,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dbcf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #ac1 #bjad ,mrs4 
,davis ( ,cali=nia introduc$ ! foll[+   
bill2 :i* 0 ref]r$ to ! ,committee on   
,education & ! ,work=ce1 & 9 addition to
 ! ,committee on ,f9ancial ,s]vices1 = 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 am5d 
! ,high] ,education ,act ( #aife & !    
,tru? 9 ,l5d+ ,act to cl>ify !          
application ( prepaym5t am\nts on /ud5t 
loans4  #a4 ,%ort title ,?is ,act may be
 cit$ z ! ,/ud5t ,loan ,fair ,prepaym5t 
,act4  #b4 ,application ( prepaym5t     
am\nts = ,,ffel & ,direct ,loans        
,section #dee7;d7 ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 
is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#f7 ,application ( prepaym5t
 am\nts  7,a7 ,requirem5t ,not)/&+ any  
o!r provision ( ?is subsection or any   
o!r provision ( law1 ) respect to loans 

made to an eligible borr[] "u ?is "p or 
"p ,b1 :i* are held by ! same hold] &   
:i* h diff]5t applicable rates ( int]e/1
 ! hold] ( su* loans %all1 except z     
o!rwise reque/$ by ! borr[] 9 writ+1    
apply ! borr[]'s prepaym5t am\nt 7)9 !  
mean+ ( section #fhb4bji7;b7 ( title    
#cd1 ,code ( ,f$]al ,regulations1 or a  
successor regulation7 = "o or m ( su*   
loans1 fir/ t[>d ! out/&+ balance (     
pr9cipal due on ! loan ) ! highe/       
applicable rate ( int]e/ among su*      
loans4  7,b7 ,eligible borr[]  7i7 ,9   
g5]al ,= purposes ( ?is p>agraph1 ! t]m 
eligible borr[] means a borr[] ) no     
out/&+ balance ( fees1 includ+          
collection co/s & au?oriz$ late *>ges1  
due on any loan made "u ?is "p or "p ,b4
  7ii7 ,prepaym5t am\nts ,a prepaym5t   
am\nt 7z describ$ 9 subp>agraph 7,a77   
made by a borr[] :o is n an eligible    
borr[] to a hold] %all be appli$ fir/   
t[>d ! borr[]'s out/&+ balance ( fees1  
includ+ collection co/s & au?oriz$ late 
*>ges1 due on any loan made "u ?is "p or

 "p ,b held by su* hold]4  7,c7         
,exceptions ,?is p>agraph %all n apply  
to an income-bas$ repaym5t plan "u      
section #dic;,c or an income cont+5t    
repaym5t plan "u section                
#dee7;d77#a77;,d71 su* z a ,pay ,z ,y   
,e>n repaym5t plan4  4  #c4 ,application
 ( prepaym5t am\nts = ,p]k9s ,loans     
,section #dfd7;c77#a77;,c7 ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;dd7c77#a77;,c77 is am5d$--  7#a7  
by /rik+ & at ! end ( clause 7i72  7#b7 
by add+ at ! end ! foll[+3  7iii7 %all  
provide t ! in/itution %all1 9 ! case ( 
a borr[] ) no out/&+ balance ( fees     
7includ+ collection co/s & au?oriz$ late
 *>ges7 due on ! loans held by !        
in/itution & :o repays m ?an ! am\nt due
 = a repaym5t p]iod1 use ! excess to    
prepay 7)9 ! mean+ ( section            
#fgd4ca7;b77#d77;iv7 ( title #cd1 ,code 
( ,f$]al ,regulations1 or a successor   
regulation7 ! pr9cipal due on ! loan ) !
 highe/ applicable rate ( int]e/ among  
su* loans1 unless o!rwise reque/$ by !  

borr[] 9 writ+2 &  7iv7 %all provide t !
 in/itution %all1 9 ! case ( a borr[] ) 
an out/&+ balance ( fees 7su* z         
collection co/s & au?oriz$ late *>ges7  
due on ! loans held by ! in/itution & :o
 repays m ?an ! am\nt due = a repaym5t  
p]iod1 fir/ apply su* excess t[>d su*   
out/&+ balance ( fees2  4  #d4          
,application ( prepaym5t am\nts =       
private education loans ,section        
#abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae    
,u4,s4,c4 #afch7;e77 is am5d$ by add+ at
 ! end ! foll[+3  7#ab7 ,application (  
prepaym5t am\nts  7,a7 ,9 g5]al ,not)/&+
 any o!r provision ( law1 ) respect to a
 borr[] ) m ?an "o private education    
loan :i* are held by ! same hold] & :i* 
h diff]5t applicable rates ( int]e/1 !  
hold] ( su* loans %all1 except z o!rwise
 reque/$ by ! borr[] 9 writ+1 apply !   
borr[]'s prepaym5t am\nt 7)9 ! mean+ (  
section #fhb4bji7;b7 ( title #cd1 ,code 
( ,f$]al ,regulations1 or a successor   
regulation7 = "o or m ( su* loans1 fir/ 
t[>d ! out/&+ balance ( pr9cipal due on 

! loan ) ! highe/ applicable rate (     
int]e/ among su* loans4  7,b7 ,exception
  7i7 ,9 g5]al ,subp>agraph 7,a7 %all n 
apply to any prepaym5t am\nt made by a  
borr[] to a hold] if ! borr[] has an    
out/&+ balance ( fees1 includ+          
collection co/s & au?oriz$ late *>ges1  
due on any private education loan held  
by su* hold]4  7ii7 ,prepaym5t am\nts ,a
 prepaym5t am\nt 7z describ$ 9          
subp>agraph 7,a77 made by a borr[]      
describ$ 9 subp>agraph 7,b7 to a hold]  
%all be appli$ fir/ t[>d ! borr[]'s     
out/&+ balance ( fees1 includ+          
collection co/s & au?oriz$ late *>ges1  
due on any private education loan held  
by su* hold]4  4