,i #aac? ,,congress #a/ ,session ,h4 ,r4 #accj ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,m>* #ba1 #bjac ,ms4 ,bass 7= h]self1 ,ms4 ,wilson ( ,florida1 ,mr4 ,h9ojosa1 ,ms4 ,fudge1 ,mrs4 ,*ri/5s51 ,ms4 ,cl>ke1 ,mr4 ,al ,gre5 ( ,texas1 ,mr4 ,payne1 ,mr4 ,johnson ( ,georgia1 ,mr4 ,clyburn1 ,mr4 ,clay1 ,mr4 ,watt1 ,mr4 ,cleav]1 ,mr4 ,danny ,k4 ,davis ( ,ill9ois1 ,mr4 ,ha/+s ( ,florida1 ,mr4 ,scott ( ,virg9ia1 ,ms4 ,lee ( ,cali=nia1 ,mr4 ,ri*mond1 ,mr4 ,lewis1 ,ms4 ,br[n ( ,florida1 ,ms4 ,edw>ds1 ,mr4 ,cony]s1 ,ms4 ,norton1 ,ms4 ,jackson ,lee1 ,mr4 ,rangel1 ,ms4 ,bordallo1 ,mr4 ,sablan1 ,ms4 ,moore1 ,mr4 ,ryan ( ,ohio1 ,mr4 ,g5e ,gre5 ( ,texas1 ,mr4 ,jeffries1 ,mr4 ,s*iff1 ,mr4 ,bi%op ( ,georgia1 ,ms4 ,l(gr51 ,ms4 ,br[nley ( ,cali=nia1 & ,mr4 ,ellison7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ! ,work=ce1 & 9 addition to ! ,committees on ,f9ancial ,s]vices & ,ways & ,means1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to increase pur*as+ p[]1 /r5g!n economic recov]y1 & re/ore fairness 9 f9anc+ high] education 9 ! ,unit$ ,/ates ?r\gh /ud5t loan =giv5ess1 caps on int]e/ rates on ,f$]al /ud5t loans1 & ref9anc+ opportunities = private borr[]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/ud5t ,loan ,fairness ,act4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,a well-educat$ citiz5ry is critical to our ,nation's ability to compete 9 ! global economy4 7#b7 ,! ,f$]al ,gov]nm5t has a ve/$ int]e/ 9 ensur+ access to high] education4 7#c7 ,high] education %\ld be view$ z a public good b5efitt+ our c\ntry r ?an z a commodity solely b5efitt+ individual /ud5ts4 7#d7 ,rec5tly1 total out/&+ /ud5t loan debt (ficially surpass$ total cr$it c>d debt 9 ! ,unit$ ,/ates 9 #bjaj1 & is on track to exce$ #a1jjj1jjj1jjj1jjj4 7#e7 ,excessive /ud5t loan debt is imp$+ economic gr[? 9 ! ,unit$ ,/ates4 ,fac$ ) excessive repaym5t burd5s1 _m individuals are unable to />t bus9esses1 inve/1 or buy homes4 ,reliev+ /ud5t loan debt w\ld give ^! individuals great] control ov] _! e>n+s & w\ld increase entrepr5eur%ip & dem& = goods & s]vices4 7#f7 ,because ( so>+ tuition co/s1 /ud5ts (t5 h no *oice b to amass significant debt to obta9 an education t is widely consid]$ a pr]equisite = e>n+ a liv+ wage4 7#g7 ,amid/ ris+ tuition rates & /agnant grant fund+1 _m /ud5ts are =c$ to supplem5t ,f$]al loans ) private loans1 :i* frequ5tly feature high] int]e/ rates ) few] consum] protections4 7#h7 ,a borr[] :o exp]i5ces an ext5d$ h>d%ip = :atev] reason1 or a borr[] :o exp]i5ces a s]ies ( sep>ate h>d%ips ov] a long] p]iod ( "t1 w (t5 h no *oice b to default on 8 or h] private /ud5t loans4 ,opportunities to put su* private loans into =be>ance are limit$4 7#i7 ,dur+ ! p]iod ( =be>ance on private /ud5t loans1 int]e/ cont9ues to accrue & is capitaliz$1 & once ! borr[] comes out ( =be>ance1 he or %e owes significantly m on ! pr9cipal ( ! loan ?an be=e ! h>d%ip p]iod began4 #c4 #aj_/aj ,loan ,repaym5t & ,=giv5ess ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife is am5d$ by add+ at ! end ! foll[+3 #dic;,e4 #aj_/aj ,loan ,repaym5t & ,=giv5ess 7a7 #aj_/aj ,loan ,repaym5t ,plan 7#a7 #aj_/aj ,loan ,repaym5t ,plan au?oriz$ ,not)/&+ any o!r provision ( ?is ,act1 ! ,secret>y %all c>ry out a program 7to be kn[n z ! #aj_/aj ,loan ,repaym5t ,plan7 "u :i*-- 7,a7 a borr[] ( an eligible loan :o is eligible "u p>agraph 7#c7 may elect to h ! borr[]'s aggregate mon?ly paym5t = all su* loans n exce$ ! mon?ly paym5t am\nt describ$ 9 p>agraph 7#b72 7,b7 any int]e/ due & n paid "u a mon?ly paym5t "u ?is subsection-- 7i7 %all cont9ue to accrue2 & 7ii7 %all be capitaliz$ up to an am\nt equal to #aj p]c5t ( ! orig9al pr9cipal am\nt ( all ! eligible loans t ! borr[] is repay+ "u ?is subsection2 7,c7 any pr9cipal due & n paid "u a mon?ly paym5t "u ?is subsection %all be def]r$1 & %all be =giv5 9 accordance ) subsection 7b7 if ! borr[] meets ! requirem5ts = =giv5ess "u su* subsection2 7,d7 ! am\nt ( "t ! borr[] makes mon?ly paym5ts "u ?is subsection may exce$ #aj ye>s2 7,e7 a borr[] :o is repay+ an eligible loan pursuant to #aj_/aj ,loan ,repaym5t "u ?is subsection may elect1 at any "t1 to t]m9ate repaym5t pursuant to #aj_/aj ,loan ,repaym5t & repay su* loan "u ! /&>d repaym5t plan1 9 :i* case ! am\nt ( "t ! borr[] is p]mitt$ to repay su* loans may exce$ #aj ye>s2 & 7,f7 ! special all[ance paym5t to a l5d] calculat$ "u section #dch7;b77#b77;,i71 :5 calculat$ = a loan 9 repaym5t "u ?is section1 %all be calculat$ on ! pr9cipal balance ( ! loan & on any accru$ int]e/ unpaid by ! borr[] 9 accordance ) ?is section4 7#b7 #aj_/aj ,loan ,repaym5t mon?ly paym5t =mula ,a borr[] :o has elect$ to p>ticipate 9 ! #aj_/aj ,loan ,repaym5t ,plan "u ?is subsection %all1 dur+ ea* mon? ! borr[] is p>ticipat+ 9 su* ,plan1 make a mon?ly paym5t 9 an am\nt equal to-- 7,a7 "o-twelf? ( ! am\nt t is #aj p]c5t ( ! result obta9$ by calculat+1 on at lea/ an annual basis1 ! am\nt by :i*-- 7i7 ! borr[]'s1 & ! borr[]'s sp\se's 7if applicable71 adju/$ gross income2 exce$s 7ii7 #aej p]c5t ( ! pov]ty l9e applicable to ! borr[]'s family size z det]m9$ "u section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b772 or 7,b7 9 ! case ( a borr[] :o is 9 def]m5t due to an economic h>d%ip describ$ 9 section #dce7o71 #j4 7#c7 ,eligibility ,! ,secret>y %all e/abli% proc$ures = annually det]m9+ ! borr[]'s eligibility = #aj_/aj ,loan ,repaym5t1 includ+ v]ification ( a borr[]'s annual adju/$ gross income & ! annual am\nt due on ! total am\nt ( eligible loans1 & su* o!r proc$ures z are necess>y to effectively implem5t #aj_/aj ,loan ,repaym5t "u ?is subsection4 7#d7 ,special rule = m>ri$ borr[]s fil+ sep>ately ,9 ! case ( a m>ri$ borr[] :o files a sep>ate ,f$]al income tax return1 ! ,secret>y %all calculate ! am\nt ( ! borr[]'s #aj_/aj ,loan ,repaym5t "u ?is subsection solely on ! basis ( ! borr[]'s /ud5t loan debt & adju/$ gross income4 7b7 #aj_/aj ,loan ,=giv5ess 7#a7 ,9 g5]al ,! ,secret>y %all c>ry out a program 7to be kn[n z ! #aj_/aj ,loan ,=giv5ess ,program7 to =give a qualifi$ loan am\nt1 9 accordance ) p>agraph 7#c71 on an eligible loan = a borr[] :o1 aft] ! date t is #aj ye>s prior to ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 has made #abj mon?ly paym5ts on ! eligible loan pursuant to any "o or a comb9ation ( ! foll[+3 7,a7 ,mon?ly paym5t "u ! #aj_/aj ,loan ,repaym5t ,plan "u subsection 7a74 7,b7 ,mon?ly paym5t "u any o!r repaym5t plan au?oriz$ "u "p ,b or ,d ( an am\nt t1 = a giv5 mon?1 is n less ?an ! mon?ly paym5t am\nt calculat$ "u subsection 7a7 t ! borr[] w\ld h ow$ 9 ! ye> 9 :i* su* paym5t 0 made1 bas$ on ! borr[]'s adju/$ gross income & eligible loan balance = su* ye>4 7,c7 ,= any mon? aft] su* date dur+ :i* ! borr[] is 9 def]m5t due to an economic h>d%ip describ$ 9 section #dce7o71 mon?ly paym5t ( #j4 7#b7 ,me?od ( loan =giv5ess ,to provide loan =giv5ess "u p>agraph 7#a71 ! ,secret>y is au?oriz$ to c>ry out a program-- 7,a7 ?r\gh ! hold] ( ! loan1 to assume ! obligation to repay a qualifi$ loan am\nt = a loan made1 insur$1 or gu>ante$ "u "p ,b ( ?is title2 & 7,b7 to cancel a qualifi$ loan am\nt = a loan made "u "p ,d ( ?is title4 7#c7 ,qualifi$ loan am\nt ,aft] ! borr[] has made #abj mon?ly paym5ts describ$ 9 p>agraph 7#a71 ! ,secret>y %all =give-- 7,a7 ) respect to new borr[]s on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 ! sum (-- 7i7 ! balance ( pr9cipal & fees due on ! borr[]'s eligible loans z ( ! "t ( su* =giv5ess1 n to exce$ #de1ebj2 & 7ii7 ! am\nt ( int]e/ t has accru$ on ! balance describ$ 9 clause 7i7 z ( ! "t ( su* =giv5ess2 or 7,b7 ) respect to any o!r eligible borr[]1 ! balance ( pr9cipal1 int]e/1 & fees due on ! borr[]'s eligible loans z ( ! "t ( su* =giv5ess4 7#d7 ,exclusion f taxable income ,! am\nt ( a borr[]'s eligible loans =giv5 "u ?is section %all n be includ$ 9 ! gross income ( ! borr[] = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,support+ docum5tation requir$ ,a borr[] :o has elect$ to p>ticipate 9 ! #aj_/aj ,loan ,repaym5t ,plan "u subsection 7a71 or :o is reque/+ =giv5ess "u ! #aj_/aj ,loan ,=giv5ess ,program "u subsection 7b71 %all provide to ! ,secret>y su* in=mation & docum5tation z ! ,secret>y det]m9es1 by regulation1 to be necess>y to v]ify ! borr[]'s adju/$ gross income & paym5t am\nts made on eligible loans ( ! borr[] = ! purposes ( su* ,plan or ,program4 7d7 ,def9ition ( eligible loan ,9 ?is section ! t]m eligible loan means any loan made1 insur$1 or gu>ante$ "u "p ,b or ,d4 4 #d4 ,capp+ int]e/ rates = all ,f$]al ,direct loans ,section #dee7;b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7b77 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#h7 & 7#i7 z p>agraphs 7#i7 & 7#aj71 respectively2 & 7#b7 by ins]t+ aft] p>agraph 7#g7 ! foll[+3 7#h7 ,rate ( int]e/ = all new ,f$]al ,direct loans ,not)/&+ any o!r provision ( ?is ,act1 ) respect to a loan "u ?is "p = :i* ! fir/ disbursem5t ( pr9cipal is made 7or 9 ! case ( a ,f$]al ,direct ,consolidation ,loan1 = :i* ! application is receiv$7 on or aft] ,july #a1 #bjac1 or ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 :i*ev] is lat]1 ! applicable rate ( int]e/ %all n exce$ #c4d p]c5t4 4 #e4 #aj_/aj ,loan ,repaym5t ,plan z plan select$ by ! ,secret>y 7a7 ,,ffel ,loans 7#a7 ,9 g5]al ,section #dbh7;b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh7;b77#i77 is am5d$-- 7,a7 9 subp>agraph 7,a7-- 7i7 by /rik+ & at ! end ( clause 7iv72 7ii7 9 clause 7v71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7iii7 by add+ at ! end ! foll[+ new clause3 7vi7 beg9n+ ,july #a1 #bjac1 a #aj_/aj ,loan ,repaym5t ,plan1 ) v>y+ annual repaym5t am\nts bas$ on ! discretion>y income ( ! borr[]1 9 accordance ) section #dic;,e4 2 & 7,b7 9 subp>agraph 7,b71 by /rik+ 7,a77i7 & ins]t+ 7,a77vi74 7#b7 ,effective date ,! am5dm5t made by p>agraph 7#a77;,b7 %all be effective beg9n+ ,july #a1 #bjac4 7b7 ,direct ,loans 7#a7 ,9 g5]al ,section #dee7;d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is am5d$-- 7,a7 9 p>agraph 7#a7-- 7i7 by /rik+ & at ! end ( subp>agraph 7,d72 7ii7 9 subp>agraph 7,e71 by /rik+ ! p]iod at ! end & ins]t+ a semicolon2 & 7iii7 by add+ at ! end ! foll[+ new subp>agraph3 7,f7 beg9n+ on ,july #a1 #bjac1 a #aj_/aj ,loan ,repaym5t ,plan1 ) v>y+ annual repaym5t am\nts bas$ on ! discretion>y income ( ! borr[]1 9 accordance ) section #dic;,e4 2 & 7,b7 9 p>agraph 7#b7-- 7i7 by /rik+ may & ins]t+ %all2 & 7ii7 by /rik+ 7,a71 7,b71 or 7,c7 & ins]t+ 7,f74 7#b7 ,effective date ,! am5dm5t made by p>agraph 7#a77;,b7 %all be effective beg9n+ ,july #a1 #bjac4 #f4 ,improv+ & exp&+ ,public ,s]vice ,loan ,=giv5ess ,section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ #abj & ins]t+ #fj ea* place x appe>s2 & 7#b7 9 p>agraph 7#c77;,b7-- 7,a7 9 clause 7i71 by /rik+ or aft] ! semicolon2 7,b7 9 clause 7ii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,c7 by add+ at ! end ! foll[+3 7iii7 a full-"t job z a prim>y c>e physician 9 an area or population designat$ z a ,m$ically ,und]s]v$ ,area or ,population by ! ,heal? ,res\rce & ,s]vices ,adm9i/ration4 4 #g4 ,ref9anc+ private education loans = c]ta9 borr[]s 7a7 ,consolidation = c]ta9 borr[]s ,section #dee7;g7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7g77 is am5d$-- 7#a7 by /rik+ ,a borr[] & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,a borr[] 2 7#b7 by ins]t+ 1 & any loan describ$ 9 p>agraph 7#b7 aft] ,july #a1 #bjaj2 & 7#c7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,consolidation ( private education loans z a ,f$]al ,direct ,consolidation ,loan = c]ta9 borr[]s 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 a borr[] :o meets ! eligibility crit]ia describ$ 9 subp>agraph 7,b7 %all be eligible to obta9 a ,f$]al ,direct ,consolidation loan "u ?is p>agraph t-- 7i7 %all include an eligible private education loan2 & 7ii7 may include a loan describ$ 9 section #dbh;,c7a77#d74 7,b7 ,eligible borr[] ,a borr[] ( an eligible private education loan is eligible to obta9 a ,f$]al ,direct ,consolidation ,loan "u ?is p>agraph if ! borr[]-- 7i7 0 eligible to borr[ a loan "u section #dbh;,h1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 a loan "u section #dbh;,b1 or a ,f$]al ,direct ,,plus loan = a p]iod ( enrollm5t at an in/itution ( high] education1 or1 ) respect to a borr[] :o 0 enroll$ at an in/itution ( high] education on less ?an a half-"t basis1 w\ld h be5 eligible to borr[ su* a loan = su* p]iod ( enrollm5t if ! borr[] _h be5 enroll$ on at lea/ a half-"t basis2 7ii7 borr[$ at lea/ "o eligible private education loan = a p]iod ( enrollm5t describ$ 9 clause 7i72 & 7iii7 has an av]age adju/$ gross income 7bas$ on ! borr[]'s adju/$ gross income f ! #c mo/ rec5t cal5d> ye>s be=e application = consolidation "u ?is section7 t is equal to or less ?an ! borr[]'s total education debt 7det]m9$ by calculat+ ! sum ( ! borr[]'s loans describ$ 9 section #dbh;,c7a77#d7 & eligible private education loans7 at ! "t ( su* application4 7,c7 ,def9ition ( eligible private education loan ,= purposes ( ?is p>agraph1 ! t]m eligible private education loan means a private education loan 7z su* t]m is def9$ 9 section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej77 made on or be=e ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 includ+ ! am\nt ( out/&+ pr9cipal1 accru$ int]e/1 & relat$ fees & co/s 7z det]m9$ by ! ,secret>y7 ow$ by a borr[] on su* a loan4 7,d7 ,pur*ase ( loan ,= ea* eligible private education loan t a borr[] is consolidat+ "u ?is p>agraph1 ! ,secret>y %all notify ! hold] t ! ,secret>y is pur*as+ ! loan1 & ! ,secret>y %all !n pur*ase su* loan1 z describ$ "u section #adj;,a ( ! ,tru? 9 ,l5d+ ,act4 7,e7 ,t]ms & rate ( int]e/ ,a ,f$]al ,direct ,consolidation ,loan made "u ?is p>agraph %all h ! same t]ms & conditions z a ,f$]al ,direct ,consolidation loan "u p>agraph 7#a71 except t ! applicable rate ( int]e/ = a ,f$]al ,direct ,consolidation loan made "u ?is p>agraph %all n exce$ #c4d p]c5t4 7,f7 ,notification ( eligible borr[]s ,! ,secret>y %all take su* /eps z may be necess>y to notify eligible borr[]s ( ! availability ( consolidation "u ?is p>agraph no lat] ?an #fj days aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 includ+ notify+ su* borr[]s ( ! deadl9e to apply = su* a loan "u subp>agraph 7,g74 7,g7 ,application deadl9e = loans "u ?is p>agraph ,a borr[] may apply = loans "u ?is p>agraph dur+ ! #a-ye> p]iod beg9n+ on ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act4 ,! ,secret>y %all n make a ,f$]al ,direct ,consolidation ,loan "u ?is p>agraph to any borr[] :o has n submitt$ an application = su* a loan to ! ,secret>y be=e ! end ( su* p]iod4 7,h7 ,au?orization & appropriation ,!re are au?oriz$ to be appropriat$1 & !re are appropriat$1 su* sums z may be necess>y to c>ry out ?is p>agraph4 4 7b7 ,sale ( private education loans to ! ,gov]nm5t ,*apt] #b ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afca et seq47 is am5d$-- 7#a7 by r$esignat+ section #adj;,a z section #adj;,b2 7#b7 by ins]t+ aft] section #adj ! foll[+3 #adj;,a4 ,sale ( private education loans to ! ,gov]nm5t 7a7 ,9 g5]al ,! ,bureau %all issue regulations to require a private education l5d] to sell an eligible private education loan to ! ,secret>y ( ,education1 ^u reque/ ( ! ,secret>y1 = purposes ( consolidat+ su* loan1 z describ$ "u section #dee7;g77#b7 ( ! ,high] ,education ,act ( #aife4 7b7 ,det]m9ation ( price ,! price paid = a private education loan "u subsection 7a7 %all-- 7#a7 include ! am\nt ( out/&+ pr9cipal on ! loan1 ! am\nt ( accru$ int]e/ on ! loan1 & any fees or o!r co/s ow$ by ! consum] on ! loan2 & 7#b7 be adju/$ to acc\nt = ! "t value ( su* am\nt4 7c7 ,def9itions ,= purposes ( ?is section3 7#a7 ,eligible private education loan ,! t]m eligible private education loan means a private education loan1 z def9$ "u section #adj7;a71 made on or be=e ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act4 7#b7 ,private education l5d] ,! t]m private education l5d] has ! mean+ giv5 su* t]m "u section #adj7;a74 2 & 7#c7 9 ! table ( cont5ts = su* *apt]-- 7,a7 by r$esignat+ ! item relat+ to section #adj;,a z item #adj;,b2 & 7,b7 by ins]t+ aft] ! item relat+ to section #adj ! foll[+3 #adj;,a4 ,sale ( private education loans to ! ,gov]nm5t4 4 7c7 ,con=m+ am5dm5t ,section #dbh;,c7a77#c77;,b77i77,v7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-c7;a77#c77;,b77i77,v77 is am5d$-- 7#a7 by /rik+ or at ! end ( item 7bb72 7#b7 by /rik+ ! p]iod at ! end ( item 7cc7 & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7dd7 = ! purpose ( consolidat+ an eligible private education loan "u section #dee7;g77#b71 :e!r su* loan is consolidat$ alone1 ) o!r eligible private education loans1 or ) loans describ$ 9 p>agraph 7#d74 4 #h4 ,int]e/-free def]m5t ( unsubsidiz$ loans dur+ p]iods ( unemploym5t 7a7 ,,ffel ,unsubsidiz$ loan def]m5t 7#a7 ,section #dbh;,h7e77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-h7;e77#b77 is am5d$-- 7,a7 9 subp>agraph 7,a71 by ins]t+ ,except z provid$ 9 subp>agraph 7,c71 be=e ,int]e/ on2 & 7,b7 by add+ at ! end ! foll[+3 7,c7 ,int]e/ on loans made "u ?is section = :i* paym5ts are def]r$ "u clause 7ii7 ( section #dbh7;b77#a77,m71 = a p]iod ( def]m5t grant$ to a borr[] on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 %all accrue & be paid by ! ,secret>y dur+ any p]iod dur+ :i* loans are s def]r$1 n 9 excess ( #c ye>s4 4 7#b7 ,con=m+ am5dm5t ,section #dbh7;b77#a77,y77iii7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh7;b77#a77,y77iii77 is am5d$ by ins]t+ 7o!r ?an a def]m5t "u clause 7ii7 ( su* subp>agraph on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act7 aft] ( ?is p>agraph4 7b7 ,direct ,unsubsidiz$ loan def]m5t ,section #dee7;f77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7f77#a77 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 by /rik+ or at ! end ( clause 7i72 & 7,b7 by add+ at ! end ! foll[+3 7iii7 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 ) respect to a p]iod ( def]m5t describ$ 9 subp>agraph 7,b7 ( p>agraph 7#b7 grant$ to a borr[] on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act2 or 2 & 7#b7 9 subp>agraph 7,b71 by ins]t+ n describ$ 9 subp>agraph 7,a77iii7 aft] ,unsubsidiz$ ,/af=d ,loan4 7c7 ,treatm5t ( consolidation loans ,section #dbh;,c7b77#d77;,c77ii7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-c7;b77#d77;,c77ii77 is am5d$-- 7#a7 by /rik+ or at ! end ( subclause 7,,ii72 7#b7 by r$esignat+ subclause 7,,iii7 z subclause 7,,iv72 7#c7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 by ! ,secret>y1 9 ! case ( a consolidation loan = :i* ! application is receiv$ on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act1 except t ! ,secret>y %all pay su* int]e/ only = a p]iod n 9 excess ( #c ye>s = :i* ! borr[] w\ld be eligible = a def]ral "u clause 7ii7 ( section #dbh7;b77#a77,m72 or 2 & 7#d7 9 subclause 7,,iv7 7z s r$esignat$ by ?is subsection71 by /rik+ 7,i7 or 7,,ii7 & ins]t+ 7,i71 7,,ii71 or 7,,iii74 7d7 ,income-,bas$ repaym5t ,section #dic;,c7b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajihc7;b77-- 7#a7 9 p>agraph 7#c7-- 7,a7 9 subp>agraph 7,a71 by /rik+ & aft] ! semicolon2 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c72 7,c7 by ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 %all1 on subsidiz$ & unsubsidiz$ loans1 be paid by ! ,secret>y = a p]iod ( n m ?an #c ye>s dur+ :i* ! borr[] is eligible = a def]m5t due to unemploym5t describ$ 9 section #dee7;f77#b77;,b7 7reg>dless ( :e!r ! /ud5t is 9 su* a def]m5t71 except t-- 7i7 ?is subp>agraph %all only apply to p]iods dur+ :i* ! borr[] is eligible = su* a def]m5t on or aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,fairness ,act2 & 7ii7 9 ! case ( a subsidiz$ loan1 su* p]iod %all n include any p]iod describ$ 9 subp>agraph 7,a7 or any p]iod dur+ :i* ! borr[] is 9 def]m5t due to an economic h>d%ip describ$ 9 section #dce7o72 & 2 & 7,d7 9 subp>agraph 7,c7 7z s r$esignat$ by p>agraph 7#b77-- 7i7 9 clause 7i71 by /rik+ subp>agraph 7,a7 & ins]t+ subp>agraphs 7,a7 & 7,b72 & 7ii7 9 clause 7ii71 by ins]t+ 1 subject to subp>agraph 7,b71 aft] unsubsidiz$ loan2 & 7,e7 by /rik+ & at ! end ( p>agraph 7#h72 7,f7 by /rik+ ! p]iod at ! end ( p>agraph 7#i7 & ins]t+ a semicolon2 & 7,g7 by add+ at ! end ! foll[+ new p>agraph3 7#aj7 ! am\nt ( ! pr9cipal & int]e/ on a borr[]'s loans repaid or cancel$ "u p>agraph 7#g7 %all n be includ$ 9 ! gross income ( ! borr[] = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 4 #i4 ,exclud+ loans =giv5 "u c]ta9 repaym5t programs f gross income 7a7 ,income-,cont+5t repaym5t ,section #dee7;e77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#b77 is am5d$-- 7#a7 9 ! subsection head+1 by ins]t+ & =giv5ess aft] repaym5t2 & 7#b7 by add+ at ! end ! foll[+3 ,! am\nt ( ! pr9cipal & int]e/ on a borr[]'s loans =giv5 pursuant to income cont+5t repaym5t %all n be includ$ 9 ! gross income ( ! borr[] = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf44 7b7 ,pay z y e>n repaym5t ,! am\nt ( ! pr9cipal & int]e/ on a borr[]'s loans =giv5 pursuant to ! income-cont+5t repaym5t plan 7bas$ on ! ,presid5t's ,pay ,z ,y ,e>n repaym5t initiative7 implem5t$ 9 p>ts #fgd1 #fhb1 & #fhe ( title #cd1 ,code ( ,f$]al ,regulations1 z am5d$ by ! f9al regulations publi%$ by ! ,dep>tm5t ( ,education 9 ! ,f$]al ,regi/] on ,novemb] #a1 #bjab 7#gg ,f$4 ,reg4 #ffjhh et seq471 %all n be includ$ 9 ! gross income ( ! borr[] = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4