,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #dfeb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #bi1 #bjaf   
,mr4 ,takai 7= himself1 ,ms4 ,judy ,*u (
 ,cali=nia1 ,mr4 ,honda1 ,ms4 ,norton1  
,mr4 ,brady ( ,p5nsylvania1 ,ms4 ,cl>ke 
( ,new ,york1 ,mr4 ,br5dan ,f4 ,boyle ( 
,p5nsylvania1 ,ms4 ,moore1 ,mr4         
,pallone1 ,ms4 ,lee1 ,mr4 ,t$ ,lieu (   
,cali=nia1 ,mrs4 ,watson ,coleman1 ,mr4 
,nolan1 ,ms4 ,s*ak[sky1 ,mr4 ,rangel1 & 
,ms4 ,jackson ,lee7 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 am5d 
! ,high] ,education ,act ( #aife to     
codify ! ,revis$ ,pay ,z ,y ,e>n        
,repaym5t plan1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,cl>ity 9 ,l5d+ = ,education & ,repaym5t
 ,act or ! ,,cle> ,act4  #b4 ,/reaml9+  

repaym5t plans = new borr[]s ,section   
#dee ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajhg;e7 is am5d$ by     
/rik+ subsection 7d7 & ins]t+ ! foll[+3 
7d7 ,repaym5t plans  7#a7 ,design &     
selection = borr[]s be=e ,july #a1 #bjaf
 ,) respect to a borr[] ( a loan made "u
 ?is "p be=e ,july #a1 #bjaf1 & 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 /ud5t4  7#b7      
,design & selection = new borr[]s on or 
aft] ,july #a1 #bjaf ,! ,secret>y %all  
(f] a borr[] ( a loan made "u ?is "p on 
or aft] ,july #a1 #bjaf1 ! 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 a revis$ 
pay-z-y-e>n repaym5t plan1 consi/5t )   
section #dfa1 except ! plan describ$ 9  
?is subp>agraph %all n be available to a
 borr[] ( a ,f$]al ,direct ,,plus ,loan 
made on behalf ( a dep5d5t /ud5t1 a     
,f$]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  

#bjaf1 or a repaym5t plan describ$ 9    
p>agraph 7#b77;,a7 = new borr[]s on or  
aft] ,july #a1 #bjaf4  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 #bjaf1 :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 ,=   
any borr[] :o has default$ on a loan    
made "u ?is "p1 ! ,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 #bjaf1 _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[] 7z def9$ 9 section      
#dic;,e7a77#e771 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,b71 ! 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$]al ,direct ,loan on or aft]     
,july #a1 #bjaf4  7,b7 ,exception ,!    
repaym5t plans available to a borr[] ( a
 ,f$]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$]al 
,direct ,,plus ,loan made on behalf ( a 
dep5d5t /ud5t or a loan "u section      
#dbh;,b made on behalf ( a dep5d5t /ud5t
 on or aft] ,july #a1 #bjaf1 %all be ^? 
describ$ "u subp>agraphs 7,a71 7,b71 &  
7,c7 ( p>agraph 7#a74  4  #c4 ,,repaye  
,"p ,d ( title ,,iv ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #dfa4 ,,repaye  7a7      
,def9itions  7#a7 ,cov]$ ,f$]al ,direct 
,loan ,! t]m cov]$ ,f$]al ,direct ,loan 
means a ,f$]al ,direct ,/af=d ,loan1 a  
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loan1 a ,f$]al ,direct ,consolidation  

,loan 7o!r ?an an except$ consolidation 
loan71 or a ,f$]al ,direct ,,plus ,loan 
7o!r ?an an except$ plus loan7 made "u  
?is "p4  7#b7 ,new borr[] ,! t]m new    
borr[] means a borr[] :o-- 7,a7 z (     
,july #a1 #bjaf1 has no out/&+ balance  
on a /ud5t loan made1 insur$1 or        
gu>ante$ "u "p ,b or ,d2 or  7,b7 has no
 out/&+ balance on a /ud5t loan made1   
insur$1 or gu>ante$ "u "p ,b or ,d on ! 
date ! borr[] receives a loan made "u "p
 ,d on or aft] ,july #a1 #bjaf4  7#c7   
,except$ plus loan2 except$             
consolidation loan ,! t]ms except$ plus 
loan & except$ consolidation loan h !   
mean+s giv5 su* t]ms 9 section #dic;,c4 
7#d7 ,income-driv5 calculation  7,a7 ,9 
g5]al ,! t]m income-driv5 calculation-- 
7i7 :5 us$ ) respect to an unm>ri$      
borr[] #aj p]c5t ( ! result obta9$ by   
calculat+1 on at lea/ an annual basis1 !
 am\nt by :i*--  7,i7 ! borr[]'s adju/$ 
gross income1 z def9$ by ! ,secret>y2   
exce$s  7,,ii7 #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 &  7ii7       
subject to subp>agraph 7,b71 :5 us$ )   
respect to a m>ri$ borr[]-- 7,i7 !      
diff]5ce betwe5 ! borr[]'s & borr[]'s   
sp\se's adju/$ gross income1 z def9$ by 
! ,secret>y2 exce$s  7,,ii7 #aej p]c5t (
 ! pov]ty l9e applicable to ! borr[]'s  
family size z det]m9$ "u section #fgc7b7
 ( ! ,community ,s]vices ,block ,grant  
,act 7#db ,u4,s4,c4 #iijb7b774  7,b7    
,exception = c]ta9 m>ri$ borr[]s ,!     
income-driv5 calculation "u subp>agraph 
7,a77i7 %all apply to a m>ri$ borr[] :o 
c]tifies1 on a =m approv$ by ! ,secret>y
 t ! borr[] is--  7i7 sep>at$ f !       
borr[]'s sp\se2 or  7ii7 unable to      
reasonably access ! income in=mation ( !
 borr[]'s sp\se4  7b7 ,revis$ ,pay ,z ,y
 ,e>n ,repaym5t ,plan ,au?oriz$ ,not)/&+
 any o!r provision ( ?is ,act1 !        
,secret>y %all c>ry out a program = new 
borr[]s t meets ! foll[+ requirem5ts3   
7#a7 ,mon?ly paym5t am\nt ,except z     

o!rwise provid$ 9 ?is subsection1 a new 
borr[] ( any cov]$ ,f$]al ,direct ,loan 
may elect to h ! borr[]'s aggregate     
mon?ly paym5t = all su* loans n to exce$
 ! result ( ! income-driv5 calculation  
divid$ by #ab4  7#b7 ,adju/$ mon?ly     
paym5t am\nt ,! ,secret>y adju/s !      
aggregate mon?ly paym5t "u p>agraph     
7#a71 if-- 7,a7 9 addition to cov]$     
,f$]al ,direct ,loans1 ! borr[] has an  
out/&+ loan made "u "p ,b 7o!r ?an an   
except$ ,,plus ,loan or an except$      
consolidation loan71 9 :i* case !       
,secret>y det]m9es ! borr[]'s adju/$    
mon?ly paym5t by multiply+ ! aggregate  
mon?ly paym5t by ! p]c5tage ( ! total   
out/&+ pr9cipal am\nt ( ! borr[]'s cov]$
 ,f$]al ,direct ,loans2  7,b7 ! borr[] &
 borr[]'s sp\se h cov]$ ,f$]al ,direct  
,loans & out/&+ loans "u "p ,b 7o!r ?an 
an except$ ,,plus ,loan or an except$   
consolidation loan71 9 :i* case !       
,secret>y det]m9es--  7i7 ea* borr[]'s  
p]c5tage ( ! c\ple's total out/&+ am\nt 
( pr9cipal on su* loans2  7ii7 ! adju/$ 

mon?ly paym5t = ea* borr[] by multiply+ 
! borr[]'s aggregate mon?ly paym5t by ! 
p]c5tage det]m9$ "u clause 7i7          
applicable to ! borr[]2 &  7iii7 if !   
borr[]'s loans are held by multiple     
hold]s1 ! borr[]'s adju/$ mon?ly paym5t 
= cov]$ ,f$]al ,direct ,loans by        
multiply+ ! adju/$ mon?ly paym5t det]m9$
 "u clause 7ii7 by ! p]c5tage ( ! total 
out/&+ pr9cipal am\nt ( ! borr[]'s cov]$
 ,f$]al ,direct ,loans2  7,c7 !         
calculat$ mon?ly paym5t am\nt "u        
p>agraph 7#a7 or ?is p>agraph is less   
?an #e4jj1 9 :i* case ! borr[]'s mon?ly 
paym5t is #j4jj2 or  7,d7 ! calculat$   
mon?ly paym5t am\nt "u p>agraph 7#a7 or 
?is p>agraph or is equal to or great]   
?an #e4jj b less ?an #aj4jj1 9 :i* case 
! borr[]'s mon?ly paym5t is #aj4jj4     
7#c7 ,accru$ int]e/  7,a7 ,9 g5]al ,if !
 borr[]'s mon?ly paym5t am\nt "u        
p>agraph 7#a7 or 7#b7 is n suffici5t to 
pay ! accru$ int]e/ on ! borr[]'s loan--
  7i7 = a ,f$]al ,direct ,/af=d ,loan or
 ! portion ( a ,f$]al ,direct           

,consolidation ,loan attributable to a  
,f$]al ,direct ,/af=d ,loan--  7,i7 !   
,secret>y does n *>ge ! borr[] ! rema9+ 
accru$ int]e/ = a p]iod n to exce$ #c   
consecutive ye>s beg9n+ at ! />t (      
repaym5t p]iod on su* loan "u ?is       
repaym5t plan2 &  7,,ii7 aft] ! ?ree-ye>
 p]iod1 ! ,secret>y *>ges ! borr[] #ej  
p]c5t ( ! rema9+ accru$ int]e/ on su*   
loan or su* portion ( a ,f$]al ,direct  
,consolidation ,loan2 &  7ii7 = a ,f$]al
 ,direct ,unsubsidiz$ ,/af=d ,loan1 a   
,f$]al ,direct ,,plus ,loan made to a   
graduate or pr(essional /ud5t1 or !     
portion ( a ,f$]al ,direct              
,consolidation ,loan attributable to a  
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loan1 or = a ,f$]al ,direct ,subsidiz$ 
,loan or ! portion ( a ,f$]al ,direct   
,consolidation ,loan attributable to a  
,f$]al ,direct ,/af=d ,loan = :i* !     
borr[] has become responsible = accru+  
int]e/ 9 accordance ) section           
#dee7q77#b71 ! ,secret>y *>ges ! borr[] 
#ej p]c5t ( ! rema9+ accru$ int]e/4     

7,b7 ,?ree-ye> p]iod def9$ ,! ?ree-ye>  
p]iod describ$ 9 subp>agraph 7,a77i7    
does n include any p]iod dur+ :i* !     
borr[] receives an economic h>d%ip      
def]m5t4  7,c7 ,capitalization ( accru$ 
int]e/  7i7 ,tim+ ,accru$ int]e/ is     
capitaliz$ at ! "t a borr[] leaves !    
program "u ?is section4  7ii7           
,capitalization  7,i7 ,limitation ,!    
am\nt ( accru$ int]e/ capitaliz$ "u     
clause 7i77,i7 is limit$ to #aj p]c5t ( 
! orig9al pr9cipal balance at ! "t !    
borr[] ent]$ repaym5t "u ! plan "u ?is  
section4  7,,ii7 ,p>ticipation ,aft] !  
am\nt ( accru$ int]e/ rea*es ! limit    
describ$ 9 subclause 7,i71 int]e/       
cont9ues to accrue1 b is n capitaliz$   
:ile ! borr[] p>ticipates 9 ! plan "u   
?is section4  7#d7 ,po/ponem5t (        
pr9cipal paym5t ,if ! borr[]'s mon?ly   
paym5t am\nt is n suffici5t to pay any (
 ! pr9cipal due1 ! paym5t ( t pr9cipal  
is po/pon$ until ! borr[] leaves ! plan 
"u ?is section4  7#e7 ,selection (      
diff]5t repaym5t plan ,a borr[] :o no   

long] wi%es to repay "u ! plan "u ?is   
section may *ange to a /&>d repaym5t    
plan 9 accordance ) section             
#dee7;d77#c74  7#f7 ,paym5t application 
& prepaym5t  7,a7 ,9 g5]al ,! ,secret>y 
applies any paym5t made "u ! program "u 
?is section 9 ! foll[+ ord]3 7i7 ,accru$
 int]e/4  7ii7 ,collection co/s4  7iii7 
,late *>ges4  7iv7 ,loan pr9cipal4  7,b7
 ,prepaym5t au?oriz$ ,! borr[] may      
prepay all or "p ( a loan at any "t )\t 
p5alty1 z au?oriz$ "u section           
#dee7;d77#a74  7,c7 ,application (      
prepaym5t ,if ! prepaym5t am\nt equals  
or exce$s-- 7i7 a mon?ly paym5t am\nt ( 
#aj4jj or m "u ! repaym5t s*$ule        
e/abli%$ = ! loan1 ! ,secret>y applies !
 prepaym5t consi/5t ) ! requirem5ts (   
section #dee7;d77#a72 or  7ii7 a mon?ly 
paym5t am\nt ( #j4jj "u ! repaym5t      
s*$ule e/abli%$ = ! loan1 ! ,secret>y   
applies ! prepaym5t consi/5t ) !        
requirem5ts ( subp>agraph 7,a74  7#g7   
,eligibility docum5tation1 v]ification1 
& notifications  7,a7 ,docum5tation  7i7

 ,,agi ,! ,secret>y requires ! borr[] to
 provide docum5tation1 acceptable to !  
,secret>y1 ( ! borr[]'s adju/$ gross    
income4  7ii7 ,o!r docum5tation ,if !   
borr[]'s adju/$ gross income is n       
available1 or if ! ,secret>y believes t 
! borr[]'s report$ adju/$ gross income  
does n reasonably reflect ! borr[]'s    
curr5t income1 ! borr[] mu/ provide o!r 
docum5tation to v]ify income4  7iii7    
,family size ,unless o!rwise direct$ by 
! ,secret>y1 ! borr[] mu/ annually      
c]tify ! borr[]'s family size4 ,if !    
borr[] fails to c]tify family size1 !   
,secret>y assumes a family size ( "o = !
 applicable ye>4  7,b7 ,notifications   
7i7 ,9 g5]al ,ea* ye> t ! borr[]        
p>ticipates 9 ! program "u ?is section1 
! ,secret>y s5ds ! borr[] a writt5      
notification t provides ! borr[] )--    
7,i7 ! borr[]'s mon?ly paym5t am\nt1 z  
calculat$ "u p>agraph 7#a7 or 7#b71 & ! 
"t p]iod dur+ :i* su* mon?ly paym5t     
am\nt w apply 7annual paym5t p]iod72    
7,,ii7 in=mation ab\t ! requirem5t = !  

borr[] to annually provide ! in=mation  
describ$ 9 subp>agraph 7,a71 & an       
explanation t ! borr[] w be notifi$ 9   
advance ( ! date by :i* ! ,secret>y mu/ 
receive ?is in=mation2  7,,iii7 an      
explanation ( ! consequ5ces1 z describ$ 
"u subp>agraph 7,e71 if ! borr[] does n 
provide ! requir$ in=mation2 &  7,,iv7  
in=mation ab\t ! borr[]'s option to     
reque/1 at any "t dur+ ! borr[]'s annual
 paym5t p]iod1 t ! ,secret>y recalculate
 ! borr[]'s mon?ly paym5t am\nt if !    
borr[]'s f9ancial circum/ances h *ang$ &
 ! income am\nt t 0 us$ to calculate !  
borr[]'s curr5t mon?ly paym5t no long]  
reflects ! borr[]'s curr5t income4  7ii7
 ,recalculation ,if ! ,secret>y         
recalculates ! borr[]'s mon?ly paym5t   
am\nt bas$ on ! borr[]'s reque/1 !      
,secret>y s5ds ! borr[] a writt5        
notification t includes ! in=mation     
describ$ 9 ?is subp>agraph4  7,c7       
,subsequ5t ye>s  7i7 ,9 g5]al ,= ea* ye>
 foll[+ ! fir/ ye> 9 :i* a borr[]       
p>ticipat+ 9 ! plan "u ?is section1 !   

,secret>y notifies ! borr[] 9 writ+ ( ! 
requirem5ts ( subp>agraph 7,a7 n lat]   
?an #fj days & n e>li] ?an #ij days     
prior to ! date specifi$ 9 clause       
7ii77,i74  7ii7 ,cont5ts ,! notification
 "u clause 7i7 %all provide ! borr[] )--
 7,i7 ! date1 no e>li] ?an #ce days be=e
 ! end ( ! borr[]'s annual paym5t p]iod1
 by :i* ! ,secret>y mu/ receive all ( ! 
docum5tation describ$ 9 subp>agraph 7,a7
 7annual deadl9e72 &  7,,ii7 !          
consequ5ces if ! ,secret>y does n       
receive ! in=mation )9 #aj days foll[+ !
 annual deadl9e specifi$ 9 ! notice1 z  
describ$ "u subp>agraph 7,e74  7,d7 ,no 
docum5tation provid$ ,if a borr[] :o is 
curr5tly repay+ "u ! /&>d repaym5t plan 
elects ! plan "u ?is section b does n   
provide ! docum5tation describ$ 9       
subp>agraph 7,a71 ! borr[] rema9s on su*
 /&>d repaym5t plan4  7,e7 ,alt]nate    
repaym5t plan  7i7 ,9 g5]al ,if a borr[]
 :o is curr5tly repay+ "u ! plan "u ?is 
section elects to p>ticipate 9 su*      
program = a subsequ5t ye> b ! ,secret>y 

does n receive ! docum5tation describ$ 9
 subp>agraph 7,a7 n lat] ?an #aj days   
aft] ! specifi$ annual deadl9e1 !       
,secret>y removes ! borr[] f ! plan &   
places ! borr[] on an alt]native        
repaym5t plan "u :i* ! borr[]'s requir$ 
mon?ly paym5t is ! am\nt necess>y to    
repay ! borr[]'s eligible loans 9 full  
)9 ! e>li] (--  7,i7 #aj ye>s f ! date !
 borr[] beg9s repaym5t "u ! alt]native  
repaym5t plan2 or  7,,ii7 ! end+ date ( 
! #bj-ye> p]iod z describ$ 9 p>agraph   
7#h77;,a77i77,,ii74  7ii7 ,notification 
,if ! ,secret>y places ! borr[] on an   
alt]native repaym5t plan 9 accordance ) 
clause 7i71 ! ,secret>y s5ds ! borr[] a 
writt5 notification in=m+ ! borr[] t--  
7,i7 ! borr[] has be5 plac$ on an       
alt]native repaym5t plan2  7,,ii7 !     
borr[]'s mon?ly paym5t am\nt has be5    
recalculat$ "u clause 7i72 &  7,,iii7 ! 
borr[] may *ange to ! /&>d repaym5t plan
 9 accordance ) section #dee7;d77#c74   
7iii7 ,return to program ,a borr[] :o   
has be5 remov$ f ! plan "u ?is section  

or *anges to ! /&>d repaym5t plan may   
return to ! plan "u ?is section if !    
borr[] provides ! docum5tation "u       
subp>agraph 7,a71 necess>y = ! ,secret>y
 to calculate ! borr[]'s curr5t mon?ly  
paym5t am\nt & ! mon?ly am\nt ! borr[]  
w\ld h be5 requir$ to pay "u ! plan dur+
 ! p]iod :5 ! borr[] 0 on ! alt]native  
repaym5t plan or ! /&>d repaym5t plan4  
7iv7 ,adju/m5t ( mon?ly paym5t am\nt ,if
 ! ,secret>y det]m9es t ! total am\nt ( 
! paym5ts ! borr[] 0 requir$ to make    
:ile on ! alt]native repaym5t plan or ! 
/&>d repaym5t plan are less ?an ! total 
am\nt ! borr[] w\ld h be5 requir$ to    
make "u ! program dur+ t p]iod1 !       
,secret>y w adju/ ! borr[]'s mon?ly     
paym5t am\nt to ensure t ! diff]5ce     
betwe5 ! two am\nts is paid 9 full by ! 
end ( ! #bj-ye> p]iod describ$ 9        
p>agraph 7#h77;,a77i77,,ii74  7v7       
,application ( loan =giv5ess ,if !      
borr[] returns to ! plan "u ?is section1
 any paym5ts t ! borr[] made "u !       
alt]native repaym5t plan aft] ! borr[] 0

 remov$ f ! plan %all c\nt t[>ds        
=giv5ess "u ! plan "u ?is section4  7vi7
 ,,pslf ,paym5ts made "u ! alt]native   
repaym5t plan describ$ 9 clause 7i7 w n 
c\nt t[>ds public s]vice loan =giv5ess  
"u section #dee7m74  7vii7 ,exception ,!
 ,secret>y does n take ! action describ$
 9 clause 7i7 if ! ,secret>y receives ! 
docum5tation describ$ 9 subp>agraph 7,a7
 m ?an #aj days aft] ! specifi$ annual  
deadl9e1 b is able to det]m9e ! borr[]'s
 new mon?ly paym5t am\nt be=e ! end ( ! 
borr[]'s curr5t annual paym5t p]iod4    
7viii7 ,mon?ly paym5t am\nt ,if !       
,secret>y receives ! docum5tation       
describ$ 9 subp>agraph 7,a7 )9 #aj days 
( ! specifi$ annual deadl9e--  7,i7 !   
,secret>y promptly det]m9es ! borr[]'s  
new s*$ul$ mon?ly paym5t am\nt & ma9ta9s
 ! borr[]'s curr5t s*$ul$ mon?ly paym5t 
am\nt until ! new s*$ul$ mon?ly paym5t  
am\nt is det]m9$2  7,,ii7 if ! new      
mon?ly paym5t am\nt is less ?an !       
borr[]'s previ\sly calculat$ plan mon?ly
 paym5t am\nt1 & ! borr[] made paym5ts  

at ! previ\sly calculat$ am\nt aft] !   
end ( ! mo/ rec5t annual paym5t p]iod-- 
7aa7 ! ,secret>y makes ! appropriate    
adju/m5t to ! borr[]'s acc\nt2 &  7bb7  
unless ! borr[] reque/s o!rwise1 !      
,secret>y applies ! excess paym5t am\nts
 made aft] ! end ( ! mo/ rec5t annual   
paym5t p]iod 9 accordance ) !           
requirem5ts ( p>agraph 7#f77;,a72       
7,,iii7 if ! new mon?ly paym5t am\nt is 
equal to or great] ?an ! borr[]'s       
previ\sly calculat$ mon?ly paym5t am\nt1
 & ! borr[] made paym5ts at ! previ\sly 
calculat$ paym5t am\nt aft] ! end ( !   
mo/ rec5t annual paym5t p]iod1 !        
,secret>y does n make any adju/m5t to ! 
borr[]'s acc\nt2  7,,iv7 any paym5ts t !
 borr[] cont9u$ to make at ! previ\sly  
calculat$ paym5t am\nt aft] ! end ( !   
prior annual paym5t p]iod & be=e ! new  
mon?ly paym5t am\nt is calculat$ are    
consid]$ to be qualify+ paym5ts =       
purposes ( public s]vice loan =giv5ess  
"u section #dee7m71 provid$ t ! paym5ts 
o!rwise meet ! requirem5ts describ$ 9   

su* section #dee7m72 &  7,v7 ! new      
annual paym5t p]iod beg9s on ! day aft] 
! end ( ! mo/ rec5t annual paym5t p]iod4
  7#h7 ,loan =giv5ess  7,a7 ,9 g5]al    
7i7 ,cancellation ,! ,secret>y cancels  
any rema9+ out/&+ balance ( pr9cipal &  
accru$ int]e/ on a borr[]'s cov]$ ,f$]al
 ,direct ,loans t are be+ repaid "u !   
plan "u ?is section aft]--  7,i7 !      
borr[] has made ! equival5t ( #bdj      
qualify+ mon?ly paym5ts z def9$ 9       
subp>agraph 7,b72 &  7,,ii7 #bj ye>s h  
elaps$1 beg9n+ on ! date det]m9$ 9      
accordance ) subp>agraph 7,c74  7ii7    
,det]m9ation ,! ,secret>y det]m9es :5 a 
borr[] has met ! loan =giv5ess          
requirem5ts "u clause 7i7 & does n      
require ! borr[] to submit a reque/ =   
loan =giv5ess4  7,b7 ,qualify+ mon?ly   
paym5t def9$  7i7 ,9 g5]al ,= purposes (
 ?is p>agraph1 a qualify+ mon?ly paym5t 
is-- 7,i7 a mon?ly paym5t "u ! plan "u  
?is section1 includ+ a mon?ly paym5t    
am\nt ( #j4jj1 z provid$ "u p>agraph    
7#b77;,c72  7,,ii7 a mon?ly paym5t made 

"u ! /&>d repaym5t plan "u section      
#dee7;d77#b77;,a72 or  7,,iii7 a mon?   
dur+ :i* ! borr[] 0 n requir$ to make a 
paym5t due to receiv+ an economic h>d%ip
 def]m5t on ! borr[]'s cov]$ ,f$]al     
,direct ,loans4  7ii7 ,default$ loans   
exclud$ ,any paym5ts made on a default$ 
loan are n qualify+ mon?ly paym5ts & are
 n c\nt$ t[>d ! #bj-ye> =giv5ess p]iod4 
7,c7 ,det]m9ation ( beg9n+ date ,= a    
borr[] :o qualifies = ! program "u ?is  
section1 ! beg9n+ date = ! #bj-ye>      
repaym5t p]iod is--  7i7 = a borr[] :o  
has a ,f$]al ,direct ,consolidation     
,loan1 ! date ! borr[] made a qualify+  
mon?ly paym5t on ! consolidation loan1  
be=e ! date ! borr[] qualifi$ = !       
program plan "u ?is section2  7ii7 = a  
borr[] :o has "o or m o!r cov]$ ,f$]al  
,direct ,loans1 ! date ! borr[] made a  
qualify+ mon?ly paym5t on t loan1 be=e !
 date ! borr[] qualifi$ = ! plan "u ?is 
section2  7iii7 = a borr[] :o did n make
 a qualify+ mon?ly paym5t "u clause 7i7 
or 7ii71 ! date ! borr[] made a paym5t  

on ! borr[]'s cov]$ ,f$]al ,direct      
,loans "u ! plan "u ?is section2  7iv7  
if ! borr[] consolidates ! borr[]'s     
loans "u ?is title1 ! date ! borr[] made
 a qualify+ mon?ly paym5t on ! ,f$]al   
,direct ,consolidation ,loan2 or  7v7 if
 ! borr[] did n make a qualify+ mon?ly  
paym5t on ! loan "u clauses 7i7 ?r\gh   
7iv71 ! date ! borr[] made a paym5t on !
 loan "u ! plan "u ?is section4  7,d7   
,notification  7i7 ,prior to loan       
cancellation ,n lat] ?an #f mon?s prior 
to ! anticipat$ date t ! borr[] w meet !
 =giv5ess requirem5ts1 ! ,secret>y s5ds 
! borr[] a writt5 notice t includes--   
7,i7 an explanation t ! borr[] is       
approa*+ ! date t ! borr[] is expect$ to
 meet ! requirem5ts to receive loan     
=giv5ess2  7,,ii7 a rem9d] t ! borr[]   
mu/ cont9ue to make ! borr[]'s s*$ul$   
mon?ly paym5ts2 &  7,,iii7 g5]al        
in=mation on ! curr5t treatm5t ( !      
=giv5ess am\nt = tax purposes1 &        
in/ructions = ! borr[] to contact !     
,int]nal ,rev5ue ,s]vice = m in=mation4 

7ii7 ,aft] loan cancellation ,aft]      
det]m9+ t a borr[] has satisfi$ ! loan  
=giv5ess requirem5ts1 ! ,secret>y-- 7,i7
 notifies ! borr[] t ! borr[]'s         
obligation on ! loans is satisfi$2      
7,,ii7 provides ! borr[] ) ! in=mation  
describ$ 9 clause 7i77,,iii72 &  7,,iii7
 returns to ! s5d] any paym5t receiv$ on
 a loan aft] loan =giv5ess has be5      
grant$4  4  #d4 ,disclosures ,section   
#dee7p7 ( ! ,high] ,education ,act (    
#aife 7#bj ,u4,s4,c4 #ajhg;e7p77 is     
am5d$-- 7#a7 by /rik+ ,ea* in/itution & 
ins]t+ ! foll[+3  7#a7 ,9 g5]al ,ea*    
in/itution  2 &  7#b7 ,consultation ,!  
,secret>y %all regul>ly consult ) curr5t
 & prospective college /ud5ts1 family   
memb]s ( su* /ud5ts1 in/itutions ( high]
 education1 & o!r exp]ts to improve !   
usefulness & relevance ( ! disclosures  
describ$ 9 p>agraph 7#a74  4  #e4       
,exclusion ( c]ta9 /ud5t loan dis*>ge by
 reason ( dea? or disability  7a7 ,9    
g5]al ,section #ajh7;f77#a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$-- 7#a7  

by /rik+ ! p]iod at ! end & ins]t+ 1 or1
  7#b7 by /rik+ if su* dis*>ge 0        
pursuant to a provision & ins]t+ !      
foll[+3 if su* dis*>ge 0 pursuant to--  
7,a7 a provision  1 &  7#c7 by add+ at !
 end ! foll[+3  7,b7 section #dcg7;a7 ( 
! ,high] ,education ,act ( #aife4  4    
7b7 ,effective date ,! am5dm5ts made by 
?is section %all apply to dis*>ges (    
indebt$ness aft] ! date ( ! enactm5t (  
?is ,act4