,i #aafth ,,congress #ast ,session ,h4 ,r4 #cajb ,,in ,,the ,,house ,,of ,,representatives ,june #e1 #bjai,mr4 ,de,fazio introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committees on the ,judiciary1 and ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to improve loans1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act or the ,,higher ,,ed ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,reinstatement of authority to make ,federal ,direct ,stafford ,loans to graduate and professional students2 ,discharging student loans in bankruptcy ,sec4 #aja4 ,reinstatement of authority to make ,federal ,direct ,stafford ,loans to graduate and professional students4 ,sec4 #ajb4 ,discharge student loans in bankruptcy4 ,title ,,ii--,refinancing programs ,sec4 #bja4 ,program authority4 ,sec4 #bjb4 ,refinancing program4 ,sec4 #bjc4 ,income-based repayment4 ,title ,,iii--,loan forgiveness ,sec4 #cja4 ,loan forgiveness for adjunct faculty4 ,sec4 #cjb4 ,amendments to the public service loan forgiveness program4 ,sec4 #cjc4 ,transition to improved public service loan forgiveness program4 ,title ,,iv--,income-driven repayment plans ,sec4 #dja4 ,income-based repayment plan4 ,sec4 #djb4 ,termination of certain repayment plan options4 ,sec4 #djc4 ,notification and automatic enrollment procedures4 ,sec4 #djd4 ,automatic recertification of income4 ,sec4 #dje4 ,study and procedures on determining family size4 ,sec4 #djf4 ,disclosure of tax return information to carry out certain higher education loan programs4 ,i ,reinstatement of authority to make ,federal ,direct ,stafford ,loans to graduate and professional students2 ,discharging student loans in bankruptcy #aja4 ,reinstatement of authority to make ,federal ,direct ,stafford ,loans to graduate and professional students 7a7 ,amendments ,section #dee7;a77#c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7a77#c77 is amended-- 7#a7 in the paragraph heading1 by inserting ,temporary before ,termination2 and 7#b7 in subparagraph 7,a71 in the matter preceding clause 7i71 by inserting 1 and ending on or before ,june #cj1 #bjai after #bjab4 7b7 ,inapplicability of rulemaking requirements ,sections #dhb7;c7 and #dib of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhi7;c72 #ajih;a7 shall not apply to the regulations under this section4 #ajb4 ,discharge student loans in bankruptcy 7a7 ,exception ,to discharge ,section #ebc7;a7 of title #aa1 ,united ,states ,code1 is amended-- 7#a7 by striking paragraph 7#h72 and 7#b7 by redesignating paragraphs 7#i7 through 7#ad;,b7 as paragraphs 7#h7 through 7#ad;,a71 respectively4 7b7 ,conforming amendments ,title #aa1 ,united ,states ,code1 is amended-- 7#a7 in section #gjd7;c77#a77;,c77iv77,i7 by striking 7#ad;,a7 and inserting 7#ad72 7#b7 in section #aajf7;c77#a77;,c77iv77,i7 by striking 7#ad;,a7 and inserting 7#ad72 7#c7 in section #abjb7;c77#a77;,c77iv77,i7 by striking 7#ad;,a7 and inserting 7#ad72 and 7#d7 in section #acbh7;a77#b7 by striking 7#h71 or 7#i7 and inserting or 7#h74 7c7 ,effective date2 application of amendments 7#a7 ,effective date ,except as provided in subsection 7b71 this section and the amendments made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,application of amendments ,the amendments made by this section shall apply only with respect to cases commenced under title #aa of the ,united ,states ,code on or after the date of the enactment of this ,act4 ,,ii ,refinancing programs #bja4 ,program authority ,section #dea7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a7a77 is amended-- 7#a7 by striking and 7#b7 and inserting 7#b72 and 7#b7 by inserting 2 and 7#c7 to make loans under section #dfj;,a and section #dfj;,b after section #dei;,a4 #bjb4 ,refinancing program ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,refinancing ,,ffel and ,federal ,direct ,loans 7a7 ,in general ,beginning not later than #ahj days after the date of enactment of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 the ,secretary shall establish a program under which the ,secretary1 upon the receipt of an application from a qualified borrower1 makes a loan under this part1 in accordance with the provisions of this section1 in order to permit the borrower to obtain the interest rate provided under subsection 7c74 7b7 ,refinancing ,direct ,loans 7#a7 ,federal ,direct ,loans ,upon application of a qualified borrower1 the ,secretary shall repay a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,,plus ,loan1 or a ,federal ,direct ,consolidation ,loan of the qualified borrower1 for which the first disbursement was made1 or the application for the consolidation loan was received1 before ,july #a1 #bjai1 with the proceeds of a refinanced ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,,plus ,loan1 or a ,federal ,direct ,consolidation ,loan1 respectively1 issued to the borrower in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the original loan4 7#b7 ,refinancing ,,ffel program loans as refinanced ,federal ,direct ,loans ,upon application of a qualified borrower for any loan that was made1 insured1 or guaranteed under part ,b and for which the first disbursement was made1 or the application for the consolidation loan was received1 before ,july #a1 #bjaj1 the ,secretary shall make a loan under this part1 in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the original loan to the borrower in accordance with the following3 7,a7 ,the ,secretary shall pay the proceeds of such loan to the eligible lender of the loan made1 insured1 or guaranteed under part ,b1 in order to discharge the borrower from any remaining obligation to the lender with respect to the original loan4 7,b7 ,a loan made under this section that was originally-- 7i7 a loan originally made1 insured1 or guaranteed under section #dbh shall be a ,federal ,direct ,stafford ,loan2 7ii7 a loan originally made1 insured1 or guaranteed under section #dbh;,b shall be a ,federal ,direct ,,plus ,loan2 7iii7 a loan originally made1 insured1 or guaranteed under section #dbh;,h shall be a ,federal ,direct ,unsubsidized ,stafford ,loan2 and 7iv7 a loan originally made1 insured1 or guaranteed under section #dbh;,c shall be a ,federal ,direct ,consolidation ,loan4 7,c7 ,the interest rate for each loan made by the ,secretary under this paragraph shall be the rate provided under subsection 7c74 7c7 ,interest rates 7#a7 ,in general ,the interest rate for the refinanced ,federal ,direct ,stafford ,loans1 ,federal ,direct ,unsubsidized ,stafford ,loans1 ,federal ,direct ,,plus ,loans1 and ,federal ,direct ,consolidation ,loans1 shall be a rate equal to-- 7,a7 in any case where the original loan was a loan under section #dbh or #dbh;,h1 a ,federal ,direct ,stafford loan1 or a ,federal ,direct ,unsubsidized ,stafford ,loan1 that was issued to an undergraduate student1 a rate equal to the rate for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 7,b7 in any case where the original loan was a loan under section #dbh or #dbh;,h1 a ,federal ,direct ,stafford ,loan1 or a ,federal ,direct ,unsubsidized ,stafford ,loan1 that was issued to a graduate or professional student1 a rate equal to the rate for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 7,c7 in any case where the original loan was a loan under section #dbh;,b or a ,federal ,direct ,,plus ,loan1 a rate equal to the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 and 7,d7 in any case where the original loan was a loan under section #dbh;,c or a ,federal ,direct ,consolidation ,loan1 a rate calculated in accordance with paragraph 7#b74 7#b7 ,interest ,rates for ,consolidation ,loans 7,a7 ,method of calculation ,in order to determine the interest rate for any refinanced ,federal ,direct ,consolidation ,loan under paragraph 7#a77;,d71 the ,secretary shall-- 7i7 determine each of the component loans that were originally consolidated in the loan under section #dbh;,c or the ,federal ,direct ,consolidation ,loan1 and calculate the proportion of the unpaid principal balance of the loan under section #dbh;,c or the ,federal ,direct ,consolidation ,loan that each component loan represents2 7ii7 use the proportions determined in accordance with clause 7i7 and the interest rate applicable for each component loan1 as determined under subparagraph 7,b71 to calculate the weighted average of the interest rates on the loans consolidated into the loan under section #dbh;,c or the ,federal ,direct ,consolidation ,loan2 and 7iii7 apply the weighted average calculated under clause 7ii7 as the interest rate for the refinanced ,federal ,direct ,consolidation ,loan4 7,b7 ,interest rates for component loans ,the interest rates for the component loans of a loan made under section #dbh;,c or a ,federal ,direct ,consolidation ,loan shall be the following3 7i7 ,the interest rate for any loan under section #dbh or #dbh;,h1 ,federal ,direct ,stafford ,loan1 or ,federal ,direct ,unsubsidized ,stafford ,loan issued to an undergraduate student shall be a rate equal to the lesser of-- 7,i7 the rate for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 or 7,,ii7 the original interest rate of the component loan4 7ii7 ,the interest rate for any loan under section #dbh or #dbh;,h1 ,federal ,direct ,stafford ,loan1 or ,federal ,direct ,unsubsidized ,stafford ,loan issued to a graduate or professional student shall be a rate equal to the lesser of-- 7,i7 the rate for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 or 7,,ii7 the original interest rate of the component loan4 7iii7 ,the interest rate for any loan under section #dbh;,b or ,federal ,direct ,,plus ,loan shall be a rate equal to the lesser of-- 7,i7 the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 or 7,,ii7 the original interest rate of the component loan4 7iv7 ,the interest rate for any component loan that is a loan under section #dbh;,c or a ,federal ,direct ,consolidation ,loan shall be the weighted average of the interest rates that would apply under this subparagraph for each loan comprising the component consolidation loan4 7v7 ,the interest rate for any eligible loan that is a component of a loan made under section #dbh;,c or a ,federal ,direct ,consolidation ,loan and is not described in clauses 7i7 through 7iv7 shall be the interest rate on the original component loan4 7#c7 ,fixed ,rate ,the applicable rate of interest determined under paragraph 7#a7 for a refinanced loan under this section shall be fixed for the period of the loan4 7d7 ,terms and conditions of loans 7#a7 ,in general ,a loan that is refinanced under this section shall have the same terms and conditions as the original loan1 except as otherwise provided in this section4 7#b7 ,no automatic extension of repayment period ,refinancing a loan under this section shall not result in the extension of the duration of the repayment period of the loan1 and the borrower shall retain the same repayment term that was in effect on the original loan4 ,nothing in this paragraph shall be construed to prevent a borrower from electing a different repayment plan at any time in accordance with section #dee7;d77#c74 7e7 ,definition of qualified borrower 7#a7 ,in ,general ,for purposes of this section1 the term qualified borrower means a borrower-- 7,a7 of a loan under this part or part ,b for which the first disbursement was made1 or the application for a consolidation loan was received1 before ,july #a1 #bjai2 and 7,b7 who meets the eligibility requirements based on income or debt-to-income ratio established by the ,secretary4 7#b7 ,income requirements ,not later than #ahj days after the date of enactment of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 the ,secretary shall establish eligibility requirements based on income or debt-to-income ratio that take into consideration providing access to refinancing under this section for borrowers with the greatest financial need4 7f7 ,notification to borrowers ,the ,secretary1 in coordination with the ,director of the ,bureau of ,consumer ,financial ,protection1 shall undertake a campaign to alert borrowers of loans that are eligible for refinancing under this section that the borrowers are eligible to apply for such refinancing4 ,the campaign shall include the following activities3 7#a7 ,developing consumer information materials about the availability of ,federal student loan refinancing4 7#b7 ,requiring servicers of loans under this part or part ,b to provide such consumer information to borrowers in a manner determined appropriate by the ,secretary1 in consultation with the ,director of the ,bureau of ,consumer ,financial ,protection4 #dfj;,b4 ,federal ,direct ,refinanced ,private ,loan program 7a7 ,definitions ,in this section3 7#a7 ,eligible private education loan ,the term eligible private education loan means a private education loan1 as defined in section #adj7;a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a771 that-- 7,a7 was disbursed to the borrower before ,july #a1 #bjai2 and 7,b7 was for the borrower's own postsecondary educational expenses for an eligible program at an institution of higher education participating in the loan program under this part1 as of the date that the loan was disbursed4 7#b7 ,federal ,direct ,refinanced ,private ,loan ,the term ,federal ,direct ,refinanced ,private ,loan means a loan issued under subsection 7b77#a74 7#c7 ,private educational lender ,the term private educational lender has the meaning given the term in section #adj7;a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a774 7#d7 ,qualified borrower ,the term qualified borrower means an individual who-- 7,a7 has an eligible private education loan2 7,b7 has been current on payments on the eligible private education loan for the #f months prior to the date of the qualified borrower's application for refinancing under this section1 and is in good standing on the loan at the time of such application2 7,c7 is not in default on the eligible private education loan or on any loan made1 insured1 or guaranteed under this part or part ,b or ,e2 and 7,d7 meets the eligibility requirements described in subsection 7b77#b74 7b7 ,program authorized 7#a7 ,in general ,the ,secretary1 in consultation with the ,secretary of the ,treasury1 shall carry out a program under which the ,secretary1 upon application by a qualified borrower who has an eligible private education loan1 shall issue such borrower a loan under this part in accordance with the following3 7,a7 ,the loan issued under this program shall be in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the private education loan4 7,b7 ,the ,secretary shall pay the proceeds of the loan issued under this program to the private educational lender of the private education loan1 in order to discharge the qualified borrower from any remaining obligation to the lender with respect to the original loan4 7,c7 ,the ,secretary shall require that the qualified borrower undergo loan counseling that provides all of the information and counseling required under clauses 7i7 through 7viii7 of section #dhe7;b77#a77;,a7 before the loan is refinanced in accordance with this section1 and before the proceeds of such loan are paid to the private educational lender4 7,d7 ,the ,secretary shall issue the loan as a ,federal ,direct ,refinanced ,private ,loan1 which shall have the same terms1 conditions1 and benefits as a ,federal ,direct ,unsubsidized ,stafford ,loan1 except as otherwise provided in this section4 7#b7 ,borrower eligibility ,not later than #ahj days after the date of enactment of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 the ,secretary1 in consultation with the ,secretary of the ,treasury and the ,director of the ,bureau of ,consumer ,financial ,protection1 shall establish eligibility requirements-- 7,a7 based on income or debt-to-income ratio that take into consideration providing access to refinancing under this section for borrowers with the greatest financial need2 7,b7 to ensure eligibility only for borrowers in good standing2 7,c7 to minimize inequities between ,federal ,direct ,refinanced ,private ,loans and other ,federal student loans2 7,d7 to preclude windfall profits for private educational lenders2 and 7,e7 to ensure full access to the program authorized in this subsection for borrowers with private loans who otherwise meet the criteria established in accordance with subparagraphs 7,a7 and 7,b74 7c7 ,interest rate 7#a7 ,in general ,the interest rate for a ,federal ,direct ,refinanced ,private ,loan is-- 7,a7 in the case of a ,federal ,direct ,refinanced ,private ,loan for a private education loan originally issued for undergraduate postsecondary educational expenses1 a rate equal to the rate for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag2 and 7,b7 in the case of a ,federal ,direct ,refinanced ,private ,loan for a private education loan originally issued for graduate or professional degree postsecondary educational expenses1 a rate equal to the rate for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag4 7#b7 ,combined undergraduate and graduate study loans ,if a ,federal ,direct ,refinanced ,private ,loan is for a private education loan originally issued for both undergraduate and graduate or professional postsecondary educational expenses1 the interest rate shall be a rate equal to the rate for ,federal ,direct ,,plus ,loans for the #ab-month period beginning on ,july #a1 #bjaf1 and ending on ,june #cj1 #bjag4 7#c7 ,fixed ,rate ,the applicable rate of interest determined under this subsection for a ,federal ,direct ,refinanced ,private ,loan shall be fixed for the period of the loan4 7d7 ,no inclusion in aggregate limits ,the amount of a ,federal ,direct ,refinanced ,private ,loan1 or a ,federal ,direct ,consolidated ,loan to the extent such loan was used to repay a ,federal ,direct ,refinanced ,private ,loan1 shall not be included in calculating a borrower's annual or aggregate loan limits under section #dbh or #dbh;,h4 7e7 ,no eligibility for service-,related repayment ,notwithstanding sections #dbh,k7a77#b77;,a71 #dbh,l7b77#b71 #dee7m77#c77;,a71 and #dfj7;b71 a ,federal ,direct ,refinanced ,private ,loan1 or any ,federal ,direct ,consolidation ,loan to the extent such loan was used to repay a ,federal ,direct ,refinanced ,private ,loan1 shall not be eligible for any loan repayment or loan forgiveness program under section #dbh,k1 #dbh,l1 or #dfj or for the repayment plan for public service employees under section #dee7m74 7f7 ,private educational lender reporting requirement 7#a7 ,reporting required ,not later than #ahj days after the date of enactment of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 the ,secretary1 in consultation with the ,secretary of the ,treasury and the ,director of the ,bureau of ,consumer ,financial ,protection1 shall establish a requirement that private educational lenders report the data described in paragraph 7#b7 to the ,secretary1 to ,congress1 to the ,secretary of the ,treasury1 and to the ,director of the ,bureau of ,consumer ,financial ,protection1 in order to allow for an assessment of the private education loan market4 7#b7 ,contents of reporting ,the data that private educational lenders shall report in accordance with paragraph 7#a7 shall include each of the following about private education loans 7as defined in section #adj7;a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afej7;a7773 7,a7 ,the total amount of private education loan debt the lender holds4 7,b7 ,the total number of private education loan borrowers the lender serves4 7,c7 ,the average interest rate on the outstanding private education loan debt held by the lender4 7,d7 ,the proportion of private education loan borrowers who are in default on a loan held by the lender4 7,e7 ,the proportion of the outstanding private education loan volume held by the lender that is in default4 7,f7 ,the proportions of outstanding private education loan borrowers who are #cj1 #fj1 and #ij days delinquent4 7,g7 ,the proportions of outstanding private education loan volume that is #cj1 #fj1 and #ij days delinquent4 7g7 ,notification to borrowers ,the ,secretary1 in coordination with the ,secretary of the ,treasury and the ,director of the ,bureau of ,consumer ,financial ,protection1 shall undertake a campaign to alert borrowers about the availability of private student loan refinancing under this section4 4 #bjc4 ,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 ,special rule for refinanced loans 7#a7 ,refinanced ,federal ,direct and ,,ffel loans ,in calculating the period of time during which a borrower of a loan that is refinanced under section #dfj;,a has made monthly payments for purposes of subsection 7b77#g71 the ,secretary shall deem the period to include all monthly payments made for the original loan1 and all monthly payments made for the refinanced loan1 that otherwise meet the requirements of this section4 7#b7 ,federal ,direct ,refinanced ,private ,loans ,in calculating the period of time during which a borrower of a ,federal ,direct ,refinanced ,private ,loan under section #dfj;,b has made monthly payments for purposes of subsection 7b77#g71 the ,secretary shall include only payments-- 7,a7 that are made after the date of the issuance of the ,federal ,direct ,refinanced ,private ,loan2 and 7,b7 that otherwise meet the requirements of this section4 4 ,,iii ,loan forgiveness #cja4 ,loan forgiveness for adjunct faculty ,section #dee7m77#c77;,b77ii7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77#c77;,b77ii77 is amended-- 7#a7 by striking teaching as and inserting the following3 teaching-- 7,i7 as 2 7#b7 by striking 1 foreign language faculty1 and part-time faculty at community colleges71 as determined by the ,secretary4 and inserting and foreign language faculty71 as determined by the ,secretary2 or2 and 7#c7 by adding at the end the following3 7,,ii7 as a part-time faculty member or instructor who-- 7aa7 teaches not less than #a course at an institution of higher education 7as defined in section #aja7;a771 a postsecondary vocational institution 7as defined in section #ajb7;c771 or a ,tribal ,college or ,university 7as defined in section #caf7;b772 and 7bb7 is not employed on a full-time basis by any other employer4 4 #cjb4 ,amendments to the public service loan forgiveness program 7a7 ,public service loan forgiveness 7#a7 ,in general ,section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is amended to read as follows3 7m7 ,loan forgiveness for ,federal student loan borrowers employed in public service 7#a7 ,definitions ,in this subsection3 7,a7 ,certification of employment ,the term certification of employment means a certification of employment under paragraph 7#d74 7,b7 ,full-time ,the term full-time1 when used with respect to employment1 means employment-- 7i7 with a qualifying employer for not less than #cj hours per week2 or 7ii7 with #b or more qualifying employers for a total of not less than #cj hours per week4 7,c7 ,qualifying employer ,the term qualifying employer means-- 7i7 a ,federal1 ,state1 local1 or ,tribal government organization or instrumentality1 including any organization established in law as a body politic2 7ii7 an organization that is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf1 and exempt from taxation under section #eja7;a7 of such ,code2 or 7iii7 an organization-- 7,i7 not described in clause 7ii7 that is a not-for-profit organization under other ,federal or ,state law2 7,,ii7 that is not a labor organization or partisan political organization2 and 7,,iii7 whose purpose is to directly provide any of the following services1 as defined in regulations promulgated by the ,secretary3 7aa7 ,emergency management and disaster response4 7bb7 ,military service4 7cc7 ,public safety services1 including fire prevention and suppression1 rescue services1 hazardous materials response1 ambulance services1 and emergency medical services4 7dd7 ,law enforcement4 7ee7 ,public health1 including service through organizations that employ nurses1 nurse practitioners1 nurses in a clinical setting1 or professionals engaged in health care practitioner occupations and health care support occupations1 as such terms are defined by the ,bureau of ,labor ,statistics4 7ff7 ,public education1 including the provision of educational enrichment or support directly to students or their families1 employment with a ,tribal ,college or ,university 7as defined in section #caf7;b771 and employment as an adjunct faculty member or instructor for an educational institution4 7gg7 ,public interest law services1 including prosecution or public defense or legal advocacy on behalf of low-income communities at a not-for-profit organization4 7hh7 ,early childhood education1 including licensed or regulated childcare1 ,head ,start programs1 and ,state funded prekindergarten4 7ii7 ,public service for individuals with disabilities4 7jj7 ,public service for the elderly4 7kk7 ,public and school-based library sciences4 7ll7 ,school-based services1 including the provision of noneducational enrichment or support directly to students or their families4 7mm7 ,social work1 including child or family services4 7,d7 ,qualifying monthly payment obligation ,the term qualifying monthly payment obligation means a monthly payment obligation due on a loan under the repayment plan of the borrower-- 7i7 that was satisfied by the borrower through a payment made after ,october #a1 #bjjg2 and 7ii7 attributable to a period during which the borrower was employed full-time by a qualifying employer4 7,e7 ,loan made under this part ,the term loan made under this part includes a ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 ,federal ,direct ,unsubsidized ,stafford ,loan1 or ,federal ,direct ,consolidation ,loan refinanced under section #dfj;,a4 7#b7 ,in general ,beginning on ,july #a1 #bjai1 the ,secretary shall forgive the applicable percentage described in paragraph 7#c7 of the balance of principal and interest due on a loan made under this part for a borrower who has satisfied #fj or #abj qualifying monthly payment obligations on a loan made under this part and submitted any certification of employment required under this subsection4 7#c7 ,loan forgiveness after #fj payment obligations and #abj payment obligations ,the applicable percentages under this paragraph shall be-- 7,a7 in the case of a borrower who satisfies #fj qualifying monthly payment obligations on a loan made under this part that is not in default 7as defined in section #dce71 #ej percent of the total amount of the balance of principal and interest due on such loan as of the date of the loan forgiveness2 and 7,b7 in the case of a borrower who satisfies #abj qualifying monthly payment obligations on a loan made under this part that is not in default1 #ajj percent of the balance of principal and interest due on such loan as of the date of the loan forgiveness4 7#d7 ,certification of employment requirements 7,a7 ,in general ,in order to receive loan forgiveness under this subsection1 a borrower of a loan made under this part shall submit to the ,secretary a certification of employment4 7,b7 ,content of certification ,the ,secretary shall-- 7i7 develop1 and make easily accessible1 the certification of employment2 and 7ii7 ensure that the method of certification-- 7,i7 allows for the employer to indicate and certify the dates of the borrower's employment2 and 7,,ii7 provides electronic signature options for the employer and for the borrower4 7,c7 ,borrower access ,the ,secretary shall ensure that a borrower may submit a certification of employment to the ,secretary electronically through any information system through which the ,secretary permits borrowers to take self-service actions with respect to their loans4 7,d7 ,exception for self-certification ,the ,secretary shall provide a self-certification option for the certification of employment for borrowers who have extenuating circumstances preventing the borrowers from obtaining the qualifying employer signature and certification required under subparagraph 7,b77ii71 as determined by the ,secretary pursuant to rulemaking and including situations where an employer is no longer in existence or refuses to cooperate4 7,e7 ,periodic review of certification of employment ,for each borrower of a loan made under this part who has submitted a certification of employment1 the ,secretary shall-- 7i7 by not later than #cj days after receipt of the certification of employment-- 7,i7 review the certification of employment and determine the number of qualifying monthly payment obligations satisfied on the loan during the period of employment covered by the certification of employment2 7,,ii7 inform the borrower of the number of qualifying monthly payment obligations satisfied2 and 7,,iii7 inform the borrower of the number of remaining qualifying monthly payment obligations to be satisfied in order for the borrower to receive partial loan forgiveness under paragraph 7#c77;,a71 and such number needed to receive full loan forgiveness under paragraph 7#c77;,b72 and 7ii7 periodically1 but not less than twice annually1 notify the borrower1 using the most recent calculation of qualifying monthly payment obligations1 of-- 7,i7 the number of qualifying monthly payment obligations satisfied1 as of the date of the notice2 7,,ii7 the number of remaining qualifying monthly payment obligations to be satisfied in order for the borrower to receive partial loan forgiveness under paragraph 7#c77;,a71 and such number needed to receive full loan forgiveness under paragraph 7#c77;,b72 7,,iii7 any steps the borrower can take to convert non-qualifying monthly payment obligations into qualifying monthly payment obligations1 including the options to provide payments to satisfy monthly payment obligations for past public service under paragraph 7#e77;,c72 and 7,,iv7 the dispute resolution process for the ,secretary's determination of qualifying monthly payment obligations1 as described in paragraph 7#g74 7#e7 ,qualifying monthly payment obligations 7,a7 ,in general ,for purposes of this subsection1 the number of qualifying monthly payment obligations satisfied on a loan is the number of monthly payments1 during the period of employment and based on the repayment plan selected by the borrower for such period1 that would be satisfied based on applying the total amount of payments made by the borrower on the loan at any time during such period4 7,b7 ,adjustment of payment obligation status 7i7 ,hold harmless against retroactive determinations ,if the ,secretary has classified a payment obligation satisfied by a borrower of a loan made under this part as a qualifying monthly payment obligation and later determines that the payment obligation does not qualify1 the ,secretary shall deem the payment obligation to be a qualifying monthly payment obligation to be counted for purposes of paragraph 7#b74 7ii7 ,explanation of non-qualifying payment obligation determinations ,if the ,secretary determines that payments made by a borrower of a loan made under this part for a period of full-time employment with a qualifying employer cannot be applied toward the total number of qualifying monthly payment obligations for purposes of paragraph 7#b71 the ,secretary shall provide a borrower with an explanation and allow the borrower to correct the reason for such determination1 to the extent possible4 ,such borrower remediation shall include1 at a minimum1 providing a borrower with the opportunity to reimburse the ,secretary for any underpayment4 7,c7 ,satisfying previously non-qualifying monthly payment obligations 7i7 ,in general ,a borrower of a loan made under this part who has a period during which the borrower was employed full-time with a qualifying employer but did not satisfy one or more qualifying monthly payment obligations during such period1 such as a borrower who was in deferment or forbearance1 may satisfy one or more monthly payment obligations of that period at a later date by paying the additional amount needed to satisfy the qualifying monthly payment obligation1 in accordance with a process established by the ,secretary4 7ii7 ,determination process ,the amount of past monthly payment obligations satisfied by a payment under this subparagraph for a period of employment shall be determined using the amount of the borrower's monthly payment1 based on any repayment plan1 as selected by the borrower1 that could have been selected by the borrower during such period4 ,the ,secretary may require a borrower wishing to satisfy past monthly payment obligations under this subparagraph to submit any additional information necessary to calculate the amount of the past payments4 7iii7 ,limit ,a borrower may not satisfy more than #cf past monthly payment obligations under this subparagraph4 7,d7 ,overpayment ,in a case in which the dispute resolution process under paragraph 7#h7 delays the date on which a borrower would have received full loan forgiveness under paragraph 7#c77;,b71 the ,secretary shall refund the borrower the amount of any qualifying monthly payment obligation the borrower makes in excess of #abj qualifying payment obligations during such process4 7#f7 ,special rules relating to ,federal ,direct consolidation loans 7,a7 ,review of any new consolidation loan application 7i7 ,public service loan forgiveness option on consolidation application ,beginning on ,july #a1 #bjai1 the ,secretary shall include1 in any application for a ,federal ,direct ,consolidation ,loan1 the option for the borrower to indicate that the borrower is consolidating for the purpose of using the public service loan forgiveness program under this subsection4 7ii7 ,review ,beginning on ,july #a1 #bjai1 the ,secretary shall1 after issuing any ,federal ,direct ,consolidation ,loan to a borrower who indicated an interest in the public service loan forgiveness program on the loan application-- 7,i7 request that the borrower submit a certification of employment2 and 7,,ii7 after receiving a complete certification of employment1 review the borrower's past payments on all component loans comprising the ,federal ,direct ,consolidation ,loan and inform the borrower-- 7aa7 of the number of monthly payment obligations satisfied by the borrower before the date of consolidation that are qualifying monthly payment obligations1 in accordance with subparagraph 7,b72 or 7bb7 if no payment obligations are satisfied1 that the borrower will not receive any credit towards public service loan forgiveness under this subsection for the ,federal ,direct ,consolidation ,loan4 7,b7 ,qualifying payment obligations on all component loans and loan types through consolidation ,in the case of a borrower of one or more loans eligible for consolidation1 including loans made under part ,b1 who applies for1 and receives1 a ,federal ,direct ,consolidation ,loan1 the ,secretary shall request the borrower submit a certification of employment for any qualifying employment and1 after receiving the certification of employment1 shall-- 7i7 review the borrower's payment history on each of the component loans comprising the ,federal ,direct ,consolidation ,loan1 including each loan made under part ,b2 and 7ii7 for each component loan-- 7,i7 calculate the weighted factor of the component loan1 which shall be the factor that represents the ratio between the amount of the component loan and the amount of the ,federal ,direct ,consolidation ,loan1 as determined by the ,secretary2 7,,ii7 determine the number of equivalent monthly payment obligations toward the ,federal ,direct ,consolidation ,loan satisfied on the component loan by multiplying the weighted factor for the component loan by the number of qualifying monthly payment obligations that the borrower satisfied on the component loan2 and 7,,iii7 after rounding the number determined under subclause 7,,ii7 to the nearest whole number1 deem that number of equivalent monthly payment obligations to be qualifying monthly payment obligations on the ,federal ,direct ,consolidation ,loan4 7,c7 ,applicability of borrower protections and rights ,a borrower of one or more loans eligible for consolidation1 including loans made under part ,b1 who applies for and receives a ,federal ,direct ,consolidation ,loan shall receive all the protections and rights provided under subparagraphs 7,b7 and 7,c7 of paragraph 7#e7 for the loan1 and for any component loan1 in the same manner as provided to any other borrower of a loan made under this part4 7,d7 ,treatment of certain consolidation loan payments ,in a case in which a borrower makes a qualifying monthly payment obligation for purposes of paragraph 7#b7 on a ,federal ,direct ,consolidation ,loan that was used to repay a ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 ,federal ,direct ,unsubsidized ,stafford ,loan1 or ,federal ,direct ,consolidation ,loan refinanced under section #dfj;,a for which at least one qualifying monthly payment obligation for such purposes has been made prior to the consolidation1 the qualifying monthly payment obligation on such ,federal ,direct ,consolidation ,loan shall be treated as a qualifying monthly payment obligation for purposes of paragraph 7#b7 on such ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 ,federal ,direct ,unsubsidized ,stafford ,loan1 or ,federal ,direct ,consolidation ,loan4 7#g7 ,notice of qualifying payment obligations 7,a7 ,initial notice ,upon receiving any verbal or written contact by a borrower on or after ,july #a1 #bjai1 expressing interest in the public service loan forgiveness program under this subsection1 the ,secretary1 or an eligible lender or guaranty agency under part ,b1 shall provide the borrower1 by not later than #cj days after the contract1 with a notice that-- 7i7 explains the requirements of the program1 including whether the borrower needs to consolidate some or all of the borrower's loans to receive forgiveness under this subsection2 7ii7 includes a copy of1 or a link to1 information about the certification of employment process described in paragraph 7#d72 7iii7 includes an estimate of the qualifying monthly payment obligations that would be satisfied by the borrower based on the borrower's payment history1 as of the date of notice1 if the borrower was a full-time employee of a qualifying employer and met the requirements of paragraph 7#b72 and 7iv7 includes an estimate of the number of remaining qualifying monthly payment obligations to be satisfied in order for the borrower to receive partial loan forgiveness under paragraph 7#c77;,a71 and such number needed to receive full loan forgiveness under paragraph 7#c77;,b74 7,b7 ,subsequent notices ,after providing an initial notice under subparagraph 7,a71 the ,secretary1 or an eligible lender or guaranty agency under part ,b1 shall annually provide the borrower with a notice containing the information described in such subparagraph for each subsequent year that the borrower has an outstanding loan1 unless the borrower receives notices under paragraph 7#d77;,e77ii7 or requests that the notices be discontinued4 7#h7 ,dispute resolution process ,by not later than ,july #a1 #bjai1 the ,secretary shall establish a process for borrowers to dispute the calculation of qualifying monthly payment obligations1 or the determination of full or partial loan forgiveness under paragraph 7#b71 following the submission of a certification of employment or application for forgiveness or any successor certification or application4 7#i7 ,special rules for section #dfj;,a loans 7,a7 ,refinanced ,federal ,direct loans ,notwithstanding paragraph 7#b71 in determining the number of monthly payments that meet the requirements of such paragraph for an eligible ,federal ,direct ,loan refinanced under section #dfj;,a that was originally a loan under this part1 the ,secretary shall include all monthly payments made on the original loan that meet the requirements of such paragraph4 7,b7 ,refinanced ,,ffel loans ,in the case of an eligible ,federal ,direct ,loan refinanced under section #dfj;,a that was originally a loan under part ,b1 only monthly payments made after the date on which the loan was refinanced may be included for purposes of paragraph 7#b74 7#aj7 ,ineligibility 7,a7 ,no double benefits ,no borrower may1 for the same service1 receive a reduction of loan obligations under both this subsection and section #dbh;,j1 #dbh,k1 #dbh,l1 or #dfj4 7,b7 ,federal elected service excluded ,no borrower may receive loan forgiveness under this subsection for service as a ,member of ,congress or ,president or ,vice ,president of the ,united ,states4 4 7#b7 ,,ffel program amendments ,part ,b of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq47 is amended-- 7,a7 in section #dbh 7#bj ,u4,s4,c4 #ajgh71 by adding at the end the following3 7p7 ,repayment history information and public service loan forgiveness information ,a guaranty agency shall-- 7#a7 provide1 in a timely manner1 any necessary borrower repayment history information that the ,secretary requests in order to determine the borrower's eligibility for the public service loan forgiveness program under section #dee7m71 or the number of qualifying monthly payment obligations satisfied for purposes of the program1 including such information from all servicers involved in servicing the borrower's loan2 and 7#b7 carry out the requirements of section #dee7m77#g7 upon receiving any verbal or written contact by a borrower on or after ,july #a1 #bjai1 expressing interest in the public service loan forgiveness program under section #dee7m74 2 and 7,b7 in section #dcc 7#bj ,u4,s4,c4 #ajhc7-- 7i7 by redesignating subsection 7f7 as subsection 7g72 and 7ii7 by inserting after subsection 7e7 the following3 7f7 ,repayment history information ,an eligible lender shall-- 7#a7 provide1 in a timely manner1 any necessary borrower repayment history information that the ,secretary requests in order to determine the borrower's eligibility for the public service loan forgiveness program under section #dee7m71 or the number of qualifying monthly payment obligations satisfied for purposes of the public service loan forgiveness program under section #dee7m71 including such information from all servicers involved in servicing the borrower's loan2 and 7#b7 carry out the requirements of section #dee7m77#g7 upon receiving any verbal or written contact by a borrower on or after ,july #a1 #bjai1 expressing interest in the public service loan forgiveness program under section #dee7m74 4 7b7 ,notification to ,direct ,loan borrowers regarding all options for loan forgiveness ,section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 is amended by adding at the end the following3 7r7 ,annual notice regarding loan forgiveness options 7#a7 ,in general ,the ,secretary shall annually provide a written or electronic disclosure to each borrower of a loan under this part-- 7,a7 notifying the borrower-- 7i7 of any loan forgiveness option available under this title that might apply to a loan under this part held by the borrower1 including the public service loan forgiveness program under subsection 7m72 and 7ii7 in the case of a borrower who is a full-time employee of a ,federal agency and has not expressed interest in or submitted a certification of employment for the public service loan forgiveness program-- 7,i7 that the borrower is employed by a qualifying employer2 7,,ii7 the number of payment obligations satisfied by the borrower that the ,secretary has determined could be qualifying monthly payment obligations on eligible ,federal ,direct ,loan for purposes of the public service loan forgiveness program2 and 7,,iii7 the steps necessary for the borrower to submit a certification of employment and to obtain forgiveness under subsection 7m77#b72 7,b7 informing the borrower that the loan forgiveness options described in subparagraph 7,a7 are provided free of charge2 and 7,c7 including1 for each loan forgiveness option1 information regarding how the borrower should proceed1 including contact information1 if the borrower wishes to pursue such loan forgiveness option4 7#b7 ,exclusions ,notwithstanding paragraph 7#a71 the ,secretary shall not provide a notification under this subsection to a borrower of a loan under this part if-- 7,a7 the borrower is also receiving a notification under subsection 7m77#g72 or 7,b7 the borrower has requested that the ,secretary no longer provide the notifications under this subsection4 4 7c7 ,effective date ,the amendments made by this section shall take effect on ,july #a1 #bjai4 #cjc4 ,transition to improved public service loan forgiveness program 7a7 ,review of borrowers currently participating in public service loan forgiveness 7#a7 ,calculating the number of qualifying payment obligations for current public service loan forgiveness program participants ,by not later than ,july #a1 #bjai1 the ,secretary shall1 for each borrower that has submitted a certification of employment under the public service loan forgiveness program under section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 before ,july #a1 #bjai-- 7,a7 calculate the number of qualifying payment obligations under such section satisfied by the borrower1 using the criteria of such section as in effect on ,july #a1 #bjai2 and 7,b7 inform the borrower of the changes in the public service loan forgiveness program and the number of qualifying payment obligations that the borrower will have satisfied for purposes of the program1 beginning on ,july #a1 #bjai4 7#b7 ,retroactive partial loan forgiveness ,by not later than ,july #a1 #bjai1 the ,secretary shall take such steps as are necessary to provide partial loan forgiveness under section #dee7m77#c77;,a77i7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77#c77;,a77i771 as in effect on such date1 to borrowers with outstanding balance of principal and interest on a loan made under this part who met the criteria for partial loan forgiveness under such section1 as in effect on ,july #a1 #bjai1 before such date but on or after ,october #a1 #bjjg4 7#c7 ,applicability of other provisions ,in carrying out paragraphs 7#a7 and 7#b71 and in any other case where the ,secretary is applying the loan forgiveness provisions of section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m771 as in effect on ,july #a1 #bjai1 to a borrower for whom one or more payment obligations were satisfied before ,july #a1 #bjai1 the ,secretary shall determine the number of payment obligations satisfied by applying all of the provisions of such section as in effect on ,july #a1 #bjai1 including the calculation of payment obligations under section #dee7m77#e7 of such ,act and the inclusion of payment obligations satisfied through the component loans of a ,federal ,direct ,consolidation ,loan under section #dee7m77#f71 without regard as to the date on which the payment obligation was satisfied4 7b7 ,special ,,pslf program funds 7#a7 ,definition of ,special ,,pslf program funds ,in this section1 the term special ,,pslf program funds means the amounts appropriated for public service loan forgiveness under section #cae of division ,h of the ,consolidated ,appropriations ,act1 #bjah 7,public ,law #aae-ada2 ,march #bc1 #bjah7 or under section #cac of division ,b of the ,department of ,defense and ,labor1 ,health and ,human ,services1 and ,education ,appropriations ,act1 #bjai and ,continuing ,appropriations ,act1 #bjai 7,public ,law #aae-bde2 ,september #bh1 #bjah74 7#b7 ,rescission ,upon the effective date described in section #b7;c71 all special ,,pslf program funds that remain unexpended on such date shall be rescinded4 7#c7 ,transition ,the ,secretary of ,education shall establish a process through which the ,secretary shall-- 7,a7 review the applications of borrowers who applied for the loan forgiveness program carried out with special ,,pslf program funds but had not received loan forgiveness through such program before ,july #a1 #bjai2 and 7,b7 assist such borrowers in pursuing loan forgiveness under section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m771 as in effect on ,july #a1 #bjai4 ,,iv ,income-driven repayment plans #dja4 ,income-based repayment plan ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#h71 by striking and after the semicolon2 7,b7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#aj7 a borrower who is repaying a loan made under part ,b or ,d pursuant to this section may repay such loan in full at any time without penalty4 2 and 7#b7 by adding at the end the following3 7f7 ,income-,based repayment for new loans on and after ,july #a1 #bjai1 and for borrowers who enter ,,ibr after ,july #a1 #bjai 7#a7 ,in ,general ,the income-based repayment plan shall be carried out in accordance with this section1 except as otherwise specified in this subsection 7including through the special terms described in paragraph 7#b77-- 7,a7 with respect to any loan issued on or after ,july #a1 #bjai1 if such borrower elects the income-based repayment plan for that loan2 and 7,b7 with respect to any borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d1 if such borrower elects to repay the loan under the income-based repayment plan on or after ,july #a1 #bjai4 7#b7 ,special terms ,notwithstanding any other provision of this section1 with respect to a loan described under paragraph 7#a71 the following terms shall apply to the income-based repayment plan3 7,a7 7i7 ,notwithstanding subsection 7a77#c77;,b71 the repayment amount under this subsection shall be an amount equal to #aj percent of the result obtained by calculating1 on at least an annual basis1 the amount by which-- 7,i7 the borrower's1 and the borrower's spouse 7if applicable71 adjusted gross income2 exceeds 7,,ii7 the applicable percentage of the poverty line in accordance with clause 7ii7 that is applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b774 7ii7 ,for purposes of clause 7i71 the term applicable percentage means #aej percent reduced by #a percentage point for each #a1jjj by which the borrower's adjusted gross income exceeds #ajj1jjj4 7,b7 ,a borrower may elect-- 7i7 during any period during which the borrower's 7and the borrower's spouse1 if applicable7 adjusted gross income is equal to or less than #bbe percent of the poverty line applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b771 to have the borrower's aggregate monthly payment for all such loans equal to #j2 and 7ii7 during any period during which the borrower's 7and the borrower's spouse1 if applicable7 adjusted gross income exceeds #bbe percent of such poverty line1 to have the borrower's aggregate monthly payment for all such loans not exceed1 the lesser of-- 7,i7 the result described in subparagraph 7,a7 divided by #ab2 or 7,,ii7 the monthly amount calculated under section #dee7;d77#a77;,a71 based on a #aj-year repayment period1 when the borrower first made the election described in this subsection4 7,c7 ,with respect to any loan for which payments may be made under subparagraph 7,b71 be paid1 or be treated as if no interest has accrued1 by the ,secretary-- 7i7 for any period described in subparagraph 7,b77i72 and 7ii7 for the #f-month period after the date the borrower ceases to carry at least one-half the normal full-time academic workload at an institution of higher education1 as determined by the institution1 and during which the borrower is not earning any income4 7,d7 ,subsection 7b77#g77;,b7 shall be applied by substituting #bj years for #be years4 7,e7 ,a borrower of such a loan shall not be required to have a partial financial hardship and may elect1 and remain enrolled in1 the income-based repayment plan under this subsection regardless of income level4 7,f7 ,subparagraph 7,a7 of subsection 7b77#f7 shall not apply and a borrower's monthly payment shall be determined in accordance with subparagraph 7,a7 divided by #ab1 which may exceed the monthly repayment amount under a standard #aj-year repayment plan4 7,g7 ,subparagraph 7,b7 of subsection 7b77#c7 shall not apply4 7#c7 ,additional special terms for certain borrowers ,a borrower described in paragraph 7#a77;,b7-- 7,a7 may choose to retain the repayment plan in which the borrower is enrolled on ,june #cj1 #bjai2 7,b7 may elect to-- 7i7 leave the repayment plan described in subparagraph 7,a7 and enter the income-based repayment plan under this subsection2 7ii7 leave the repayment plan described in subparagraph 7,a7 and enter a standard #aj-year repayment plan under section #dee7;d77,a77,a72 or 7iii7 not more than once per calendar year1 switch between the repayment plans described in clauses 7i7 and 7ii72 7,c7 after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or a standard #aj-year repayment plan under section #dee7;d77,a77,a71 shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or such standard #aj-year repayment plan2 and 7,d7 shall retain1 for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan 7as described in subsection 7b77#g77 any years of repayment under another income-based or income-contingent repayment plan under this title4 7#d7 ,cap on interest accrual ,notwithstanding any other provision of this ,act1 the total amount of interest that accrues during a borrower's grace period and the time that a borrower is in repayment under this subsection shall not exceed #ej percent of the original principal amount of the loan4 4 #djb4 ,termination of certain repayment plan options 7a7 ,effective date2 ,rulemaking regarding termination of certain repayment plans 7#a7 ,effective date ,the amendments made by this section shall take effect on ,july #a1 #bjai4 7#b7 ,regulations ,before the effective date described in paragraph 7#a71 the ,secretary of ,education shall carry out a plan to end all eligibility for repayment plans other than a standard repayment plan under section #dbh7;b77#i77;,a77i7 or #dee7;d77#a77;,a7 with a repayment period of #aj years and an income-based repayment plan described under section #dic;,c7f7 for loans made under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife1 unless the borrower is enrolled in another repayment plan before such effective date1 in accordance with the amendments made by this ,act4 7b7 ,changes to current law 7#a7 ,section #dbh7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh7;b77 is amended-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,d7-- 7,i7 in clause 7ii71 by striking may annually change the selection of a repayment plan under this part1 and inserting may at any time after ,july #a1 #bjai1 and not more frequently than once per calendar year thereafter1 change the selection of a repayment plan under this part to one of the #b repayment plans described in paragraph 7#i77;,c712 and 7,,ii7 in clause 7iii71 by striking be subject to income-contingent repayment in accordance with subsection 7m72 and inserting be subject to income-based repayment in accordance with section #dic;,c7f722 and 7ii7 in subparagraph 7,e77i71 by striking the option of repaying the loan in accordance with a standard1 graduated1 income-sensitive1 or extended repayment schedule 7as described in paragraph 7#i77 established by the lender in accordance with regulations of the ,secretary2 and and inserting the option of repaying the loan in accordance with a repayment plan described in paragraph 7#i77;,c7 established by the lender in accordance with regulations of the ,secretary2 and2 and 7,b7 in paragraph 7#i71 by adding at the end the following3 7,c7 ,selection of repayment plans on and after ,july #a1 #bjai 7i7 ,opportunity to change repayment plans ,notwithstanding any other provision of this paragraph1 or any other provision of law1 and in accordance with regulations1 beginning on ,july #a1 #bjai1 the lender shall offer a borrower of a loan made1 insured1 or guaranteed under this part the opportunity to change repayment plans not more than once per calendar year1 and to enroll in one of the following repayment plans3 7,i7 ,a standard repayment plan under section #dbh7;b77#i77;,a77i7 with a repayment period of #aj years4 7,,ii7 ,the income-based repayment plan under section #dic;,c7f74 2 7#b7 in section #dee7;d7-- 7,a7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f71 respectively2 and 7,b7 by inserting after paragraph 7#a71 the following3 7#b7 ,design and selection on and after ,july #a1 #bjai 7,a7 ,in ,general ,notwithstanding paragraph 7#a71 for the borrower of a loan made on or after ,july #a1 #bjai1 and for other borrowers subject to paragraph 7#g71 the ,secretary shall offer a borrower of a loan made under this part #b plans for repayment of such loan1 including principal and interest on the loan4 ,the borrower shall be entitled to accelerate1 without penalty1 repayment on the borrower's loans under this part4 ,the borrower may choose-- 7i7 a standard repayment plan under section #dee7;d77#a77;,a7 with a repayment period of #aj years2 or 7ii7 the income-based repayment plan under section #dic;,c7f74 7,b7 ,selection by the ,secretary ,if a borrower of a loan made under this part on or after ,july #a1 #bjai1 does not select a repayment plan described in subparagraph 7,a71 the ,secretary may provide the borrower with a standard repayment plan under section #dee7;d77#a77;,a7 with a repayment period of #aj years4 7,c7 ,changes in selections ,beginning on ,july #a1 #bjai1 a borrower of a loan made under this part may change the borrower's selection of a repayment plan in accordance with paragraph 7#g7 and under such terms and conditions as may be established by the ,secretary4 7,d7 ,borrower in default ,beginning on ,july #a1 #bjai1 the ,secretary may require any borrower who has defaulted on a loan made under this part to-- 7i7 pay all reasonable collection costs associated with such loan2 and 7ii7 repay the loan pursuant to an income-based repayment plan under section #dic;,c7f74 2 and 7#c7 by adding at the end the following3 7#g7 ,borrowers of loans made before ,july #a1 #bjai ,a borrower who is in repayment on a loan made under part ,b or part ,d before ,july #a1 #bjai-- 7,a7 may choose to retain the repayment plan that the borrower was enrolled in on the day before such date2 7,b7 may elect to-- 7i7 enter the income-based repayment plan under section #dic;,c7f72 7ii7 enter a standard repayment plan under section #dee7;d77#a77;,a7 with a repayment period of #aj years2 or 7iii7 switch between the repayment plans described in clauses 7i7 and 7ii7 not more than once during a calendar year2 7,c7 after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or a standard repayment plan under section #dee7;d77#a77;,a71 shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or a standard repayment plan under section #dee7;d77#a77;,a72 and 7,d7 shall retain1 for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan 7as described in section #dic;,c7b77#g77 any years of repayment under another income-based or income-contingent repayment plan under this title4 4 #djc4 ,notification and automatic enrollment procedures 7a7 ,income-,contingent repayment ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is further amended by adding at the end the following3 7#h7 ,notification and automatic enrollment procedures for borrowers who are delinquent on loans 7,a7 ,authority to obtain income information 7i7 ,in general ,in the case of any borrower who is at least #fj days delinquent on a covered loan1 the ,secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower 7and the borrower's spouse1 if applicable74 7ii7 ,availability of returns and return information ,returns and return information 7as defined in section #fajc of the ,internal ,revenue ,code of #aihf7 may be obtained under this subparagraph only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,b7 ,borrower notification ,with respect to each borrower of a covered loan who is at least #fj days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding #abj days1 the ,secretary shall1 as soon as practicable after such #fj-;day delinquency1 provide to the borrower the following3 7i7 ,notification that the borrower is at least #fj days delinquent on at least #a covered loan1 and a description of all delinquent covered loans1 nondelinquent covered loans1 and noncovered loans of the borrower4 7ii7 ,a brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans1 based on information available to the ,secretary4 7iii7 ,clear and simple instructions on how to select the repayment plans4 7iv7 ,the amount of monthly payments for the covered and noncovered loans under the repayment plans for which the borrower is eligible1 based on information available to the ,secretary1 including1 if the income information of the borrower is available to the ,secretary under subparagraph 7,a7-- 7,i7 the amount of the monthly payment under each income-driven repayment plan for which the borrower is eligible for the borrower's covered and noncovered loans1 based on such income information2 and 7,,ii7 the income1 family size1 tax filing status1 and tax year information on which each monthly payment is based4 7v7 ,an explanation that in the case of a borrower for whom adjusted gross income is unavailable-- 7,i7 if the borrower selects to repay the covered loans of such borrower pursuant to an income-driven repayment plan that defines discretionary income in such a manner that an individual not required under section #fjab7;a77#a7 of the ,internal ,revenue ,code of #aihf to file a return with respect to income taxes imposed by subtitle ,a of such ,code may have a calculated monthly payment greater than #j1 the borrower will be required to provide the ,secretary with other documentation of income satisfactory to the ,secretary1 which documentation the ,secretary may use to determine an appropriate repayment schedule2 and 7,,ii7 if the borrower selects to repay such loans pursuant to an income-driven repayment plan that is not described in subclause 7,i71 the borrower will not be required to provide the ,secretary with such other documentation of income1 and the borrower will have a calculated monthly payment of #j4 7vi7 ,an explanation that the ,secretary shall take the actions under subparagraph 7,c7 with respect to such borrower1 if-- 7,i7 the borrower is #abj days delinquent on one or more covered loans and has not selected a new repayment plan for the covered loans of the borrower2 and 7,,ii7 in the case of such a borrower whose repayment plan for the covered loans of the borrower is not an income-driven repayment plan1 the monthly payments under such repayment plan are higher than such monthly payments would be under an income-driven repayment plan for such loans4 7vii7 ,instructions on updating the information of the borrower obtained under subparagraph 7,a74 7,c7 ,secretary's initial selection of plan ,with respect to each borrower described in subparagraph 7,b7 who has a repayment plan for the covered loans of the borrower that meets the requirements of clause 7vi77,,ii7 of subparagraph 7,b7 and has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph1 and who is at least #abj days delinquent on such a loan1 the ,secretary shall1 as soon as practicable-- 7i7 in a case in which any of the borrower's covered loans are eligible for an income-driven repayment plan-- 7,i7 7aa7 provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower1 compared to any other such plan for which the borrower is eligible2 or 7bb7 if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount1 provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower2 7,,ii7 if the plan selected under subclause 7,i7 is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower's covered loans and noncovered loans1 notify the borrower of the actions1 if any1 the borrower may take to become eligible for such income-driven repayment plan2 and 7,,iii7 authorize the borrower to change the ,secretary's selection of a plan under this clause to any plan described in paragraph 7#a7 for which the borrower is eligible2 and 7ii7 in a case in which none of the borrower's covered loans are eligible for an income-driven repayment plan1 notify the borrower of the actions1 if any1 the borrower may take for such loans to become eligible for such a plan4 7,d7 ,secretary's additional selection of plan 7i7 ,in general ,with respect to each borrower of a covered loan who selects a new repayment plan in accordance with the notice received under subparagraph 7,b7 and who continues to be delinquent on such loan for a period described in clause 7ii71 the ,secretary shall1 as soon as practicable after such period1 carry out the procedures described in clauses 7i7 and 7ii7 of subparagraph 7,c7 for the covered loans of the borrower1 if such procedures would result in lower monthly repayment amounts on such loan4 7ii7 ,description of period ,the duration of the period described in clause 7i7 shall be the amount of time that the ,secretary determines is sufficient to indicate that the borrower may benefit from repaying such loan under a new repayment plan1 but in no case shall such period be less than #fj days4 7,e7 ,opt-out ,a borrower of a covered loan shall have the right to opt-out of the procedures under this paragraph4 7#i7 ,definitions ,in this subsection3 7,a7 ,covered loan ,the term covered loan means-- 7i7 a loan made under this part2 7ii7 a loan purchased under section #dei;,a2 or 7iii7 a loan that has been assigned to the ,secretary under section #dbh7;c77#h7 or part ,e4 7,b7 ,income-driven repayment plan ,the term income-driven repayment plan means-- 7i7 in the case of a covered loan made under this part1 purchased under section #dei;,a1 or assigned to the ,secretary before ,july #a1 #bjai1 a plan described in subparagraph 7,d7 or 7,e7 of paragraph 7#a72 and 7ii7 in the case of a covered loan made under this part1 purchased under section #dei;,a1 or assigned to the ,secretary before ,july #a1 #bjai1 the income-based repayment plan under section #dic;,c7f74 7,c7 ,noncovered loan ,the term noncovered loan means a loan made1 insured1 or guaranteed under this title that is not a covered loan4 4 7b7 ,changing plans ,section #dic;,c7b77#h7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7b77#h77 is amended to read as follows3 7#h7 a borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d pursuant to income-based repayment may elect1 at any time1 to terminate repayment pursuant to income-based repayment and repay such loan under any repayment plan for which the loan is eligible in accordance with the requirements of part ,b or part ,d1 respectively2 and 4 7c7 ,effective date2 ,application 7#a7 ,automatic enrollment ,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 #dje1 but not later than #b years after the date of enactment of this ,act2 and 7,b7 apply to all borrowers of covered loans 7as defined in section #dee7;d77#i7 of the ,higher ,education ,act of #aife1 as added by subsection 7a774 7#b7 ,changing plans ,the amendment made by subsection 7b7 shall take effect on the date of enactment of this ,act4 #djd4 ,automatic recertification of income 7a7 ,income-,contingent repayment ,section #dee7;e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is amended-- 7#a7 in paragraph 7#c7-- 7,a7 by striking does not reasonably reflect the borrower's current income and inserting whose income has decreased relative to the adjusted gross income available to the ,secretary2 and 7,b7 by inserting 1 consistent with the procedures established under paragraph 7#h77;,b77iv7 before the period at the end2 and 7#b7 by adding at the end the following3 7#h7 ,automatic recertification 7,a7 ,definition ,in this paragraph1 the term covered loan has the meaning given the term in subsection 7d77#i74 7,b7 ,in general ,beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #dje of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 but not later than #b years after the date of enactment of such ,act1 the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,c71 procedures to-- 7i7 obtain 7for each year of repayment and without further action by the borrower7 such information as is reasonably necessary regarding the income of such borrower 7and the borrower's spouse1 if applicable71 for the purpose of determining the repayment obligation of the borrower for such year1 including information with respect to the borrower's family size in accordance with the procedures under section #dje of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 subject to clause 7ii72 7ii7 allow the borrower1 at any time1 to opt-out of clause 7i7 and prevent the ,secretary from obtaining information under such clause without further action by the borrower2 7iii7 provide the borrower with an opportunity to update the information obtained under clause 7i7 before the determination of the annual repayment obligation of the borrower2 and 7iv7 in the case of a borrower for whom adjusted gross income is unavailable-- 7,i7 if the borrower has selected to repay the covered loans of such borrower pursuant to an income-contingent repayment plan that defines discretionary income in such a manner that an individual not required under section #fjab7;a77#a7 of the ,internal ,revenue ,code of #aihf to file a return with respect to income taxes imposed by subtitle ,a of such ,code may have a calculated monthly payment greater than #j1 the borrower will be required to provide the ,secretary with other documentation of income satisfactory to the ,secretary1 which documentation the ,secretary may use to determine an appropriate repayment schedule2 or 7,,ii7 if the borrower has selected to repay such loans pursuant to an income-contingent repayment that is not described in subclause 7,i71 the borrower will not be required to provide the ,secretary with such other documentation of income1 and the borrower will have a calculated monthly payment of #j4 7,c7 ,applicability ,subparagraph 7,b7 shall apply to each borrower of a covered loan who1 on or after the date on which the ,secretary establishes procedures under such subparagraph-- 7i7 selects1 or for whom the ,secretary selects under subparagraph 7,c7 or 7,d7 of paragraph 7#h7 of subsection 7d71 or section #dbh7m77#a71 an income-contingent repayment plan2 or 7ii7 recertifies income and family size under such plan4 7,d7 ,availability of returns and return information ,returns and return information 7as defined in section #fajc of the ,internal ,revenue ,code of #aihf7 may be obtained under subparagraph 7,b77i7 only to the extent authorized by section #fajc7l77#ac7 of such ,code4 7,e7 ,other requirements ,the procedures established by the ,secretary under this paragraph shall be consistent with the requirements of paragraphs 7#a7 through 7#g71 except as otherwise provided in this paragraph4 4 7b7 ,income-,based repayment ,section #dic;,c7c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7c77 is amended-- 7#a7 by striking ,the ,secretary shall establish and inserting the following3 7#a7 ,in general ,the ,secretary shall establish 2 7#b7 by striking ,the ,secretary shall consider and inserting the following3 7#b7 ,procedures for eligibility ,the ,secretary shall-- 7,a7 consider 2 and 7#c7 by striking #dbh;,c7b77#a77;,e74 and inserting the following3 #dbh;,c7b77#a77;,e72 and 7,b7 beginning as soon as the ,secretary determines practicable after the ,secretary finalizes the procedures under section #dje of the ,helping ,individuals ,get a ,higher ,education while ,reducing ,education ,debt ,act1 but not later than #b years after the date of enactment of such ,act1 carry out1 with respect to borrowers of any covered loan 7as defined in section #dee7;d77#i771 procedures for income-based repayment plans that are equivalent to the procedures carried out under section #dee7;e77#h7 with respect to income-contingent repayment plans4 4 #dje4 ,study and procedures on determining family size 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,education shall-- 7#a7 jointly with the ,secretary of the ,treasury1 conduct a study1 which meets the specifications described in subsection 7b71 on the effect of using data from the ,internal ,revenue ,service on the deduction for personal exemptions provided by section #aea of the ,internal ,revenue ,code of #aihf for a proxy for family size in an income-driven repayment plan1 and publish such study in the ,federal ,register2 7#b7 use the results of the study conducted under paragraph 7#a7 to develop procedures for determining family size for the automatic recertification of income for an income-driven repayment plan in a manner that minimizes burdens and unintended harm to borrowers2 7#c7 publish the procedures developed under paragraph 7#b7 in the ,federal ,register2 and 7#d7 after a notice and comment period on such procedures1 use such comments to finalize the procedures4 7b7 ,specifications ,the study conducted under subsection 7a77#a7 shall-- 7#a7 determine how closely such personal exemptions match the family size that borrowers report on their income-driven repayment plan request form2 7#b7 compare the borrower's actual monthly payment amount with the monthly payment amount borrowers would have using family size information derived from tax returns2 and 7#c7 use data from more than one year1 where possible1 to analyze how much family size changes over time4 7c7 ,definition ,the term income-driven repayment plan has the meaning given the term in section #dee7;d77#i7 of the ,higher ,education ,act of #aife1 as amended by this ,act4 #djf4 ,disclosure of tax return information to carry out certain higher education loan programs 7a7 ,in general ,paragraph 7#ac7 of section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#ac7 ,disclosure of returns and return information for purposes of student loan administration 7,a7 ,in general ,the ,secretary1 subject to such requirements and conditions as the ,secretary may prescribe1 shall upon written request from the ,secretary of ,education disclose to officers and employees of the ,department of ,education returns and return information with respect to a taxpayer who has received an applicable student loan4 7,b7 ,restriction on use of disclosed information ,return information disclosed under subparagraph 7,a7 may be used by officers and employees of the ,department of ,education only for the purposes of1 and to the extent necessary for purposes of-- 7i7 establishing the appropriate income-contingent repayment amount in connection with an applicable student loan1 7ii7 establishing the appropriate repayment amount under an applicable income-driven repayment plan 7as defined in section #dee7;d77#i7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7d777 in connection with an applicable student loan for-- 7,i7 borrowers who have selected such a plan1 and 7,,ii7 in the case of any recertification under section #dee7;e77#h7 or #dic;,c7c77#b77;,b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e72 #ajih;e7c771 borrowers who are enrolled in such a plan1 and 7iii7 in the case of borrowers who are at least #fj days delinquent on an applicable student loan-- 7,i7 providing notice of eligibility for an income-driven repayment plan 7as so defined7 pursuant to section #dee7;d77#h77;,b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 and 7,,ii7 automatic enrollment in such an income-driven repayment plan after such borrowers are at least #abj days delinquent on such a loan pursuant to section #dee7;d77#h77;,c7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7d774 7,c7 ,disclosure to certain contractors ,officers and employees of the ,department of ,education may disclose the information described in subparagraph 7,a7 to persons awarded contracts by the ,secretary of ,education under section #def of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;f7 to the extent necessary for the purposes described in subparagraph 7,b74 7,d7 ,spousal information for married individuals filing separate returns ,for purposes of this paragraph1 in the case of a married individual filing a separate return1 the term taxpayer includes the spouse of that individual if the ,secretary of ,education requests information from the spouse of that individual and the individual and the spouse have consented in writing4 7,e7 ,applicable student loan ,for purposes of this paragraph1 the term applicable student loan means-- 7i7 any loan which is made1 insured1 or guaranteed under a program authorized under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq42 #ajhg;a et seq471 and 7ii7 any loan which is made under part ,e of such title ,,iv 7#bj ,u4,s4,c4 #ajhg;aa et seq47 which is in default and has been assigned to the ,department of ,education4 4 7b7 ,conforming amendments 7#a7 ,section #fajc7;a77#c7 of such ,code is amended by inserting 7#ac71 after 7#ab714 7#b7 ,section #fajc7p77#d7 of such ,code is amended by inserting 7#ac71 after 7l77#aj71 each place it occurs4 7c7 ,effective date ,the amendments made by this section shall apply to disclosures made after the date of enactment of this ,act4