,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cibf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bc1 #bjai,mr4  
,visclosky introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,education &
 ,labor  ,a ,,bill  ,to am5d ! ,high]   
,education ,act ( #aife 9 ord] to       
improve ! s]vice obligation v]ification 
process = ,,tea* ,grant recipi5ts1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,consid] ,tea*]s ,act4 
#b4 ,,tea* ,grant  7a7 ,agreem5ts ,to   
s]ve ,section #dbj,n7b7 ( ! ,high]      
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgj;g-#b7;b7 is am5d$--  7#a7 9       
p>agraph 7#a77;,d71 by /rik+ ^u         
completion & ins]t+ by n lat] ?an       
,octob] #ca aft] completion2 &  7#b7 9  
p>agraph 7#b71 by /rik+ fail$ or refus$ 
to c>ry out su* s]vice obligation &     
ins]t+ n complet$ ! applicant's s]vice  
obligation )9 ! #h-ye> p]iod describ$ 9 
p>agraph 7#a77;,a7 or ! applicant )draws
 f su* s]vice obligation4  7b7 ,repaym5t
 = failure ,to complete s]vice ,section 

#dbj,n7c7 ( ! ,high] ,education ,act (  
#aife 7#bj ,u4,s4,c4 #ajgj;g-#b7;c7 is  
am5d$ to read z foll[s3  7c7 ,repaym5t =
 failure ,to complete s]vice  7#a7 ,9   
g5]al ,9 ! ev5t t ! ,secret>y det]m9es t
 any recipi5t ( a grant "u ?is subp>t   
has n complet$ ! recipi5t's s]vice      
obligation "u subsection 7b7 or has     
)drawn f su* s]vice obligation1 ! sum ( 
! am\nts ( any ,,tea* ,grants receiv$ by
 su* recipi5t %all1 ^u su* a            
det]m9ation1 be treat$ z a ,f$]al       
,direct ,unsubsidiz$ ,/af=d ,loan "u "p 
,d1 & %all be subject to repaym5t1      
toge!r ) int]e/ !reon accru+ f ! date ( 
! grant aw>d1 9 accordance ) t]ms &     
conditions specifi$ by ! ,secret>y 9    
regulations "u ?is subp>t4  7#b7        
,reconsid]ation ( loan treatm5t  7,a7 ,9
 g5]al ,9 ! ev5t t ! ,secret>y has made 
a det]m9ation "u p>agraph 7#a7 ) respect
 to a recipi5t ( a grant "u ?is subp>t t
 results 9 su* grant be+ treat$ z a     
,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan
 "u "p ,d--  7i7 ^u reque/ ( su*        

recipi5t1 ! ,secret>y %all reconsid] !  
det]m9ation2 &  7ii7 su* recipi5t may   
submit to ! ,secret>y additional        
in=mation to demon/rate t--  7,i7 !     
recipi5t has complet$ ! s]vice          
obligation )9 ! #h-ye> p]iod describ$ 9 
subsection 7b77#a77;,a72 or  7,,ii7 !   
#h-ye> p]iod = completion ( su* s]vice  
obligation has n yet expir$4  7,b7      
,approval ( reconsid]ation ,if1 9       
reconsid]+ a det]m9ation "u subp>agraph 
7,a71 ! ,secret>y det]m9es t ! recipi5t 
has1 z ( ! date ( ! reconsid]ation1     
demon/rat$ t ! recipi5t has complet$ !  
s]vice obligation )9 ! #h-ye> p]iod     
describ$ 9 subsection 7b77#a77;,a71 or t
 ! #h-ye> p]iod = completion ( su*      
s]vice obligation has n yet expir$1 !   
,secret>y %all--  7i7 cancel ! am\nt (  
pr9cipal1 int]e/ accru$1 or any fees t  
are out/&+ on ! ,f$]al ,direct          
,unsubsidiz$ ,/af=d ,loan made to !     
recipi5t "u ?is subp>t1 re9/ate !       
recipi5t's grant "u ?is subp>t1 & ext5d 
! #h-ye> s]vice p]iod describ$ 9        

subsection 7b77#a77;,a7 by an am\nt     
equal to ! p]iod dur+ :i* su* grant 0   
treat$ z su* loan2  7ii7 if ! recipi5t  
has an out/&+ obligation on ano!r loan  
made "u "p ,d1 apply any paym5ts made on
 su* ,f$]al ,direct ,unsubsidiz$ ,/af=d 
,loan t[>d su* o!r loan1 & 9 a case 9   
:i* ! recipi5t has an out/&+ obligation 
on multiple loans made "u "p ,d1 enable 
! borr[] to det]m9e h[ su* paym5ts %all 
be appli$ t[>d su* loans2  7iii7 if !   
recipi5t does n h an out/&+ obligation  
on any o!r loan made "u "p ,d1 reimburse
 ! recipi5t = any am\nts paid on su*    
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loan2 &  7iv7 c\nt any p]iod ( s]vice (
 ! recipi5t t meets ! requirem5ts (     
subsection 7b77#a7 & t 0 complet$ :ile !
 grant 0 be+ treat$ z su* ,f$]al ,direct
 ,unsubsidiz$ ,/af=d ,loan1 t[>d !      
recipi5t's s]vice obligation "u         
subsection 7b77#a74  7,c7 ,rule (       
,con/ruction ,no?+ 9 ?is p>agraph %all  
be con/ru$ to mean t ! s]vice obligation
 "u ?is subp>t is waiv$4  4  7c7        

,communication ) recipi5ts ,section     
#dbj,n7d7 ( ! ,high] ,education ,act (  
#aife 7#bj ,u4,s4,c4 #ajgj;g-#b7;d7 is  
am5d$ by add+ at ! end ! foll[+3  7#c7  
,communication ) recipi5ts ,n lat] ?an  
,octob] #e ( ea* ye>1 ! ,secret>y %all  
notify ea* recipi5t ( a grant "u ?is    
subp>t ( ! foll[+3  7,a7 ,! t]ms &      
conditions ! recipi5t mu/ cont9ue to    
meet to satisfy _! s]vice obligation 9 !
 agreem5t "u subsection 7b74  7,b7 ,!   
requirem5t & means = ! recipi5t to      
provide evid5ce ( qualifi$ employm5t to 
! ,secret>y describ$ "u subsection      
7b77#a77;,d74  7,c7 ,! am\nt ( s]vice ! 
,secret>y has c\nt$ t[>ds ! recipi5ts'  
s]vice obligation 9 ! agreem5t "u       
subsection 7b74  7,d7 ,! p]iod rema9+ = 
! recipi5t to complete ! recipi5t's     
s]vice obligation 9 ! agreem5t "u       
subsection 7b74  7,e7 ,! conditions "u  
:i* ! ,secret>y w treat a ,,tea* ,grant 
z a loan "u subsection 7c77#a74  7,f7 ,!
 am\nt ( int]e/ t may accrue & t !      
recipi5t w be requir$ to pay if su*     

grant is treat$ z a loan "u subsection  
7c77#a74  7,g7 ,! process "u :i* !      
recipi5t may contact ! ,secret>y to     
reque/ a reconsid]ation "u subsection   
7c77#b74  7,h7 ,! process "u :i* a      
recipi5t may reque/ to h a portion ( !  
recipi5t's s]vice obligation excus$     
pursuant to subsection 7d77#b74  7,i7 ,!
 process "u :i* a recipi5t may reque/ to
 )draw f ! recipi5t's s]vice obligation 
"u subsection 7b74  4