,i #aafth ,,congress #ast ,session ,h4 ,r4 #bjfe ,,in ,,the ,,house ,,of ,,representatives ,april #c1 #bjai ,ms4 ,de,lauro introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committees on ,ways and ,means1 and ,financial ,services1 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 in order to increase usage of the ,federal student loan income-based repayment plan and improve repayment options for borrowers1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,affordable ,loans for ,any ,student ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,references in ,act4 ,,title ,i--,simplifying repayment plans ,sec4 #aja4 ,income-based repayment plan4 ,sec4 #ajb4 ,fixed repayment plan4 ,sec4 #ajc4 ,termination of certain repayment plan options4 ,sec4 #ajd4 ,providing incentives to switch into simplified repayment plans4 ,sec4 #aje4 ,automatic recertification of income4 ,sec4 #ajf4 ,disclosure of tax return information to carry out certain higher education loan programs4 ,sec4 #ajg4 ,study and procedures on determining family size4 ,,title ,,ii--,ending interest capitalization and origination fees ,sec4 #bja4 ,ending interest capitalization for ,federal ,direct ,loans4 ,sec4 #bjb4 ,elimination of origination fees for ,federal ,direct ,loans4 ,,title ,,iii--,providing assistance in situations of borrower distress ,sec4 #cja4 ,limits on seizing income for debt relating to ,federal student loans4 ,sec4 #cjb4 ,allowing for multiple loan rehabilitations4 ,sec4 #cjc4 ,pause payment process4 ,sec4 #cjd4 ,automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans4 ,sec4 #cje4 ,separating joint consolidation loans4 ,sec4 #cjf4 ,removing the collection cost requirement4 ,,title ,,iv--,improving loan information and counseling ,sec4 #dja4 ,student loan contract2 simplifying loan disclosures4 ,sec4 #djb4 ,annual and pre-loan information and counseling requirements4 ,sec4 #djc4 ,exit counseling4 ,sec4 #djd4 ,online counseling tools4 ,sec4 #dje4 ,private education loan certification and information4 ,,title ,v--,effective date2 transition ,sec4 #eja4 ,effective date2 rulemaking regarding termination of certain repayment plans4 #b4 ,references in ,act ,except as otherwise expressly provided in this ,act1 wherever an amendment or repeal is expressed in terms of an amendment to or repeal of a section or other provision1 the reference shall be considered to be made to that section or other provision of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq474 ,i ,simplifying repayment plans #aja4 ,income-based repayment plan 7a7 ,simplifying the income-,based repayment plan ,section #dic;,c 7#bj ,u4,s4,c4 #ajih;e7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by striking ,income-,based repayment program authorized4-- and inserting the following3 ,income-,based repayment program for borrowers who enter income-,based repayment before ,july #a1 #bjbj4--2 7,b7 in paragraph 7#c77;,a71 by striking except that and all that follows through section #dce7o72 and 7,c7 in paragraph 7#h71 by striking the standard repayment plan2 and inserting the fixed repayment plan under section #dic;,e22 and 7#b7 by striking subsection 7c7 and inserting the following3 7c7 ,income-,based repayment program for new loans ,on and after ,july #a1 #bjbj and for borrowers who enter income-,based repayment after ,july #a1 #bjbj 7#a7 ,in ,general ,notwithstanding any other provision of this section1 the provisions of this subsection shall apply-- 7,a7 with respect to any loan made1 insured1 or guaranteed under part ,b or ,d on or after ,july #a1 #bjbj1 for which the borrower elects the income-based repayment plan under this section2 and 7,b7 with respect to any loan made1 insured1 or guaranteed under part ,b or ,d before ,july #a1 #bjbj1 if such borrower elects to repay the loan under the income-based repayment plan on or after ,july #a1 #bjbj1 in accordance with paragraph 7#c7 and section #dbh7;b77#a77;,d77ii7 or #dee7;d77#g71 as applicable4 7#b7 ,special terms ,with respect to a loan described in paragraph 7#a71 the following terms shall apply to the income-based repayment plan carried out under this section3 7,a7 7i7 ,notwithstanding subsection 7a77#c77;,b71 7b71 or 7e7-- 7,i7 the annual 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-- 7aa7 the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income2 exceeds 7bb7 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 #iijb7b772 and 7,,ii7 a borrower's monthly payment shall be determined in accordance with subclause 7,i7 divided by #ab1 which amount may exceed the monthly repayment amount under a standard #aj-year repayment plan or a fixed repayment plan described in section #dic;,e4 7ii7 ,for purposes of clause 7i71 the term applicable percentage means #bej percent reduced by #e percentage points for each #a1jjj by which the borrower's adjusted gross income exceeds #abj1jjj4 7,b7 ,notwithstanding subsection 7e77#b71 subsection 7b77#g77;,b7 shall be applied by substituting #bj years for #be years4 7,c7 ,notwithstanding subparagraph 7,a7 of subsection 7b77#f71 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 section regardless of income level1 with the repayment amount calculated under subparagraph 7,a74 7,d7 ,notwithstanding subsection 7b71 a borrower of an excepted ,,plus loan or excepted consolidation loan may elect the income-based repayment plan under this subsection for the excepted ,,plus loan or excepted consolidation loan1 and the ,secretary shall treat such loan for purposes only of the repayment terms as a ,federal ,direct ,,plus ,loan issued to a student borrower4 ,the ,secretary may issue rules and regulations1 as the ,secretary determines necessary1 regarding the treatment of excepted ,,plus loans or excepted consolidation loans that are to be repaid under an income-based repayment plan under this subsection4 7#c7 ,rule for borrowers in income-based repayment before ,july #a1 #bjbj ,a borrower of a loan made1 insured1 or guaranteed under part ,b or ,d who enrolled in the income-based repayment plan under subsection 7b71 as such plan was in effect on ,july #a1 #bjbj1 may choose to retain such repayment plan or elect to enter an income-based repayment plan under this subsection or a fixed repayment plan described in section #dic;,e1 as provided in section #dbh7;b77#a77;,d77ii7 or #dee7;d77#g7 7as applicable74 7#d7 ,interest payments and accrual ,notwithstanding any other provision of this ,act1 if a borrower's monthly payment for a loan under an income-based repayment plan under this subsection is insufficient to pay the accrued interest on the borrower's loan for such month-- 7,a7 in the case of a subsidized loan 7including the portion of a consolidated loan that is a subsidized loan71 any interest due and not paid under subsection 7b77#b7 on the subsidized loan for that month shall be paid or forgiven by the ,secretary1 except that a borrower of a subsidized loan shall only receive the benefits of this subparagraph for such loan for #cf months of payments under the income-based repayment plan1 excluding any period of pause payment under section #dfj;,b2 and 7,b7 in the case of an unsubsidized loan or a subsidized loan that no longer qualifies under subparagraph 7,a71 #ej percent of the interest not covered by the borrower's monthly payment shall be paid or forgiven by the ,secretary and the amount of the remaining interest shall be added to the balance of interest due on the loan1 but shall not be capitalized4 7#e7 ,written1 electronic1 or verbal enrollment in income-based repayment 7,a7 ,in general ,a borrower of a loan made under this part may elect to repay such loan under the income-based repayment plan under this subsection by providing written1 electronic1 or verbal notice to the ,secretary of the borrower's desire to make such election1 subject to subparagraph 7,c74 7,b7 ,use of information 7i7 ,in general ,the estimated monthly payment amount under this section for a loan for a borrower who makes an election described in subparagraph 7,a7 shall be immediately calculated using the income and family size information provided through the borrower's written1 electronic1 or verbal statement4 7ii7 ,verification ,the information described in clause 7i7 shall be verified by the ,secretary not later than #ij days after the date the borrower states such income and family size information4 ,if the ,secretary is unable to verify the information by the end of the #ij-;day period1 the borrower's payment after such #ij-;day period will be the amount applicable under the fixed repayment plan under section #dic;,e4 7iii7 ,adjustment if necessary ,upon verification by the ,secretary under clause 7ii71 the ,secretary shall adjust the estimated monthly payment described in clause 7i7 based on the verified income and family size information of the borrower1 if necessary4 ,any adjusted monthly payment shall take effect beginning with the payment due not less than #fj days after the ,secretary notifies the borrower of the adjusted amount4 ,the ,secretary shall consider any payments made prior to the adjusted monthly payment as having satisfied the amount due to qualify toward loan cancellation or forgiveness options under this title4 7,c7 ,limitation ,the ,secretary shall permit a borrower to make an election of income-based repayment in the written1 electronic1 or verbal manner described in subparagraph 7,a7 only in connection with the first instance of each of the following3 7i7 ,the borrower's selection of a repayment plan during the grace period for such loan4 7ii7 ,the borrower changing from the fixed repayment plan under section #dic;,e to income-based repayment4 7iii7 ,the borrower's failure to complete the verification process described in subparagraph 7,b77ii74 7iv7 ,the borrower's failure to recertify enrollment in income-based repayment under this subsection4 4 7b7 ,including income of spouses ,subsection 7d7 of section #dic;,c 7#bj ,u4,s4,c4 #ajih;e7d77 is amended to read as follows3 7d7 ,calculation of adjusted gross income for married borrowers ,the ,secretary shall calculate the adjusted gross income of a married borrower under this section-- 7#a7 in the case of a married borrower and spouse who jointly file a ,federal income tax return1 based on the adjusted gross income of the borrower and spouse as reported on the ,federal income tax return2 and 7#b7 in the case of a married borrower who files a ,federal income tax return separately from the borrower's spouse1 based on the sum of the adjusted gross income of the borrower and the spouse1 as reported on the applicable ,federal income tax returns1 unless the borrower certifies1 on a form approved by the ,secretary1 that the borrower is-- 7,a7 separated from the borrower's spouse2 or 7,b7 unable to reasonably access the income information of the borrower's spouse4 4 #ajb4 ,fixed repayment plan ,part ,g of title ,,iv 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 part ,d on or after ,july #a1 #bjbj1 and a borrower who is in repayment on a loan made1 insured1 or guaranteed under part ,b or ,d before ,july #a1 #bjbj1 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 shall repay each loan described in subsection 7a7 with a fixed monthly repayment amount paid over a period of #aj years1 subject to subsection 7c74 7c7 ,special rules 7#a7 ,minimum ,if a borrower's monthly payment under this section 7except for the final payment on the loan7 is less than #be1 the ,secretary shall establish the borrower's monthly payment as #be4 7#b7 ,alternative minimum payments ,notwithstanding paragraph 7#a71 the ,secretary may accept an alternative minimum payment amount1 which may include an amount of less than #be1 to account for a borrower's exceptional circumstances4 4 #ajc4 ,termination of certain repayment plan options 7a7 ,,ffel program repayment plan options ,section #dbh7;b7 7#bj ,u4,s4,c4 #ajgh7;b77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,d7-- 7i7 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 #bjbj1 change the selection of a repayment plan under this part or part ,g to one of the #b repayment plans described in paragraph 7#i77;,c712 and 7ii7 in clause 7iii71 by inserting or1 in the case of a default that occurs after ,july #a1 #bjbj1 be subject to income-based repayment in accordance with section #dic;,c7c7 before the semicolon at the end2 7,b7 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 an applicable repayment plan described in paragraph 7#i77;,c72 and 7,c7 by striking subparagraph 7,l72 and 7#b7 in paragraph 7#i7-- 7,a7 in subparagraph 7,a7-- 7i7 in the subparagraph heading1 by inserting before ,july #a1 #bjbj after selection2 and 7ii7 in the matter preceding clause 7i7-- 7,i7 by inserting or subparagraph 7,c71 as applicable1 after this subparagraph2 and 7,,ii7 by striking ,the borrower and inserting ,before ,july #a1 #bjbj1 the borrower2 7,b7 in subparagraph 7,b71 by inserting before the period at the end or1 for a borrower entering repayment after ,july #a1 #bjbj1 the lender shall provide the borrower with the fixed repayment plan described in section #dic;,e2 and 7,c7 by adding at the end the following3 7,c7 ,selection of repayment plans on and after ,july #a1 #bjbj ,notwithstanding any other provision of law1 and in accordance with regulations promulgated1 beginning on ,july #a1 #bjbj1 a lender shall offer a borrower of a loan made1 insured1 or guaranteed under this part the opportunity to change repayment plans at any time after ,july #a1 #bjbj1 and then not more than once per calendar year thereafter4 ,the borrower may choose between the following repayment plans3 7i7 ,a fixed repayment plan described in section #dic;,e4 7ii7 ,the income-based repayment plan under section #dic;,c7c74 4 7b7 ,federal ,direct ,loan program repayment plan options ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d77 is amended-- 7#a7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f71 respectively2 7#b7 in paragraph 7#a7-- 7,a7 in the paragraph heading1 by inserting before ,july #a1 #bjbj after selection2 and 7,b7 in the matter preceding subparagraph 7,a71 by inserting that enters repayment before ,july #a1 #bjbj1 before a variety2 7#c7 by inserting after paragraph 7#a7 the following3 7#b7 ,design and selection beginning ,july #a1 #bjbj 7,a7 ,in ,general ,notwithstanding paragraph 7#a71 for any borrower of a loan made under this part that enters repayment on or after ,july #a1 #bjbj1 and for any borrower subject to paragraph 7#g71 the ,secretary shall offer the borrower a choice between the following #b plans for repayment of such loan1 including principal and interest on the loan4 ,the borrower may choose-- 7i7 a fixed repayment plan described in section #dic;,e2 or 7ii7 an income-based repayment plan under section #dic;,c7c74 7,b7 ,acceleration ,a borrower in repayment shall be entitled to accelerate1 without penalty1 repayment on the borrower's loans under this part4 7,c7 ,selection by the ,secretary ,if a borrower of a loan made under this part that enters repayment on or after ,july #a1 #bjbj1 does not select a repayment plan described in subparagraph 7,a7 before the first payment on such loan is due1 the ,secretary shall provide the borrower with a fixed repayment plan described in section #dic;,e4 7,d7 ,changes in selections ,a borrower of a loan made under this part that enters repayment or on after ,july #a1 #bjbj1 may change the borrower's selection of a repayment plan in accordance with subparagraphs 7,b7 and 7,c7 of paragraph 7#g74 7,e7 ,borrower in default ,beginning on ,july #a1 #bjbj1 in lieu of the requirements of paragraph 7#f71 the ,secretary may require any borrower who has defaulted on a loan made under this part on or after ,july #a1 #bjbj1 to repay the loan pursuant to an income-based repayment plan under section #dic;,c7c74 2 and 7#d7 by adding at the end the following3 7#g7 ,borrowers of loans made before ,july #a1 #bjbj ,a borrower who is in repayment on a loan made under this part before ,july #a1 #bjbj-- 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 an income-based repayment plan under section #dic;,c7c72 7ii7 enter a fixed repayment plan described in section #dic;,e2 or 7iii7 switch between the repayment plans described in clauses 7i7 and 7ii72 7,c7 after switching to a repayment plan described in clause 7i7 or 7ii7 of subparagraph 7,b71 shall not be permitted to select a repayment plan not described in subparagraph 7,b7 for the loan2 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#g771 any payments on such loan under another income-based or income-contingent repayment plan under this title that would otherwise be qualifying4 4 7c7 ,conforming amendment ,section #dcc7;b77#g77;,b7 7#bj ,u4,s4,c4 #ajhc7;b77#g77;,b77 is amended by striking on a standard repayment plan and inserting 1 in the case of a borrower who has not selected a repayment plan1 on the repayment plan designated under subparagraph 7,b7 of section #dbh7;b77#i74 #ajd4 ,providing incentives to switch into simplified repayment plans 7a7 ,enabling consolidation in order ,to simplify repayment ,section #dee7;g7 7#bj ,u4,s4,c4 #ajhg;e7g77 is amended-- 7#a7 by striking ,loans4-- and all that follows through ,a borrower of and inserting the following3 ,loans4-- 7#a7 ,in general ,a borrower of 2 7#b7 by striking the second sentence2 and 7#c7 by adding at the end the following3 7#b7 ,eligibility ,to be eligible for a ,federal ,direct ,consolidation ,loan under this part1 a borrower shall meet the eligibility criteria set forth in section #dbh;,c7a77#c71 except that1 notwithstanding section #dbh;,c7a77#c77;,b71 a borrower may obtain a ,federal ,direct ,consolidation ,loan if the borrower-- 7,a7 obtains the ,federal ,direct ,consolidation ,loan for the purpose of-- 7i7 selecting the income-based repayment plan under section #dic;,c7c7 or fixed-income repayment plan under section #die;,e2 or 7ii7 participating in the pause payment process under section #dfj;,b2 and 7,b7 meets the requirements of section #dbh;,c7a77#c77;,a74 4 7b7 ,incentives for simplified repayment plans ,part ,g of title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq471 as amended by section #ajb1 is further amended by adding at the end the following3 #dic;,f4 ,incentives for simplified repayment plans 7a7 ,in general ,to facilitate the transition of borrowers to simplified repayment plan options1 the ,secretary shall reduce the interest rate applicable under section #dee7;b7 or #dbg;,a to a loan under part ,b or ,d held by a borrower as of ,july #a1 #bjbj1 by #ajj basis points 7or the equivalent71 if the borrower of the loan1 after the effective date of the ,affordable ,loans for ,any ,student ,act-- 7#a7 changes from a repayment plan described in subparagraphs 7,a7 through 7,e7 of section #dee7;d77#a7 for such loan to an income-based repayment plan under section #dic;,c7c7 or a fixed repayment plan under section #dic;,e2 or 7#b7 consolidates #a or more loans under this title1 or described in section #dbh;,c7a77#d71 that were under a repayment plan described in subparagraphs 7,a7 through 7,e7 of section #dee7;d77#a71 or clauses 7i7 through 7v7 of section #dbh7;b77#i71 into a ,federal ,direct ,consolidation ,loan and selects an income-based repayment plan under section #dic;,c7c7 or a fixed repayment plan under section #dic;,e for the loan4 7b7 ,limitation ,the interest rate for a loan eligible for the incentive under subsection 7a7 may be reduced only once under this section4 7c7 ,regulations ,the ,secretary shall promulgate rules carrying out the incentive program established under this section4 4 #aje4 ,automatic recertification of income 7a7 ,income-,based repayment ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended by adding at the end the following3 7f7 ,eligibility determinations and automatic recertification 7#a7 ,in general ,beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #ajg of the ,affordable ,loans for ,any ,student ,act1 the ,secretary shall establish and implement1 with respect to any borrower described in paragraph 7#b71 procedures to-- 7,a7 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 such section #ajg1 subject to subparagraph 7,b72 7,b7 allow the borrower1 at any time1 to opt out of subparagraph 7,a7 and prevent the ,secretary from obtaining information under such subparagraph without further action by the borrower2 7,c7 provide the borrower with an opportunity to update the information obtained under subparagraph 7,a7 before the determination of the annual repayment obligation of the borrower2 and 7,d7 in the case of a borrower for whom adjusted gross income is unavailable 7except as provided in paragraph 7#b77;,b771 ensure that the borrower will not be required to provide the ,secretary with other documentation of income and provide the borrower with a calculated monthly payment of #j4 7#b7 ,applicability 7,a7 ,in general ,paragraph 7#a7 shall apply to each borrower of a loan made under this part who1 on or after the date on which the ,secretary establishes procedures under such paragraph-- 7i7 selects1 or for whom the ,secretary selected under subparagraphs 7,c7 or 7,d7 of paragraph 7#h71 or paragraph 7#i71 of subsection 7d71 or section #dbh7m77#a71 an income-based repayment plan2 or 7ii7 recertifies income and family size under such plan4 7,b7 ,eligibility exception ,a borrower for whom adjusted gross income is unavailable because the borrower has been granted an extension on filing the borrower's income taxes or is undergoing an audit or examination by the ,internal ,revenue ,service shall not automatically be eligible for the calculated monthly payment of #j in accordance with paragraph 7#a77;,d7 during such period4 ,when the extension1 audit1 or examination is completed1 the ,secretary shall resume consideration of the borrower for automatic recertification under the procedures described in paragraph 7#a71 including subparagraph 7,d7 of such paragraph 7if applicable74 7#c7 ,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 paragraph 7#a77;,a7 only to the extent authorized by section #fajc7l77#ac7 of such ,code4 4 7b7 ,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#c71 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 ,in general ,beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #ajg of the ,affordable ,loans for ,any ,student ,act1 the ,secretary shall establish and implement procedures that allow the automatic recertification of income with respect to borrowers described in subparagraph 7,b74 ,such procedures shall1 to the extent practicable1 be the same procedures described in section #dic;,c7f74 7,b7 ,applicability ,subparagraph 7,a7 shall apply to each borrower of a loan made under this part-- 7i7 who1 on or after the date on which the ,secretary establishes procedures under such subparagraph1 applies to recertify income and family size under such plan2 or 7ii7 for whom the ,secretary selected an income-contingent repayment plan under section #dbh7m77#a74 7,c7 ,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,a7 only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,d7 ,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 #ajf4 ,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 return information to carry out the ,higher ,education ,act of #aife 7,a7 ,income-contingent or income-based repayment and total and permanent disability discharge ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to officers1 employees1 and contractors of the ,department of ,education1 as specifically authorized and designated by the ,secretary of ,education1 only for the purpose of 7and to the extent necessary in7 establishing1 renewing1 administering1 and conducting analyses and forecasts for estimating costs related to income-contingent or income-based repayment programs1 and the discharge of loans based on a total and permanent disability 7within the meaning of section #dcg7;a7 of the ,higher ,education ,act of #aife71 under title ,,iv of the ,higher ,education ,act of #aife1 the following return information 7as defined in subsection 7b77#b77 with respect to taxpayers identified by the ,secretary of ,education as participating in the loan programs under title ,,iv of such ,act1 for taxable years specified by such ,secretary3 7i7 ,taxpayer identity information with respect to such taxpayer4 7ii7 ,the filing status of such taxpayer4 7iii7 ,type of tax return from which the return information is provided4 7iv7 ,the adjusted gross income of such taxpayer4 7v7 ,total number of exemptions claimed1 or total number of individuals and dependents claimed1 as applicable1 on the return4 7vi7 ,number of children with respect to which tax credits under section #bd are claimed on the return4 7vii7 ,other information determined to be necessary by agreement between the ,secretary and the ,secretary of ,education to administer the ,federal financial aid programs as required by the ,higher ,education ,act of #aife4 7,b7 ,federal student financial aid ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to officers1 employees1 and contractors of the ,department of ,education1 as specifically authorized and designated by the ,secretary of ,education1 only for the purpose of 7and to the extent necessary in7 determining eligibility for1 and amount of1 ,federal student financial aid under programs authorized by title ,,iv of the ,higher ,education ,act of #aife and conducting analyses and forecasts for estimating costs related to such programs1 the following return information 7as defined in subsection 7b77#b77 with respect to taxpayers identified by the ,secretary of ,education as applicants for ,federal student financial aid under title ,,iv of such ,act1 for taxable years specified by such ,secretary3 7i7 ,taxpayer identity information with respect to such taxpayer4 7ii7 ,the filing status of such taxpayer4 7iii7 ,type of tax return from which the return information is provided4 7iv7 ,the adjusted gross income of such taxpayer4 7v7 ,the amount of any net earnings from self-employment 7as defined in section #adjb71 wages 7as defined in section #caba7;a7 or #cdja7;a771 and taxable income from a farming business 7as defined in section #bcf;,a7e77#d77 for the period reported on the return4 7vi7 ,the total income tax of such taxpayer4 7vii7 ,total number of exemptions claimed1 or total number of individuals and dependents claimed1 as applicable1 on the return4 7viii7 ,number of children with respect to which tax credits under section #bd are claimed on the return4 7ix7 ,amount of any credit claimed under section #be;,a for the taxable year4 7x7 ,amount of individual retirement account distributions not included in adjusted gross income for the taxable year4 7xi7 ,amount of individual retirement account contributions and payments to self-employed ,,sep1 ,keogh1 and other qualified plans which were deducted from income for the taxable year4 7xii7 ,the amount of tax-exempt interest4 7xiii7 ,amounts from retirement pensions and annuities not included in adjusted gross income for the taxable year4 7xiv7 ,if applicable1 the fact that there is no return filed for such taxpayer for the applicable year4 7xv7 ,other information determined to be necessary by agreement between the ,secretary and the ,secretary of ,education to administer the ,federal financial aid programs as required by the ,higher ,education ,act of #aife4 7,c7 ,restriction on use of disclosed information 7i7 ,in general ,return information disclosed under subparagraphs 7,a7 and 7,b7 may be used by officers1 employees1 and contractors of the ,department of ,education1 as specifically authorized and designated by the ,secretary of ,education1 only for the purposes and to the extent necessary described in such subparagraphs and for mitigating risks 7as defined in clause 7ii77 relating to the programs described in such subparagraphs4 7ii7 ,mitigating risks ,for purposes of this subparagraph1 the term mitigating risks means1 with respect to the programs described in subparagraphs 7,a7 and 7,b7-- 7,i7 analyzing or estimating costs associated with potential changes to the need-analysis formula1 7,,ii7 oversight activities by the ,office of ,inspector ,general of the ,department of ,education as authorized by the ,inspector ,general ,act of #aigh1 as amended1 7,,iii7 developing or administering statistical models that inform support to populations of ,federal student loan borrowers who are at risk of default or delinquency1 7,,iv7 reducing the net cost of improper payments to ,federal financial aid recipients1 and 7,v7 producing aggregate statistics for reporting1 research1 or consumer information on the performance of programs or institutions of higher education participating in the programs under title ,,iv of the ,higher ,education ,act of #aife4 ,such term does not include the conduct of criminal investigations or prosecutions4 7iii7 ,redisclosure to institutions of higher education1 ,state higher education agencies1 and designated scholarship organizations ,the ,secretary of ,education1 and officers1 employees1 and contractors of the ,department of ,education1 may disclose return information received under subparagraph 7,b71 solely for the use in the application1 award1 and administration of ,federal student financial aid1 ,state aid1 or aid awarded by eligible institutions or such entities as the ,secretary of ,education may designate1 to the following persons3 7,i7 ,an institution of higher education with which the ,secretary of ,education has an agreement under subpart #a of part ,a1 or part ,d or ,e1 of title ,,iv of the ,higher ,education ,act of #aife4 7,,ii7 ,a ,state higher education agency4 7,,iii7 ,a scholarship organization which is designated by the ,secretary of ,education as of the effective date of the ,affordable ,loans for ,any ,student ,act as an organization eligible to receive the information provided under this clause4 ,the preceding sentence shall only apply to the extent that the taxpayer with respect to whom the return information relates provides consent for such disclosure to the ,secretary of ,education as part of the application for ,federal student financial aid under title ,,iv of the ,higher ,education ,act of #aife4 7,d7 ,required notification periods 7i7 ,notification to congress ,the ,secretary and the ,secretary of ,education shall issue joint notifications to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives not less than #abj days prior to the first disclosure of any type of return information under subparagraph 7,a77vii7 or 7,b77xv7 with respect to which such a notification has not been previously made4 7ii7 ,public notice and comment ,there shall be a public notice and comment period beginning not less than #fj days prior to the first disclosure of any type of return information under subparagraph 7,a77vii7 or 7,b77xv7 with respect to which such a notification has not been previously made1 subsequent to the period allotted for ,congressional comment under clause 7i74 4 7b7 ,confidentiality of return information ,section #fajc7;a77#c7 of such ,code is amended by inserting 1 7#ac77;,a71 7#ac77;,b7 after 7#ab74 7c7 ,conforming amendments ,section #fajc7p77#d7 of such ,code is amended-- 7#a7 by inserting 7,a71 7#ac77;,b7 after 7#ac7 each place it occurs1 and 7#b7 by inserting 1 7#ac77;,a71 7#ac77;,b7 after 7l77#aj7 each place it occurs4 7d7 ,effective date ,the amendments made by this section shall apply to disclosures made under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf 7as amended by this section7 after the date of the enactment of this ,act4 7e7 ,in general ,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 #did4 ,notification of request for tax return information ,the ,secretary shall advise students and borrowers who submit an application for ,federal student financial aid under this title or for the discharge of a loan based on permanent and total disability1 as described in section #dcg7;a71 or who request an income-contingent or income-based repayment plan on their loan 7as well as parents and spouses who sign such an application or request or a ,master ,promissory ,note on behalf of those students and borrowers7 that the ,secretary has the authority to request that the ,internal ,revenue ,service disclose their tax return information 7as well as that of parents and spouses who sign such an application or request or a ,master ,promissory ,note on behalf of those students and borrowers7 to officers1 employees1 and contractors of the ,department of ,education as authorized under section #fajc7a77ac7 of the ,internal ,revenue ,code of #aihf1 to the extent necessary for the ,secretary to carry out this title4 4 7f7 ,conforming amendment ,section #dhd7q7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia7q77 is amended to read as follows3 7q7 reserved 4 7g7 ,effective date ,the amendments made by this section shall apply to disclosures made after the date of enactment of this ,act4 #ajg4 ,study and procedures on determining family size 7a7 ,in general ,the ,secretary of ,education1 acting jointly with the ,secretary of the ,treasury1 shall-- 7#a7 not later than #a year after the date of enactment of this ,act1 publish1 in the ,federal ,register1 notice of the ,secretary's intent to conduct a study on the effect of using data from the ,internal ,revenue ,service such as personal exemptions1 filing status1 or child tax credits1 as proxies for family size in an income-driven repayment plan1 and invite public comment regarding the study2 7#b7 after reviewing any public comments provided under paragraph 7#a71 conduct the study and publish the results of the study in the ,federal ,register2 7#c7 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#d7 publish the procedures developed under paragraph 7#c7 in the ,federal ,register2 and 7#e7 after a notice and comment period on such procedures1 use such comments to finalize the procedures4 7b7 ,specifications ,the study conducted under subsection 7a7 shall-- 7#a7 be completed1 with the results published pursuant to subsection 7a77#b71 not later than #c years after the date of enactment of this ,act2 7#b7 determine how closely personal exemptions1 filing status1 or child tax credits match the family size that borrowers report on their income-driven repayment plan request form2 7#c7 compare the borrower's actual monthly payment amount with the monthly payment amount borrowers would have using family size information derived from tax returns2 7#d7 include data from tax year #bjah or later tax years2 and 7#e7 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 #fajc7l77#ac77;,f7 of the ,internal ,revenue ,code of #aihf1 as amended by section #ajf4 ,,ii ,ending interest capitalization and origination fees #bja4 ,ending interest capitalization for ,federal ,direct ,loans 7a7 ,in general ,section #dee 7#bj ,u4,s4,c4 #ajhg;e7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in the subsection heading1 by inserting and ,practices after ,rate2 and 7,b7 by adding at the end the following3 7#aa7 ,interest practices 7,a7 ,in general ,beginning on the effective date of the ,affordable ,loans for ,any ,student ,act1 interest on a loan made under this part shall accrue and only be added to the balance of interest due on the loan1 and shall not ever be capitalized4 7,b7 ,no capitalization of interest during in-school or grace periods 7i7 ,in general ,beginning on the effective date of the ,affordable ,loans for ,any ,student ,act1 interest on loans made under this part for which payments of principal are not required during the in-school and grace periods or for which payments are deferred in accordance with sections #dbg7;a77#b77;,c7 and #dbh7;b77#a77,m7 shall accrue and be added to the balance of interest due from the borrower when the loan enters repayment1 but shall not ever be capitalized4 7ii7 ,notice requirement ,the ,secretary shall adjust any forbearance notice required in accordance with section #dbh7;a77#c77;,a77iii7 to reflect the availability of the pause payment process pursuant to section #dfj;,b and the treatment of interest under such section4 7,c7 ,limited retroactivity ,for a borrower of a loan made under this part on or before the effective date of the ,affordable ,loans for ,any ,student ,act that is in a status1 on the day before such effective date1 that involves interest capitalization1 such loan shall have capitalization pro-rated to the effective date of such ,act1 but shall not be subject to further capitalization after the effective date of such ,act4 2 7#b7 in subsection 7e77#e7-- 7,a7 by inserting 7which1 beginning after the effective date of the ,affordable ,loans for ,any ,student ,act1 shall not be capitalized7 after accrued interest2 and 7,b7 by striking the second sentence2 and 7#c7 in subsection 7q77#b71 by striking the second sentence and inserting the following3 ,such interest shall be paid or shall accrue but not be capitalized in accordance with subsection 7b77#aa77;,b744 7b7 ,income-,based repayment plans ,paragraph 7#c77;,b7 of section #dic;,c7b7 7#bj ,u4,s4,c4 #ajih;e7b77#c77;,b77 is amended to read as follows3 7,b7 7i7 beginning on the effective date of the ,affordable ,loans for ,any ,student ,act1 for an eligible loan issued under part ,d or not otherwise described in clause 7ii71 shall not be capitalized and shall be added to the balance of interest due for the loan2 and 7ii7 for an eligible loan made1 insured1 or guaranteed under part ,b and held by a private lender1 shall be added to the principal amount and capitalized at the time the borrower-- 7,i7 ends the election to make income-based repayment under this subsection2 or 7,,ii7 begins making payments of not less than the amount specified in paragraph 7#f77;,a72 4 #bjb4 ,elimination of origination fees for ,federal ,direct ,loans 7a7 ,repeal of origination fees ,subsection 7c7 of section #dee 7#bj ,u4,s4,c4 #ajhg;e7c77 is repealed4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to loans made under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 for which the first disbursement of principal is made1 or1 in the case of a ,federal ,direct ,consolidation ,loan1 the application is received1 on or after ,july #a1 #bjbj4 ,,iii ,providing assistance in situations of borrower distress #cja4 ,limits on seizing income for debt relating to ,federal student loans ,part ,d of title ,,iv 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,limits on seizing income for debt relating to ,federal student loans 7a7 ,definitions ,in this section-- 7#a7 the term adjusted gross income has the meaning given the term in section #fb of the ,internal ,revenue ,code of #aihf2 and 7#b7 the term poverty line means the poverty line 7as defined by the ,office of ,management and ,budget and revised annually in accordance with section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b777 applicable to a family of the size involved4 7b7 ,limitation on collection 7#a7 ,in general ,notwithstanding any other provision of law1 any entity engaged in the collection of debts relating to loans made under this title may not take any action to cause1 or seek to cause1 the collection of such a debt that is taken from the wages1 ,federal benefits1 or other amounts due to a borrower through garnishment1 deduction1 offset1 or seizure in an amount on a monthly basis that is more than the amount described in paragraph 7#b74 7#b7 ,calculation ,the amount described in this paragraph is the amount obtained by calculating what the monthly repayment amount would be for loans made under this title1 with respect to the borrower1 under the income-based repayment plan under section #dic;,c7c74 7#c7 ,presumption ,for purposes of this section1 if an entity described in paragraph 7#a7 is unable to determine the family size of a borrower after taking reasonable steps to collect the information necessary to do so1 that person shall presume that the family size of the borrower is #a individual4 7c7 ,communications ,any communication by an entity described in subsection 7b77#a7 that is for the purpose of seizing income of a consumer for debt that relates to a loan made under this title shall-- 7#a7 be considered-- 7,a7 an attempt to collect a debt2 and 7,b7 conduct in connection with the collection of a debt for the purposes of this title2 and 7#b7 contain a notice to the borrower that1 consistent with the procedures for rehabilitating a loan pursuant to section #dbh;,f7a7 or consolidating loans out of default as described in section #dbh;,c7a77#c77;,b77i77,v71 the borrower may exit default and reenter current repayment status 7as defined in section #dbh7l77#b77;,c77 with a similar monthly payment amount on an income-based repayment plan under section #dic;,c7c7 and thereby obtain the full flexibility and benefits of such status1 including the ability to adjust family size and make qualifying payments for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan 7as described in section #dic;,c7b77#g774 7d7 ,remedies 7#a7 ,first tier ,the ,secretary may impose a civil penalty on an entity for a violation of this section not to exceed #e1jjj for each day during which such violation continues4 7#b7 ,second tier ,notwithstanding paragraph 7#a71 the ,secretary may impose a civil penalty on an entity that recklessly engages in a violation of this section not to exceed #be1jjj for each day during which such violation continues4 7#c7 ,third tier ,notwithstanding paragraphs 7#a7 and 7#b71 the ,secretary may impose a civil penalty on an entity that knowingly violates this section not to exceed #a1jjj1jjj for each day during which such violation continues4 7#d7 ,no exemplary or punitive damages ,nothing in this subsection shall be construed as authorizing the imposition of exemplary or punitive damages4 7#e7 ,entities subject to penalty ,an entity subject to a penalty under this subsection may include a contractor or agent of the ,department4 4 #cjb4 ,allowing for multiple loan rehabilitations 7a7 ,,ffel ,loans ,section #dbh;,f7a77#e7 7#bj ,u4,s4,c4 #ajgh-f7;a77#e77 is amended by striking one time per loan and inserting #b times per loan4 7b7 ,direct ,loans ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d771 as amended by section #ajc1 is further amended by adding at the end the following3 7#h7 ,loan rehabilitation ,in carrying out the process for loan rehabilitation described in section #dbh;,f7a77#e7 with respect to loans made under this part and in accordance with subsection 7a71 the ,secretary shall allow a borrower to obtain the benefits available under such section not more than #b times per loan4 4 #cjc4 ,pause payment process 7a7 ,establishment of pause payment process ,part ,d of title ,,iv 7#bj ,u4,s4,c4 #ajhg;a et seq471 as amended by section #cja1 is further amended by adding at the end the following3 #dfj;,b4 ,pause payment process 7a7 ,in general ,the ,secretary shall establish a single1 streamlined pause payment process available in a single application with respect to loans made under this part that replaces the deferment and forbearance options and their respective applications that are available to borrowers before the effective date of the ,affordable ,loans for ,any ,student ,act and provides temporary relief from repayment of such loans in accordance with this section4 7b7 ,application for relief ,notwithstanding any other provision of this ,act1 a borrower of a loan made under this part that desires to receive temporary relief from repayment with respect to such loan shall request relief in accordance with the pause payment process established by the ,secretary under subsection 7a71 which shall include the options to select a temporary cessation of payments and to make smaller payments than the monthly payments required under the borrower's repayment plan4 7c7 ,pause payment 7#a7 ,in general ,a borrower of a loan made under this part who meets the requirements described in paragraph 7#b7 shall be eligible for a pause payment1 during which periodic installments of principal need not be paid1 and interest-- 7,a7 shall not accrue1 in the case of a-- 7i7 ,federal ,direct ,stafford ,loan2 or 7ii7 a ,federal ,direct ,consolidation ,loan that consolidated only ,federal ,direct ,stafford ,loans1 or a combination of such loans and ,federal ,stafford ,loans for which the student borrower received an interest subsidy under section #dbh2 or 7,b7 shall accrue and be added to the balance of interest due but not be capitalized1 or be paid by the borrower1 in the case of a ,federal ,direct ,,plus ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 or a ,federal ,direct ,consolidation ,loan not described in subparagraph 7,a77ii74 7#b7 ,eligibility ,a borrower of a loan made under this part shall be eligible for a pause payment during any period-- 7,a7 during which-- 7i7 the borrower is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing1 as determined by the eligible institution 7as such term is defined in section #dce7;a77 the student is attending2 or 7ii7 in the case of a parent borrower1 the borrower or the student on whose behalf the loan was borrowed is carrying at least one-half the normal full-time work load1 in accordance with clause 7i72 7,b7 during which the borrower is pursuing a course of study pursuant to a graduate fellowship program approved by the ,secretary2 7,c7 during which the borrower is serving in a medical or dental internship or residency program2 7,d7 during which the borrower is in a rehabilitation training program for individuals with disabilities approved by the ,secretary2 7,e7 during which the borrower-- 7i7 is serving on active duty during a war or other military operation or national emergency and for the #ahj-;day period following the demobilization date for the service2 or 7ii7 qualifies for partial repayment of the borrower's loans under a provision of chapter #aji or #afji of title #aj1 ,united ,states ,code2 7,f7 during which the borrower is performing qualifying ,national ,guard duty during a war or other military operation or national emergency and for the #ahj-;day period following the demobilization date for the service2 7,g7 during which the borrower is serving in-- 7i7 an approved national service position 7as defined in section #aja of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abeaa77 in an ,americorps program 7defined for purposes of this subparagraph as a program carried out under subtitle ,c or ,e of title ,i of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abega et seq41 #abfaa et seq47 or title ,i of the ,domestic ,volunteer ,service ,act of #aigc 7#db ,u4,s4,c4 #diea et seq4772 7ii7 in the ,peace ,corps2 or 7iii7 in a teaching position that would qualify for teacher loan forgiveness under section #dbh;,j2 7,h7 not in excess of #c years during which the ,secretary determines1 in accordance with regulations prescribed under section #dce7o71 that the borrower has experienced or will experience an economic hardship1 such as experiencing financial difficulties1 having unexpected or significant medical expenses1 or being unable to find full-time employment2 7,i7 during which a borrower's ability to make payments1 as determined by the ,secretary1 has been adversely affected by-- 7i7 any major disaster or emergency declared by the ,president under section #dja or #eja1 respectively1 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eagj1 #eaia72 7ii7 a local emergency1 as declared by the appropriate government agency2 or 7iii7 a military mobilization2 7,j7 during which the borrower is awaiting a determination by the ,secretary of the borrower's request for a pause payment1 change in repayment plan1 loan forgiveness or cancellation1 or consolidation loan2 or 7,k7 during which the borrower is experiencing other exceptional circumstances for which pause payment under this section is in the best interest of the borrower1 as determined by the ,secretary through regulation4 4 7b7 ,conforming amendments ,section #dee 7#bj ,u4,s4,c4 #ajhg;e7 is amended-- 7#a7 in subsection 7e77#g77;,b77i71 by striking is in deferment and inserting is under pause payment pursuant to section #dfj;,b2 7#b7 by striking subsection 7f7 and inserting the following3 7f7 reserved 2 and 7#c7 in subsection 7l7-- 7,a7 by striking ,program4-- and all that follows through ,using funds and inserting the following3 ,program4--,using funds2 and 7,b7 by striking paragraph 7#b74 #cjd4 ,automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans 7a7 ,notification and automatic enrollment procedures ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d771 as amended by sections #ajc and #cjb1 is further amended by adding at the end the following3 7#i7 ,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 loan made under this part1 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 loan made under this part 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 loan under this part1 and a description of all delinquent loans under this part1 and nondelinquent loans under this part1 of the borrower4 7ii7 ,a brief description of the repayment plans for which the borrower is eligible and the borrower's loans made under this part1 and loans made1 insured1 or guaranteed under part ,b or ,e1 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 loans made under this part1 and any loans made1 insured1 or guaranteed under part ,b or ,e1 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 the income-based repayment plan under section #dic;,c7c7 for which the borrower is eligible for the borrower's loans made under this part1 based on such income information2 and 7,,ii7 the income1 family size1 tax filing status1 and tax year information on which each the monthly payment is based4 7v7 ,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 loans under this part and has not selected a new repayment plan for the borrower's loans under this part2 and 7,,ii7 in the case of such a borrower whose repayment plan for any loans made under this part is not an income-based repayment plan under section #dic;,c7c71 the monthly payments under such repayment plan are higher than such monthly payments would be under an income-based repayment plan for such loans4 7vi7 ,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 loans made under this part that meets the requirements of clause 7v77,,ii7 of subparagraph 7,b71 who 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 loans made under part ,b or ,e are eligible for an income-based repayment plan under section #dic;,c7c71 provide the borrower with the income-based repayment plan2 and 7ii7 in a case in which none of the borrower's loans made under part ,b or ,e are eligible for an income-based repayment plan under section #dic;,c7c71 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 loan made under this part 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 subparagraph 7,c7 for the borrower's loans made under this part1 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 loan made under this part 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#aj7 ,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 loan made under this part 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 automatic enrollment ,with respect to each borrower who has made the #ith payment required for the loan rehabilitation described in subparagraph 7,a7 and is eligible for the income-based repayment plan under section #dic;,c7c71 the ,secretary shall1 as soon as practicable after such payment1 provide the borrower with the income-based repayment plan4 7,d7 ,opt-out ,a borrower of a loan made under this part 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 7b7 ,effective date ,the amendments made by subsection 7a7 shall-- 7#a7 take effect as soon as the ,secretary of ,education determines practicable after the ,secretary finalizes the procedures under section #ajg2 and 7#b7 apply to all borrowers of loans made under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq474 #cje4 ,separating joint consolidation loans 7a7 ,in general ,section #dee7;g7 7#bj ,u4,s4,c4 #ajhg;e7g771 as amended by section #ajd1 is further amended by adding at the end the following3 7#c7 ,separating joint consolidation loans 7,a7 ,in general ,a married couple1 or #b individuals who were previously a married couple1 and who received a joint consolidation loan as such married couple under subparagraph 7,c7 of section #dbh;,c7a77#c7 7as such subparagraph was in effect on or before ,june #cj1 #bjjf71 may apply to the ,secretary for each individual borrower in the married couple 7or previously married couple7 to receive a separate ,federal ,direct ,consolidation ,loan under this part-- 7i7 that shall-- 7,i7 unless the ,secretary receives notice of an agreement described in subclause 7,,ii77aa71 be equal to the sum of-- 7aa7 the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that1 as of the day before such joint consolidation loan was made1 was attributable to the loans of the individual borrower for whom such separate consolidation loan is being made2 and 7bb7 any other loans described in section #dbh;,c7a77#d7 that such individual borrower selects for consolidation under this part2 or 7,,ii7 be equal to the sum of-- 7aa7 the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that1 as of the date of application under this paragraph1 the married couple 7or previously married couple7 agrees shall be considered attributable to the loans of the individual borrower for whom such separate consolidation loan is being made2 and 7bb7 any other loans described in section #dbh;,c7a77#d7 that such individual borrower selects for consolidation under this part2 7ii7 the proceeds of which shall be paid by the ,secretary to the holder or holders-- 7,i7 of the joint consolidation loan for the purpose of discharging the liability on the percentage of such joint consolidation loan described in subclause 7,i77aa7 or 7,,ii77aa7 of clause 7i72 and 7,,ii7 of the loans selected for consolidation under subclause 7,i77bb7 or 7,,ii77bb7 of clause 7i7 for the purpose of discharging the liability on such loans2 7iii7 except as otherwise provided in this paragraph1 that has the same terms and conditions1 and rate of interest as the joint consolidation loan2 7iv7 for which any payment made under subsection 7m77#a77;,a7 on the joint consolidation loan during a period in which the individual borrower for whom such separate consolidation loan is being made was employed in a public service job described in subsection 7m77#a77;,b7 shall be treated as if such payment were made on such separate consolidation loan2 and 7v7 for which any payment made under an income-contingent repayment plan under subsection 7d77#a77;,d71 or an income-based repayment plan under paragraph 7#a77;,e7 or 7#b77;,a77ii7 of subsection 7d71 on the joint consolidation loan shall be treated as if such payment were made on such separate consolidation loan4 7,b7 ,application for separate direct consolidation loans 7i7 ,joint application ,except as provided in clause 7ii71 to receive separate consolidation loans under subparagraph 7,a71 both individual borrowers in a married couple 7or previously married couple7 shall jointly apply under such subparagraph4 7ii7 ,separate application ,an individual borrower in a married couple 7or previously married couple7 may apply for a separate consolidation loan under subparagraph 7,a7 separately and without regard to whether or when the other individual borrower in the married couple 7or previously married couple7 applies under such subparagraph1 in a case in which-- 7,i7 the individual borrower has experienced from the other individual borrower-- 7aa7 domestic violence 7as defined in section #djjjb7;a7 of the ,violence ,against ,women ,act of #aiid 7#db ,u4,s4,c4 #acibe7;a7772 7bb7 economic abuse 7including behaviors that control such borrower's ability to acquire1 use1 and maintain access to money1 credit1 or the joint financial obligations of both borrowers72 or 7cc7 other exceptional circumstances1 as determined by the ,secretary2 and 7,,ii7 the ,secretary determines that authorizing each individual borrower to apply separately under subparagraph 7,a7 would be in the best fiscal interests of the ,federal ,government1 including by reducing the risk of delinquency or default4 7,c7 ,borrower eligibility ,notwithstanding section #dbh;,c7a77#c77;,a71 the ,secretary shall provide a consolidation loan under this part to each borrower who-- 7i7 applies for such loan under subparagraph 7,a72 and 7ii7 meets the requirements of subparagraphs 7,a7 and 7,b74 7,d7 ,special rule ,notwithstanding any other provision of this title1 an individual who has a joint consolidation loan and wishes for the ,secretary to discharge the loans due to total and permanent disability pursuant to section #dcg7;a71 shall first separate the joint consolidation loan in accordance with this section before the ,secretary may discharge any portion of the loan4 4 7b7 ,conforming amendment ,section #dbh;,c7a77#c77;,b77i77,v7 7#bj ,u4,s4,c4 #ajgh-c7c77;,b77i77,v77 is amended-- 7#a7 by striking or at the end of item 7bb72 7#b7 by striking the period at the end of item 7cc7 and inserting 2 or2 and 7#c7 by adding at the end the following3 7dd7 for the purpose of separating a joint consolidation loan into #b separate ,federal ,direct ,consolidation ,loans under section #dee7;g77#c74 4 #cjf4 ,removing the collection cost requirement 7a7 ,removal of requirement ,section #dhd;,a7b77#a7 7#bj ,u4,s4,c4 #ajia;a7b77#a77 is amended by striking shall be required to pay1 in addition to other charges specified in this title1 reasonable collection costs and inserting shall not be required to pay collection costs4 7b7 ,repayment after default ,section #dee7;d77#f7 7#bj ,u4,s4,c4 #ajhg;e7d77#f771 as redesignated under section #ajc7;b71 is amended by striking to-- and all that follows through the period at the end and inserting to repay the loan pursuant to an income-based repayment plan under section #dic;,c7c744 ,,iv ,improving loan information and counseling #dja4 ,student loan contract2 simplifying loan disclosures 7a7 ,student loan contract ,section #dee 7#bj ,u4,s4,c4 #ajhg;e71 as amended by section #bjb1 is further amended by inserting after subsection 7b7 the following3 7c7 ,student loan contract2 simplifying loan disclosures 7#a7 ,student loan contract 7,a7 ,in general ,any master promissory note form described in section #dcb7m77#a77;,d7 that is developed or used for covered loans shall be referred to as a student loan contract4 7,b7 ,clarification on use ,notwithstanding section #dcb7m77#a77;,d77i71 each student loan contract for a covered loan shall-- 7i7 not be entered into by a student unless the student has completed all required counseling related to such loan1 including counseling required under section #dhe7l72 7ii7 be signed by the student entering such student loan contract after completion of such counseling2 7iii7 be used only for the academic year for which the initial loans are made under the contract and shall be valid for additional loans within an academic year2 and 7iv7 include options for the student to enter both the student's current contact information and permanent contact information that is likely to remain valid upon the student's exit from the institution4 7,c7 ,covered loan 7i7 ,in general ,in this subsection1 the term covered loan means a loan made under this part on or after the effective date of the ,affordable ,loans for ,any ,student ,act1 except with respect to a borrower described in clause 7ii74 7ii7 ,exception ,a borrower is described in this clause if the loan made under this part on or after the effective date of the ,affordable ,loans for ,any ,student ,act with respect to such borrower is for the #bjbj-bjba academic year and the borrower has already taken out a loan under this part 7other than a ,federal ,direct ,consolidation ,loan7 for such academic year 7including any such loan for attendance at another institution from which the student transferred or in which the student had previously enrolled74 7#b7 ,loan disclosures ,for loans made under this part for periods of enrollment beginning on or after the effective date of the ,affordable ,loans for ,any ,student ,act1 the ,secretary shall take such steps as are necessary to streamline the student loan disclosure requirements under this ,act4 ,the ,secretary shall ensure that information required to be disclosed to a student who is applying for1 receiving1 or preparing to repay a loan under this part shall be consumer-tested and delivered in a manner that-- 7,a7 reduces and simplifies the paperwork students are required to complete2 7,b7 limits the number of times a student is presented with disclosures by incorporating the streamlined disclosures into required student loan counseling under section #dhe7l71 the student loan contract under this subsection1 or both2 and 7,c7 is effective in helping the student understand the student's rights and obligations as a ,federal student loan borrower4 7#c7 ,annual loan acceptance ,prior to making the first disbursement of a covered loan 7other than a ,federal ,direct ,consolidation ,loan7 to a borrower for an academic year1 the eligible institution shall ensure that the borrower-- 7,a7 has completed the applicable counseling under paragraph 7#b7 or 7#c7 of section #dhe7l72 and 7,b7 after completing such counseling1 accepts the loan for such academic year by-- 7i7 signing and returning to the institution the student loan contract described in section #dee7;c77#a7 that affirmatively states that the borrower accepts the loan2 or 7ii7 electronically signing an electronic version of such student loan contract1 which may be done through the online counseling tool in accordance with section #dhe7n77#a77;,b74 4 7b7 ,conforming amendment ,section #dhg7;a77#g7 7#bj ,u4,s4,c4 #ajid7;a77#g77 is amended by striking section #dhe and inserting sections #dee7;c77#c7 and #dhe4 #djb4 ,annual and pre-loan information and counseling requirements ,section #dhe7l7 7#bj ,u4,s4,c4 #ajib7l77 is amended to read as follows3 7l7 ,annual student loan counseling for borrowers 7#a7 ,annual counseling requirement for institutions 7,a7 ,in general ,each eligible institution shall ensure that each individual for whom the institution has knowledge that the student has accepted1 or will accept1 #a or more student loans under part ,d 7including any such loans for attendance at another institution from which the student transferred or in which the student had previously enrolled1 other than a ,federal ,direct ,consolidation ,loan7 for an academic year1 receives comprehensive information on the terms and conditions of such loans and the responsibilities the individual has with respect to such loans4 ,such information shall be provided1 for each academic year for which the individual receives such loans1 in a simple1 understandable1 and consumer-friendly manner-- 7i7 during a counseling session conducted in person2 7ii7 online1 with the individual acknowledging receipt of the information2 or 7iii7 through the use of the online counseling tool described in subsection 7n77#a77;,b74 7,b7 ,use of interactive programs ,in the case of institutions not using the online counseling tool described in subsection 7n77#a77;,b71 the ,secretary shall require such institutions to carry out the requirements of subparagraph 7,a7 through the use of interactive programs1 during an annual counseling session that is in-person or online1 that test the individual's understanding of the terms and conditions of the loan awarded to the individual1 using simple and understandable language and clear formatting4 7#b7 ,annual loan counseling for borrowers receiving loans made under part d 7other than parent plus loans7 ,the information to be provided under paragraph 7#a77;,a7 to a borrower of a loan made under part ,d 7other than a ,federal ,direct ,,plus ,loan made on behalf of a dependent student7 shall include the following3 7,a7 ,a notification that some students may qualify for other financial aid that does not need to be repaid1 and an explanation that the borrower should consider accepting any such grant1 scholarship1 military tuition assistance1 veterans benefits1 ,federal or ,state work-study jobs1 or other programs for which the borrower is eligible1 prior to accepting student loans4 7,b7 ,information on the total outstanding student loan debt that the institution is aware that the student has borrowed1 disaggregated by type of loan1 including loans issued under this title1 private education loans 7as defined in section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej77 that the institution has certified in accordance with section #dhg7;a77#bh71 and education loans from the institution1 as applicable4 7,c7 ,the student's estimated monthly payment amounts for loans made1 insured1 or guaranteed under this title based on-- 7i7 the fixed repayment plan described under section #dic;,e for loans issued under part ,b or ,d2 and 7ii7 the income-based repayment plan under section #dic;,c7c71 utilizing individualized data applicable to the borrower as described in paragraph 7#d74 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 non-,federal education loans1 including private education loans or institutional education loans4 7,e7 ,an explanation of the use of the student loan contract referred to in section #dee7;c74 7,f7 ,a recommendation to the borrower to exhaust the borrower's ,federal student loan options prior to taking out private education loans1 an explanation that ,federal student loans typically offer better terms and conditions than private education loans1 an explanation that ,federal student loans offer consumer protections typically not available in the private education loan market1 an explanation of treatment of loans made under part ,d and private education loans in bankruptcy1 and an explanation that if a borrower decides to take out a private education loan-- 7i7 the borrower has the ability to select a private educational lender of the borrower's choice2 7ii7 the proposed private education loan may impact the borrower's potential eligibility for other financial assistance1 including ,federal financial assistance under this title2 and 7iii7 the borrower has a right-- 7,i7 to accept the terms of the private education loan within #cj calendar days following the date on which the application for such loan is approved and the borrower receives the required disclosure documents1 pursuant to section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e772 and 7,,ii7 to cancel such loan within #c business days of the date on which the loan is consummated1 pursuant to section #abh7;e77#g7 of such ,act 7#ae ,u4,s4,c4 #afch7;e77#g774 7,g7 ,an explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior to completing the borrower's program of study so that the institution can provide exit counseling1 including information regarding the borrower's repayment options and loan consolidation4 7,h7 ,an explanation of the obligation of the borrower to repay the full amount of the loan1 regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program completion4 7,i7 ,a general description of the terms and conditions under which the student may obtain forgiveness or cancellation of any principal and interest of a loan issued under this title4 7,j7 ,information as to how the student can access the loan records of the student and the contact information for inquiries regarding repaying the loan4 7,k7 ,the contact information for the financial aid office1 or other appropriate office1 at the institution that the borrower may contact if the borrower has any questions about the borrower's rights and responsibilities or the terms and conditions of the loan4 7,l7 ,an explanation that the student has the right to annually request a copy of the credit report of the student from a consumer reporting agency pursuant to section #fab7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;j7a774 7,m7 ,for a first-time borrower1 in addition to all the information described in subparagraphs 7,a7 through 7,l7-- 7i7 the anticipated balance on the loan for which the borrower is receiving counseling under this subsection2 and 7ii7 information on the annual and aggregate loan limits for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans as it pertains to the loan for which the borrower is receiving counseling1 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,n7 ,for a borrower with an outstanding balance of principal or interest due on a loan made under this title1 including loans made under part ,b1 in addition to all the information described in subparagraphs 7,a7 through 7,l71 the percentage of the total aggregate borrowing limit that the student has reached1 as of the date of the counseling1 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#c7 ,borrowers receiving parent plus loans for dependent students ,the information to be provided under paragraph 7#a77;,a7 to a borrower of a ,federal ,direct ,,plus ,loan made on behalf of a dependent student shall include the following3 7,a7 ,a notification that some students may qualify for other financial aid and an explanation that the student for whom the borrower is taking out the loan should consider accepting any such grant1 scholarship1 military tuition assistance1 veterans benefits1 ,federal or ,state work-study jobs1 or other programs for which the student for whom the borrower is taking out the loan is eligible1 prior to borrowing any ,federal ,direct ,,plus ,loan on behalf of a dependent student4 7,b7 ,the information described in subparagraphs 7,b7 through 7,l7 of paragraph 7#b71 as applicable4 7,c7 ,the option of the borrower to pay the interest on the loan while the loan is under pause payment4 7,d7 ,an explanation that the borrower has the options to prepay each loan1 pay each loan on a shorter schedule1 and change repayment plans4 7,e7 ,for each ,federal ,direct ,,plus ,loan made on behalf of a dependent student for which the borrower is receiving counseling under this subsection1 the contact information for the loan servicer of the loan and a link to such servicer's website4 7,f7 ,for a first-time borrower of such loan-- 7i7 the anticipated balance on the loan for which the borrower is receiving counseling under this paragraph2 and 7ii7 the estimated monthly payment amounts for such loan based on-- 7,i7 the fixed repayment plan described in section #dic;,e for the loan2 and 7,,ii7 the income-based repayment plan under section #dic;,c7c71 utilizing individualized data applicable to the borrower as described in paragraph 7#d74 7,g7 ,for a borrower undergoing counseling that already has an outstanding balance of principal or interest due on a ,federal ,direct ,,plus ,loan made on behalf of a dependent student-- 7i7 the anticipated balance of all ,federal ,direct ,,plus ,loans held by the borrower 7including the one for which counseling is provided72 and 7ii7 the estimated monthly payment amounts for all such loans based on-- 7,i7 the fixed repayment plan described in section #dic;,e for loans issued under part ,b or ,d2 and 7,,ii7 the income-based repayment plan under section #dic;,c7c71 utilizing individualized data applicable to the borrower as described in paragraph 7#d74 7#d7 ,estimated repayment information ,in providing estimated payments for income-based repayment plans under section #dic;,c7c7 for purposes of this section1 the ,secretary shall develop and implement a database to generate repayment estimate for borrowers by-- 7,a7 enabling each institution to enter relevant loan1 program cost1 and average indebtedness at graduation information electronically2 7,b7 integrating applicable data on ,federal loans made1 insured1 or guaranteed under this title from the ,national ,student ,loan ,data ,system or a successor system2 7,c7 integrating available data on occupational earnings reasonably related to the student's program of study2 7,d7 using a hypothetical family size of #a2 and 7,e7 providing a borrower the option to adjust these data elements and observe the corresponding change in estimated monthly payment amounts4 4 #djc4 ,exit counseling ,section #dhe7;b7 7#bj ,u4,s4,c4 #ajib7;b77 is amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,a7-- 7i7 in the matter preceding clause 7i71 striking through financial aid offices or otherwise and inserting through the use of an interactive program1 during an exit counseling session that is in-person or online1 or through the use of the online counseling tool described in subsection 7n77#a77;,a72 7ii7 by redesignating clauses 7i7 through 7ix7 as clauses 7v7 through 7xiii71 respectively2 7iii7 by inserting before clause 7v71 as redesignated by clause 7ii71 the following3 7i7 a summary of the outstanding balance of principal and interest due on the loans made to the borrower under part ,b1 ,d1 or ,e2 7ii7 an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment2 7iii7 an explanation that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of pause payment2 7iv7 an explanation that the borrower may be approached during the repayment process by third-party student debt relief companies1 that the borrower should use caution in any such dealings1 and that the typical services provided by these companies are already offered to borrowers free of charge through the ,department or its contractors2 2 7iv7 in clause 7v71 as redesignated by clause 7ii7-- 7,i7 by striking sample information showing the average and inserting information1 based on the borrower's outstanding balance described in clause 7i71 showing the borrower's2 and 7,,ii7 by striking of each plan and inserting of the fixed repayment plan described in section #dic;,e and the income-based repayment plan under section #dic;,c7c71 and any other repayment plan for which each loan may be eligible2 7v7 in clause 7x71 as redesignated by clause 7ii7-- 7,i7 by inserting decreased credit score1 after credit reports12 and 7,,ii7 by inserting reduced ability to rent or purchase a home or car1 potential difficulty in securing employment1 after ,federal law12 7vi7 in the matter preceding subclause 7,i7 of clause 7xi71 as redesignated by clause 7ii71 by striking consolidation loan under section #dbh;,c or a2 7vii7 in each of clauses 7xii7 and 7xiii71 as redesignated by clause 7ii71 by striking and at the end2 and 7viii7 by adding at the end the following3 7xiv7 for each of the borrower's loans made under part ,b1 ,d1 or ,e for which the borrower is receiving counseling under this subsection1 the contact information for the loan servicer of the loan and a link to such servicer's website2 and 7xv7 an explanation that an individual has a right to annually request a disclosure of information collected by a consumer reporting agency pursuant to section #fab7;a7 of the ,fair ,credit ,reporting ,act 7#ae ,u4,s4,c4 #afha;j7a774 2 and 7,b7 in subparagraph 7,b71 by striking in writing and inserting online or in writing1 except that in the case of an institution using the online counseling tool described in subsection 7n77#a77;,a71 the ,secretary shall attempt to provide such information to the student in the manner described in subsection 7n77#c77;,c72 and 7#b7 in paragraph 7#b77;,c71 by inserting 1 such as the online counseling tool described in subsection 7n77#a77;,a71 after electronic means4 #djd4 ,online counseling tools ,section #dhe 7#bj ,u4,s4,c4 #ajib7 is amended by adding at the end the following3 7n7 ,online counseling tools 7#a7 ,in general ,beginning not later than #a year after the date of enactment of the ,affordable ,loans for ,any ,student ,act1 the ,secretary shall maintain-- 7,a7 an online counseling tool that provides the exit counseling required under subsection 7b7 and meets the applicable requirements of this subsection2 and 7,b7 an online counseling tool that provides the annual counseling required under subsection 7l71 enables a borrower to electronically sign and accept the borrower's student loan contract for the upcoming academic year under section #dee7;c77#c77;,b77ii71 and meets the applicable requirements of this subsection4 7#b7 ,requirements of tools ,in maintaining the online counseling tools described in paragraph 7#a71 the ,secretary shall ensure that each such tool1 and its underlying content-- 7,a7 are consumer tested1 in consultation with other relevant ,federal agencies1 students1 borrowers1 institutions of higher education1 secondary school and postsecondary counselors1 and consumer advocacy organizations1 to ensure that the tool is effective in helping individuals understand their rights and obligations with respect to borrowing a loan made under part ,d2 7,b7 are understandable to borrowers of loans made under part ,d2 7,c7 freely available to all eligible institutions2 and 7,d7 integrate applicable loan data from the ,national ,student ,loan ,data ,system or a successor system1 including data regarding loans made1 insured1 or guaranteed under this title and data regarding private education loans1 pursuant to section #dhe;,b7i74 7#c7 ,record of counseling completion ,the ,secretary shall-- 7,a7 use each online counseling tool described in paragraph 7#a7 to keep a record of which individuals have received counseling using the tool and notify the applicable institutions of the individual's completion of such counseling2 7,b7 in the case of a borrower who receives annual counseling for a loan made under part ,d using the tool described in paragraph 7#a77;,b7-- 7i7 enable the borrower to accept and electronically sign the student loan contract as required under section #dee7;c77#c77;,b77ii7 and notify the applicable institutions that the individual completed the counseling and electronically signed the contract2 and 7ii7 if the borrower chooses not to sign the student loan contract through the online counseling-- 7,i7 inform the borrower1 through the online counseling tool1 of the date by when the borrower should accept and sign the student loan contract for which the borrower has received such counseling2 and 7,,ii7 notify the applicable institution that the borrower completed the counseling but did not sign the student loan contract2 and 7,c7 in the case of a borrower described in subsection 7b77#a77;,b7 at an institution that uses the online counseling tool described in paragraph 7#a77;,a7 of this subsection1 attempt to provide the information described in subsection 7b77#a77;,a7 to the borrower through such tool4 7o7 ,longitudinal study on the effectiveness of student loan counseling 7#a7 ,in general ,not later than #a year after the date of enactment of the ,affordable ,loans for ,any ,student ,act1 the ,secretary1 acting through the ,director of the ,institute of ,education ,sciences1 shall begin conducting a rigorous1 longitudinal study of the impact and effectiveness of the student loan counseling provided under section #dhe7n74 7#b7 ,contents 7,a7 ,borrower information ,the longitudinal study carried out under paragraph 7#a7 shall include borrower information1 in the aggregate and disaggregated by race and ethnicity1 gender1 income quartile1 and status as an individual with a disability1 on-- 7i7 student persistence2 7ii7 degree attainment2 7iii7 program completion2 7iv7 successfully maintaining current student loan repayment status following the student's exit from the institution2 7v7 cumulative borrowing levels2 and 7vi7 such other factors as the ,secretary may determine4 7,b7 ,exception ,the disaggregation under subparagraph 7,a7 shall not be required in a case in which the number of borrowers in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual borrower4 7#c7 ,interim reports ,not later than #ah months after the commencement of the study under paragraph 7#a71 and annually thereafter1 the ,secretary shall evaluate the progress of the study and report any short-term findings to the authorizing committees4 4 #dje4 ,private education loan certification and information 7a7 ,amendment to the ,higher ,education ,act of #aife 7#a7 ,in general ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a77 is amended by striking paragraph 7#bh7 and inserting the following3 7#bh7 7,a7 ,the institution shall-- 7i7 upon the request of a private educational lender1 acting in connection with an application initiated by a borrower for a private education loan in accordance with section #abh7;e77#c7 of the ,truth in ,lending ,act1 provide certification to such private educational lender-- 7,i7 that the student who initiated the application for the private education loan1 or on whose behalf the application was initiated1 is enrolled or is scheduled to enroll at the institution2 7,,ii7 of such student's cost of attendance at the institution as determined under part ,f2 and 7,,iii7 of the difference between-- 7aa7 the cost of attendance at the institution2 and 7bb7 the student's estimated financial assistance received under this title and other assistance known to the institution1 as applicable2 and 7ii7 provide the certification described in clause 7i71 or notify the private educational lender that the institution has received the request for certification and will need additional time to comply with the certification request-- 7,i7 within #ae business days of receipt of such certification request2 and 7,,ii7 only after the institution has completed the activities described in subparagraph 7,b74 7,b7 ,the institution shall1 upon receipt of a certification request described in subparagraph 7,a77i71 and prior to providing such certification-- 7i7 determine whether the student who initiated the application for the private education loan1 or on whose behalf the application was initiated1 has applied for and exhausted the ,federal financial assistance available to such student under this title and inform the student accordingly2 and 7ii7 provide the borrower whose loan application has prompted the certification request by a private education lender1 as described in subparagraph 7,a77i71 with the following information and disclosures3 7,i7 ,if the borrower has not yet exhausted the financial assistance available to the borrower under this title1 the amount of additional ,federal student assistance for which the borrower is eligible and the potential advantages of ,federal loans under this title1 including disclosure of-- 7aa7 the fixed interest rates and pause payment processes2 7bb7 the option for and terms of income-based repayment1 loan forgiveness programs1 and additional protections2 and 7cc7 the higher student loan limits for dependent students whose parents are not eligible for a ,federal ,direct ,,plus ,loan4 7,,ii7 ,the borrower's ability to select a private educational lender of the borrower's choice4 7,,iii7 ,the impact of a proposed private education loan on the borrower's potential eligibility for other financial assistance1 including ,federal financial assistance under this title4 7,,iv7 ,the borrower's right to accept or reject a private education loan within the #cj-;day period following a private educational lender's approval of a borrower's application and about a borrower's #c-;day right to cancel period under section #abh7;e77#g7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;e77#g774 7,c7 ,for purposes of this paragraph1 the terms private educational lender and private education loan have the meanings given such terms in section #adj of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej74 4 7#b7 ,national student loan data system ,section #dhe;,b 7#bj ,u4,s4,c4 #ajib;b7 is amended-- 7,a7 in subsection 7a71 by striking and loans made under parts ,d and ,e and inserting 1 loans made under parts ,d and ,e1 and private education loans 7in accordance with subsection 7i772 7,b7 in subsection 7f71 by inserting for ,federal loans after ,data reporting2 and 7,c7 by adding at the end the following3 7i7 ,private education loan reporting ,the ,secretary shall include in the ,national ,student ,loan ,data ,system the information regarding private education loans that the ,director of the ,consumer ,financial ,protection ,bureau1 in coordination with the ,secretary1 determines necessary to be included pursuant to section #abh7;e77#i77;,b77ii7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e77#i77;,b77ii774 4 7#c7 ,effective date ,the amendments made by paragraphs 7#a7 and 7#b7 shall take effect on the effective date of the regulations described in subsection 7b77#c74 7b7 ,amendments to the ,truth in ,lending ,act 7#a7 ,in general ,section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e77 is amended-- 7,a7 by striking paragraph 7#c7 and inserting the following3 7#c7 ,institutional certification required 7,a7 ,in ,general ,except as provided in subparagraph 7,b71 before a private educational lender may issue any funds with respect to a private education loan1 the private educational lender shall obtain1 from the relevant institution of higher education where such loan is to be used for a student1 a certification in accordance with section #dhe7;a77#bh77;,a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bh77;,a77-- 7i7 confirming that the student is enrolled or is scheduled to enroll at the institution2 and 7ii7 stating-- 7,i7 the student's cost of attendance at the institution1 as determined by the institution under part ,f of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgkk et seq472 and 7,,ii7 the difference between-- 7aa7 such cost of attendance2 and 7bb7 the student's estimated financial assistance1 including such assistance received under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 and other financial assistance known to the institution1 as applicable4 7,b7 ,timing ,pursuant to section #dhe7;a77#bh77;,a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bh77;,a771 a private education lender shall receive the certification described in subparagraph 7,a7 within #ae days of a request by the private education lender1 unless the institution of higher education notifies the private educational lender pursuant to section #dhe7;a77#bh77;,a77ii7 of such ,act that additional time is needed4 7,c7 ,additional requirements ,upon receiving the certification described in subparagraph 7,a7 for a private education loan1 the private educational lender-- 7i7 may proceed to issue funds with respect to the private education loan2 and 7ii7 after issuing the private education loan1 shall-- 7,i7 notify the institution of higher education involved that the private education loan has been issued to the borrower1 and the amount of such loan2 and 7,,ii7 provide the ,director of the ,consumer ,financial ,protection ,bureau and the ,secretary of ,education with the information described in paragraph 7#i77;,b74 2 7,b7 by redesignating paragraphs 7#i71 7#aj71 and 7#aa7 as paragraphs 7#aj71 7#aa71 and 7#ab71 respectively2 and 7,c7 by inserting after paragraph 7#h7 the following3 7#i7 ,provision of information 7,a7 ,provision of information to borrowers 7i7 ,loan statements ,a private educational lender that issues any funds with respect to a private education loan shall-- 7,i7 send loan statements1 if the loan is to be used for a student1 to borrowers of the funds not less than once every #c months during the time that the student is enrolled at an institution of higher education2 and 7,,ii7 in the case of a private education loan that includes a cosigner1 annually send a loan statement to the borrower's cosigner1 notifying the cosigner of the terms1 conditions1 and status of such private education loan4 7ii7 ,contents of loan statement ,each statement described in clause 7i7 shall-- 7,i7 report the borrower's total remaining debt to the private educational lender1 including accrued but unpaid interest and capitalized interest2 7,,ii7 report any debt increases since the last statement2 and 7,,iii7 list the current interest rate for each loan4 7,b7 ,provision of information to ,federal agencies 7i7 ,information from lender ,each private educational lender shall-- 7,i7 submit to the ,director of the ,consumer ,financial ,protection ,bureau and the ,secretary of ,education such information regarding a private education loan as may be determined necessary by the ,director and the ,secretary under clause 7ii7 for inclusion in the ,national ,student ,loan ,data ,system under section #dhe;,b7i7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib;b7i772 and 7,,ii7 prepare and submit an annual report to the ,consumer ,financial ,protection ,bureau regarding the private education loans issued by the private educational lender4 7ii7 ,promulgation of regulations ,not later than #a year after the date of enactment of the ,affordable ,loans for ,any ,student ,act1 the ,director of the ,consumer ,financial ,protection ,bureau1 in coordination with the ,secretary of ,education1 shall promulgate regulations regarding the private education loan information required to be submitted under clause 7i71 including the content1 method1 and format for submission4 ,the information required for inclusion in the ,national ,student ,loan ,data ,system shall include1 at a minimum-- 7,i7 information identifying the borrower1 including the borrower's name and social security number2 7,,ii7 the name of the institution of higher education that has certified the private education loan2 7,,iii7 the name of the lender2 7,,iv7 the amount of the private education loan2 7,v7 the term1 or other enrollment period1 for which the private education loan is issued2 and 7,,vi7 whether a cosigner was required as a condition of the private education loan4 4 7#b7 ,definition of ,private ,education ,loan ,section #adj7;a77#h77;,a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a77#h77;,a77 is amended-- 7,a7 by redesignating clause 7ii7 as clause 7iii72 7,b7 in clause 7i71 by striking and after the semicolon2 and 7,c7 by adding after clause 7i7 the following3 7ii7 is not made1 insured1 or guaranteed under title ,,vii or title ,,viii of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bib et seq4 and #bif et seq472 and 4 7#c7 ,regulations 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,director of the ,consumer ,financial ,protection ,bureau1 in coordination with the ,secretary of ,education1 shall promulgate regulations to implement paragraphs 7#c7 and 7#i7 of section #abh7;e7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afch7;e771 as amended by paragraph 7#a7 of this subsection4 7,b7 ,effective date ,the regulations promulgated under subparagraph 7,a7 shall take effect on the date that is #ahj days after the date on which the regulations are promulgated4 ,v ,effective date2 transition #eja4 ,effective date2 rulemaking regarding termination of certain repayment plans 7a7 ,effective date ,except as otherwise specifically provided1 this ,act1 and the amendments made by this ,act1 shall take effect on ,july #a1 #bjbj4 7b7 ,applicability with respect to interest capitalization ,section #bja1 and the amendments made by such section1 shall apply with respect to loans made1 insured1 or guaranteed under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq41 #ajhg;a et seq47 that-- 7#a7 as of the effective date described in subsection 7a71 are not currently in a period where interest is capitalized under such part2 or 7#b7 in the case of a loan that1 as of the effective date described in subsection 7a71 is in a period where interest is accruing and not added1 but will be capitalized under such part1 the day after the interest is capitalized under such part1 as in effect before the effective date4 7c7 ,applicability with respect to forbearance and deferment for ,direct ,loan borrowers ,with respect to any borrower of a loan under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 that is1 or has been1 in forbearance or deferment as of the day before the effective date described in subsection 7a71 the ,secretary shall take such steps as are necessary-- 7#a7 to transfer a borrower with a loan in forbearance or deferment as of such day automatically into relief provided under the pause payment process established under section #dfj;,b of such ,act 7as amended by this ,act72 and 7#b7 to ensure that the period of time for which a borrower is eligible for pause payment under such section #dfj;,b for a loan is appropriately reduced to account for any time the loan was previously in forbearance or deferment4 7d7 ,regulations ,before the effective date described in subsection 7a71 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 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;b7 and an income-based repayment plan under section #dic;,c7c7 of such ,act 7#bj ,u4,s4,c4 #ajih;e7f77 for loans made under part ,b or ,d of title ,,iv of such ,act1 unless the borrower is enrolled in another repayment plan before such effective date1 in accordance with the amendments made by this ,act4