,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dfjc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #d1 #bjai,mr4 
,c>bajal 7= himself & ,ms4 ,jackson     
,lee7 introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,education &  
,labor1 & 9 addition to ! ,committee on 
,ways & ,means1 = a p]iod to be         
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,high]   
,education ,act ( #aife to provide =    
,f$]al /ud5t loan re=m4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,lev]ag+     
,opportunities = ,am]icans ,n[ ,act (   
#bjai or ! ,,loan ,act ( #bjai4  #b4    
,elim9ation ( int]e/ & replacem5t )     
f9anc+ fees ,section #dee ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7 is am5d$ by add+ at ! end !    
foll[+3  7r7 ,elim9ation ( int]e/ &     
replacem5t ) f9anc+ fees  7#a7 ,9 g5]al 
7,a7 ,9 g5]al ,except z provid$ "u      
subp>agraph 7,b71 beg9n+ on ,july #a1   

#bjba1 ! ,secret>y %all make loans "u   
?is "p 9 accordance ) ?is subsection4   
7,b7 ,exception ,beg9n+ on ,july #a1    
#bjba1 ! ,secret>y %all make loans "u   
?is "p 9 accordance ) ! provisions ( ?is
 "p o!r ?an ?is subsection to a borr[]  
:o--  7i7 0 enroll$ 9 an in/itution (   
high] education on ,june #cj1 #bjba2 &  
7ii7 elects to borr[ a loan "u ?is "p 9 
accordance ) ! provisions ( ?is "p o!r  
?an ?is subsection4  7#b7 ,elim9ation ( 
int]e/ ,= loans made "u ?is "p 9        
accordance ) ?is subsection = :i* ! fir/
 disbursem5t is made on or aft] ,july   
#a1 #bjba1 ! applicable rate ( int]e/   
%all be equal to #j p]c5t4  7#c7 ,f9anc+
 fees  7,a7 ,9 g5]al ,beg9n+ on ,july   
#a1 #bjba1 ! ,secret>y %all *>ge !      
borr[] ( a loan made "u ?is "p 9        
accordance ) ?is subsection a f9anc+ fee
 det]m9$ 9 accordance ) ?is p>agraph &  
issu$ on ! date ! loan is disp]s$4  7,b7
 ,det]m9ation ( fee ,! f9anc+ fee = a   
borr[] ( a loan made "u ?is "p-- 7i7 t  
is us$ = enrollm5t 9 an und]graduate    

c\rse ( /udy 7except a ,f$]al ,direct   
,,plus ,loan made on behalf ( a dep5d5t 
/ud5t71 %all be equal to1 f ! pr9cipal  
am\nt ( ! loan1 #be p]c5t ( ! am\nt (   
su* loan2  7ii7 t is us$ = enrollm5t 9 a
 c\rse ( /udy necess>y = enrollm5t 9 a  
program lead+ to a degree or c]tificate1
 %all be equal to1 f ! pr9cipal am\nt ( 
! loan1 #be p]c5t ( ! am\nt ( su* loan2 
7iii7 t is us$ = enrollm5t 9 a program t
 is necess>y = a pr(essional cr$5tial or
 c]tification f a ,/ate t is requir$ =  
employm5t z a tea*] 9 an elem5t>y or    
second>y s*ool 9 t ,/ate1 %all be equal 
to1 f ! pr9cipal am\nt ( ! loan1 #be    
p]c5t ( ! am\nt ( su* loan2 &  7iv7 t is
 a ,f$]al ,direct ,,plus ,loan made on  
behalf ( a dep5d5t /ud5t or us$ =       
enrollm5t 9 a graduate or pr(essional   
c\rse ( /udy1 %all be equal to1 f !     
pr9cipal am\nt ( ! loan1 #ch p]c5t ( !  
am\nt ( su* loan4  7,c7 ,r$uction due to
 prepaym5t  7i7 ,9 g5]al ,9 ord] to     
provide an inc5tive to borr[]s to pay ! 
balance ( a loan made "u ?is "p e>li]   

?an requir$ "u ! applicable repaym5t    
plan1 ! ,secret>y may cr$it or refund   
any su* borr[]s = an am\nt ( ! f9anc+   
fee *>g$ "u ?is subsection4  7ii7       
,regulations  7,i7 ,9 g5]al ,n lat] ?an 
#i mon?s aft] ! date ( enactm5t ( !     
,,loan ,act ( #bjai1 ! ,secret>y %all   
promulgate regulations e/abli%+ !       
me?odology = cr$it+ or refund+ a f9anc+ 
fee *>g$ "u ?is subsection pursuant to  
clause 7i74 ,su* cr$it or refund %all n 
r$uce ! f9anc+ fee by m ?an--  7aa7 )   
respect to a borr[] ^: income1 z det]m9$
 "u subclause 7,,ii71 0 n m ?an #de1jjj 
9 ! taxable ye> 9 :i* ! borr[] paid an  
am\nt f ! balance ( a loan made "u ?is  
"p e>li] ?an requir$ "u ! applicable    
repaym5t plan1 #ae p]c5tage po9ts ( su* 
am\nt2  7bb7 ) respect to a borr[] ^:   
income1 z det]m9$ "u subclause 7,,ii71 0
 m ?an #de1jjj b n m ?an #ie1jjj 9 !    
taxable ye> 9 :i* ! borr[] paid an am\nt
 f ! balance ( a loan made "u ?is "p    
e>li] ?an requir$ "u ! applicable       
repaym5t plan1 #aj p]c5tage po9ts ( su* 

am\nt2 &  7cc7 ) respect to a borr[] ^: 
income1 z det]m9$ "u subclause 7,,ii71 0
 m ?an #ie1jjj 9 ! taxable ye> 9 :i* !  
borr[] paid an am\nt f ! balance ( a    
loan made "u ?is "p e>li] ?an requir$ "u
 ! applicable repaym5t plan1 #e p]c5tage
 po9ts ( su* am\nt4  7,,ii7 ,income     
det]m9ation ,= purposes ( subclause     
7,i71 a borr[]'s income is equal to !   
am\nt ( ! gross income ( ! borr[] = !   
taxable ye> t exce$s #aj1jjj 7adju/$ ea*
 ye> to reflect *anges 9 ! ,consum]     
,price ,index = ,all ,urban ,consum]s   
publi%$ by ! ,bureau ( ,labor ,/ati/ics 
= ! ,dep>tm5t ( ,labor = ! mo/ rec5t    
#ab-mon? p]iod = :i* su* data are       
available74  7,d7 ,me?odology ( paym5t  
,! ,secret>y %all e/abli% an            
amortization s*$ule = ! repaym5t (      
f9anc+ fees *>g$ "u ?is subsection4     
7#d7 ,rulemak+ = consolidation ,n lat]  
?an #ah mon?s aft] ! date ( enactm5t ( !
 ,,loan ,act ( #bjai1 ! ,secret>y %all  
promulgate rules reg>d+ ,f$]al ,direct  
,consolidation ,loans made "u ?is "p 9  

accordance ) ?is subsection1 includ+ a  
rule t ! f9anc+ fee = su* a ,f$]al      
,direct ,consolidation ,loan det]m9$ 9  
accordance ) ?is subsection %all n exce$
 ! sum ( ! f9anc+ fees applicable to !  
consolidat$ loans4  4  #c4 ,income      
dep5d5t education assi/ance repaym5t    
plan ,"p ,d ( title ,,iv ( ! ,high]     
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #dfj;,a4 ,income dep5d5t 
education assi/ance repaym5t plan  7a7  
,9 g5]al  7#a7 ,applicability ,not)/&+  
any o!r provision ( ?is ,act1 ) respect 
to any loan made "u ?is "p aft] ! date (
 enactm5t ( ! ,,loan ,act ( #bjai1 !    
repaym5t plan options are only a #aj-ye>
 fix$ repaym5t plan & ! repaym5t plan "u
 ?is section4 ,if ! borr[] ( ! loan does
 n select a repaym5t plan1 ! repaym5t ( 
su* loan %all be made 9 accordance ) ?is
 section4 ,a borr[] ( a loan made "u ?is
 "p aft] ! date ( enactm5t ( ! ,,loan   
,act ( #bjai may affirmatively select ! 
repaym5t plan "u ?is section4  7#b7     

,regulations ,n lat] ?an #ah mon?s aft] 
! date ( enactm5t ( ! ,,loan ,act (     
#bjai1 ! ,secret>y %all promulgate      
rules--  7,a7 outl9+ h[ ! ,dep>tm5t w   
implem5t ! income dep5d5t education     
assi/ance repaym5t plan requirem5ts =   
borr[]s "u ?is section2 &  7,b7 reg>d+  
mon?ly repaym5t processes = borr[]s (   
loans made "u ?is "p be=e ! date (      
enactm5t ( ! ,,loan ,act ( #bjai4  7#c7 
,rule ( con/ruction ,no?+ 9 ?is section 
%all be con/ru$ to elim9ate or o!rwise  
affect ! loan =giv5ess or loan          
cancellation options available "u ?is "p
 to a borr[]4  7b7 ,duties ( ! ,secret>y
 ( ! ,treasury  7#a7 ,9 g5]al ,!        
,secret>y ( ! ,treasury %all1 ) respect 
to ea* individual = :om a loan made "u  
?is "p aft] ! date ( enactm5t ( ! ,,loan
 ,act ( #bjai is 9 repaym5t /atus1      
transmit to ! ,secret>y ( ,education--  
7,a7 9 ! case ( su* an individual :o    
files an income tax return = su* taxable
 ye>1 su* tax in=mation z is necess>y to
 det]m9e ! individual's repaym5t        

obligation & f9anc+ fee adju/m5ts1 z    
det]m9$ by ! ,secret>y "u ?is "p2 &     
7,b7 9 ! case ( any su* individual :o   
does n file a return = su* taxable ye>1 
any available tax in=mation ( !         
individual z may be necess>y to det]m9e 
su* obligation & :e!r su* individual is 
del9qu5t "u ! t]ms ( su* loan = n s     
fil+4  7#b7 ,additional program         
requirem5ts ,! ,secret>y ( ! ,treasury  
%all e/abli% su* o!r policies1          
proc$ures1 & guidance z may be necess>y 
to c>ry out ! purposes ( ?is section1   
includ+ measures to prev5t und]report+ &
 evasion ( repaym5t or fil+4  7c7       
,duties ( ! ,secret>y ( ,education  7#a7
 ,9 g5]al ,! ,secret>y %all c>ry out1 z 
"p ( ! loan repaym5t plan e/abli%$ "u   
?is section1 ! foll[+ activities3  7,a7 
,calculation ( annual repaym5t am\nts ,!
 ,secret>y %all calculate ! annual      
repaym5t am\nt "u ?is section = borr[]s 
) "o or m loans made "u ?is "p aft] !   
date ( enactm5t ( ! ,,loan ,act ( #bjai 
9 repaym5t /atus = "o or m mon?s 9 !    

taxable ye> = :i* ! am\nt is det]m9$    
reg>dless ( :i* repaym5t plan ! borr[]  
is 91 includ+ ! repaym5t obligations (  
su* borr[]s 9 accordance ) subsection   
7d77#c74  7,b7 ,communication ) !       
secret>y ( ! treasury ,! ,secret>y %all 
transmit to ! ,secret>y ( ! ,treasury   
su* in=mation z is necess>y = !         
,secret>y ( ! ,treasury to c>ry out     
subsection 7d77#c74  7,c7 ,annual       
/atem5ts ,^u calculat+ ! annual repaym5t
 am\nts "u subp>agraph 7,a7 = a taxable 
ye>1 ! ,secret>y %all provide a /atem5t1
 on an annual basis1 to ea* borr[] ) a  
loan made "u ?is "p aft] ! date (       
enactm5t ( ! ,,loan ,act ( #bjai        
reg>dless ( :i* repaym5t plan ! borr[]  
is 91 :i* li/s ! foll[+3  7i7 ,total    
paym5ts made on ! borr[]'s annual       
repaym5t am\nt = su* taxable ye>4  7ii7 
,! borr[]'s annual repaym5t am\nt = su* 
taxable ye>4  7iii7 ,! out/&+ balances  
on all ! loans made to ! borr[] "u ?is  
"p aft] ! date ( enactm5t ( ! ,,loan    
,act ( #bjai & any o!r out/&+ balances  

on loans ( ! borr[] t 7 made1 insur$1 or
 gu>ante$ "u ?is title4  7iv7 ,a        
description ( h[ ! borr[]'s annual      
repaym5t am\nt 0 calculat$4  7,d7       
,paym5ts on a borr[]'s behalf ,!        
,secret>y %all--  7i7 provide a me*anism
 = o!r individuals or entities to make  
paym5ts on ! annual repaym5t am\nt ( a  
borr[] = a taxable ye>2 &  7ii7 notify !
 borr[] t any paym5ts made "u clause 7i7
 = ! taxable ye> t exce$ ! annual       
repaym5t am\nt = ! ye> %all n be refund$
 to ! borr[]4  7,e7 ,appeals process    
7i7 ,9 g5]al ,! ,secret>y %all make     
available a process ?r\gh :i* a borr[] c
 appeal ! calculation ( ! borr[]'s      
annual repaym5t am\nt1 includ+ a        
work%eet t enables a borr[] to calculate
 ! borr[]'s annual repaym5t am\nt4  7ii7
 ,good /&+ ,a borr[] :o makes an appeal 
"u clause 7i7 ) respect to a loan %all  
be consid]$ 9 good /&+ on su* loan dur+ 
! duration ( ! appeal4  7iii7           
,regulations ,! ,secret>y %all issue    
regulations outl9+ su* process n lat]   

?an #ah mon?s aft] ! date ( enactm5t ( !
 ,,loan ,act ( #bjai4  7,f7 ,del9qu5t = 
failure to file a return  7i7 ,9 g5]al  
,9 a case 9 :i* ! ,secret>y receives    
in=mation f ! ,secret>y ( ! ,treasury "u
 subsection 7b7 t a borr[] ) a loan made
 "u ?is "p aft] ! date ( enactm5t ( !   
,,loan ,act ( #bjai 9 repaym5t /atus 9 !
 repaym5t plan "u ?is section1 has fail$
 to file a return "u section            
#fjab7;a77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf & su* borr[] 0 requir$ to file 
su* a return1 ! ,secret>y %all--  7,i7  
notify ! borr[] ( ! borr[]'s failure to 
file su* a return2 &  7,,ii7 if ! borr[]
 fails to file su* a return )9 #ij days 
( receipt ( ! notice describ$ 9         
subclause 7,i71 consid] ! borr[]'s loans
 made "u ?is "p aft] ! date ( enactm5t (
 ! ,,loan ,act ( #bjai 9 repaym5t /atus 
9 ! repaym5t plan "u ?is section to be  
del9qu5t4  7ii7 ,appeals process ,!     
,secret>y %all make available a process 
?r\gh :i* a borr[] c appeal a           
det]m9ation "u clause 7i7 t ! borr[] has

 fail$ to file a return "u section      
#fjab7;a77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf & su* borr[] 0 requir$ to file 
su* a return4 ,! ,secret>y %all issue   
regulations outl9+ su* process n lat]   
?an #ah mon?s aft] ! date ( enactm5t ( !
 ,,loan ,act ( #bjai4  7,g7 ,mon?ly     
paym5ts process ,! ,secret>y %all-- 7i7 
e/abli% a mon?ly paym5ts process        
describ$ 9 p>agraph 7#b72 &  7ii7 issue 
regulations e/abli%+ p5alties = default 
on su* mon?ly paym5ts4  7,h7 ,calculat+ 
loan =giv5ess ,! ,secret>y %all det]m9e 
appropriate loan =giv5ess options =     
/ud5ts :o select ! repaym5t plan "u ?is 
section4  7,i7 ,f9ancial h>d%ips  7i7 ,9
 g5]al ,! ,secret>y %all e/abli% a      
process = provid+ an adju/m5t 9 bo? !   
mon?ly paym5t & annual repaym5t am\nt   
obligations on a loan = a borr[]        
exp]i5c+ extreme un=ese5 f9ancial       
circum/ances unrelat$ to a *ange 9      
annual income4  7ii7 ,repaym5t /atus ,a 
borr[] :o receives an adju/m5t "u clause
 7i7 = a loan %all be deem$ 9 repaym5t  

/atus ) respect to su* loan4  7#b7      
,mon?ly paym5ts process  7,a7 ,9 g5]al  
,! ,secret>y %all e/abli% a process "u  
:i* a borr[]1 or "o mak+ paym5ts on     
behalf ( a borr[] "u p>agraph 7#a77;,d71
 %all make mon?ly paym5ts t[>ds !       
borr[]'s annual repaym5t am\nt4  7,b7   
,in=mation requir$ ,! proc$ure =        
initiat+ ! mon?ly paym5ts process "u    
subp>agraph 7,a7 %all include an income 
e/imate bas$ on ! income v]ification    
provid$ by ! ,secret>y ( ! ,treasury "u 
subsection 7b74  7,c7 ,automatic        
cont9uation ,! mon?ly paym5ts process   
%all cont9ue until ! borr[]'s loans made
 "u ?is "p aft] ! date ( enactm5t ( !   
,,loan ,act ( #bjai are repaid4  7,d7   
,updat+ paym5t am\nts  7i7 ,secret>y ,! 
,secret>y %all automatically recalculate
 a borr[]'s mon?ly paym5t am\nt-- 7,i7  
at ! beg9n+ ( a new taxable ye> us+ !   
mo/ rec5t income e/imate provid$ "u     
subsection 7b77#a7 by ! ,secret>y ( !   
,treasury2 &  7,,ii7 n lat] ?an #cj days
 aft] ! date ! borr[]'s income e/imate  

is adju/$ aft] an appeal "u p>agraph    
7#a77;,e74  7ii7 ,borr[] ,a borr[] may  
reque/ t ! ,secret>y update ! borr[]'s  
income e/imate to adju/ mon?ly paym5t   
am\nts pursuant to subp>agraph 7,e7 or  
7,i7 ( p>agraph 7#a7 at any "t4  7d7    
,borr[] repaym5t  7#a7 ,repaym5t p]iod  
,! repaym5t p]iod ( a loan 9 ! repaym5t 
plan "u ?is section %all-- 7,a7 beg9 on 
! fir/ day ( ! fir/ taxable ye> t beg9s 
aft] ! borr[]'s 9-s*ool def]m5t p]iod2 &
  7,b7 cont9ue until ! loan is paid 9   
full1 except t ! ,secret>y may grant a  
borr[] def]m5t ( ! borr[]'s annual      
repaym5t am\nt--  7i7 = a p]iod n to    
exce$ #fj days1 due to adm9i/rative or  
te*nical reasons2  7ii7 = a p]iod n to  
exce$ #c mon?s1 due to unusual          
circum/ances t disrupt ! borr[]'s       
ability to make timely paym5ts on !     
loan2 or  7iii7 r5ewable at #ab-mon?    
int]vals = a p]iod n to exce$ #c ye>s1  
due to docum5t$ extreme economic h>d%ip 
on ! "p ( a borr[]4  7#b7 ,prepaym5t    
au?oriz$ ,a borr[] %all h ! "r to prepay

 all or "p ( su* loan1 at any "t & )\t  
p5alty4 ,any su* prepaym5t am\nt %all be
 appli$ 9 accordance ) section          
#dee7r77#c77;,c74  7#c7 ,det]m9ation (  
income-,bas$ repaym5t obligation  7,a7  
,9 g5]al ,! repaym5t obligation "u ?is  
section ) respect to an individual = any
 taxable ye> is an am\nt equal to #aj   
p]c5t ( ! am\nt ( ! gross income ( !    
borr[] = ! taxable ye> t exce$s !       
exemption am\nt "u subp>agraph 7,c74    
7,b7 ,exclusion ( c]ta9 am\nts paid on  
behalf ( individual ,any am\nt paid on !
 borr[]'s behalf "u subsection          
7c77#a77;,d7 %all n be tak5 into acc\nt 
9 det]m9+ su* borr[]'s income-bas$      
repaym5t obligation4  7,c7 ,exemption   
am\nt ,= purposes ( ?is section1 !      
exemption am\nt ) respect to an         
individual %all be #aj1jjj 7adju/$ ea*  
ye> to reflect *anges 9 ! ,consum]      
,price ,index = ,all ,urban ,consum]s   
publi%$ by ! ,bureau ( ,labor ,/ati/ics 
( ! ,dep>tm5t ( ,labor = ! mo/ rec5t    
#ab-mon? p]iod = :i* su* data are       

available74  7,d7 ,individuals n fil+ a 
return ,! income-bas$ repaym5t          
obligation ) respect to an individual n 
requir$ to file a return "u section     
#fjab7;a77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf %all be treat$ z z]o4  4