,i #aaeth ,,congress #ast ,session ,h4 ,r4 #ceed ,,in ,,the ,,house ,,of ,,representatives ,july #bh1 #bjag,ms4 ,bonamici 7for herself1 ,mr4 ,costello of ,pennsylvania1 ,mr4 ,moulton1 and ,mr4 ,meehan7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide for the automatic recertification of income for income-driven repayment plans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act or the ,,simple ,act4 #b4 ,automatic income monitoring procedures after a total and permanent disability discharge ,section #dcg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg7;a77 is amended by adding at the end the following3 7#c7 ,automatic income monitoring 7,a7 ,in general ,not later than #b years after the date of enactment of the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act1 the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,b71 procedures to-- 7i7 obtain 7for each year of the income-monitoring period described in subparagraph 7,b7 and without further action by the borrower7 such information as is reasonably necessary regarding the income of such borrower 7and the borrower's spouse1 if applicable7 for the purpose of determining the borrower's continued eligibility for the loan discharge described in subparagraph 7,b7 for such year1 and any other information necessary to determine such continued eligibility of the borrower for such year1 except that-- 7,i7 in the case of a borrower whose returns and return information indicate that the borrower has no earned income for any year of such income-monitoring period1 such borrower shall be treated as not having earned income in excess of the poverty line for such year2 and 7,,ii7 this clause shall be subject to clause 7ii72 7ii7 allow the borrower1 at any time1 to opt out of clause 7i7 and prevent the ,secretary from obtaining information under such clause without further action by the borrower2 and 7iii7 provide the borrower with an opportunity to update the information obtained under clause 7i7 before the determination of the borrower's continued eligibility for such loan discharge for such year4 7,b7 ,applicability ,subparagraph 7,a7 shall apply-- 7i7 to each borrower of a covered loan 7defined in section #dee7;d77#h77 that is discharged under this subsection or section #dfd7;c77#a77;,f7 due to the permanent and total disability of the borrower2 and 7ii7 during the income-monitoring period under this subsection1 defined in this paragraph as the period-- 7,i7 beginning on the date on which such loan is so discharged2 and 7,,ii7 during which the ,secretary determines whether a reinstatement of the obligation of1 and resumption of collection on1 such loan may be necessary4 7,c7 ,availability of returns and return information ,returns and return information may be obtained under subparagraph 7,a77i7 only to the extent authorized by section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf4 7,d7 ,definition ,in this paragraph1 the term returns and return information has the meaning given the term in section #fajc of the ,internal ,revenue ,code of #aihf4 4 #c4 ,notification and automatic enrollment procedures for borrowers who are delinquent on loans and for borrowers who rehabilitated defaulted loans 7a7 ,amendments 7#a7 ,notification and automatic enrollment procedures ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is amended by adding at the end the following3 7#f7 ,notification and automatic enrollment procedures for borrowers who are delinquent on loans 7,a7 ,authority to obtain income information 7i7 ,in general ,in the case of any borrower who is at least #fj days delinquent on a covered loan1 the ,secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower 7and the borrower's spouse1 if applicable74 7ii7 ,availability of returns and return information ,returns and return information 7as defined in section #fajc of the ,internal ,revenue ,code of #aihf7 may be obtained under this subparagraph only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,b7 ,borrower notification ,with respect to each borrower of a covered loan who is at least #fj days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding #abj days1 the ,secretary shall1 as soon as practicable after such #fj-;day delinquency1 provide to the borrower the following3 7i7 ,notification that the borrower is at least #fj days delinquent on at least #a covered loan1 and a description of all delinquent covered loans1 nondelinquent covered loans1 and noncovered loans of the borrower4 7ii7 ,a brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans1 based on information available to the ,secretary4 7iii7 ,clear and simple instructions on how to select the repayment plans4 7iv7 ,the amount of monthly payments for the covered and noncovered loans under the repayment plans for which the borrower is eligible1 based on information available to the ,secretary1 including1 if the income information of the borrower is available to the ,secretary under subparagraph 7,a7-- 7,i7 the amount of the monthly payment under each income-driven repayment plan for which the borrower is eligible for the borrower's covered and noncovered loans1 based on such income information2 and 7,,ii7 the income1 family size1 tax filing status1 and tax year information on which each monthly payment is based4 7v7 ,an explanation that in the case of a borrower for whom adjusted gross income is unavailable-- 7,i7 if the borrower selects to repay the covered loans of such borrower pursuant to an income-driven repayment plan that defines discretionary income in such a manner that an individual not required under section #fjab7;a77#a7 of the ,internal ,revenue ,code of #aihf to file a return with respect to income taxes imposed by subtitle ,a of such ,code may have a calculated monthly payment greater than #j1 the borrower will be required to provide the ,secretary with other documentation of income satisfactory to the ,secretary1 which documentation the ,secretary may use to determine an appropriate repayment schedule2 and 7,,ii7 if the borrower selects to repay such loans pursuant to an income-driven repayment plan that is not described in subclause 7,i71 the borrower will not be required to provide the ,secretary with such other documentation of income1 and the borrower will have a calculated monthly payment of #j4 7vi7 ,an explanation that the ,secretary shall take the actions under subparagraph 7,c7 with respect to such borrower1 if-- 7,i7 the borrower is #abj days delinquent on one or more covered loans and has not selected a new repayment plan for the covered loans of the borrower2 and 7,,ii7 in the case of such a borrower whose repayment plan for the covered loans of the borrower is not an income-driven repayment plan1 the monthly payments under such repayment plan are higher than such monthly payments would be under an income-driven repayment plan for such loans4 7vii7 ,instructions on updating the information of the borrower obtained under subparagraph 7,a74 7,c7 ,secretary's initial selection of plan ,with respect to each borrower described in subparagraph 7,b7 who has a repayment plan for the covered loans of the borrower that meets the requirements of clause 7vi77,,ii7 of subparagraph 7,b7 and has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph1 and who is at least #abj days delinquent on such a loan1 the ,secretary shall1 as soon as practicable-- 7i7 in a case in which any of the borrower's covered loans are eligible for an income-driven repayment plan-- 7,i7 7aa7 provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower1 compared to any other such plan for which the borrower is eligible2 or 7bb7 if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount1 provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower2 7,,ii7 if the plan selected under subclause 7,i7 is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower's covered loans and noncovered loans1 notify the borrower of the actions1 if any1 the borrower may take to become eligible for such income-driven repayment plan2 and 7,,iii7 authorize the borrower to change the ,secretary's selection of a plan under this clause to any plan described in paragraph 7#a7 for which the borrower is eligible2 and 7ii7 in a case in which none of the borrower's covered loans are eligible for an income-driven repayment plan1 notify the borrower of the actions1 if any1 the borrower may take for such loans to become eligible for such a plan4 7,d7 ,secretary's additional selection of plan 7i7 ,in general ,with respect to each borrower of a covered loan who selects a new repayment plan in accordance with the notice received under subparagraph 7,b7 and who continues to be delinquent on such loan for a period described in clause 7ii71 the ,secretary shall1 as soon as practicable after such period1 carry out the procedures described in clauses 7i7 and 7ii7 of subparagraph 7,c7 for the covered loans of the borrower1 if such procedures would result in lower monthly repayment amounts on such loan4 7ii7 ,description of period ,the duration of the period described in clause 7i7 shall be the amount of time that the ,secretary determines is sufficient to indicate that the borrower may benefit from repaying such loan under a new repayment plan1 but in no case shall such period be less than #fj days4 7,e7 ,opt-out ,a borrower of a covered loan shall have the right to opt out of the procedures under this paragraph4 7,f7 ,procedures ,the ,secretary shall establish procedures as are necessary to effectively implement this paragraph4 7#g7 ,notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans 7,a7 ,authority to obtain income information 7i7 ,in general ,in the case of any borrower who is rehabilitating a covered loan pursuant to section #dbh;,f7a71 the ,secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower 7and the borrower's spouse1 if applicable74 7ii7 ,availability of returns and return information ,returns and return information 7as defined in section #fajc of the ,internal ,revenue ,code of #aihf7 may be obtained under this subparagraph only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,b7 ,borrower notification ,not later than #cj days after a borrower makes the #fth payment required for the loan rehabilitation described in subparagraph 7,a71 the ,secretary shall notify the borrower of the process under subparagraph 7,c7 with respect to such loan4 7,c7 ,secretary's selection of plan ,with respect to each borrower who has made the #ith payment required for the loan rehabilitation described in subparagraph 7,a71 the ,secretary shall1 as soon as practicable after such payment-- 7i7 in a case in which any of the borrower's covered loans1 without regard to whether the loan has been so rehabilitated1 is eligible for an income-driven repayment plan-- 7,i7 7aa7 provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower1 compared to any other such plan for which the borrower is eligible2 or 7bb7 if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount1 provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower2 and 7,,ii7 if the plan selected under subclause 7,i7 is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower's covered loans and noncovered loans1 notify the borrower of the actions1 if any1 the borrower may take to become eligible for such income-driven repayment plan2 and 7ii7 in a case in which none of the borrower's covered loans are eligible for an income-driven repayment plan1 notify the borrower of the actions1 if any1 the borrower may take for such a loan to become eligible for such a plan4 7,d7 ,opt-out ,a borrower of a covered loan shall have the right to opt out of the procedures under this paragraph4 7,e7 ,procedures ,the ,secretary shall establish procedures as are necessary to effectively implement this paragraph4 4 7#b7 ,definitions ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 as amended by paragraph 7#a71 is further amended by adding at the end the following3 7#h7 ,definitions ,in this subsection3 7,a7 ,covered loan ,the term covered loan means-- 7i7 a loan made under this part2 7ii7 a loan purchased under section #dei;,a2 or 7iii7 a loan that has been assigned to the ,secretary under section #dbh7;c77#h7 or part ,e4 7,b7 ,income-driven repayment plan ,the term income-driven repayment plan means a plan described in subparagraph 7,d7 or 7,e7 of paragraph 7#a74 7,c7 ,noncovered loan ,the term noncovered loan means a loan made1 insured1 or guaranteed under this title that is not a covered loan4 4 7#c7 ,changing plans ,section #dic;,c7b77#h7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7b77#h77 is amended to read as follows3 7#h7 a borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d pursuant to income-based repayment may elect1 at any time1 to terminate repayment pursuant to income-based repayment and repay such loan under any repayment plan for which the loan is eligible in accordance with the requirements of part ,b or part ,d1 respectively2 and 4 7b7 ,effective date2 application 7#a7 ,automatic enrollment ,the amendments made by paragraphs 7#a7 and 7#b7 of subsection 7a7 shall-- 7,a7 take effect as soon as the ,secretary of ,education determines practicable after the ,secretary finalizes the procedures under section #e1 but not later than #b years after the date of enactment of this ,act2 and 7,b7 apply to all borrowers of covered loans 7as defined in section #dee7;d77#h7 of the ,higher ,education ,act of #aife1 as added by subsection 7a774 7#b7 ,changing plans ,the amendment made by subsection 7a77#c7 shall take effect on the date of enactment of this ,act4 #d4 ,automatic recertification of income 7a7 ,income contingent repayment ,section #dee7;e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is amended-- 7#a7 in paragraph 7#c7-- 7,a7 by striking does not reasonably reflect the borrower's current income and inserting whose income has decreased relative to the adjusted gross income available to the ,secretary2 and 7,b7 by inserting 1 consistent with the procedures established under paragraph 7#h77;,b77iv7 before the period at the end2 and 7#b7 by adding at the end the following3 7#h7 ,automatic recertification 7,a7 ,definition ,in this paragraph1 the term covered loan has the meaning given the term in subsection 7d77#h74 7,b7 ,in general ,beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #e of the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act1 but not later than #b years after the date of enactment of such ,act1 the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,c71 procedures to-- 7i7 obtain 7for each year of repayment and without further action by the borrower7 such information as is reasonably necessary regarding the income of such borrower 7and the borrower's spouse1 if applicable71 for the purpose of determining the repayment obligation of the borrower for such year1 including information with respect to the borrower's family size in accordance with the procedures under section #e of the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act1 subject to clause 7ii72 7ii7 allow the borrower1 at any time1 to opt out of clause 7i7 and prevent the ,secretary from obtaining information under such clause without further action by the borrower2 7iii7 provide the borrower with an opportunity to update the information obtained under clause 7i7 before the determination of the annual repayment obligation of the borrower2 and 7iv7 in the case of a borrower for whom adjusted gross income is unavailable-- 7,i7 if the borrower has selected to repay the covered loans of such borrower pursuant to an income contingent repayment plan that defines discretionary income in such a manner that an individual not required under section #fjab7;a77#a7 of the ,internal ,revenue ,code of #aihf to file a return with respect to income taxes imposed by subtitle ,a of such ,code may have a calculated monthly payment greater than #j1 the borrower will be required to provide the ,secretary with other documentation of income satisfactory to the ,secretary1 which documentation the ,secretary may use to determine an appropriate repayment schedule2 or 7,,ii7 if the borrower has selected to repay such loans pursuant to an income contingent repayment that is not described in subclause 7,i71 the borrower will not be required to provide the ,secretary with such other documentation of income1 and the borrower will have a calculated monthly payment of #j4 7,c7 ,applicability ,subparagraph 7,b7 shall apply to each borrower of a covered loan who1 on or after the date on which the ,secretary establishes procedures under such subparagraph-- 7i7 selects1 or for whom the ,secretary selects under subparagraph 7,c7 or 7,d7 of paragraph 7#f7 or paragraph 7#g77;,c7 of subsection 7d71 or section #dbh7m77#a71 an income contingent repayment plan2 or 7ii7 recertifies income and family size under such plan4 7,d7 ,availability of returns and return information ,returns and return information 7as defined in section #fajc of the ,internal ,revenue ,code of #aihf7 may be obtained under subparagraph 7,b77i7 only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,e7 ,other requirements ,the procedures established by the ,secretary under this paragraph shall be consistent with the requirements of paragraphs 7#a7 through 7#g71 except as otherwise provided in this paragraph4 4 7b7 ,income-,based repayment ,section #dic;,c7c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7c77 is amended-- 7#a7 by striking ,the ,secretary shall establish and inserting the following3 7#a7 ,in general ,the ,secretary shall establish 2 7#b7 by striking ,the ,secretary shall consider and inserting the following3 7#b7 ,procedures for eligibility ,the ,secretary shall-- 7,a7 consider 2 and 7#c7 by striking #dbh;,c7b77#a77;,e74 and inserting the following3 #dbh;,c7b77#a77;,e72 and 7,b7 beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #e of the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act1 but not later than #b years after the date of enactment of such ,act1 carry out1 with respect to borrowers of any covered loan 7as defined in section #dee7;d77#h771 procedures for income-based repayment plans that are equivalent to the procedures carried out under section #dee7;e77#h7 with respect to income contingent repayment plans4 4 #e4 ,study and procedures on determining family size 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,education shall-- 7#a7 jointly with the ,secretary of the ,treasury1 conduct a study1 which meets the specifications described in subsection 7b71 on the effect of using data from the ,internal ,revenue ,service on the deduction for personal exemptions provided by section #aea of the ,internal ,revenue ,code of #aihf for a proxy for family size in an income-driven repayment plan1 and publish such study in the ,federal ,register2 7#b7 use the results of the study conducted under paragraph 7#a7 to develop procedures for determining family size for the automatic recertification of income for an income-driven repayment plan in a manner that minimizes burdens and unintended harm to borrowers2 7#c7 publish the procedures developed under paragraph 7#b7 in the ,federal ,register2 and 7#d7 after a notice and comment period on such procedures1 use such comments to finalize the procedures4 7b7 ,specifications ,the study conducted under subsection 7a77#a7 shall-- 7#a7 determine how closely such personal exemptions match the family size that borrowers report on their income-driven repayment plan request form2 7#b7 compare the borrower's actual monthly payment amount with the monthly payment amount borrowers would have using family size information derived from tax returns2 and 7#c7 use data from more than one year1 where possible1 to analyze how much family size changes over time4 7c7 ,definition ,the term income-driven repayment plan has the meaning given the term in section #dee7;d77#h7 of the ,higher ,education ,act of #aife1 as amended by this ,act4 #f4 ,disclosure of tax return information to carry out certain higher education loan programs 7a7 ,in general ,paragraph 7#ac7 of section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#ac7 ,disclosure of returns and return information for purposes of student loan administration 7,a7 ,in general ,the ,secretary1 subject to such requirements and conditions as the ,secretary may prescribe1 shall upon written request from the ,secretary of ,education disclose to officers and employees of the ,department of ,education returns and return information with respect to a taxpayer who has received an applicable student loan4 7,b7 ,restriction on use of disclosed information ,return information disclosed under subparagraph 7,a7 may be used by officers and employees of the ,department of ,education only for the purposes of1 and to the extent necessary for purposes of-- 7i7 carrying out income monitoring under section #dcg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg7;a771 7ii7 establishing the appropriate income contingent repayment amount in connection with an applicable student loan1 7iii7 establishing the appropriate repayment amount under an applicable income-driven repayment plan 7as defined in section #dee7;d77#h7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7d777 in connection with an applicable student loan for-- 7,i7 borrowers who have selected such a plan1 and 7,,ii7 in the case of any recertification under section #dee7;e77#h7 or #dic;,c7c77#b77;,b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e72 #ajih;e7c771 borrowers who are enrolled in such a plan1 7iv7 in the case of borrowers who are at least #fj days delinquent on an applicable student loan-- 7,i7 providing notice of eligibility for an income-driven repayment plan 7as so defined7 pursuant to section #dee7;d77#f77;,b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 and 7,,ii7 automatic enrollment in such an income-driven repayment plan after such borrowers are at least #abj days delinquent on such a loan pursuant to section #dee7;d77#f77;,c7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7d771 and 7v7 in the case of borrowers who are rehabilitating defaulted loans1 providing notice of eligibility for an income-driven repayment plan 7as so defined7 and automatic enrollment in such a plan pursuant to section #dee7;d77#g7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d774 7,c7 ,disclosure to certain contractors ,officers and employees of the ,department of ,education may disclose the information described in subparagraph 7,a7 to persons awarded contracts by the ,secretary of ,education under section #def of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;f7 to the extent necessary for the purposes described in subparagraph 7,b74 7,d7 ,spousal information for married individuals filing separate returns ,for purposes of this paragraph1 in the case of a married individual filing a separate return1 the term taxpayer includes the spouse of that individual if the ,secretary of ,education requests information from the spouse of that individual and the individual and the spouse have consented in writing4 7,e7 ,applicable student loan 7i7 ,in general ,for purposes of this paragraph1 the term applicable student loan means-- 7,i7 any loan which is made1 insured1 or guaranteed under a program authorized under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq42 #ajhg;a et seq471 and 7,,ii7 any loan which is made under part ,e of such title ,,iv 7#bj ,u4,s4,c4 #ajhg;aa et seq47 which is in default and has been assigned to the ,department of ,education4 7ii7 ,exception ,for purposes of subparagraph 7,b77iv71 the term applicable student loan shall not include any loan made1 insured1 or guaranteed under part ,b of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq47 unless such loan is in default and has been assigned to the ,department of ,education4 4 7b7 ,conforming amendments 7#a7 ,section #fajc7;a77#c7 of such ,code is amended by inserting 7#ac71 after 7#ab714 7#b7 ,section #fajc7p77#d7 of such ,code is amended by inserting 7#ac71 after 7l77#aj71 each place it occurs4 7c7 ,effective date ,the amendments made by this section shall apply to disclosures made after the date of enactment of this ,act4