,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #dcgb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #ac1         
#bjag,mr4 ,f]guson 7= himself1 ,mr4     
,mit*ell1 & ,mr4 ,g>rett7 introduc$ !   
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,education & ! ,work=ce   
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife to require borr[]s to repay
 ,f$]al /ud5t loans "u an income-bas$   
repaym5t plan or a /&>d repaym5ts plan1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,help ,/ud5ts      
,repay ,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 #bjah
 ,) respect to a borr[] ( a loan made "u
 ?is "p be=e ,july #a1 #bjah1 & 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$]al ,direct ,,plus  
,loan or a loan "u section #dbh;,b made 
on behalf ( a dep5d5t /ud5t4  7#b7      
,design & selection = borr[]s on or aft]
 ,july #a1 #bjah ,! ,secret>y %all (f] a
 borr[] ( a loan made "u ?is "p on or   
aft] ,july #a1 #bjah1 ! foll[+ plans =  
repaym5t ( su* loan1 includ+ pr9cipal & 
int]e/ on ! loan4 ,! borr[] %all be     
entitl$ 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 )   
section #dfj;,a1 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 9 ! case ( a borr[]
 ( a loan fir/ disburs$ be=e ,july #a1  
#bjah1 or a repaym5t plan describ$ 9    
p>agraph 7#b77;,a7 9 ! case ( a borr[] (
 a loans fir/ disburs$ on or aft] ,july 
#a1 #bjah4  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 ,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 #bjah1 _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               
#dfj;,a7a77#b771 may provide ! borr[] ! 
option to enroll 9 ! repaym5t plan      
describ$ 9 p>agraph 7#b77;,b74  7#f7    
,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$]al ,direct ,loan on or aft]     
,july #a1 #bjah4  7,b7 ,exception ,!    
repaym5t plans available to a borr[] ( a
 ,f$]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$]al 
,direct ,,plus ,loan made on behalf ( a 
dep5d5t /ud5t or a loan "u section      
#dbh;,b made on behalf ( a dep5d5t /ud5t
 on or aft] ,july #a1 #bjah1 %all be ^? 
describ$ "u subp>agraphs 7,a71 7,b71 &  
7,c7 ( p>agraph 7#a74  4  #c4           
,income-bas$ repaym5t = new borr[]s &   
new loans ,"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  #dfj;,a4 ,income-bas$    
repaym5t plan  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 #bjah1   
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 #bjah4  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-bas$ calculation ,! t]m         
income-bas$ calculation means #ae p]c5t 
( ! result obta9$ by calculat+1 on at   
lea/ an annual basis1 ! am\nt by :i*--  
7,a7 ! borr[]'s1 & ! borr[]'s sp\se's   
7if applicable71 adju/$ gross income2   
exce$s1 z def9$ by ! ,secret>y2 exce$s  
7,b7 #aej p]c5t ( ! pov]ty l9e          
applicable to ! borr[]'s family size z  
det]m9$ "u section #fgc7b7 ( !          

,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b774  7b7 ,revis$  
income-,bas$ plan ,not)/&+ any o!r      
provision ( ?is ,act1 ! ,secret>y %all  
c>ry out a program = new borr[]s & any  
borr[]s ( cov]$ ,f$]al ,direct ,loans   
made on or aft] ,july #a1 #bjah1 t meets
 ! foll[+ requirem5ts3  7#a7 ,mon?ly    
paym5t am\nt ,except z o!rwise provid$ 9
 ?is subsection1 a new borr[] ( any     
cov]$ ,f$]al ,direct ,loan1 or any      
borr[] ( any cov]$ ,f$]al ,direct ,loan1
 may elect to h ! borr[]'s aggregate    
mon?ly paym5t = all su* loans n to exce$
 ! result ( ! income-bas$ calculation   
divid$ by #ab4  7#b7 ,application (     
paym5t ,! ,secret>y %all apply !        
borr[]'s mon?ly paym5t "u ?is subsection
 on su* a loan fir/ t[>d int]e/ due on !
 loan1 next t[>d any fees due on ! loan1
 & !n t[>d ! pr9cipal ( ! loan4  7#c7   
,int]e/  7,a7 ,9 g5]al ,subject to      
subp>agraph 7,b71 if ! borr[]'s mon?ly  
paym5t am\nt "u p>agraph 7#a7 is n      
suffici5t to pay ! accru$ int]e/ on !   

borr[]'s loan1 su* int]e/ %all be paid  
by ! borr[] or be capitaliz$4  7,b7 ,no 
accrual ( int]e/ aft] #aj ye>s ,not)/&+ 
section #dee7;b77#h7 or any o!r         
provision ( ?is title1 int]e/ %all cease
 accru+ on a loan be+ repaid "u ?is     
subsection1 aft] ! borr[] has made      
paym5ts "u ?is subsection on su* loan 9 
an am\nt equal to--  7i7 ! am\nt !      
borr[] w\ld h repaid "u                 
#dee7;d77#a77;,a7 on su* loan1 bas$ on a
 #aj-ye> repaym5t p]iod1 :5 ! borr[]    
fir/ made ! election describ$ 9 ?is     
subsection1 plus  7ii7 ! am\nt ( any    
int]e/ t accru$ 7or 0 capitaliz$7 dur+ a
 =be>ance or def]m5t p]iod or any simil>
 p]iod1 on ! portion ( ! loan t 0 be+   
repaid 9 accordance ) clause 7i74  7#d7 
,selection ( diff]5t repaym5t plan ,a   
borr[] :o no long] wi%es to repay "u !  
plan "u ?is section may *ange to a /&>d 
repaym5t plan 9 accordance ) section    
#dee7;d77#c74  7c7 ,eligibility         
det]m9ations ,! ,secret>y %all e/abli%  
proc$ures = annually det]m9+ ! borr[]'s 

eligibility = income-bas$ repaym5t1     
includ+ v]ification ( a borr[]'s annual 
income & ! annual am\nt due on ! total  
am\nt ( cov]$ ,f$]al ,direct ,loans1 &  
su* o!r proc$ures z are necess>y to     
effectively implem5t income-bas$        
repaym5t "u ?is section4 ,! ,secret>y   
%all consid]1 b is n limit$ to1 !       
proc$ures e/abli%$ 9 accordance )       
section #dee7;e77#a7 or section #dic;,c1
 or 9 connection ) income s5sitive      
repaym5t s*$ules "u section             
#dbh7;b77#i77;,a77iii7 or               
#dbh;,c7b77#a77;,e74  7d7 ,special rule 
= m>ri$ borr[]s fil+ sep>ately ,9 ! case
 ( a m>ri$ borr[] :o files a sep>ate    
,f$]al income tax return1 ! ,secret>y   
%all calculate ! am\nt ( ! borr[]'s     
income-bas$ repaym5t "u ?is section     
solely on ! basis ( ! borr[]'s /ud5t    
loan debt & adju/$ gross income4  4