S. 2896 — Introduced in Senate

II 113th CONGRESS 2d Session S. 2896 IN THE SENATE OF THE UNITED STATES September 18, 2014 Ms. Collins (for herself and Mr. Nelson) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title 31, United States Code, to adjust for inflation the amount that is exempt from administrative offsets by the Department of Education for defaulted student loans. 1. Short title This Act may be cited as the Social Security Garnishment Modernization Act of 2014. 2. Adjustment for inflation (a) In general Section 3716(c)(3)(A) of title 31, United States Code, is amended— (1) in clause (ii), by striking An amount and inserting Except as provided in clause (iii), an amount; and (2) by inserting after the matter following clause (ii)(II) the following: (iii) For a claim that may be collected under this section by the Department of Education relating to a defaulted student loan under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., and 1087aa et seq.), the amount of payments due to an individual under the Social Security Act that is exempt from offset under this subsection shall be equal to the exemption amount under clause (ii), as adjusted annually to reflect increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics of the Department of Labor. . (b) Effective date The amendments made by subsection (a) shall— (1) take effect as if included in the enactment of the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104–134; 110 Stat. 1321); and (2) only apply with respect to a claim described in section 3716(c)(3)(A)(iii) of title 31, United States Code, as added by subsection (a)(2), that may be collected by administrative offset by the Department of Education under section 3716 of such title after the date of enactment of this Act.