,,ii #aadth ,,congress #ast ,session ,s4 #aidh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #e1 #bjae ,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to increase awareness of the ,federal student loan income-based repayment plan1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,access to ,fair ,financial ,options for ,repaying ,debt ,act of #bjae or the ,,afford ,act4 #b4 ,notice of repayment plan options at the time of entrance counseling ,section #dhe7l77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7l77#b77 is amended by adding at the end the following3 7,l7 ,information on the #b repayment options that the borrower of a loan made on or after ,july #a1 #bjaf1 will have for repaying the loan1 including-- 7i7 an income-based repayment plan1 as described under section #dic;,c7f72 and 7ii7 a fixed repayment plan described in section #dic;,e4 4 #c4 ,annual loan counseling ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is amended by adding at the end the following3 7n7 ,annual loan counseling 7#a7 ,invitation ,each institution of higher education participating in any program under this title shall annually provide each student described in paragraph 7#c7 with a written notification 7which may be in electronic form7 inviting the student to attend financial counseling described in paragraph 7#b74 7#b7 ,contents of annual loan counseling ,the counseling described in paragraph 7#a7 may be provided in person or via telephone or electronic form1 and shall include each of the following3 7,a7 ,information on each student loan that the institution is aware that the student has borrowed1 including ,federal loans1 private loans1 and loans from the institution4 7,b7 ,the total amount of the cumulative student loan debt from the loans described in subparagraph 7,a74 7,c7 ,the student's estimated monthly repayment amount for ,federal loans1 which shall include-- 7i7 estimates based on each applicable debt bracket for the fixed repayment plan described under section #dic;,e2 and 7ii7 an additional estimate based on the income-based repayment plan described under section #dic;,c7f71 calculated on the basis of a hypothetical income and a family size of #a4 7,d7 ,a statement that the monthly amount described in subparagraph 7,c7 does not include any amounts that the student may be required to repay for private or institutional loans4 7,e7 ,for each ,federal loan described in subparagraph 7,a71 the interest rate for the loan1 as of the date of the counseling1 and a statement that the interest rate on student loans may vary based on when the loan was borrowed and other factors4 7,f7 ,a notification that some students may qualify for a ,federal ,pell ,grant4 7,g7 ,the percentage of the total aggregate borrowing limit that the student has reached1 as of the date of the counseling1 for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans1 and a statement that such aggregate borrowing limit may change based on the borrower's student status 7whether undergraduate or graduate7 or if there is a change in the borrower's dependency status4 7,h7 ,any information1 including financial planning resources1 that the institution determines is appropriate to include in the counseling4 7,i7 ,a statement that the information provided through the counseling contains only estimates and information relevant to the student to the best of the institution's knowledge4 7#c7 ,students receiving notification ,the notification described in paragraph 7#a7 shall be provided to each student-- 7,a7 who is enrolled in the institution2 and 7,b7 who is a student for which the institution has knowledge that the student has #a or more student loans1 including any such loans from another institution that a student may have transferred from or been previously enrolled in4 4 #d4 ,income-based repayment plan ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#h71 by striking and after the semicolon2 7,b7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#aj7 a borrower who is repaying a loan made under part ,b or ,d pursuant to this section may repay such loan in full at any time without penalty4 2 and 7#b7 by adding at the end the following3 7f7 ,income-,based repayment for new loans on and after ,july #a1 #bjaf1 and for borrowers who enter ,,ibr after ,july #a1 #bjaf 7#a7 ,in ,general ,the income-based repayment plan shall be carried out in accordance with this section1 except as otherwise specified in this subsection 7including through the special terms described in paragraph 7#b77-- 7,a7 with respect to any loan issued on or after ,july #a1 #bjaf1 if such borrower elects the income-based repayment plan for that loan2 and 7,b7 with respect to any borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d1 if such borrower elects to repay the loan under the income-based repayment plan on or after ,july #a1 #bjaf4 7#b7 ,special terms ,notwithstanding any other provision of this section1 with respect to a loan described under paragraph 7#a71 the following terms shall apply to the income-based repayment plan3 7,a7 7i7 ,notwithstanding subsection 7a77#c77;,b71 the repayment amount under this subsection shall be an amount equal to #aj percent of the result obtained by calculating1 on at least an annual basis1 the amount by which-- 7,i7 the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income2 exceeds 7,,ii7 the applicable percentage of the poverty line in accordance with clause 7ii7 that is applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b774 7ii7 ,for purposes of clause 7i71 the term applicable percentage means #aej percent reduced by #a percentage point for each #a1jjj by which the borrower's adjusted gross income exceeds #ajj1jjj4 7,b7 ,subsection 7b77#g77;,b7 shall be applied by substituting #bj years for #be years4 7,c7 ,a borrower of such a loan shall not be required to have a partial financial hardship and may elect1 and remain enrolled in1 the income-based repayment plan under this subsection regardless of income level4 7,d7 ,subparagraph 7,a7 of subsection 7b77#f7 shall not apply and a borrower's monthly payment shall be determined in accordance with subparagraph 7,a7 divided by #ab1 which may exceed the monthly repayment amount under a standard #aj-year repayment plan or a fixed repayment plan described in section #dic;,e4 7,e7 ,subparagraph 7,b7 of subsection 7b77#c7 shall not apply4 7#c7 ,additional special terms for certain borrowers ,a borrower described in paragraph 7#a77;,b7-- 7,a7 may choose to retain the repayment plan in which the borrower is enrolled on ,june #cj1 #bjaf2 7,b7 may elect to-- 7i7 leave the repayment plan described in subparagraph 7,a7 and enter the income-based repayment plan under this subsection2 7ii7 leave the repayment plan described in subparagraph 7,a7 and enter a fixed repayment plan described in section #dic;,e2 or 7iii7 not more than once per calendar year1 switch between the repayment plans described in clauses 7i7 and 7ii72 7,c7 after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or the fixed repayment plan described in section #dic;,e1 shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or a fixed repayment plan described in section #dic;,e2 and 7,d7 shall retain1 for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan 7as described in subsection 7b77#g77 any years of repayment under another income-based or income contingent repayment plan under this title4 7#d7 ,cap on interest accrual ,notwithstanding any other provision of this ,act1 the total amount of interest that accrues during a borrower's grace period and the time that a borrower is in repayment under this subsection shall not exceed #ej percent of the original principal amount of the loan4 4 #e4 ,fixed repayment plan ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,fixed repayment plan 7a7 ,in ,general ,a borrower of a loan made under this part on or after ,july #a1 #bjaf1 and a borrower who is in repayment on a loan made under part ,b or part ,d before ,july #a1 #bjaf1 may elect to repay such loan under the fixed repayment plan described in this section4 7b7 ,fixed repayment plan ,under the fixed repayment plan1 a borrower with a total ,federal student loan debt amount that-- 7#a7 is equal to or less than #aj1jjj1 shall repay each loan described in subsection 7a7 with a fixed monthly repayment amount paid over a period of #aj years2 7#b7 is more than #aj1jjj and less than #bj1jjj1 shall repay each loan described in subsection 7a7 with a fixed monthly repayment amount paid over a period of-- 7,a7 #ae years2 or 7,b7 the period described in paragraph 7#a71 if the borrower chooses2 7#c7 is equal to or greater than #bj1jjj1 and less than #cj1jjj1 shall repay each loan described in subsection 7a7 with a fixed monthly repayment amount paid over a period of-- 7,a7 #bj years2 or 7,b7 the period described in paragraph 7#a7 or 7#b71 if the borrower chooses2 and 7#d7 is equal to or greater than #cj1jjj1 shall repay each loan described in subsection 7a7 with a fixed monthly repayment amount paid over a period of-- 7,a7 #be years2 or 7,b7 the period described in any of paragraphs 7#a7 through 7#c71 if the borrower chooses4 4 #f4 ,counseling for borrowers ,section #dhe of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7 is amended-- 7#a7 in subsection 7b77#a77;,a7-- 7,a7 in clause 7iii71 by inserting on an annual basis1 in accordance with section #dbh7;b77#a77;,d77ii7 or paragraph 7#b7 or 7#g7 of section #dee7;d7 7as applicable7 after repayment plans2 and 7,b7 in clause 7vii77,,iii71 by inserting on an annual basis1 in accordance with section #dbh7;b77#a77;,d77ii7 or paragraph 7#b7 or 7#g7 of section #dee7;d7 7as applicable7 after repayment plans2 and 7#b7 in subsection 7d77#a71 by striking including income-sensitive and all that follows through part ,d and inserting including1 beginning on ,july #a1 #bjaf1 income-based repayment plans described in section #dic;,c7f7 and fixed repayment plans under section #dic;,e4 #g4 ,termination of certain repayment plan options 7a7 ,effective date2 ,rulemaking regarding termination of certain repayment plans 7#a7 ,effective date ,this ,act1 and the amendments made by this ,act1 shall take effect on ,july #a1 #bjaf4 7#b7 ,regulations ,before the effective date described in paragraph 7#a71 the ,secretary of ,education shall carry out a plan to end all eligibility for repayment plans other than a fixed repayment plan described in section #dic;,e and an income-based repayment plan described under section #dic;,c7f7 for loans made under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife1 unless the borrower is enrolled in another repayment plan before such effective date1 in accordance with the amendments made by this ,act4 7b7 ,changes to current law 7#a7 ,section #dbh7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh7;b77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,d7-- 7,i7 in clause 7ii71 by striking may annually change the selection of a repayment plan under this part1 and inserting may at any time after ,july #a1 #bjaf1 and not more frequently than once per calendar year thereafter1 change the selection of a repayment plan under this part to one of the #b repayment plans described in paragraph 7#i77;,c712 and 7,,ii7 in clause 7iii71 by striking be subject to income contingent repayment in accordance with subsection 7m72 and inserting be subject to income-based repayment in accordance with section #dic;,c7f722 and 7ii7 in subparagraph 7,e77i71 by striking the option of repaying the loan in accordance with a standard1 graduated1 income-sensitive1 or extended repayment schedule 7as described in paragraph 7#i77 established by the lender in accordance with regulations of the ,secretary2 and and inserting the option of repaying the loan in accordance with a repayment plan described in paragraph 7#i77;,c7 established by the lender in accordance with regulations of the ,secretary2 and2 and 7,b7 in paragraph 7#i71 by adding at the end the following3 7,c7 ,selection of repayment plans on and after ,july #a1 #bjaf 7i7 ,opportunity to change repayment plans ,notwithstanding any other provision of this paragraph1 or any other provision of law1 and in accordance with regulations1 beginning on ,july #a1 #bjaf1 the lender shall offer a borrower of a loan made1 insured1 or guaranteed under this part the opportunity to change repayment plans not more than once per calendar year1 and to enroll in one of the following repayment plans3 7,i7 ,a fixed repayment plan described in section #dic;,e4 7,,ii7 ,the income-based repayment plan under section #dic;,c7f74 2 and 7#b7 in section #dee7;d7-- 7,a7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f71 respectively2 and 7,b7 by inserting after paragraph 7#a71 the following3 7#b7 ,design and selection on and after ,july #a1 #bjaf 7,a7 ,in ,general ,notwithstanding paragraph 7#a71 for the borrower of a loan made on or after ,july #a1 #bjaf1 and for other borrowers subject to paragraph 7#g71 the ,secretary shall offer a borrower of a loan made under this part #b plans for repayment of such loan1 including principal and interest on the loan4 ,the borrower shall be entitled to accelerate1 without penalty1 repayment on the borrower's loans under this part4 ,the borrower may choose-- 7i7 a fixed repayment plan described in section #dic;,e2 or 7ii7 the income-based repayment plan under section #dic;,c7f74 7,b7 ,selection by the ,secretary ,if a borrower of a loan made under this part on or after ,july #a1 #bjaf1 does not select a repayment plan described in subparagraph 7,a71 the ,secretary may provide the borrower with a fixed repayment plan described in section #dic;,e4 7,c7 ,changes in selections ,beginning on ,july #a1 #bjaf1 a borrower of a loan made under this part may change the borrower's selection of a repayment plan in accordance with paragraph 7#g7 and under such terms and conditions as may be established by the ,secretary4 7,d7 ,borrower in default ,beginning on ,july #a1 #bjaf1 the ,secretary may require any borrower who has defaulted on a loan made under this part to-- 7i7 pay all reasonable collection costs associated with such loan2 and 7ii7 repay the loan pursuant to an income-based repayment plan under section #dic;,c7f74 2 and 7#c7 by adding at the end the following3 7#g7 ,borrowers of loans made before ,july #a1 #bjaf ,a borrower who is in repayment on a loan made under part ,b or part ,d before ,july #a1 #bjaf-- 7,a7 may choose to retain the repayment plan that the borrower was enrolled in on the day before such date2 7,b7 may elect to-- 7i7 enter the income-based repayment plan under section #dic;,c7f72 7ii7 enter a fixed repayment plan described in section #dic;,e2 or 7iii7 switch between the repayment plans described in clauses 7i7 and 7ii7 not more than once during a calendar year2 7,c7 after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or a fixed repayment plan described in section #dic;,e1 shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or a fixed repayment plan described in section #dic;,e2 and 7,d7 shall retain1 for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan 7as described in section #dic;,c7b77#g77 any years of repayment under another income-based or income contingent repayment plan under this title4 4