(a) 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) by striking the subsection heading and inserting the following: “Deferment; forbearance”;
(2) 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
(3) 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, 2027, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).”.
(b) Forbearance on loans made under this part on or after July 1, 2027.—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, 2027.—A borrower who receives a loan made under this part on or after July 1, 2027, 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.”.