,i #aafth ,,congress #ast ,session ,h4 ,r4 #dfgj ,,in ,,the ,,house ,,of ,,representatives ,october #aa1 #bjai,ms4 ,wild 7for herself and ,mrs4 ,hayes7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to amend the ,higher ,education ,act of #aife to establish an income-based repayment for new loans on and after ,july #a1 #bjba1 and for borrowers who enter income-based repayment after ,june #cj1 #bjba1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,simplifying ,student ,loans ,act4 #b4 ,termination of certain repayment plan options and opportunity to change repayment plans 7a7 ,selection of repayment plans ,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-- 7,a7 in subparagraph 7,d7-- 7i7 in clause 7ii71 by striking may annually change the selection of a repayment plan under this part1 and inserting may at any time after ,july #a1 #bjba1 change the selection of a repayment plan under this part to one of the #b repayment plans described in paragraph 7#i77;,c712 and 7ii7 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 7,b7 in subparagraph 7,e77i71 by striking the option of repaying the loan in accordance with a standard1 graduated1 income-sensitive1 or extended repayment schedule 7as described in paragraph 7#i77 established by the lender in accordance with regulations of the ,secretary2 and and inserting the option of repaying the loan in accordance with 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 #bjba2 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 #bjba1 the lender shall offer a borrower of a loan made1 insured1 or guaranteed under this part the opportunity to change repayment plans1 and to enroll in one of the following repayment plans3 7i7 ,a fixed repayment plan described in section #dic;,e4 7ii7 ,the income-based repayment plan under section #dic;,c7f74 4 #c4 ,amendments to terms and conditions of loans and repayment plans 7a7 ,rulemaking regarding termination of certain repayment plans ,before ,july #a1 #bjba1 the ,secretary of ,education shall carry out a plan to end all eligibility for repayment plans other than a fixed repayment plan described in section #dic;,e of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as added by this ,act1 and an income-based repayment plan described under section #dic;,c7f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 as added by this ,act1 for loans made under part ,b or ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq471 unless the borrower is enrolled in another repayment plan before ,july #a1 #bjba1 in accordance with the amendments made by this ,act4 7b7 ,repayment plans ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is amended-- 7#a7 by redesignating paragraphs 7#b7 through 7#e7 as paragraphs 7#c7 through 7#f71 respectively2 7#b7 by inserting after paragraph 7#a71 the following3 7#b7 ,design and selection on and after ,july #a1 #bjba 7,a7 ,in general ,notwithstanding paragraph 7#a71 for the borrower of a loan made on or after ,july #a1 #bjba1 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 fixed repayment plan described in section #dic;,e2 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 #bjba1 does not select a repayment plan described in subparagraph 7,a71 the ,secretary may provide the borrower with a fixed repayment plan described in section #dic;,e4 7,c7 ,changes in selections ,beginning on ,july #a1 #bjba1 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 2 7#c7 in paragraph 7#f77;,b71 as redesignated1 by striking an income contingent repayment plan4 and inserting the income-based repayment plan under section #dic;,c7f742 and 7#d7 by adding at the end the following3 7#g7 ,borrowers of loans made before ,july #a1 #bjba ,a borrower who is in repayment on a loan made under part ,b or part ,d before ,july #a1 #bjba-- 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 or 7ii7 enter a fixed repayment plan described in section #dic;,e2 7,c7 after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or a fixed repayment plan described in section #dic;,e1 shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or a fixed repayment plan described in section #dic;,e2 and 7,d7 shall retain1 for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan as described in section #dic;,c7b77#g7 any years of repayment under another income-based or income contingent repayment plan under this title4 4 7c7 ,maximum repayment period for income-,contingent repayment ,section #dee7;e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is further amended-- 7#a7 in paragraph 7#g77;,b7-- 7,a7 by striking or at the end of clause 7iv72 7,b7 by striking the period at the end of clause 7v7 and inserting a semicolon2 and 7,c7 by adding at the end the following3 7vi7 makes payments under the income-based repayment plan under section #dic;,c7f72 or 7vii7 makes payments under the fixed repayment plan described in section #dic;,e4 7#h7 ,additional qualifying repayment plans ,a borrower repaying a loan pursuant to income-contingent repayment under this subsection may elect at any time to terminate repayment under such repayment plan and repay such loan under the income-based repayment plan under section #dic;,c7f7 or the fixed repayment plan described in section #dic;,e4 4 #d4 ,income-based repayment plan 7a7 ,options ,to enter into the new fixed repayment plan and income-,based repayment plan ,section #dic;,c7b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended-- 7#a7 in paragraph 7#g77;,b7-- 7,a7 by striking or at the end of clause 7iv72 and 7,b7 by adding at the end the following3 7vi7 has made payments under the income-based repayment plan under section #dic;,c7f72 or 7vii7 has made payments under the fixed repayment plan described in section #dic;,e2 2 7#b7 by amending paragraph 7#h7 to read as follows3 7#h7 a borrower who is repaying a loan made 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 the income-based repayment plan under section #dic;,c7f7 or the fixed repayment plan described in section #dic;,e2 2 7#c7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7#d7 by adding at the end the following3 7#aj7 a borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d pursuant to this section may repay such loan in full at any time without penalty4 4 7b7 ,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 ,income-,based repayment for new loans on and after ,july #a1 #bjba1 and for borrowers who enter income-,based repayment after ,june #cj1 #bjba 7#a7 ,in general ,the income-based repayment plan under this subsection shall be carried out in accordance with this section1 except as otherwise specified in this subsection-- 7,a7 with respect to any loan made under part ,d on or after ,july #a1 #bjba1 if such borrower elects such income-based repayment plan for the loan2 and 7,b7 with respect to any loan made1 insured1 or guaranteed under part ,b or ,d on or before ,june #cj1 #bjba1 if such borrower elects to repay the loan under such income-based repayment plan on or after ,july #a1 #bjba4 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 plan under this subsection3 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 the adjusted gross income of the borrower 7subject to clause 7ii77 exceeds the applicable percentage of the poverty line in accordance with clause 7iii74 7ii7 7,i7 ,subject to subclause 7,,ii71 in the case of a married borrower 7regardless of tax filing status71 clause 7i7 shall be applied by substituting the adjusted gross income of the borrower and the borrower's spouse for the adjusted gross income of the borrower4 7,,ii7 ,subclause 7,i7 shall not be applicable to any borrower who is married and who certifies to the ,secretary through a form approved by the ,secretary that the borrower is-- 7aa7 separated from the spouse of the borrower2 or 7bb7 unable to reasonably access the income information the spouse of such borrower4 7iii7 ,for purposes of clause 7i71 the term applicable percentage means #bjj percent of the poverty line applicable to the borrower's family size 7as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b777 reduced by #e percentage points for each #a1jjj by which the borrower's adjusted gross income exceeds-- 7,i7 in the case of a single borrower1 #hj1jjj2 and 7,,ii7 in the case of a married borrower 7regardless of tax filing status71 #afj1jjj4 7,b7 ,subsection 7b77#g77;,b7 shall apply by substituting #bj years for #be years4 7,c7 ,a borrower of such a loan may elect1 and remain enrolled in1 the income-based repayment plan under this subsection regardless of-- 7i7 whether such borrower has a partial financial hardship2 and 7ii7 the income level of the borrower4 7,d7 ,notwithstanding subparagraph 7,a7 of subsection 7b77#f71 a borrower's monthly payment-- 7i7 shall be equal to the repayment amount determined under subparagraph 7,a7 divided by #ab2 and 7ii7 may exceed the monthly repayment amount under a standard #aj-year repayment plan or a fixed repayment plan described in section #dic;,e4 7,e7 ,subparagraph 7,b7 of subsection 7b77#c7 shall not apply4 7,f7 ,subsection 7d7 shall not apply4 7,g7 ,in the case of a consolidation loan made under part ,b or ,d on or after the date of enactment of the ,simplifying ,student ,loans ,act that is being repaid under this subsection1 any monthly payment made pursuant to any repayment plan listed in subsection 7b77#g77;,b7 on a loan for which the liability has been discharged by the proceeds of such consolidation loan shall be treated as a monthly payment under this subsection on the portion of such consolidation loan that is attributable to such discharged loan1 except that in the case of a subsequent consolidation loan1 any monthly payment on a loan for which the liability has been discharged by the first consolidation loan shall not be applicable for the purposes of this subparagraph4 7#c7 ,additional special terms for certain borrowers ,a borrower described in paragraph 7#a77;,b7-- 7,a7 may-- 7i7 choose to continue repayment pursuant to the repayment plan in which the borrower is enrolled on ,june #cj1 #bjba2 or 7ii7 make a one-time election to-- 7,i7 terminate repayment pursuant to the repayment plan described in clause 7i7 and enter the income-based repayment plan under this subsection2 or 7,,ii7 terminate repayment pursuant to the repayment plan described in clause 7i7 and enter a fixed repayment plan described in section #dic;,e2 and 7,b7 who makes an election under subparagraph 7,a77ii71 shall not repay a loan described in paragraph 7#a77;,b7 under a repayment plan that is not an income-based repayment plan under this subsection or a fixed repayment plan described in section #dic;,e4 4 #e4 ,fixed repayment plan ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is further amended by adding at the end the following3 #dic;,e4 ,fixed repayment plan 7a7 ,in general ,a borrower of a loan made under this part on or after ,july #a1 #bjba1 and a borrower who is in repayment on a loan made1 insured1 or guaranteed under part ,b or part ,d before ,july #a1 #bjba1 may elect to repay such loan under the fixed repayment plan described in this section4 7b7 ,fixed repayment plan ,under the fixed repayment plan1 a borrower whose total outstanding amount of principal and interest on such a loan 7as of the day before entering repayment on such loan7-- 7#a7 is equal to or less than #bj1jjj1 shall repay such loan with a fixed monthly repayment amount paid over a period of #aj years2 7#b7 is more than #bj1jjj and less than #cj1jjj1 shall repay such loan with a fixed monthly repayment amount paid over a period of-- 7,a7 #ae years2 or 7,b7 the period described in paragraph 7#a71 if the borrower elects such period2 7#c7 is equal to or greater than #cj1jjj1 and less than #dj1jjj1 shall repay such loan with a fixed monthly repayment amount paid over a period of-- 7,a7 #bj years2 or 7,b7 the period described in paragraph 7#a7 or 7#b71 if the borrower elects such period2 and 7#d7 is equal to or greater than #dj1jjj1 shall repay such loan with a fixed monthly repayment amount paid over a period of-- 7,a7 #be years2 or 7,b7 the period described in any of paragraphs 7#a7 through 7#c71 if the borrower elects such period4 7c7 ,treatment of certain consolidation loans ,in the case of a consolidation loan made under part ,b or ,d on or after the date of enactment of the ,simplifying ,student ,loans ,act that is being repaid under this section1 any monthly payment made pursuant to any repayment plan listed in section #dic;,c7b77#g77;,b7 on a loan for which the liability has been discharged by the proceeds of such consolidation loan shall be treated as a monthly payment under this section on the portion of such consolidation loan that is attributable to such discharged loan1 except that in the case of a subsequent consolidation loan1 any monthly payment on a loan for which the liability has been discharged by the first consolidation loan shall not be applicable for the purposes of this subsection4 4