,i #aaeth ,,congress #ast ,session ,h4 ,r4 #dcgb ,,in ,,the ,,house ,,of ,,representatives ,november #ac1 #bjag,mr4 ,ferguson 7for himself1 ,mr4 ,mitchell1 and ,mr4 ,garrett7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,to amend the ,higher ,education ,act of #aife to require borrowers to repay ,federal student loans under an income-based repayment plan or a standard repayments plan1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,help ,students ,repay ,act4 #b4 ,streamlining repayment plans for new borrowers ,section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 is amended by striking subsection 7d7 and inserting the following3 7d7 ,repayment plans 7#a7 ,design and selection for borrowers before ,july #a1 #bjah ,with respect to a borrower of a loan made under this part before ,july #a1 #bjah1 and consistent with criteria established by the ,secretary1 the ,secretary shall offer such borrower a variety of 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-- 7,a7 a standard repayment plan1 consistent with subsection 7a77#a7 of this section and with section #dbh7;b77#i77;,a77i72 7,b7 a graduated repayment plan1 consistent with section #dbh7;b77#i77;,a77ii72 7,c7 an extended repayment plan1 consistent with section #dbh7;b77#i77;,a77iv71 except that the borrower shall annually repay a minimum amount determined by the ,secretary in accordance with section #dbh7;b77#a77,l72 7,d7 an income contingent repayment plan1 with varying annual repayment amounts based on the income of the borrower1 paid over an extended period of time prescribed by the ,secretary1 not to exceed #be years1 except that the plan described in this subparagraph shall not be available to the borrower of a ,federal ,direct ,,plus loan made on behalf of a dependent student2 and 7,e7 an income-based repayment plan that enables borrowers who have a partial financial hardship to make a lower monthly payment in accordance with section #dic;,c1 except that the plan described in this subparagraph shall not be available to the borrower of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student or a ,federal ,direct ,consolidation ,loan1 if the proceeds of such loan were used to discharge the liability on such ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student4 7#b7 ,design and selection for borrowers on or after ,july #a1 #bjah ,the ,secretary shall offer a borrower of a loan made under this part on or after ,july #a1 #bjah1 the following 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-- 7,a7 a standard repayment plan1 consistent with subsection 7a77#a7 of this section and with section #dbh7;b77#i77;,a77i72 or 7,b7 an income-based repayment plan1 consistent with section #dfj;,a1 except the plan described in this subparagraph shall not be available to a borrower of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student1 a ,federal ,direct ,consolidation ,loan1 if the proceeds of such loan were used to discharge the liability on such ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student4 7#c7 ,borrower non-selection ,if a borrower of a loan made under this part does not select a repayment plan described in paragraph 7#a7 or 7#b71 the ,secretary may provide the borrower with a repayment plan described in subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#a7 in the case of a borrower of a loan first disbursed before ,july #a1 #bjah1 or a repayment plan described in paragraph 7#b77;,a7 in the case of a borrower of a loans first disbursed on or after ,july #a1 #bjah4 7#d7 ,changes in selections ,the borrower of a loan made under this part may change the borrower's selection of a repayment plan under paragraph 7#a7 or 7#b71 or the ,secretary's selection of a plan for the borrower under paragraph 7#c71 as the case may be1 under such terms and conditions as may be established by the ,secretary4 7#e7 ,repayment after default ,for any borrower who has defaulted on a loan made under this part1 the ,secretary-- 7,a7 may require the borrower to pay all reasonable collection costs associated with such loan2 and 7,b7 if such loan was made-- 7i7 to any borrower who1 before ,july #a1 #bjah1 had an outstanding balance on a student loan made1 insured1 or guaranteed under this part or part ,b1 may require the borrower to repay the loan pursuant to an income contingent repayment plan1 as described in paragraph 7#a77;,d71 or an income-based repayment plan1 as described in paragraph 7#a77;,e72 or 7ii7 to a new borrower 7as defined in section #dfj;,a7a77#b771 may provide the borrower the option to enroll in the repayment plan described in paragraph 7#b77;,b74 7#f7 ,applicability provision 7,a7 ,in general ,except as provided in paragraph 7#e7 and subparagraph 7,b71 the repayment plans under subparagraphs 7,b71 7,c71 7,d71 and 7,e7 of paragraph 7#a7 are not available for a borrower who received the borrower's first disbursement of a ,federal ,direct ,loan on or after ,july #a1 #bjah4 7,b7 ,exception ,the repayment plans available to a borrower of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student or a ,federal ,direct ,consolidation ,loan whose proceeds were used to discharge the liability of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student or a loan under section #dbh;,b made on behalf of a dependent student on or after ,july #a1 #bjah1 shall be those described under subparagraphs 7,a71 7,b71 and 7,c7 of paragraph 7#a74 4 #c4 ,income-based repayment for new borrowers and new loans ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,income-based repayment plan 7a7 ,definitions 7#a7 ,covered ,federal ,direct ,loan ,the term covered ,federal ,direct ,loan means a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,consolidation ,loan 7other than an excepted consolidation loan71 or a ,federal ,direct ,,plus ,loan 7other than an excepted plus loan7 made under this part4 7#b7 ,new borrower ,the term new borrower means a borrower who-- 7,a7 as of ,july #a1 #bjah1 has no outstanding balance on a student loan made1 insured1 or guaranteed under part ,b or ,d2 or 7,b7 has no outstanding balance on a student loan made1 insured1 or guaranteed under part ,b or ,d on the date the borrower receives a loan made under part ,d on or after ,july #a1 #bjah4 7#c7 ,excepted plus loan2 excepted consolidation loan ,the terms excepted plus loan and excepted consolidation loan have the meanings given such terms in section #dic;,c4 7#d7 ,income-based calculation ,the term income-based calculation means #ae percent of the result obtained by calculating1 on at least an annual basis1 the amount by which-- 7,a7 the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income2 exceeds1 as defined by the ,secretary2 exceeds 7,b7 #aej percent of the poverty line 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 7b7 ,revised income-,based plan ,notwithstanding any other provision of this ,act1 the ,secretary shall carry out a program for new borrowers and any borrowers of covered ,federal ,direct ,loans made on or after ,july #a1 #bjah1 that meets the following requirements3 7#a7 ,monthly payment amount ,except as otherwise provided in this subsection1 a new borrower of any covered ,federal ,direct ,loan1 or any borrower of any covered ,federal ,direct ,loan1 may elect to have the borrower's aggregate monthly payment for all such loans not to exceed the result of the income-based calculation divided by #ab4 7#b7 ,application of payment ,the ,secretary shall apply the borrower's monthly payment under this subsection on such a loan first toward interest due on the loan1 next toward any fees due on the loan1 and then toward the principal of the loan4 7#c7 ,interest 7,a7 ,in general ,subject to subparagraph 7,b71 if the borrower's monthly payment amount under paragraph 7#a7 is not sufficient to pay the accrued interest on the borrower's loan1 such interest shall be paid by the borrower or be capitalized4 7,b7 ,no accrual of interest after #aj years ,notwithstanding section #dee7;b77#h7 or any other provision of this title1 interest shall cease accruing on a loan being repaid under this subsection1 after the borrower has made payments under this subsection on such loan in an amount equal to-- 7i7 the amount the borrower would have repaid under #dee7;d77#a77;,a7 on such loan1 based on a #aj-year repayment period1 when the borrower first made the election described in this subsection1 plus 7ii7 the amount of any interest that accrued 7or was capitalized7 during a forbearance or deferment period or any similar period1 on the portion of the loan that was being repaid in accordance with clause 7i74 7#d7 ,selection of different repayment plan ,a borrower who no longer wishes to repay under the plan under this section may change to a standard repayment plan in accordance with section #dee7;d77#c74 7c7 ,eligibility determinations ,the ,secretary shall establish procedures for annually determining the borrower's eligibility for income-based repayment1 including verification of a borrower's annual income and the annual amount due on the total amount of covered ,federal ,direct ,loans1 and such other procedures as are necessary to effectively implement income-based repayment under this section4 ,the ,secretary shall consider1 but is not limited to1 the procedures established in accordance with section #dee7;e77#a7 or section #dic;,c1 or in connection with income sensitive repayment schedules under section #dbh7;b77#i77;,a77iii7 or #dbh;,c7b77#a77;,e74 7d7 ,special rule for married borrowers filing separately ,in the case of a married borrower who files a separate ,federal income tax return1 the ,secretary shall calculate the amount of the borrower's income-based repayment under this section solely on the basis of the borrower's student loan debt and adjusted gross income4 4