,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #dbef  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #ae1 #bjae   
,mr4 ,murphy ( ,florida introduc$ !     
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,education & ! ,work=ce1 &
 9 addition to ! ,committee on ,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 simplify income-bas$       
repaym5t "u ! ,f$]al /ud5t loan program1
 & = o!r purposes4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,simple           
,income-,bas$ ,repaym5t ,act4  #b4      
,repaym5t plans = borr[]s ,section #dee 
( ! ,high] ,education ,act ( #aife 7#bj 
,u4,s4,c4 #ajhg;e7 is am5d$--  7#a7 by  
/rik+ subsection 7d7 & ins]t+ ! foll[+3 
7d7 ,repaym5t plans  7#a7 ,design &     
selection = borr[]s be=e ,july #a1 #bjag
 ,) respect to a borr[] ( a loan made "u
 ?is "p be=e ,july #a1 #bjag1 & consi/5t
 ) crit]ia e/abli%$ by ! ,secret>y1 !   

,secret>y %all (f] su* borr[] a v>iety (
 plans = repaym5t ( su* loan1 includ+   
pr9cipal & int]e/ on ! loan4 ,! borr[]  
%all be entitl$ to accel]ate1 )\t       
p5alty1 repaym5t on ! borr[]'s loans "u 
?is "p4 ,! borr[] may *oose--  7,a7 a   
/&>d repaym5t plan1 consi/5t )          
subsection 7a77#a7 ( ?is section & )    
section #dbh7;b77#i77;,a77i72  7,b7 a   
graduat$ repaym5t plan1 consi/5t )      
section #dbh7;b77#i77;,a77ii72  7,c7 an 
ext5d$ repaym5t plan1 consi/5t ) section
 #dbh7;b77#i77;,a77iv71 except t !      
borr[] %all annually repay a m9imum     
am\nt det]m9$ by ! ,secret>y 9          
accordance ) section #dbh7;b77#a77,l72  
7,d7 an income cont+5t repaym5t plan1 ) 
v>y+ annual repaym5t am\nts bas$ on !   
income ( ! borr[]1 paid ov] an ext5d$   
p]iod ( "t prescrib$ by ! ,secret>y1 n  
to exce$ #be ye>s1 except t ! plan      
describ$ 9 ?is subp>agraph %all n be    
available to ! borr[] ( a ,f$]al ,direct
 ,,plus loan made on behalf ( a dep5d5t 
/ud5t2  7,e7 an income-bas$ repaym5t    

plan t enables borr[]s :o h a p>tial    
f9ancial h>d%ip to make a l[] mon?ly    
paym5t 9 accordance ) section #dic;,c1  
except t ! plan describ$ 9 ?is          
subp>agraph %all n be available to !    
borr[] ( a ,f$]al ,direct ,,plus ,loan  
made on behalf ( a dep5d5t /ud5t or a   
,f$]al ,direct ,consolidation ,loan1 if 
! proce$s ( su* loan 7 us$ to dis*>ge ! 
liability on su* ,f$]al ,direct ,,plus  
,loan or a loan "u section #dbh;,b made 
on behalf ( a dep5d5t /ud5t2 or  7,f7 an
 income-bas$ repaym5t plan1 consi/5t )  
"p ,j1 except t ! plan describ$ 9 ?is   
subp>agraph %all n be available to a    
borr[] ( a ,f$]al ,direct ,,plus ,loan  
made on behalf ( a dep5d5t /ud5t or a   
,f$]al ,direct ,consolidation ,loan1 if 
! proce$s ( su* loan 7 us$ to dis*>ge ! 
liability on su* ,f$]al ,direct ,,plus  
,loan1 or a loan "u section #dbh;,b made
 on behalf ( a dep5d5t /ud5t4  7#b7     
,design & selection = new borr[]s on or 
aft] ,july #a1 #bjag ,! ,secret>y %all  
(f] a borr[] ( a loan made "u ?is "p on 

or aft] ,july #a1 #bjag1 ! foll[+ plans 
= repaym5t ( su* loan1 includ+ pr9cipal 
& int]e/ on ! loan4 ,! borr[] %all be   
entitl$ to accel]ate1 )\t p5alty1       
repaym5t on ! borr[]'s loans "u ?is "p4 
,! borr[] may *oose--  7,a7 a /&>d      
repaym5t plan1 consi/5t ) subsection    
7a77#a7 ( ?is section & ) section       
#dbh7;b77#i77;,a77i72 or  7,b7 an       
income-bas$ repaym5t plan1 consi/5t ) "p
 ,j1 except t ! plan describ$ 9 ?is     
subp>agraph %all n be available to a    
borr[] ( a ,f$]al ,direct ,,plus ,loan  
made on behalf ( a dep5d5t /ud5t or a   
,f$]al ,direct ,consolidation ,loan1 if 
! proce$s ( su* loan 7 us$ to dis*>ge ! 
liability on su* ,f$]al ,direct ,,plus  
,loan or a loan "u section #dbh;,b made 
on behalf ( a dep5d5t /ud5t4  7#c7      
,borr[] non-selection ,if a borr[] ( a  
loan made "u ?is "p does n select a     
repaym5t plan describ$ 9 p>agraph 7#a7  
or 7#b71 ! ,secret>y may provide !      
borr[] ) a repaym5t plan describ$ 9     
subp>agraph 7,a71 7,b71 or 7,c7 (       

p>agraph 7#a7 = borr[]s be=e ,july #a1  
#bjag1 or a repaym5t plan describ$ 9    
p>agraph 7#b77;,b7 = new borr[]s on or  
aft] ,july #a1 #bjag4  7#d7 ,*anges 9   
selections ,! borr[] ( a loan made "u   
?is "p may *ange ! borr[]'s selection ( 
a repaym5t plan "u p>agraph 7#a7 or     
7#b71 or ! ,secret>y's selection ( a    
plan = ! borr[] "u p>agraph 7#c71 z !   
case may be1 "u su* t]ms & conditions z 
may be e/abli%$ by ! ,secret>y4  7#e7   
,alt]native repaym5t plans ,! ,secret>y 
may provide1 on a case by case basis1 an
 alt]native repaym5t plan to a borr[] ( 
a loan made "u ?is "p on or aft] ,july  
#a1 #bjag1 :o demon/rates to !          
satisfaction ( ! ,secret>y t ! t]ms &   
conditions ( ! repaym5t plans available 
"u p>agraph 7#b7 are n adequate to      
accommodate ! borr[]'s exceptional      
circum/ances4 ,^u reque/1 ! ,secret>y   
%all make available = su* borr[]s       
repaym5t plans describ$ 9 subp>agraphs  
7,b7 & 7,c7 ( p>agraph 7#a74 ,9 design+ 
su* alt]native repaym5t plans1 !        

,secret>y %all ensure t su* plans d n   
exce$ ! co/ to ! ,f$]al ,gov]nm5t1 z    
det]m9$ on ! basis ( ! pres5t value (   
future paym5ts by su* borr[]s1 ( loans  
made us+ ! plans available "u p>agraph  
7#b74  7#f7 ,repaym5t aft] default or   
late paym5t ,= any borr[] :o has        
default$ on a loan made "u ?is "p or "p 
,b1 or is m ?an #fj days late on a      
s*$ul$ paym5t ( su* loan1 ! ,secret>y-- 
7,a7 may require ! borr[] to pay all    
reasonable collection co/s associat$ )  
su* loan2 &  7,b7 if su* loan 0 made--  
7i7 to any borr[] :o1 be=e ,july #a1    
#bjag1 _h an out/&+ balance on a /ud5t  
loan made1 insur$1 or gu>ante$ "u ?is "p
 or "p ,b1 may require ! borr[] to repay
 ! loan pursuant to an income cont+5t   
repaym5t plan1 z describ$ 9 p>agraph    
7#a77;,d71 or an income-bas$ repaym5t   
plan1 z describ$ 9 p>agraph 7#a77;,e72  
or  7ii7 to a new borr[]1 may provide ! 
borr[] ! option to enroll 9 ! repaym5t  
plan describ$ 9 p>agraph 7#b77;,b74     
7#g7 ,applicability provision  7,a7 ,9  

g5]al ,except z provid$ 9 p>agraph 7#e7 
& subp>agraph 7,b7 ( ?is p>agraph1 !    
repaym5t plans "u subp>agraphs 7,b71    
7,c71 7,d71 & 7,e7 ( p>agraph 7#a7 are n
 available = a borr[] :o receiv$ !      
borr[]'s fir/ disbursem5t ( a ,f$]al    
,direct ,loan on or aft] ,july #a1      
#bjag4  7,b7 ,exception ,! repaym5t     
plans available to a borr[] ( a ,f$]al  
,direct ,,plus ,loan made on behalf ( a 
dep5d5t /ud5t or a ,f$]al ,direct       
,consolidation ,loan ^: proce$s 7 us$ to
 dis*>ge ! liability ( a ,f$]al ,direct 
,,plus ,loan made on behalf ( a dep5d5t 
/ud5t or a loan "u section #dbh;,b made 
on behalf ( a dep5d5t /ud5t on or aft]  
,july #a1 #bjag1 %all be ^? describ$ "u 
subp>agraphs 7,a71 7,b71 & 7,c7 (       
p>agraph 7#a74  4  #c4 ,income-bas$     
repaym5t plan ,title ,,iv ( ! ,high]    
,education ,act ( #aife is am5d$ by add+
 at ! end ! foll[+3  ,j ,income-bas$    
repaym5t program  #a ,e/abli%m5t (      
program  #dii;,a4 ,duties ( ! ,secret>y 
( ! ,treasury  7a7 ,9 g5]al ,! ,secret>y

 ( ! ,treasury1 9 consultation ) !      
,secret>y ( ,education1 %all e/abli% a  
program 7h]e9aft] ref]r$ to z !         
income-bas$ repaym5t program7 t provides
 =--  7#a7 repay+1 ?r\gh volunt>y wage  
)hold+ & qu>t]ly e/imat$ paym5ts z      
provid$ 9 subsection 7b71 loans made "u 
"p ,d 7except t su* program %all n be   
available to a borr[] ( a ,f$]al ,direct
 ,,plus ,loan made on behalf ( a dep5d5t
 /ud5t or a ,f$]al ,direct              
,consolidation ,loan1 if ! proce$s ( su*
 loan 7 us$ to dis*>ge ! liability on   
su* ,f$]al ,direct ,,plus ,loan or a    
loan "u section #dbh;,b made on behalf (
 a dep5d5t /ud5t72 &  7#b7 transmitt+ to
 ! ,secret>y ( ,education-- 7,a7 an     
acc\nt ( ! am\nts collect$ "u subsection
 7b7 ) respect to ea* individual = :om a
 loan made "u ?is "p is 9 repaym5t      
/atus2 &  7,b7 su* tax return in=mation 
( ea* su* individual z is necess>y to   
det]m9e ! individual's income-bas$      
repaym5t obligation z provid$ 9         
subsection 7c74  7b7 ,wage )hold+ &     

e/imat$ paym5ts  7#a7 ,9 g5]al ,!       
,secret>y ( ! ,treasury %all1 "u rules  
simil> to ! rules ( *apt] #bd ( !       
,int]nal ,rev5ue ,code ( #aihf1 provide 
= employ]s mak+ paym5t ( wages to d$uct 
& )hold ^u su* wages am\nts det]m9$ 9   
accordance ) tables or computational    
proc$ures prescrib$ by ! ,secret>y )    
respect to an employee :o elects )hold+ 
"u ?is subsection ) respect to a loan   
describ$ 9 subsection 7a77#a7 t is 9    
repaym5t /atus &1 if s elect$1 ) respect
 to any su* loans ( ! employee's sp\se4 
7#b7 ,)hold+ requirem5ts ,! tables1     
proc$ures1 & guidance prescrib$ "u      
p>agraph 7#a7 %all provide-- 7,a7 = !   
election to h am\nts )held z provid$ "u 
?is subsection2  7,b7 proc$ures & =ms = 
an employee to indicate-- 7i7 :e!r !    
employee 7&1 9 ! case ( a m>ri$         
individual1 :e!r ! employee's sp\se7 has
 a loan describ$ 9 subsection 7a77#a7 t 
is 9 repaym5t /atus2  7ii7 9 ! case ( a 
m>ri$ individual1 :e!r ! employee       
anticipates fil+ jo9tly 7& accompany+   

guidance expla9+ t if fil+ /atus = !    
taxable ye> is unc]ta9 ! employee %\ld  
indicate fil+ jo9tly to avoid           
und])hold+72  7iii7 :e!r ! exemption    
am\nt to :i* ! employee is entitl$ "u   
?is section %\ld be tak5 into acc\nt 9  
det]m9+ )hold+ 7& accompany+ guidance   
expla9+ t1 9 ord] to avoid und])hold+1 !
 employee %\ld only take into acc\nt !  
exemption 9 ! case ( ! employee's prim>y
 employ]1 unless total wages f m ?an "o 
place ( employm5t w n exce$ ! exemption 
am\nt72  7iv7 9 ! case ( a m>ri$        
individual1 :e!r ! exemption am\nt to   
:i* ! employee's sp\se is entitl$ "u ?is
 section %\ld be tak5 into acc\nt 9     
det]m9+ )hold+ f ! wages ( ! employee 7&
 accompany+ guidance expla9+ t1 9 ord]  
to avoid und])hold+1 ! employee %\ld    
only take into acc\nt su* exemption if  
su* sp\se is n employ$1 or if ! total   
wages f ! employee's job & ! sp\se's    
employm5t w n exce$ ! exemption am\nt72 
7v7 ! numb] ( dep5d5ts ( ! employee )   
respect to :om ! employee is entitl$ to 

a d$uction "u section #aea7;c7 ( !      
,int]nal ,rev5ue ,code ( #aihf1 &1 if a 
diff]5t numb]1 9 ! case ( a m>ri$       
employee1 ! numb] ( dep5d5ts ( !        
employee's sp\se ) respect to :om su*   
sp\se is entitl$ to su* d$uction2 &     
7vi7 an election to h additional am\nts 
)held2 &  7,c7 = )hold+ ) respect to any
 employee 9 an am\nt equal to ! sum (-- 
7i7 9 ! case ( an employee :o has a loan
 describ$ 9 subsection 7a77#a7 9        
repaym5t /atus1 ! p]c5tage ( s mu* ( !  
employee's wages t w\ld c\nt t[>ds !    
employee's income-bas$ repaym5t         
obligation provid$ 9 subsection 7c7 z   
exce$s any exemption am\nt tak5 into    
acc\nt ) respect to ! employee "u       
subp>agraph 7,a77iii7 7prorat$ to !     
payroll p]iod71 plus  7ii7 9 ! case ( an
 employee :o indicates t ! employee's   
sp\se has a loan describ$ 9 subsection  
7a77#a7 9 repaym5t /atus1 ! p]c5tage ( s
 mu* ( ! employee's wages t w\ld c\nt   
t[>ds ! employee's sp\se's income-bas$  
repaym5t obligation 7z provid$ 9        

subsection 7c77 z exce$s any exemption  
am\nt tak5 into acc\nt ) respect to !   
employee's sp\se "u subp>agraph 7,a77iv7
 7prorat$ to ! payroll p]iod74  7#c7    
,qu>t]ly e/imat$ tax paym5ts ,9 ! case (
 taxpay]s :o make qu>t]ly e/imat$ tax   
return paym5ts "u section #ffed ( !     
,int]nal ,rev5ue ,code ( #aihf & :o h a 
loan describ$ 9 subsection 7a77#a7 9    
repaym5t /atus1 ! ,secret>y %all provide
 simil> tables & proc$ures = mak+       
volunt>y repaym5ts ( loans describ$ 9   
section #dii;,a7a77#a7 concurr5tly ) su*
 qu>t]ly paym5ts4  7#d7 ,collection &   
paym5t ,! am\nts requir$ to be d$uct$ & 
)held "u p>agraph 7#a71 & am\nts requir$
 to be paid "u p>agraph 7#c71 %all be   
collect$ by ! ,secret>y ( ! ,treasury & 
%all be paid into ! g5]al fund ( !      
,treasury ( ! ,unit$ ,/ates4  7c7       
,det]m9ation ( income-,bas$ repaym5t    
obligation  7#a7 ,9 g5]al ,z soon z     
practicable aft] an individual = :om a  
loan describ$ 9 subsection 7a77#a7 is 9 
repaym5t /atus dur+ ! taxable ye> files 

an income tax return = su* taxable ye>1 
! ,secret>y ( ! ,treasury %all transmit 
to ! ,secret>y ( ,education su* tax     
in=mation z is necess>y to det]m9e--    
7,a7 ! am\nt d$uct$ & )held "u          
subsection 7b77#a71 & ! am\nt paid "u   
subsection 7b77#c71 = ! taxable ye> )   
respect to su* individual1 &  7,b7 !    
income-bas$ repaym5t obligation = !     
taxable ye> = su* individual4  7#b7     
,income-bas$ repaym5t obligation ,=     
purposes ( ?is section3  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 (--  7i7 ! sum (-- 7,i7 ! wages1 
sal>ies1 tips1 & o!r employee           
comp5sation ( ! taxpay]1 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 ( #aihf71  7,,ii7 ! am\nt
 ( ! taxpay]'s net e>n+s f              
self-employm5t = ! taxable ye> 7)9 !    
mean+ ( section #adjb7;a7 ( su* ,code71 

det]m9$ ) reg>d to ! d$uction all[$ to !
 taxpay] by section #afd7;f7 ( su*      
,code1 plus  7,,iii7 any o!r am\nt      
includ$ 9 total income ( ! taxpay] = !  
taxable ye> b n describ$ 9 subclause    
7,i7 or 7,,ii71 ov]  7ii7 ! sum (-- 7,i7
 ! exemption am\nt ) respect to su*     
individual1 plus  7,,ii7 ! less] ( !    
am\nt det]m9$ ) respect to ! taxpay] "u 
subclauses 7,,ii7 & 7,,iii7 ( clause    
7i71 or #c1jjj4  7,b7 ,special rules =  
m>ri$ individuals  7i7 ,ea* sp\se ) loan
 ,except z provid$ 9 clause 7ii71 9 !   
case ( a jo9t return ( two individuals  
:o ea* h a loan describ$ 9 subsection   
7a77#a7 9 repaym5t /atus1 ! income-bas$ 
repaym5t obligation ) respect to ea*    
sp\se %all be an am\nt det]m9$ "u       
subp>agraph 7,a7 by apportion+  ( !     
total income on su* return to ea* sp\se4
  7ii7 ,special rule = fir/ ye> (       
m>riage ,9 ! case ( ! fir/ taxable ye> =
 :i* any two individuals make a jo9t    
return1 ! income-bas$ repaym5t          
obligation ) respect to su* an          

individual %all be an am\nt equal to !  
less] (--  7,i7 ! am\nt det]m9$ )       
respect to su* individual "u ?is        
p>agraph 7det]m9$ )\t reg>d to ?is      
clause71 or  7,,ii7 ! am\nt det]m9$ )   
respect to su* individual "u ?is        
p>agraph 7det]m9$ by allocat+ to ea*    
sp\se ! am\nts describ$ 9 subclauses    
7,i7 & 7,,ii7 ( subp>agraph 7,a77i7 9   
proportion to ! am\nts attributable to  
ea* sp\se1 by allocat+  ( ! am\nt       
describ$ 9 subp>agraph 7,a77i77,,iii7 to
 ea* sp\se1 & )\t reg>d to clause 7i774 
7,c7 ,exclusion ( c]ta9 am\nts paid on  
behalf ( individual ,any am\nt paid on !
 borr[]'s behalf "u section #dii;,b7#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 section3 7,a7 ,9 g5]al   
,except z provid$ 9 subp>agraph 7,b71 ! 
exemption am\nt ) respect to an         
individual %all be an am\nt equal to    
#aej p]c5t ( ! pov]ty l9e = !           
individual's h\sehold size 7z det]m9$ "u

 section #fgc7b7 ( ! ,community ,s]vices
 ,block ,grant ,act 7#db ,u4,s4,c4      
#iijb7b777 = ! cal5d> ye> 9 :i* !       
taxable ye> ends4  7,b7 ,special rule = 
m>ri$ individuals :o bo? h loans ,if =  
any taxable ye> an individual is m>ri$1 
files a jo9t return1 & has a sp\se ) a  
loan describ$ 9 subsection 7a77#a7 9    
repaym5t /atus1 !n ! exemption am\nt )  
respect to su* individual %all be an    
am\nt equal to ! sum (--  7i7 #aej p]c5t
 ( ! pov]ty l9e = a h\sehold size ( "o  
7z det]m9$ "u section #fgc7b7 ( !       
,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b777 = ! cal5d> ye>
 9 :i* ! taxable ye> ends1 &  7ii7  ( ! 
excess (-- 7,i7 #aej p]c5t ( ! pov]ty   
l9e = ! individual's h\sehold size m9us 
#a 7z det]m9$ "u section #fgc7b7 ( !    
,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b777 = ! cal5d> ye>
 9 :i* ! taxable ye> ends1 ov]  7,,ii7 !
 am\nt det]m9$ "u clause 7i74  7,c7     
,h\sehold size ,= purposes ( ?is        
p>agraph1 an individual's h\sehold size 

%all be det]m9$ by ref]5ce to !         
individual1 ! numb] ( dep5d5ts ( !      
taxpay] ) respect to :om ! taxpay] is   
entitl$ to a d$uction "u section        
#aea7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf1 &1 if m>ri$ & fil+ jo9tly1 su*   
individual's sp\se4  7#d7 ,individuals n
 fil+ a return  7,a7 ,individuals n     
requir$ to file ,! 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  7,b7    
,failure to file ,9 ! case ( an         
individual :o makes an election "u      
subsection 7b7 ) respect to a loan      
describ$ 9 subsection 7a77#a7 9 repaym5t
 /atus & fails to file a return "u      
section #fjab7;a77#a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf1 ! ,secret>y ( !  
,treasury %all transmit to ! ,secret>y (
 ,education any su* tax in=mation ( !   
individual z may be necess>y to det]m9e 
:e!r su* individual is 9 default "u !   
t]ms ( su* loan4  7#e7 ,subsequ5t       

transmission ( employ] in=mation report+
 ,z soon z practicable aft] receiv+ f an
 employ] in=mation report+ ) respect to 
)hold+ "u subsection 7b77#a7 ( an       
individual1 ! ,secret>y ( ! ,treasury   
%all transmit to ! ,secret>y (          
,education su* in=mation z may be useful
 9 v]ify+ ! in=mation ) respect to      
)hold+ transmitt$ "u p>agraph 7#a74  7d7
 ,additional program requirem5ts ,!     
,secret>y ( ! ,treasury %all e/abli% su*
 o!r policies1 proc$ures1 & guidance z  
may be necess>y to c>ry out ! purposes (
 ?is section1 includ+ measures to prev5t
 und])hold+1 "u-report+1 & evasion (    
repaym5t or fil+4 ,am\nts %all be d$uct$
 & )held "u ?is section z ! ,secret>y   
det]m9es to be mo/ appropriate to c>ry  
out ! purposes ( ! income-bas$ repaym5t 
program & to reflect1 z accurately z is 
practicable1 an individual's income-bas$
 repaym5t obligation4  #dii;,b4 ,duties 
( ! ,secret>y ( ,education ,! ,secret>y 
%all c>ry out ! foll[+ activities z "p (
 ! income-bas$ repaym5t program e/abli%$

 "u ?is "p3  7#a7 ,calculation ( annual 
repaym5t am\nts ,! ,secret>y %all       
calculate ! annual repaym5t am\nts "u   
section #dii;,c7b7 = borr[]s ) #a or m  
loans describ$ 9 section #dii;,a7a77#a7 
9 repaym5t /atus1 includ+ ! income-bas$ 
repaym5t obligations ( su* borr[]s 9    
accordance ) section #dii;,a7c77#b74    
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;,a4  
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 describ$ 9       
section #dii;,a7a77#a71 :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;,c7f71 has und]paid su*    

annual repaym5t am\nt1 ! am\nt ( su*    
und]paym5t & ! process = pay+ su*       
und]paym5t "u section #dii;,c7f77#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;,c7g71 if applicable4  7,e7 ,!     
out/&+ balances on all ! loans made to !
 borr[] describ$ 9 section              
#dii;,a7a77#a74  7,f7 ,a description (  
h[ ! borr[]'s annual repaym5t am\nt 0   
calculat$ "u p>agraph 7#a7 or 7#b7 (    
section #dii;,c7b74  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>1 includ+ by     
provid+ a process = ! borr[] to make su*
 paym5ts automatically1 on a p]iodic    
basis1 & 9 an am\nt specifi$ by !       
borr[]4  7#e7 ,paym5ts on a taxpay]'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+ or qu>t]ly e/imat$ paym5ts  
"u section #dii;,a7b7 = ! taxable ye> 7 
made 9 #ab equal increm5ts ?r\gh\t !    
ye>4  7#g7 ,manag+ loans ,! ,secret>y   
%all provide1 ?r\gh ! ,int]net1 a tool t
 has an int]face t is consi/5t = all    
borr[]s ) a loan describ$ 9 section     
#dii;,a7a77#a71 :i* enables ea* su*     
borr[] to--  7,a7 view ! out/&+ balances
 on ! borr[]'s loans describ$ 9 section 
#dii;,a7a77#a72  7,b7 make a direct     
paym5t on ! borr[]'s annual repaym5t    
am\nt or indicate t any ov]paym5t %\ld  
be refund$ or appli$ to su* loans z a   
prepaym5t am\nt2  7,c7 view prior annual
 /atem5ts = su* loans provid$ "u        
p>agraph 7#c72  7,d7 view a hi/ory (    

paym5ts made on su* loans 7includ+ !    
me?od & s\rce ( ea* paym5t1 su* z tax   
)hold+1 e/imat$ taxes1 direct paym5t1 or
 paym5ts made on ! borr[]'s behalf72    
7,e7 view ! borr[]'s annual repaym5t    
am\nt = t ye>1 ! am\nt already paid on  
su* annual repaym5t am\nt1 & any am\nt  
ow$ by ! borr[] or due to be refund$ to 
! borr[]2  7,f7 view ! borr[]'s loans   
describ$ 9 section #dii;,a7a77#a7 t h   
be5 paid (f2  7,g7 enable ! borr[] to   
initiate an appeal process "u p>agraph  
7#h72 &  7,h7 easily det]m9e :e!r       
b5efits "u ! ,s]vicememb]s ,civil       
,relief ,act 7#ej ,u4,s4,c4 ,app4 #eja  
et seq471 if applicable1 h be5 appli$ to
 ! borr[]'s loans describ$ 9 section    
#dii;,a7a77#a74  7#h7 ,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#i7 ,default = failure
 to file a return ,9 a case 9 :i* !     

,secret>y receives in=mation f !        
,secret>y ( ! ,treasury "u section      
#dii;,a7c77#d7 t a borr[] ) a loan      
describ$ 9 section #dii;,a7a77#a7 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 describ$ 9     
section #dii;,a7a77#a7 to be 9 default4 
7#aj7 ,loan =giv5ess ,! ,secret>y %all  
cancel ! balance ( pr9cipal & int]e/ due
 on any loan describ$ 9 section         
#dii;,a7a77#a7 t is n 9 default = a     
borr[] :o has made #bdj paym5ts on !    
loan us+ "o or m me?ods describ$ 9      
section #dii;,c7c74  #b ,borr[] repaym5t
  #dii;,c4 ,borr[] repaym5t  7a7        
,repaym5t p]iod ,! repaym5t p]iod ( a   
loan describ$ 9 section #dii;,a7a77#a7  

%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 ( a  
,f$]al ,direct ,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 describ$ 9 section        
#dii;,a7a77#a7 9 repaym5t /atus %all be 
equal to ! less] (--  7#a7 ! income-bas$
 repaym5t obligation = su* borr[] = su* 

ye>1 z calculat$ "u section #dii;,b7#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 ,9 repay+ an annual 
repaym5t am\nt ow$ by a borr[] = a      
taxable ye>1 a borr[] may-- 7#a7 )      
respect to any wages e>n$ by ! borr[] t 
are subject to ,f$]al income tax )hold+1
 h am\nts )held ^u su* wages "u section 
#dii;,a7b77#b72  7#b7 9 ! case ( a      
borr[] :o makes qu>t]ly e/imat$ tax     
return paym5ts "u section #ffed ( !     
,int]nal ,rev5ue ,code ( #aihf = ! ye>1 
pay su* annual repaym5t am\nt           
concurr5tly ) su* qu>t]ly paym5ts "u    
section #dii;,a7b77#c72  7#c7 make      
direct paym5ts "u section #dii;,b7#d7 on
 su* am\nt to ! ,secret>y ?r\gh\t ! ye>2
  7#d7 h o!r individuals or entities    
make paym5ts "u section #dii;,b7#e7 on !
 borr[]'s annual repaym5t am\nt = ! ye>2
 or  7#e7 ano!r repaym5t plan au?oriz$  
"u section #dee7;d74  7d7 ,ord] ( cr$it+

 ,paym5ts on loans describ$ 9 section   
#dii;,a7a77#a7 %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 describ$ 9   
section #dii;,a7a77#a7 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 describ$ 9 section              
#dii;,a7a77#a74  7,c7 ,exception ,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#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;,b7#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 #cfj days aft] ! date (       
receipt by ! borr[] ( ! borr[]'s annual 
/atem5t describ$ 9 subp>agraph 7,a7 %all
 be consid]$ to be 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;,b7#c7 =
 su* ye> & 9 a mann] prescrib$ by !     
,secret>y1 t ! borr[] desires to h !    
ov]paym5t am\nt refund$2 or  7#b7 if a  
borr[] fails to notify ! ,secret>y ( !  
borr[]'s desire = a refund ( su* am\nt  
)9 su* #ij-;day p]iod1 apply su* am\nt z
 a prepaym5t to ! borr[]'s loans        
describ$ 9 section #dii;,a7a77#a7 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;,a7b77#b7 ^u any wages e>n$
 by ! borr[] t are subject to ,f$]al    
income tax )hold+ & ) respect to :i* !  
borr[] made an election to h am\nts     
)held "u section #dii7;b77#b71 !        
,secret>y %all--  7#a7 r$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  4