 2025— (A) may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period; and (B) in the case of a borrower who is serving in a medical or dental internship or residency program (as such program is described in section 428(c)(3)(A)(i)(I)), may be eligible for a forbearance on such loan pursuant to 428(c)(3)(A)(i)(I), during which— (i) for the first 4 12-month intervals, interest shall not accrue; and (ii) for any subsequent 12-month interval, interest shall accrue..