,,ii #aac? ,,congress #b;d ,session ,s4 #bfab ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #af1 #bjad ,mr4 ,w>n] 7= himself & ,mr4 ,rubio7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to simplify & improve ! ,f$]al /ud5t loan program ?r\gh income-cont+5t repaym5t to provide /rong] protections = borr[]s1 enc\rage responsible borr[+1 & save money = taxpay]s4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,dynamic ,repaym5t ,act ( #bjad4 #b4 ,t]m9ation ( au?ority to make ,f$]al ,direct ,/af=d ,loans1 ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans1 & ,f$]al ,direct ,,plus ,loans to /ud5ts "u ! ,william ,d4 ,=d ,f$]al ,direct ,loan ,program ,section #dee7;a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7a77 is am5d$ by add+ at ! end ! foll[+3 7#d7 ,t]m9ation ( au?ority to make f$]al direct /af=d loans1 f$]al direct unsubsidiz$ /af=d loans1 & f$]al direct plus loans to /ud5ts "u ?is "p 7,a7 ,9 g5]al ,not)/&+ any provision ( ?is "p or "p ,b1 = any p]iod ( in/ruction beg9n+ on or aft] ,july #a1 #bjae-- 7i7 a /ud5t %all n be eligible to receive a ,f$]al ,direct ,/af=d ,loan "u ?is "p2 & 7ii7 a /ud5t %all n be eligible to receive a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan or ,f$]al ,direct ,,plus ,loan "u ?is "p1 except z provid$ 9 subp>agraph 7,b74 7,b7 ,exceptions ,subp>agraph 7,a77ii7 %all n be applicable ) respect to ! foll[+3 7i7 ,exi/+ /ud5t borr[]s ,a /ud5t :o1 z ( ,july #a1 #bjae1 has an out/&+ balance ( pr9cipal or int]e/ ow+ on any loan made1 insur$1 or gu>ante$ "u "p ,b or ?is "p may cont9ue to be eligible to borr[ a loan "u ?is "p1 except = a ,f$]al ,direct ,/af=d ,loan1 9 accordance ) subp>agraph 7,c7 until ,june #cj1 #bjai4 7ii7 ,p>5t plus loans ,an except$ ,,plus loan or except$ consolidation loan 7z su* t]ms are def9$ 9 section #dic;,c7a77 "u ?is "p t is made to a p>5t on behalf ( an und]graduate dep5d5t /ud5t4 7iii7 ,f$]al direct consolidation loans ,a ,f$]al ,direct ,consolidation ,loan "u ?is "p4 7,c7 ,maximum annual am\nts ( f$]al direct unsubsidiz$ /af=d loans ,! maximum annual am\nt ( ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans a /ud5t describ$ 9 subp>agraph 7,b77i7 may borr[ 9 an academic ye> 7z def9$ 9 section #dha7;a77#b77 or its equival5t %all be ! maximum annual am\nt = su* /ud5t det]m9$ "u section #dbh;,h1 plus an am\nt equal to ! am\nt ( ,f$]al ,direct ,/af=d ,loans ! /ud5t w\ld h receiv$ 9 ! abs5ce ( subp>agraph 7,a77i74 4 #c4 ,e/abli%m5t ( ! income dep5d5t education assi/ance loan program & ! ,,idea loan repaym5t program ,title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 is am5d$ by add+ at ! end ! foll[+3 ,j ,income dep5d5t education assi/ance loans #a ,,idea loans #dii;,a4 ,program au?ority & agreem5ts 7a7 ,program au?ority 7#a7 ,9 g5]al ,!re are au?oriz$ to be appropriat$1 9 accordance ) ! provisions ( ?is "p1 su* sums z may be necess>y to make loans to all eligible /ud5ts 9 att5dance at p>ticipat+ in/itutions ( high] education select$ by ! ,secret>y1 to enable su* /ud5ts to pursue _! c\rses ( /udy at su* in/itutions beg9n+ ,july #a1 #bjae4 ,loans made "u ?is "p %all be made by p>ticipat+ in/itutions1 or consortia !re(1 t h agreem5ts ) ! ,secret>y to orig9ate loans1 or by alt]native orig9ators designat$ by ! ,secret>y to make loans = /ud5ts 9 att5dance at p>ticipat+ in/itutions4 7#b7 ,designation ,! program e/abli%$ "u ?is subp>t %all be ref]r$ to z ! ,income ,dep5d5t ,education ,assi/ance ,loan ,program1 or ! ,,idea ,loan ,program4 7b7 ,funds = ! orig9ation ( ,,idea loans ,! ,secret>y %all provide funds = /ud5t loans "u ?is "p 9 ! same mann] z ! ,secret>y provid$ funds = ! orig9ation ( ,f$]al ,direct ,/ud5t ,loans "u "p ,d 9 accordance ) section #deb on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad4 ,! requirem5ts1 rights1 & limitations ) respect to ! ,secret>y & in/itutions = funds provid$ = loans "u "p ,d on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad %all apply ) respect to ! ,secret>y & in/itutions = funds provid$ = loans "u ?is "p1 except t funds "u ?is "p %all n be provid$ = p>5t loans4 7c7 ,selection ( in/itutions = p>ticipation & orig9ation1 & agreem5ts ) in/itutions 7#a7 ,selection ( in/itutions = p>ticipation & orig9ation ,! ,secret>y %all ent] into agreem5ts ) in/itutions ( high] education to p>ticipate 9 ! ,,idea ,loan ,program "u ?is "p & agreem5ts ) in/itutions ( high] education1 or consortia !re(1 to orig9ate loans 9 su* program = academic ye>s beg9n+ on or aft] ,july #a1 #bjae4 ,! provisions ( section #dec z 9 effect on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad %all apply ) respect to agreem5ts "u ?is section4 ,! ,secret>y %all provide alt]native orig9ation s]vices = loans "u ?is "p1 z appropriate1 9 a mann] consi/5t ) ! provisions ( sections #dec & #def z 9 effect on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad relat$ to alt]native orig9ation s]vices = loans "u "p ,d4 7#b7 ,p>ticipation & orig9ation agreem5ts ) in/itutions ,an agreem5t ) any in/itution ( high] education = p>ticipation 9 ! ,,idea ,loan ,program "u ?is "p1 & an agreem5t ) any in/itution ( high] education1 or consortia !re(1 to orig9ate loans 9 su* program1 %all h ! same t]ms z ! t]ms requir$ "u section #ded z 9 effect on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad = agreem5ts ) an in/itution = p>ticipation or orig9ation1 respectively1 9 ! /ud5t loan program "u "p ,d1 except t agreem5ts = p>ticipation or orig9ation "u ?is "p %all n apply to p>5t loans4 7#c7 ,)drawal & t]m9ation proc$ures ,! ,secret>y %all e/abli% proc$ures by :i* in/itutions or consortia may )draw or be t]m9at$ f ! program "u ?is "p4 #dii;,b4 ,t]ms & conditions ( ,,idea loans 7a7 ,p>allel t]ms1 conditions1 b5efits1 & am\nts ,unless o!rwise specifi$ 9 ?is "p1 ,income ,dep5d5t ,education ,assi/ance ,loans 7ref]r$ to 9 ?is "p z ,,idea ,loans7 made to borr[]s "u ?is "p %all h ! same t]ms1 conditions1 & b5efits1 & be available 9 ! same am\nts1 z ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans made to borr[]s "u "p ,d1 & fir/ disburs$ on ! day be=e ! date ( enactm5t ( ! ,dynamic ,repaym5t ,act ( #bjad4 7b7 ,eligible borr[]s 7#a7 ,9 g5]al ,9 addition to ! requirem5ts ( section #dhd1 to be eligible to receive a loan 7o!r ?an an ,,idea ,consolidation ,loan7 "u ?is "p1 a borr[]-- 7,a7 %all be an individual :o1 on ! date ( application = su* loan1 has no out/&+ balance ( pr9cipal or int]e/ ow+ on any loan made1 insur$1 or gu>ante$ "u "p ,b or ,d 7o!r ?an an except$ ,,plus loan or an except$ consolidation loan 7z su* t]ms are def9$ 9 section #dic;,c7a7772 or 7,b7 9 ! case ( an individual ) an out/&+ balance ( pr9cipal or int]e/ ow+ on any loan describ$ 9 subp>agraph 7,a71 %all consolidate all su* exi/+ loans into an ,,idea ,consolidation ,loan "u section #dii;,c4 7#b7 ,only /ud5t borr[]s eligible ,= purposes ( ?is "p1 ! t]m borr[] %all n include a p>5t borr[]4 7c7 ,annual & aggregate limits 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 ! maximum annual am\nt ( ,,idea ,loans 9 any academic ye> 7z def9$ 9 section #dha7;a77#b77 or its equival5t1 & ! maximum aggregate am\nt ( ,,idea ,loans t a /ud5t may borr[1 %all be ! maximum annual am\nts & maximum aggregate am\nts1 respectively1 ( ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans "u "p ,d t su* /ud5t w\ld h be5 eligible to borr[ 9 ! abs5ce ( section #dee7;a77#d71 z add$ by ! ,dynamic ,repaym5t ,act ( #bjad4 7#b7 ,graduate & pr(essional /ud5ts eligible = ,,plus loans ,9 ! case ( a graduate or pr(essional /ud5t :o w\ld h be5 eligible to borr[ a ,f$]al ,direct ,,plus ,loan "u "p ,d 9 ! abs5ce ( section #dee7;a77#d71 z add$ by ! ,dynamic ,repaym5t ,act ( #bjad1 ! maximum annual am\nts & maximum aggregate am\nts1 respectively1 ( ,,idea ,loans t su* a /ud5t may borr[ z det]m9$ "u p>agraph 7#a7 = any academic ye> 7z def9$ 9 section #dha7;a77#b77 or its equival5t1 may be increas$ to an am\nt equal to ! maximum annual am\nts & maximum aggregate am\nts1 respectively1 ( ,f$]al ,direct ,,plus ,loans t su* /ud5t w\ld h be5 eligible to borr[ 9 ! abs5ce ( su* section #dee7;a77#d74 7d7 ,loan fee ,! ,secret>y %all *>ge ! borr[] ( a loan 7o!r ?an an ,,idea ,consolidation ,loan7 made "u ?is "p an orig9ation fee4 ,su* fee %all be ! sum (-- 7#a7 = ! portion ( ! pr9cipal am\nt ( ! loan t is equal to 7or less ?an7 ! maximum annual am\nt a /ud5t may borr[ "u subsection 7c77#a71 #a4j p]c5t ( su* portion ( ! pr9cipal am\nt ( ! loan2 plus 7#b7 = ! portion ( ! pr9cipal am\nt ( ! loan t exce$s ! maximum annual am\nt a /ud5t may borr[ "u subsection 7c77#a71 z au?oriz$ by subsection 7c77#b71 #d4j p]c5t ( su* portion ( ! pr9cipal am\nt ( ! loan4 7e7 ,int]e/ rates 7#a7 ,und]graduate /ud5ts ,) respect to ,,idea ,loans made to und]graduate /ud5ts = :i* ! fir/ disbursem5t is made on or aft] ,july #a1 #bjae1 ! applicable rate ( int]e/ %all1 dur+ any #ab-mon? p]iod beg9n+ on ,july #a & end+ on ,june #cj1 be det]m9$ on ! prec$+ ,june #a & be equal to ! less] (-- 7,a7 a rate equal to ! high yield ( ! #aj-ye> ,treasury note auction$ at ! f9al auction held prior to su* ,june #a1 plus #b4je p]c5t2 or 7,b7 #h4be p]c5t4 7#b7 ,graduate & pr(essional /ud5ts ,) respect to ,,idea ,loans made to graduate or pr(essional /ud5ts = :i* ! fir/ disbursem5t is made on or aft] ,july #a1 #bjae1 ! applicable rate ( int]e/ %all1 dur+ any #ab-mon? p]iod beg9n+ on ,july #a & end+ on ,june #cj1 be det]m9$ on ! prec$+ ,june #a & be equal to ! less] (-- 7,a7 ! rate det]m9$ "u p>agraph 7#a77;,a71 except t #c4f p]c5t %all be sub/itut$ = #b4je p]c5t 9 su* det]m9ation2 or 7,b7 #i4be p]c5t4 7#c7 ,consultation ,! ,secret>y %all det]m9e ! applicable rate ( int]e/ "u p>agraphs 7#a7 & 7#b7 aft] consultation ) ! ,secret>y ( ! ,treasury & %all publi% su* rate 9 ! ,f$]al ,regi/] z soon z practicable aft] ! date ( det]m9ation4 7#d7 ,application ( int]e/ rate dur+ ! life ( ! loan 7,a7 ,9-s*ool def]m5t p]iod ,int]e/ %all accrue & be capitaliz$ or paid by ! borr[] 7b p]iodic in/allm5ts ( pr9cipal ne$ n be paid7 dur+ ! 9-s*ool def]m5t p]iod ) respect to an ,,idea ,loan4 ,= ! purposes ( ?is "p1 ! 9-s*ool def]m5t p]iod ) respect to an ,,idea ,loan is ! fir/ p]iod dur+ :i* ! borr[] is pursu+ at lea/ "o-half ! normal full-"t academic workload 7z det]m9$ by ! in/itution7 9 ! c\rse ( /udy = :i* ! borr[] receiv$ su* loan & end+ on ! fir/ day ( ! fir/ mon? t beg9s aft] ! borr[] ceases to c>ry at lea/ "o-half ! normal full-"t academic workload 7z det]m9$ by ! in/itution7 9 ! c\rse ( /udy4 7,b7 ,grace & repaym5t p]iods ,int]e/ t accrues dur+ ! borr[]'s grace p]iod 7= ! purposes ( ?is title1 def9$ z ! p]iod betwe5 ! borr[]'s 9-s*ool def]m5t p]iod & ! borr[]'s repaym5t p]iod7 & dur+ ! borr[]'s repaym5t p]iod %all n be capitaliz$4 7f7 ,arm$ =ces /ud5t loan int]e/ paym5t program ,us+ funds receiv$ by transf] to ! ,secret>y "u section #bagd7;f77#b7 ( title #aj1 ,unit$ ,/ates ,code1 ! ,secret>y %all pay ! int]e/ on a loan made "u ?is "p to a memb] ( ! ,arm$ ,=ces z due = a p]iod n 9 excess ( #cf consecutive mon?s4 ,! ,secret>y may n pay int]e/ on su* a loan out ( any funds o!r ?an funds t h be5 s transf]r$4 7g7 ,no accrual ( int]e/ = active duty s]vice memb]s 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is "p & 9 accordance ) p>agraphs 7#b7 & 7#d71 int]e/ %all n accrue = an eligible milit>y borr[] on a loan made "u ?is "p = :i* ! fir/ disbursem5t is made on or aft] ,july #a1 #bjae4 7#b7 ,,idea consolidation loans ,9 ! case ( any ,,idea ,consolidation loan made "u ?is "p t is disburs$ on or aft] ,july #a1 #bjae1 int]e/ %all n accrue pursuant to ?is subsection only on su* portion ( su* loan z 0 us$ to repay a loan made "u "p ,d = :i* ! fir/ disbursem5t is made on or aft] ,octob] #a1 #bjjh4 7#c7 ,eligible milit>y borr[] ,9 ?is subsection1 ! t]m eligible milit>y borr[] means an individual :o-- 7,a7 7i7 is s]v+ on active duty dur+ a w> or o!r milit>y op]ation or national em]g5cy2 or 7ii7 is p]=m+ qualify+ ,national ,gu>d duty dur+ a w> or o!r milit>y op]ation or national em]g5cy2 & 7,b7 is s]v+ 9 an area ( ho/ilities 9 :i* s]vice qualifies = special pay "u section #caj ( title #cg1 ,unit$ ,/ates ,code4 7#d7 ,limitation ,an individual :o qualifies z an eligible milit>y borr[] "u ?is subsection may receive ! b5efit ( ?is subsection = n m ?an #fj mon?s4 7h7 ,loan cancellation & dis*>ge ,! ,secret>y %all dis*>ge a borr[]'s liability on a loan made "u ?is "p 9 accordance ) subsections 7a7 & 7c7 ( section #dcg4 7i7 ,loan =giv5ess ,a loan made "u ?is "p %all be eligible = loan =giv5ess "u ! foll[+ conditions3 7#a7 ,aft] #bj ye>s ( paym5ts pursuant to section #dii;,f = borr[]s :o beg9 repaym5t ) an out/&+ balance ( pr9cipal & int]e/ t is less ?an ! maximum aggregate am\nt ( ,,idea ,loans t an und]graduate /ud5t may borr[ z provid$ "u subsection 7c74 7#b7 ,aft] #cj ye>s ( paym5ts pursuant to section #dii;,f = borr[]s :o beg9 repaym5t ) an out/&+ balance ( pr9cipal & int]e/ t is equal to or great] ?an ! maximum aggregate am\nt ( ,,idea ,loans t an und]graduate /ud5t may borr[ z provid$ "u subsection 7c74 #dii;,c4 ,,idea consolidation loans 7a7 ,,idea consolidation loans 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is section1 an ,,idea ,consolidation ,loan "u ?is section %all h ! same t]ms1 conditions1 & b5efits z ,,idea ,loans made "u ?is "p4 7#b7 ,borr[] & loan eligibility ,to be eligible to receive an ,,idea ,consolidation ,loan "u ?is section1 a borr[]-- 7,a7 %all-- 7i7 meet ! crit]ia describ$ 9 section #dbh;,c7a77#c77;,a72 & 7ii7 9 ! case ( a borr[] describ$ 9 section #dii;,b7b77#a77;,b71 agree to consolidate into an ,,idea ,consolidation ,loan all loans made to ! borr[] t are describ$ 9 subp>agraphs 7,a7 & 7,c7 ( section #dbh;,c7a77#d7 7o!r ?an an except$ ,,plus loan or an except$ consolidation loan 7z su* t]ms are def9$ 9 section #dic;,c7a7772 7,b7 may consolidate ! loans describ$ 9 subp>agraphs 7,b71 7,d71 & 7,e7 ( section #dbh;,c7a77#d7 into su* ,,idea ,consolidation ,loan2 & 7,c7 may n consolidate an ,,idea ,loan made "u section #dii;,b into su* ,,idea ,consolidation ,loan4 7#c7 ,requirem5ts = ! secret>y ,9 mak+ ,,idea ,consolidation ,loans "u ?is section1 ! ,secret>y-- 7,a7 %all ensure t-- 7i7 ea* ,,idea ,consolidation ,loan w be made1 not)/&+ any o!r provision ( ?is title limit+ ! annual or aggregate pr9cipal am\nt = all loans made to ! borr[]1 9 an am\nt t is equal to ! sum ( ! unpaid pr9cipal1 int]e/1 p5alties1 & fees ( all loans receiv$ by ! borr[] :i* are select$ by ! borr[] = consolidation "u ?is section2 & 7ii7 ! proce$s ( ea* ,,idea ,consolidation ,loan w be paid by ! ,secret>y to ! hold] or hold]s ( ! loans be+ consolidat$ to dis*>ge ! liability on su* loans2 7,b7 %all n discrim9ate aga9/ any borr[] seek+ su* an ,,idea ,consolidation ,loan-- 7i7 bas$ on ! numb] or type ( loans ! borr[] seeks to consolidate2 7ii7 bas$ on ! int]e/ rate to be *>g$ to ! borr[] ) respect to ! consolidation loan2 or 7iii7 bas$ on ! type or category ( in/itution ( high] education t ! borr[] att5ds or att5d$2 & 7,c7 %all disclose to a prospective borr[]1 9 simple & und]/&able t]ms1 at ! "t ! ,secret>y provides an application = an ,,idea ,consolidation ,loan-- 7i7 :e!r consolidation w\ld result 9 a loss ( loan b5efits "u "p ,b or "p ,d1 includ+ loan =giv5ess1 cancellation1 & def]m5t2 7ii7 ) respect to ,f$]al ,p]k9s ,loans "u "p ,e-- 7,i7 t if a borr[] includes a ,f$]al ,p]k9s ,loan "u "p ,e 9 ! consolidation loan1 ! borr[] w lose all int]e/-free p]iods t w\ld h be5 available = ! ,f$]al ,p]k9s ,loan1 includ+-- 7aa7 ! p]iods dur+ :i* no int]e/ accrues on su* loan :ile ! borr[] is enroll$ 9 s*ool at lea/ half-"t2 7bb7 ! grace p]iod "u section #dfd7;c77#a77;,a72 & 7cc7 ! p]iods dur+ :i* ! borr[]'s /ud5t loan repaym5ts are def]r$ "u section #dfd7;c77#b72 7,,ii7 t if a borr[] includes a ,f$]al ,p]k9s ,loan 9 ! consolidation loan1 ! borr[] w no long] be eligible = cancellation ( "p or all ( ! ,f$]al ,p]k9s ,loan "u section #dfe7;a72 & 7,,iii7 ! occupations li/$ 9 section #dfe t qualify = ,f$]al ,p]k9s ,loan cancellation "u section #dfe7;a72 7iii7 ! options ( ! borr[] to prepay ! ,,idea ,consolidation ,loan2 7iv7 ! consequ5ces ( default on ! ,,idea ,consolidation ,loan2 & 7v7 t by apply+ = an ,,idea ,consolidation ,loan1 ! borr[] is n obligat$ to agree to take ! consolidation loan4 7b7 ,int]e/ rate ,not)/&+ section #dii;,b7e71 an ,,idea ,consolidation ,loan = :i* ! application is receiv$ on or aft] ,july #a1 #bjae1 %all be> int]e/ at an annual rate on ! unpaid pr9cipal balance ( ! loan t is equal to ! weight$ av]age ( ! int]e/ rates on ! loans consolidat$1 r\nd$ to ! ne>e/ high] "o-eigh? ( "o p]c5t4 ,int]e/ t accrues on su* an ,,idea ,consolidation ,loan %all n be capitaliz$4 #b ,,idea ,loan ,repaym5t ,program #a ,e/abli%m5t ( ! ,,idea ,loan ,repaym5t ,program #dii;,d4 ,duties ( ! ,secret>y ( ! ,treasury 7a7 ,9 g5]al ,z "p ( ! ,,idea ,loan ,repaym5t ,program e/abli%$ "u ?is subp>t1 ! ,secret>y ( ! ,treasury %all1 ) respect to ea* individual = :om a loan made "u ?is "p is 9 repaym5t /atus dur+ a taxable ye>1 transmit to ! ,secret>y ( ,education-- 7#a7 9 ! case ( su* an individual :o files an income tax return = su* taxable ye>1 su* tax in=mation z is necess>y to det]m9e ! individual's income-bas$ repaym5t obligation "u section #dii;,e2 & 7#b7 9 ! case ( any su* individual :o does n file a return = su* taxable ye>1 any available tax in=mation ( ! individual z may be necess>y to det]m9e su* obligation & :e!r su* individual is 9 default "u ! t]ms ( su* loan = n s fil+4 7b7 ,additional program requirem5ts ,! ,secret>y ( ! ,treasury %all e/abli% su* o!r policies1 proc$ures1 & guidance z may be necess>y to c>ry out ! purposes ( ?is subp>t1 includ+ measures to prev5t und]report+ & evasion ( repaym5t or fil+4 #dii;,e4 ,duties ( ! ,secret>y ( ,education 7a7 ,9 g5]al ,! ,secret>y %all c>ry out1 z "p ( ! ,,idea ,loan ,repaym5t ,program e/abli%$ "u ?is subp>t1 ! foll[+ activities3 7#a7 ,calculation ( annual repaym5t am\nts ,! ,secret>y %all calculate ! annual repaym5t am\nt "u ?is subp>t = borr[]s ) #a or m loans made "u ?is "p 9 repaym5t /atus1 includ+ ! income-bas$ repaym5t obligations ( su* borr[]s 9 accordance ) section #dii;,f7i74 7#b7 ,communication ) ! secret>y ( ! treasury ,! ,secret>y %all transmit to ! ,secret>y ( ! ,treasury su* in=mation z is necess>y = ! ,secret>y ( ! ,treasury to c>ry out section #dii;,f7i74 7#c7 ,annual /atem5ts ,^u calculat+ ! annual repaym5t am\nts "u p>agraph 7#a7 = a taxable ye>1 ! ,secret>y %all provide a /atem5t1 on an annual basis1 to ea* borr[] ) a loan made "u ?is "p1 :i* li/s ! foll[+3 7,a7 ,total paym5ts made on ! borr[]'s annual repaym5t am\nt = su* taxable ye>4 7,b7 ,! borr[]'s annual repaym5t am\nt = su* taxable ye>4 7,c7 ,9 ! case ( a borr[] :o1 accord+ to section #dii;,f7f71 has und]paid su* annual repaym5t am\nt1 ! am\nt ( su* und]paym5t & ! process = pay+ su* und]paym5t "u section #dii;,f7f77#b74 7,d7 ,9 ! case ( a borr[] ) an ov]paym5t on su* annual repaym5t am\nt1 ! am\nt ( su* ov]paym5t & ! process = reque/+ a refund ( su* am\nt "u section #dii;,f7g71 if applicable4 7,e7 ,! out/&+ balances on all ! loans made to ! borr[] "u ?is "p4 7,f7 ,a description ( h[ ! borr[]'s annual repaym5t am\nt 0 calculat$ "u p>agraph 7#a7 or 7#b7 ( section #dii;,f7b74 7#d7 ,direct paym5t ,! ,secret>y %all enable a borr[] to make direct paym5ts on ! borr[]'s annual repaym5t am\nt = ! taxable ye> to ! ,secret>y ?r\gh\t ! ye>4 7#e7 ,paym5ts on a borr[]'s behalf ,! ,secret>y %all-- 7,a7 provide a me*anism = o!r individuals or entities to make paym5ts on ! annual repaym5t am\nt ( a borr[] = a taxable ye>2 & 7,b7 notify ! borr[] t any paym5ts made "u subp>agraph 7,a7 = ! taxable ye> t exce$ ! annual repaym5t am\nt = ! ye> %all n be refund$ to ! borr[]4 7#f7 ,calculat+ int]e/ accru$ ,! ,secret>y %all calculate ! int]e/ accru$ = ! taxable ye> z if ! borr[]'s paym5ts "u wage )hold+ "u p>agraph 7#aj7 = ! taxable ye> 7 made 9 #ab equal increm5ts ?r\gh\t ! ye>4 7#g7 ,appeals process ,! ,secret>y %all make available a process ?r\gh :i* a borr[] c appeal ! calculation ( ! borr[]'s annual repaym5t am\nt1 includ+ a work%eet t enables a borr[] to calculate ! borr[]'s annual repaym5t am\nt4 7#h7 ,default = failure to file a return ,9 a case 9 :i* ! ,secret>y receives in=mation f ! ,secret>y ( ! ,treasury "u section #dii;,d t a borr[] ) a loan made "u ?is "p 9 repaym5t /atus has fail$ to file a return "u section #fjab7;a77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf & su* borr[] 0 requir$ to file su* a return1 ! ,secret>y %all-- 7,a7 notify ! borr[] ( ! borr[]'s failure to file su* a return2 & 7,b7 if ! borr[] fails to file su* a return )9 #ij days ( receipt ( ! notice describ$ 9 subp>agraph 7,a71 consid] ! borr[]'s loans made "u ?is "p 9 repaym5t /atus to be 9 default4 7#i7 ,)hold+ opt-out ,! ,secret>y %all e/abli% a process ?r\gh :i* a borr[] c indicate t ! borr[] w\ld l to opt-out ( ! )hold+ process "u subsection 7b7 &1 9 lieu ( su* process1 make paym5ts on a mon?ly basis1 z describ$ 9 subsection 7c74 7#aj7 ,employ] )hold+ ,! ,secret>y %all e/abli% a process t meets ! requirem5ts ( subsection 7b7 "u :i* employ]s mak+ paym5t ( wages d$uct & )hold ^u su* wages am\nts det]m9$ 9 accordance ) subsection 7b77#c7 ) respect to an employee-- 7,a7 :o has a loan made "u ?is "p t is 9 repaym5t /atus2 7,b7 :o has n opt$ out ( ! )hold+ process "u ?is p>agraph2 & 7,c7 :o is n 9 a =be>ance p]iod "u section #dii;,f7a77#b77;,c74 7#aa7 ,mon?ly paym5ts process ,! ,secret>y %all e/abli% a mon?ly paym5ts process describ$ 9 subsection 7c74 7b7 ,requirem5ts = employ] )hold+ 7#a7 ,)hold+ ord]s ,9 c>ry+ out ! employ] )hold+ process "u subsection 7a77#aj71 ! ,secret>y %all c>ry out ! foll[+3 7,a7 ,new employm5t ,^u det]m9+1 us+ ! in=mation provid$ "u section #dec7;j77#ab7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j77#ab771 t a borr[] :o meets ! requirem5ts ( subp>agraphs 7,a7 ?r\gh 7,c7 ( subsection 7a77#aj7 obta9s new employm5t1 issue a )hold+ ord] to ! borr[]'s employ] direct+ ! employ] to )hold & transmit ! am\nts describ$ 9 p>agraph 7#c7 to ! ,secret>y4 7,b7 ,o!r purposes ,^u notification by a borr[] t ! borr[] no long] wi%es to opt out ( ! )hold+ process "u subsection 7a77#aj7 or t a borr[] :o has be5 9 =be>ance "u section #dii;,f7a77#b77;,c71 volunt>ily ends or no long] qualifies = su* =be>ance1 or ^u det]m9+ t a borr[] has ent]$ repaym5t /atus on #a or m loans made "u ?is "p 7& ! borr[] _h no loans made "u ?is "p already 9 repaym5t /atus71 us+ ! in=mation provid$ "u section #dec7;j77#ab7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j77#ab771 issue a )hold+ ord] to all ( ! borr[]'s employ]s direct+ su* employ]s to )hold & transmit ! am\nts describ$ 9 p>agraph 7#c7 to ! ,secret>y4 7,c7 ,/op )hold+ ord] ,^u det]m9+ t a borr[] is eligible = a =be>ance "u section #dii;,f7a77#b77;,c71 t ! borr[] has opt$ out ( ! )hold+ process "u subsection 7a77#aj71 or t a borr[] has repaid ! borr[]'s loans made "u ?is "p1 us+ ! in=mation provid$ "u p>agraph #ab ( section #dec7;j77#ab7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j77#ab771 issue a )hold+ ord] to ! borr[]'s employ]s direct+ su* employ]s to cease )hold+ "u ?is p>agraph4 7,d7 ,transf] ( paym5ts ,outl9e cle>ly ! process ?r\gh :i* employ]s %all transf] money )held "u ?is subsection to ! ,secret>y4 7,e7 ,electronic transmission 7i7 ,9 g5]al ,make available electronic means ( transmitt+ & process+ bo? )hold+ ord]s & paym5ts f employ]s1 includ+ a means to correct "u- & ov]paym5ts to ! ext5t feasible1 ) ! goal ( /reaml9+ ! process+ ( su* ord]s & paym5ts & m9imiz+ impacts on employ]s4 7ii7 ,no requirem5t to use electronic transmission ,no?+ 9 ?is "p %all be con/ru$ to require an employ]1 9 c>ry+ out a )hold+ ord] "u ?is section1 to use ! electronic process describ$ 9 clause 7i74 7#b7 ,employ] remittance 7,a7 ,9 g5]al ,9 ! case :]e an employ] has receiv$ a )hold+ ord] "u subp>agraph 7,a7 or 7,b7 ( p>agraph 7#a7 or ! employee has indicat$ "u p>agraph 7#d77;,a7 t ! employee has a loan t meets ! requirem5ts ( subp>agraphs 7,a7 ?r\gh 7,c7 ( subsection 7a77#aj71 & ! employ] has n subsequ5tly receiv$ an ord] to /op )hold+ "u p>agraph 7#a77;,c7 = su* employee1 ! employ] %all )hold & transmit ! am\nts describ$ 9 p>agraph 7#c7 to ! ,secret>y z direct$ "u p>agraph 7#a77;,d7 & %all be liable =1 & ! ,secret>y1 z appropriate1 may sue ! employ] 9 a ,/ate or ,f$]al c\rt ( compet5t jurisdiction to recov] any am\nt t su* employ] fails to )hold f wages ) respect to an employee aft] be+ direct$ to d s = su* employee1 plus attorneys' fees1 co/s1 &1 9 ! c\rt's discretion1 punitive damages4 ,su* employ] %all n be requir$ to v>y ! normal pay & disbursem5t cycles 9 ord] to comply ) ?is subp>agraph4 7,b7 ,tim+ ,an employ] transmitt+ to ! ,secret>y )hold+ paym5ts "u ?is subsection %all transmit su* paym5ts on a p]iodic basis1 z det]m9$ by ! employ] b n less frequ5tly ?an qu>t]ly4 7#c7 ,)hold+ am\nt ,! am\nt )held by an employ] = ea* pay p]iod ) respect to any employee = :om ! employ] is )hold+ "u ?is subsection %all be an am\nt equal to ! sum (-- 7,a7 ! am\nt t results f ! employ] )hold+-- 7i7 #aj p]c5t ( ! employee's wages = su* pay p]iod t w c\nt t[>ds ! employee's annual repaym5t am\nt "u section #dii;,f7b7 t is 9 excess ( ! employee's exemption am\nt = su* pay p]iod 7z det]m9$ by divid+ ! employee's exemption am\nt "u section #dii;,f7i77#c7 by ! numb] ( pay p]iods = ! taxable ye>72 or 7ii7 9 a case 9 :i* an employee reque/s t su* exemption am\nt n be tak5 into acc\nt1 #aj p]c5t ( ! employee's wages = su* pay p]iod t w c\nt t[>ds ! employee's annual repaym5t am\nt "u section #dii;,f7b72 & 7,b7 any additional am\nts ! employee wi%es to h )held 9 accordance ) p>agraph 7#d77;,c74 7#d7 ,)hold+ pref]5ces ,! ,secret>y %all provide =ms & proc$ures to all[ an employee to indicate to ! employee's employ]-- 7,a7 t ! employee has a loan t meets ! requirem5ts ( subp>agraphs 7,a7 ?r\gh 7,c7 ( subsection 7a77#aj7 & !re=e ! employ] %all )hold paym5ts "u ?is subsection2 7,b7 t ! employ] %all n take into acc\nt ! exemption am\nt to :i* ! employee is eligible "u ?is "p 9 det]m9+ ! employee's )hold+ am\nt because ! exemption am\nt has already be5 tak5 into acc\nt ) respect to su* employee2 & 7,c7 an election by ! employee to h am\nts )held 9 addition to ! employee's )hold+ am\nt z calculat$ "u p>agraph 7#c74 7#e7 ,employee protection ,an employ] may n dis*>ge f employm5t1 refuse to employ1 or take discipl9>y action aga9/ an individual subject to wage )hold+ 9 accordance ) ?is section by reason ( ! fact t ! individual's wages h be5 subject to )hold+ "u ?is section1 nor may an employ] require t an individual opt-out "u subsection 7a77#i7 & su* individual may sue 9 a ,/ate or ,f$]al c\rt ( compet5t jurisdiction any employ] :o takes su* action4 ,! c\rt %all aw>d attorneys' fees to a prevail+ employee &1 9 its discretion1 may ord] re9/atem5t ( ! individual1 aw>d punitive damages & back pay to ! employee1 or ord] su* o!r rem$y z may be reasonably necess>y4 7#f7 ,g>ni%m5t ,= purposes ( title ,,iii ( ! ,consum] ,cr$it ,protection ,act 7#ae ,u4,s4,c4 #afga et seq471 am\nts )held "u ?is subsection %all-- 7,a7 n be consid]$ a g>ni%m5t2 & 7,b7 be consid]$ to be am\nts requir$ by law to be )held4 7c7 ,mon?ly paym5ts process 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% a process "u :i* a borr[] may make mon?ly paym5ts t[>ds ! borr[]'s annual repaym5t am\nt1 at any "t 9 ! taxable ye>1 because ! borr[]-- 7,a7 has opt$-out ( )hold+ "u subsection 7a77#aj72 or 7,b7 expects to h income t is n subject to ! )hold+ process describ$ 9 subsection 7b74 7#b7 ,in=mation requir$ ,! proc$ure = initiat+ ! mon?ly paym5ts process "u p>agraph 7#a7 %all include ! foll[+3 7,a7 ,income e/imate ,a requirem5t = a borr[] to provide an e/imate ( ! borr[]'s income = ! taxable ye> t w c\nt t[>ds ! borr[]'s income-bas$ repaym5t obligation1 exclud+1 9 ! case ( a borr[] subject to ! )hold+ process1 any income subject to ! )hold+ process4 7,b7 ,amortization s*$ule ,9 ! case ( a borr[] :o has opt$ out ( ! )hold+ process1 ! ability = ! borr[] to indicate t ! borr[] w\ld l ! borr[]'s mon?ly paym5ts set su* t ! borr[]'s out/&+ loans made "u ?is "p w\ld be repaid )9 a specifi$ numb] ( ye>s4 7#c7 ,mon?ly paym5ts am\nts ,! ,secret>y %all set ! borr[]'s mon?ly paym5t am\nt to ! great] (-- 7,a7 ! diff]5ce betwe5 ! borr[]'s annual repaym5t am\nt t w\ld result giv5 ! income e/imate provid$ by ! borr[] "u p>agraph 7#b77;,a7 & ! paym5ts ! borr[] has already made 9 ! ye> t[>ds su* am\nt 7exclud+1 = borr[]s :o h n opt$-out ( )hold+1 paym5ts ?r\gh ! )hold+ process71 divid$ by ! rema9+ mon?s 9 ! taxable ye>2 or 7,b7 = a borr[] :o indicates a "t frame "u p>agraph 7#b77;,b71 ! mon?ly paym5t am\nt t w\ld result 9 ! borr[]'s curr5tly out/&+ loans made "u ?is "p be+ repaid )9 ! numb] ( ye>s specifi$ by ! borr[]4 7#d7 ,automatic cont9uation ,! mon?ly paym5ts process %all cont9ue until-- 7,a7 ! borr[] elects to /op su* paym5ts2 or 7,b7 ! borr[]'s loans made "u ?is "p are repaid4 7#e7 ,updat+ paym5t am\nts 7,a7 ,secret>y ,! ,secret>y %all automatically recalculate a borr[]'s mon?ly paym5t am\nt at ! beg9n+ ( a new taxable ye> us+ ! mo/ rec5t income e/imate provid$ "u p>agraph 7#b77;,a7 by ! borr[]4 7,b7 ,borr[] ,! borr[] may update ! borr[]'s income e/imate "u p>agraph 7#b77;,a7 at any "t4 #b ,borr[] repaym5t ( ,,idea loans & ,,idea consolidation loans #dii;,f4 ,borr[] repaym5t 7a7 ,repaym5t p]iod ,! repaym5t p]iod ( a loan made "u ?is "p %all-- 7#a7 beg9 on ! fir/ day ( ! fir/ taxable ye> t beg9s aft] ! borr[]'s 9-s*ool def]m5t p]iod1 or 9 ! case ( an ,,idea ,consolidation ,loan1 on ! fir/ day ( ! fir/ taxable ye> t beg9s aft] su* ,consolidation ,loan is disburs$2 & 7#b7 cont9ue until ! loan is paid 9 full1 except t ! ,secret>y may grant a borr[] =be>ance ( ! borr[]'s annual repaym5t am\nt-- 7,a7 = a p]iod n to exce$ #fj days1 due to adm9i/rative or te*nical reasons2 7,b7 = a p]iod n to exce$ #c mon?s1 due to unusual circum/ances t disrupt ! borr[]'s ability to make timely paym5ts on ! loan2 or 7,c7 r5ewable at #ab-mon? int]vals = a p]iod n to exce$ #c ye>s1 due to docum5t$ extreme economic h>d%ip on ! "p ( a borr[]4 7b7 ,annual repaym5t am\nt ,! annual repaym5t am\nt "u ?is "p = a taxable ye> = a borr[] ) #a or m loans made "u ?is "p 9 repaym5t /atus %all be equal to ! less] (-- 7#a7 ! income-bas$ repaym5t obligation = su* borr[] = su* ye>1 z calculat$ "u section #dii;,e7a77#a72 or 7#b7 an am\nt equal to ! sum ( ! out/&+ balances 7equal to ! sum ( ! unpaid pr9cipal1 int]e/1 p5alties1 & fees7 t ! borr[] owes on su* loans4 7c7 ,me?ods ( repaym5t ,a borr[] :o expects to h an annual repaym5t am\nt = ! taxable ye> t is great] ?an ! am\nt specifi$ 9 subsection 7f77#a77;,d7 %all make paym5ts ?r\gh ! foll[+ me?ods3 7#a7 ,) respect to any wages e>n$ by ! borr[] t are subject to ,f$]al income tax )hold+1 ! )hold+ process describ$ 9 section #dii;,e7a77#aj74 7#b7 ,! mon?ly paym5ts process describ$ 9 section #dii;,e7c71 to meet ! portion ( ! borr[]'s obligation t is n paid ?r\gh )hold+1 or1 9 ! case ( a borr[] :o opts out ( ! )hold+ process1 to meet ! borr[]'s entire obligation4 7#c7 ,! direct paym5ts process "u section #dii;,e7a77#d74 7#d7 ,! process describ$ 9 section #dii;,e7a77#e7 t all[s o!r individuals or entities to make paym5ts on ! borr[]'s annual repaym5t am\nt = ! ye>4 7d7 ,ord] ( cr$it+ ,paym5ts on loans made "u ?is "p %all be appli$1 )\t reg>d to ! me?od ( su* paym5ts1 fir/ t[>d p5alties due on ! loans1 next t[>d any fees due on ! loans1 !n t[>d any int]e/ due on ! loans1 & f9ally t[>d ! pr9cipal due on ! loan ) ! highe/ applicable rate ( int]e/ among su* loans4 7e7 ,prepaym5t au?oriz$ ,a borr[] %all h ! "r to prepay all or "p ( su* loan1 at any "t & )\t p5alty4 ,any su* prepaym5t am\nt w be appli$ to loans made "u ?is "p 9 ! same ord] z describ$ 9 subsection 7d74 7f7 ,und]paym5ts 7#a7 ,p5alties = und]paym5ts 7,a7 ,9 g5]al ,subject to subp>agraph 7,c71 if1 z ( ! la/ day ( a taxable ye>1 a borr[] has n paid at lea/ #ij p]c5t ( ! borr[]'s annual repaym5t am\nt = su* ye>1 ! borr[] %all be *>g$ a p5alty 9 an am\nt equal to #aj p]c5t ( ! diff]5ce betwe5-- 7i7 an am\nt equal to #ij p]c5t ( ! borr[]'s annual repaym5t am\nt = su* ye>2 & 7ii7 ! am\nt paid on su* annual repaym5t am\nt z ( su* day4 7,b7 ,increase ( annual repaym5t am\nt ,a borr[]'s annual repaym5t am\nt calculat$ "u subsection 7b7 = su* ye> %all be increas$ by ! am\nt ( su* p5alty1 b su* p5alty %all n be treat$ z a pr9cipal or int]e/ am\nt = a loan made "u ?is "p4 7,c7 ,exception = meet+ ! obligation = ! previ\s ye> ,a borr[] :o has paid #ajj p]c5t ( ! borr[]'s annual repaym5t am\nt = ! taxable ye> prec$+ ! taxable ye> describ$ 9 subp>agraph 7,a7 %all n be subject to ! p5alty "u ?is p>agraph = ! taxable ye> describ$ 9 subp>agraph 7,a74 7,d7 ,de m9imus exception ,a borr[] ^: annual repaym5t am\nt is less ?an #cjj %all n be subject to ! p5alty "u ?is p>agraph = ! taxable ye> describ$ 9 subp>agraph 7,a74 7#b7 ,reconcil+ und]paym5ts 7,a7 ,9 g5]al ,if1 z ( ! la/ day ( a taxable ye>1 ! sum ( ! paym5ts made on a borr[]'s annual repaym5t am\nt = su* ye> is less ?an ! total am\nt ( ! borr[]'s annual repaym5t am\nt = su* ye>1 ! borr[]-- 7i7 9 ! case ( ! fir/ ye> t ! borr[] has a diff]5ce betwe5 su* am\nts-- 7,i7 may reque/1 9 su* mann] z ! ,secret>y %all require1 t ! ,secret>y r$uce ! borr[]'s annual repaym5t am\nt = su* ye> to ! sum (-- 7aa7 ! paym5ts made1 z ( su* day1 on ! borr[]'s annual repaym5t am\nt = su* ye>2 & 7bb7 any p5alties calculat$ "u p>agraph 7#a7 result+ f su* und]paym5t2 & 7,,ii7 if ! borr[] qualifies = ! r$uction reque/$ "u subclause 7,i71 %all pay ! sum calculat$ "u su* subclause at su* "t & 9 su* mann] z requir$ by ! ,secret>y2 7ii7 if ! borr[] does n qualify = a r$uction "u clause 7i7 or does n reque/ su* a r$uction1 %all pay to ! ,secret>y an am\nt equal to ! diff]5ce betwe5 su* am\nts )9 ! #cj-;day p]iod beg9n+ on ! date ( receipt by ! borr[] ( ! borr[]'s annual /atem5t describ$ 9 section #dii;,e7a77#c7 = su* ye>2 or 7iii7 if ! borr[] fails to pay ! am\nt ow$ by ! borr[] z calculat$ "u clause 7ii7 )9 ! #cj-;day p]iod1 %all be *>g$ a p5alty equal to #b p]c5t ( su* am\nt = ea* mon? 7prorat$ bas$ on ! p]c5tage ( a mon? su* p5alty is *>g$7 t su* am\nt is ow$ or until ! borr[] defaults on ! loan = :i* su* am\nt is ow$1 :i*ev] occurs fir/4 7,b7 ,default ,a loan = :i* an am\nt is ow$ "u subp>agraph 7,a7 & t is n paid )9 #bgj days aft] ! date ( receipt by ! borr[] ( ! borr[]'s annual /atem5t describ$ 9 section #dii;,e7a77#c7 %all be consid]$ to be 9 default4 7g7 ,ov]paym5ts ,if1 z ( ! la/ day ( a taxable ye>1 ! sum ( ! paym5ts made on a borr[]'s annual repaym5t am\nt = su* ye> is great] ?an ! total am\nt ( ! borr[]'s annual repaym5t am\nt = su* ye>1 ! ,secret>y %all-- 7#a7 refund ! ov]paym5t am\nt1 if ! borr[] notifies ! ,secret>y1 )9 ! #ij-;day p]iod beg9n+ on ! date ( receipt ( ! borr[]'s annual /atem5t describ$ 9 section #dii;,e7a77#c7 = su* ye> & 9 a mann] prescrib$ by ! ,secret>y1 t ! borr[] desires to h ! ov]paym5t am\nt refund$2 or 7#b7 if a borr[] fails to notify ! ,secret>y ( ! borr[]'s desire = a refund ( su* am\nt )9 su* #ij-;day p]iod1 apply su* am\nt z a prepaym5t to ! borr[]'s loans made "u ?is "p 9 ! same mann] z a prepaym5t au?oriz$ "u subsection 7e74 7h7 ,employ] failure ,to )hold paym5ts ,9 ! case ( a borr[] ^: employ] fails to )hold am\nts "u section #dii;,e7b7 ^u any wages e>n$ by ! borr[] t are subject to ,f$]al income tax )hold+ & ) respect to :i* ! borr[] made an election to h am\nts )held "u su* section1 ! ,secret>y %all-- 7#a7 r$uce ! borr[]'s annual repaym5t to an am\nt equal to ! borr[]'s annual repaym5t am\nt _h wages f su* employ] be5 exclud$ :5 calculat+ ! borr[]'s annual repaym5t am\nt2 & 7#b7 r$uce any p5alties = und]paym5ts calculat$ "u subsection 7f77#a7 & refund any ov]paym5ts on su* annual repaym5t am\nt1 accord+ly4 7i7 ,det]m9ation ( income-,bas$ repaym5t obligation 7#a7 ,9 g5]al ,! income-bas$ repaym5t obligation ) respect to an individual = any taxable ye> is an am\nt equal to #aj p]c5t ( ! excess (-- 7,a7 ! sum (-- 7i7 ! wages1 sal>ies1 tips1 & o!r employee comp5sation ( ! individual1 b only if su* am\nts are includible 9 gross income = ! taxable ye> 7det]m9$ )\t reg>d to sections #iaa1 #ica1 & #icc ( ! ,int]nal ,rev5ue ,code ( #aihf7 & are readily attributable to ! individual1 plus 7ii7 any o!r am\nt includ$ 9 total income ( ! taxpay] = ! taxable ye> b n describ$ 9 clause 7i71 except t su* am\nt %all be divid$ by #b 9 ! case ( an individual :o is m>ri$ & fil+ a jo9t tax return1 ov] 7,b7 ! sum (-- 7i7 ! exemption am\nt ) respect to su* individual1 plus 7ii7 ! less] ( ! am\nt det]m9$ ) respect to ! taxpay] "u subp>agraph 7,a77ii71 or #c1jjj4 7#b7 ,exclusion ( c]ta9 am\nts paid on behalf ( individual ,any am\nt paid on ! borr[]'s behalf "u section #dii;,e7a77#e7 %all n be tak5 into acc\nt 9 det]m9+ su* borr[]'s income-bas$ repaym5t obligation4 7#c7 ,exemption am\nt ,= purposes ( ?is subp>t1 ! exemption am\nt ) respect to an individual %all be #aj1jjj 7adju/$ ea* ye> to reflect *anges 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor = ! mo/ rec5t #ab-mon? p]iod = :i* su* data are available74 7#d7 ,individuals n fil+ a return ,! income-bas$ repaym5t obligation ) respect to an individual n requir$ to file a return "u section #fjab7;a77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf %all be treat$ z z]o4 4 #d4 ,con=m+ *anges to ! ,high] ,education ,act ( #aife 7a7 ,loan =giv5ess & cancellation = tea*]s 7#a7 ,loan =giv5ess = tea*]s ,section #dbh;,j ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-aj7 is am5d$-- 7,a7 9 subsection 7b71 by ins]t+ or = an ,,idea loan made "u "p ,j1 aft] or #dbh;,h12 & 7,b7 9 subsection 7c7-- 7i7 9 p>agraph 7#a71 by ins]t+ or an ,,idea loan made "u "p ,j aft] or #dbh;,h2 & 7ii7 9 p>agraph 7#b7-- 7,i7 by /rik+ ,a loan & ins]t+ ! foll[+3 7,a7 ,loans made "u section #dbh;,c ,a loan 2 & 7,,ii7 by add+ at ! end ! foll[+3 7,b7 ,,idea consolidation loan ,a loan am\nt = an ,,idea ,consolidation ,loan may be a qualifi$ loan am\nt = purposes ( ?is subsection only to ! ext5t t su* loan am\nt 0 us$ to repay a ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,consolidation ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or a loan made "u section #dbh1 #dbh;,c1 or #dbh;,h4 4 7#b7 ,loan cancellation = tea*]s ,section #dfj ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;j7 is am5d$-- 7,a7 9 subsection 7b71 9 ! matt] prec$+ p>agraph 7#a71 by ins]t+ or = an ,,idea loan made "u "p ,j aft] "u ?is "p2 & 7,b7 9 subsection 7c7-- 7i7 9 p>agraph 7#a71 by /rik+ or a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan & ins]t+ 1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or an ,,idea loan made "u "p ,j2 & 7ii7 9 p>agraph 7#b7-- 7,i7 by /rik+ ,a loan & ins]t+ ! foll[+3 7,a7 ,f$]al direct consolidation loan ,a loan 2 & 7,,ii7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,,idea consolidation loan ,a loan am\nt = an ,,idea ,consolidation ,loan may be a qualifi$ loan am\nt = purposes ( ?is subsection only to ! ext5t t su* loan am\nt 0 us$ to repay a ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,consolidation ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or a loan made "u section #dbh1 #dbh;,c1 or #dbh;,h4 4 7b7 ,loan =giv5ess = s]vice 9 areas ( national ne$ ,section #dbh,k7a77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-aa7;a77#b77 is am5d$-- 7#a7 9 subp>agraph 7,a71 by /rik+ & aft] ! semicolon2 7#b7 9 subp>agraph 7,b71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7,c7 to cancel a qualifi$ loan am\nt = a loan made "u "p ,j4 4 7c7 ,loan repaym5t = civil legal assi/ance attorneys ,section #dbh,l7b77#b77;,a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-ab7;b77#b77;,a77 is am5d$-- 7#a7 9 clause 7i71 by /rik+ or "p ,e & ins]t+ 1 "p ,e1 or "p ,j2 & 7#b7 9 clause 7ii7-- 7,a7 9 ! matt] prec$+ subclause 7,i71 by /rik+ or #dee7;g7 & ins]t+ 1 #dee7;g71 or #dii;,c2 7,b7 9 subclause 7,,ii71 by /rik+ or aft] ! semicolon2 7,c7 by r$esignat+ subclause 7,,iii7 z subclause 7,,iv72 & 7,d7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 a ,f$]al ,direct ,consolidation loan or a loan made "u section #dbh;,c1 9 ! case ( a loan made "u section #dii;,c2 or 4 7d7 ,ma/] promissory note ,section #dcb7m77#a77;,d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhb7m77#a77;,d77 is am5d$-- 7#a7 by /rik+ ?is "p & "p ,d ea* place x appe>s & by ins]t+ ?is "p1 "p ,d1 & "p ,j2 & 7#b7 by /rik+ ?is "p or "p ,d ea* place x appe>s & by ins]t+ ?is "p1 "p ,d1 or "p ,j4 7e7 ,contracts ,section #def ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;f7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#b71 by /rik+ ?is "p ea* place x appe>s & ins]t+ ?is "p or "p ,j2 & 7,b7 9 p>agraph 7#d71 by ins]t+ or "p ,j aft] ?is "p2 & 7#b7 9 subsection 7b7-- 7,a7 9 p>agraph 7#a71 by ins]t+ or ! program "u "p ,j aft] 7or _! p>5ts72 7,b7 9 p>agraph 7#b71 by ins]t+ or "p ,j aft] ?is "p2 7,c7 9 p>agraph 7#c71 by ins]t+ or "p ,j aft] ?is "p2 & 7,d7 9 p>agraph 7#d71 by ins]t+ or ! ,,idea ,loan ,program aft] loan program4 7f7 ,funds = adm9i/rative exp5ses ,section #deh7;a77#c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;h7a77#c77 is am5d$-- 7#a7 by /rik+ ?is "p & "p ,b & ins]t+ ?is "p1 "p ,b1 & "p ,j2 & 7#b7 by ins]t+ be=e ! p]iod at ! end ! foll[+3 & "p ,j4 7g7 ,/ud5t eligibility ,section #dhd ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 7#c71 by /rik+ or ,d & ins]t+ 1 ,d1 or ,e2 & 7,b7 9 p>agraph 7#d77;,b71 by /rik+ or ,e & ins]t+ ,e1 or ,j2 7#b7 9 subsection 7d71 by /rik+ & ,e & ins]t+ ,e1 & ,j2 7#c7 9 subsection 7f71 by /rik+ or "p ,e bo? places x appe>s & ins]t+ "p ,e1 or "p ,j2 & 7#d7 9 subsection 7m71 by /rik+ & ,e & ins]t+ ,e1 & ,j4 7h7 ,in/itutional & f9ancial assi/ance in=mation = /ud5ts ,section #dhe ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#a77,m71 by /rik+ & ,e & ins]t+ ,e1 & ,j2 & 7,b7 9 p>agraph 7#g77;,a77i71 by /rik+ ,loan7 ea* place x appe>s & ins]t+ ,loan7 or "p ,j2 7#b7 9 subsection 7b7-- 7,a7 9 p>agraph 7#a77;,a7-- 7i7 9 ! matt] prec$+ clause 7i71 by ins]t+ or made "u "p ,j aft] "p ,e2 & 7ii7 9 clause 7vii7-- 7,i7 by ins]t+ or an ,,idea ,consolidation ,loan aft] ,f$]al ,direct ,consolidation ,loan2 & 7,,ii7 by /rik+ & ,e & ins]t+ ,e1 & ,j2 & 7,b7 9 p>agraph 7#b77;,a71 by /rik+ or ,e & ins]t+ ,e1 or ,j2 & 7#c7 9 subsection 7l77#a7-- 7,a7 9 subp>agraph 7,a71 9 ! matt] prec$+ clause 7i71 by ins]t+ or made "u "p ,j aft] /ud5t72 & 7,b7 9 subp>agraph 7,b71 by /rik+ or ,d & ins]t+ 1 ,d1 or ,j4 #e4 ,national directory ( new hires ,section #dec7;j7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #fec7;j77 is am5d$ by add+ at ! end ! foll[+3 7#ab7 ,in=mation comp>isons & disclosure to assi/ ) collection ( ,,idea /ud5t loans 7,a7 ,furni%+ ( in=mation by ! secret>y ( education ,! ,secret>y ( ,education %all furni% to ! ,secret>y1 on su* p]iodic basis z det]m9$ by ! ,secret>y ( ,education 9 consultation ) ! ,secret>y1 in=mation 9 ! cu/ody ( ! ,secret>y ( ,education = comp>ison ) in=mation 9 ! ,national ,directory ( ,new ,hires1 9 ord] to obta9 in=mation 9 su* ,directory ) respect to p]sons :o h a loan made "u "p ,j ( title ,,iv ( ! ,high] ,education ,act ( #aife 9 repaym5t /atus4 7,b7 ,requirem5t to seek m9imum in=mation ,! ,secret>y ( ,education %all seek in=mation pursuant to ?is section only to ! ext5t necess>y to improve collection ( ! debts ow$ on ! loans describ$ 9 subp>agraph 7,a74 7,c7 ,duties ( ! secret>y 7i7 ,in=mation disclosure ,! ,secret>y1 9 coop]ation ) ! ,secret>y ( ,education1 %all comp>e in=mation 9 ! ,national ,directory ( ,new ,hires ) in=mation provid$ by ! ,secret>y ( ,education ) respect to p]sons describ$ 9 subp>agraph 7,a7 & %all disclose in=mation 9 su* ,directory reg>d+ su* p]sons to ! ,secret>y ( ,education 9 accordance ) ?is p>agraph1 = ! purposes specifi$ 9 ?is p>agraph4 7ii7 ,condition on disclosure ,! ,secret>y %all make disclosures 9 accordance ) clause 7i7 only to ! ext5t t ! ,secret>y det]m9es t su* disclosures d n int]f]e ) ! effective op]ation ( ! program "u ?is "p4 7,d7 ,prohibition & unau?oriz$ use 7i7 ,9 g5]al ,individual data collect$ "u ?is p>agraph %all n be us$ = any purpose n specifically au?oriz$ by ,f$]al law4 7ii7 ,p5alties = unau?oriz$ disclosure ( data ,any individual :o willfully discloses in=mation provid$ "u ?is p>agraph1 9 any mann] to an entity n entitl$ to receive ! in=mation1 %all be f9$ "u title #ah1 ,unit$ ,/ates ,code1 imprison$ n m ?an #e ye>s1 or bo?4 7,e7 ,use or disclosure ( in=mation by ! secret>y ( education ,! ,secret>y ( ,education may use or disclose in=mation provid$ "u ?is p>agraph only = purposes ( collect+ ! debts ow$ on ! loans describ$ 9 subp>agraph 7,a74 7,f7 ,reimbursem5t ( ,,hhs co/s ,! ,secret>y ( ,education %all reimburse ! ,secret>y1 9 accordance ) subsection 7k77#c71 = ! co/s incurr$ by ! ,secret>y 9 furni%+ ! in=mation reque/$ "u ?is p>agraph4 7,g7 ,compliance ) ,,f]pa ,9 c>ry+ out ?is p>agraph1 ! ,secret>y & ,secret>y ( ,education %all n %>e any p]sonally id5tifiable in=mation & %all act 9 accordance ) section #ddd ( ! ,g5]al ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;g1 commonly kn[n z ! ,family ,educational ,rights & ,privacy ,act ( #aigd74 4 #f4 ,disclosure ( return in=mation = purposes ( ,,idea loan repaym5t program 7a7 ,9 g5]al ,subsection 7l7 ( section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#bc7 ,disclosure ( return in=mation to dep>tm5t ( education = purposes ( adm9i/]+ ,,idea loan repaym5t program 7,a7 ,9 g5]al ,! ,secret>y %all1 ^u writt5 reque/1 disclose to ! ,dep>tm5t ( ,education su* return in=mation z is necess>y = purposes ( c>ry+ out ! ,,idea ,loan ,repaym5t ,program e/abli%$ "u subp>t #b ( "p ,j ( ! ,high] ,education ,act ( #aife4 7,b7 ,re/riction on disclosure ,return in=mation disclos$ "u subp>agraph 7,a7 may be us$ by (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education only = purposes (1 & to ! ext5t necess>y 9 det]m9+ income-bas$ repaym5t obligations "u ! ,,idea ,loan ,repaym5t ,program4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( enactm5t ( ?is ,act4 #g4 ,exclusion = loan =giv5ess ( c]ta9 /ud5t loans 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #ajh7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ any /ud5t loan if & all t foll[s & ins]t+ any /ud5t loan if-- 7,a7 su* dis*>ge 0 pursuant to a provision ( su* loan "u :i* all or "p ( ! indebt$ness ( ! individual w\ld be dis*>g$ if ! individual work$ = a c]ta9 p]iod ( "t 9 c]ta9 pr(essions = any ( a broad class ( employ]s1 or 7,b7 su* dis*>ge 0 pursuant to section #dii;,b7i7 ( ! ,high] ,education ,act ( #aife 7relat+ to ! cancellation ( loan liability74 4 7b7 ,effective ,date ,! am5dm5t made by subsection 7a7 %all apply to dis*>ges ( indebt$ness aft] ! date ( enactm5t ( ?is ,act4