,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dfgj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #aa1 #bjai,ms4
 ,wild 7= h]self & ,mrs4 ,hayes7        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,education & ,labor  ,a
 ,,bill  ,to am5d ! ,high] ,education   
,act ( #aife to e/abli% an income-bas$  
repaym5t = new loans on & aft] ,july #a1
 #bjba1 & = borr[]s :o ent] income-bas$ 
repaym5t aft] ,june #cj1 #bjba1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,simplify+ ,/ud5t ,loans   
,act4  #b4 ,t]m9ation ( c]ta9 repaym5t  
plan options & opportunity to *ange     
repaym5t plans  7a7 ,selection (        
repaym5t plans ,section #dbh7;b7 ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajgh7;b77 is am5d$--  7#a7 9 
p>agraph 7#a7-- 7,a7 9 subp>agraph      
7,d7--  7i7 9 clause 7ii71 by /rik+ may 
annually *ange ! selection ( a repaym5t 
plan "u ?is "p1 & ins]t+ may at any "t  
aft] ,july #a1 #bjba1 *ange ! selection 
( a repaym5t plan "u ?is "p to "o ( ! #b

 repaym5t plans describ$ 9 p>agraph     
7#i77;,c712 &  7ii7 9 clause 7iii71 by  
/rik+ be subject to income cont+5t      
repaym5t 9 accordance ) subsection 7m72 
& ins]t+ be subject to income-bas$      
repaym5t 9 accordance ) section         
#dic;,c7f722 &  7,b7 9 subp>agraph      
7,e77i71 by /rik+ ! option ( repay+ !   
loan 9 accordance ) a /&>d1 graduat$1   
income-s5sitive1 or ext5d$ repaym5t     
s*$ule 7z describ$ 9 p>agraph 7#i77     
e/abli%$ by ! l5d] 9 accordance )       
regulations ( ! ,secret>y2 & & ins]t+ ! 
option ( repay+ ! loan 9 accordance ) a 
repaym5t plan describ$ 9 p>agraph       
7#i77;,c7 e/abli%$ by ! l5d] 9          
accordance ) regulations ( ! ,secret>y2 
&2 &  7#b7 9 p>agraph 7#i71 by add+ at !
 end ! foll[+3  7,c7 ,selection (       
repaym5t plans on & aft] ,july #a1      
#bjba2 opportunity to *ange repaym5t    
plans ,not)/&+ any o!r provision ( ?is  
p>agraph1 or any o!r provision ( law1 & 
9 accordance ) regulations1 beg9n+ on   
,july #a1 #bjba1 ! l5d] %all (f] a      

borr[] ( a loan made1 insur$1 or        
gu>ante$ "u ?is "p ! opportunity to     
*ange repaym5t plans1 & to enroll 9 "o (
 ! foll[+ repaym5t plans3  7i7 ,a fix$  
repaym5t plan describ$ 9 section        
#dic;,e4  7ii7 ,! income-bas$ repaym5t  
plan "u section #dic;,c7f74  4  #c4     
,am5dm5ts to t]ms & conditions ( loans &
 repaym5t plans  7a7 ,rulemak+ reg>d+   
t]m9ation ( c]ta9 repaym5t plans ,be=e  
,july #a1 #bjba1 ! ,secret>y (          
,education %all c>ry out a plan to end  
all eligibility = repaym5t plans o!r ?an
 a fix$ repaym5t plan describ$ 9 section
 #dic;,e ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajja et seq471 z  
add$ by ?is ,act1 & an income-bas$      
repaym5t plan describ$ "u section       
#dic;,c7f7 ( ! ,high] ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ajja et seq471 z  
add$ by ?is ,act1 = loans made "u "p ,b 
or ,d ( title ,,iv ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et   
seq471 unless ! borr[] is enroll$ 9     
ano!r repaym5t plan be=e ,july #a1      

#bjba1 9 accordance ) ! am5dm5ts made by
 ?is ,act4  7b7 ,repaym5t plans ,section
 #dee7;d7 ( ! ,high] ,education ,act (  
#aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is     
am5d$-- 7#a7 by r$esignat+ p>agraphs    
7#b7 ?r\gh 7#e7 z p>agraphs 7#c7 ?r\gh  
7#f71 respectively2  7#b7 by ins]t+ aft]
 p>agraph 7#a71 ! foll[+3  7#b7 ,design 
& selection on & aft] ,july #a1 #bjba   
7,a7 ,9 g5]al ,not)/&+ p>agraph 7#a71 = 
! borr[] ( a loan made on or aft] ,july 
#a1 #bjba1 & = o!r borr[]s subject to   
p>agraph 7#g71 ! ,secret>y %all (f] a   
borr[] ( a loan made "u ?is "p #b plans 
= repaym5t ( su* loan1 includ+ pr9cipal 
& int]e/ on ! loan4 ,! borr[] %all be   
entitl$ to accel]ate1 )\t p5alty1       
repaym5t on ! borr[]'s loans "u ?is "p4 
,! borr[] may *oose--  7i7 a fix$       
repaym5t plan describ$ 9 section        
#dic;,e2 or  7ii7 ! income-bas$ repaym5t
 plan "u section #dic;,c7f74  7,b7      
,selection by ! ,secret>y ,if a borr[] (
 a loan made "u ?is "p on or aft] ,july 
#a1 #bjba1 does n select a repaym5t plan

 describ$ 9 subp>agraph 7,a71 !         
,secret>y may provide ! borr[] ) a fix$ 
repaym5t plan describ$ 9 section        
#dic;,e4  7,c7 ,*anges 9 selections     
,beg9n+ on ,july #a1 #bjba1 a borr[] ( a
 loan made "u ?is "p may *ange !        
borr[]'s selection ( a repaym5t plan 9  
accordance ) p>agraph 7#g7 & "u su* t]ms
 & conditions z may be e/abli%$ by !    
,secret>y4  2  7#c7 9 p>agraph          
7#f77;,b71 z r$esignat$1 by /rik+ an    
income cont+5t repaym5t plan4 & ins]t+ !
 income-bas$ repaym5t plan "u section   
#dic;,c7f742 &  7#d7 by add+ at ! end ! 
foll[+3  7#g7 ,borr[]s ( loans made be=e
 ,july #a1 #bjba ,a borr[] :o is 9      
repaym5t on a loan made "u "p ,b or "p  
,d be=e ,july #a1 #bjba-- 7,a7 may *oose
 to reta9 ! repaym5t plan t ! borr[] 0  
enroll$ 9 on ! day be=e su* date2  7,b7 
may elect to-- 7i7 ent] ! income-bas$   
repaym5t plan "u section #dic;,c7f72 or 
7ii7 ent] a fix$ repaym5t plan describ$ 
9 section #dic;,e2  7,c7 aft] elect+ to 
leave a repaym5t plan o!r ?an an        

income-bas$ repaym5t plan describ$ "u   
?is subsection or a fix$ repaym5t plan  
describ$ 9 section #dic;,e1 %all n be   
p]mitt$ to re-elect a repaym5t plan t is
 n an income-bas$ repaym5t plan "u ?is  
subsection or a fix$ repaym5t plan      
describ$ 9 section #dic;,e2 &  7,d7 %all
 reta91 = purposes ( repaym5t or        
cancellation ( any out/&+ balance (     
pr9cipal & int]e/ due on a loan z       
describ$ 9 section #dic;,c7b77#g7 any   
ye>s ( repaym5t "u ano!r income-bas$ or 
income cont+5t repaym5t plan "u ?is     
title4  4  7c7 ,maximum repaym5t p]iod =
 income-,cont+5t repaym5t ,section      
#dee7;e7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is     
fur!r am5d$-- 7#a7 9 p>agraph           
7#g77;,b7--  7,a7 by /rik+ or at ! end (
 clause 7iv72  7,b7 by /rik+ ! p]iod at 
! end ( clause 7v7 & ins]t+ a semicolon2
 &  7,c7 by add+ at ! end ! foll[+3     
7vi7 makes paym5ts "u ! income-bas$     
repaym5t plan "u section #dic;,c7f72 or 
7vii7 makes paym5ts "u ! fix$ repaym5t  

plan describ$ 9 section #dic;,e4  7#h7  
,additional qualify+ repaym5t plans ,a  
borr[] repay+ a loan pursuant to        
income-cont+5t repaym5t "u ?is          
subsection may elect at any "t to       
t]m9ate repaym5t "u su* repaym5t plan & 
repay su* loan "u ! income-bas$ repaym5t
 plan "u section #dic;,c7f7 or ! fix$   
repaym5t plan describ$ 9 section        
#dic;,e4  4  #d4 ,income-bas$ repaym5t  
plan  7a7 ,options ,to ent] into ! new  
fix$ repaym5t plan & income-,bas$       
repaym5t plan ,section #dic;,c7b7 ( !   
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajih;e7 is am5d$-- 7#a7 9    
p>agraph 7#g77;,b7--  7,a7 by /rik+ or  
at ! end ( clause 7iv72 &  7,b7 by add+ 
at ! end ! foll[+3  7vi7 has made       
paym5ts "u ! income-bas$ repaym5t plan  
"u section #dic;,c7f72 or  7vii7 has    
made paym5ts "u ! fix$ repaym5t plan    
describ$ 9 section #dic;,e2  2  7#b7 by 
am5d+ p>agraph 7#h7 to read z foll[s3   
7#h7 a borr[] :o is repay+ a loan made  
"u "p ,b or ,d pursuant to income-bas$  

repaym5t may elect1 at any "t1 to       
t]m9ate repaym5t pursuant to income-bas$
 repaym5t & repay su* loan "u !         
income-bas$ repaym5t plan "u section    
#dic;,c7f7 or ! fix$ repaym5t plan      
describ$ 9 section #dic;,e2  2  7#c7 9  
p>agraph 7#i71 by /rik+ ! p]iod at ! end
 & ins]t+ 2 &2 &  7#d7 by add+ at ! end 
! foll[+3  7#aj7 a borr[] :o is repay+ a
 loan made1 insur$1 or gu>ante$ "u "p ,b
 or ,d pursuant to ?is section may repay
 su* loan 9 full at any "t )\t p5alty4  
4  7b7 ,income-,bas$ repaym5t ,section  
#dic;,c ( ! ,high] ,education ,act (    
#aife 7#bj ,u4,s4,c4 #ajih;e7 is am5d$  
by add+ at ! end ! foll[+3  7f7         
,income-,bas$ repaym5t = new loans on & 
aft] ,july #a1 #bjba1 & = borr[]s :o    
ent] income-,bas$ repaym5t aft] ,june   
#cj1 #bjba  7#a7 ,9 g5]al ,! income-bas$
 repaym5t plan "u ?is subsection %all be
 c>ri$ out 9 accordance ) ?is section1  
except z o!rwise specifi$ 9 ?is         
subsection--  7,a7 ) respect to any loan
 made "u "p ,d on or aft] ,july #a1     

#bjba1 if su* borr[] elects su*         
income-bas$ repaym5t plan = ! loan2 &   
7,b7 ) respect to any loan made1 insur$1
 or gu>ante$ "u "p ,b or ,d on or be=e  
,june #cj1 #bjba1 if su* borr[] elects  
to repay ! loan "u su* income-bas$      
repaym5t plan on or aft] ,july #a1      
#bjba4  7#b7 ,special t]ms ,not)/&+ any 
o!r provision ( ?is section1 ) respect  
to a loan describ$ "u p>agraph 7#a71 !  
foll[+ t]ms %all apply to ! income-bas$ 
repaym5t plan "u ?is subsection3  7,a7  
7i7 ,not)/&+ subsection 7a77#c77;,b71 ! 
repaym5t am\nt "u ?is subsection %all be
 an am\nt equal to #aj p]c5t ( ! result 
obta9$ by calculat+1 on at lea/ an      
annual basis1 ! am\nt by :i* ! adju/$   
gross income ( ! borr[] 7subject to     
clause 7ii77 exce$s ! applicable        
p]c5tage ( ! pov]ty l9e 9 accordance )  
clause 7iii74  7ii7  7,i7 ,subject to   
subclause 7,,ii71 9 ! case ( a m>ri$    
borr[] 7reg>dless ( tax fil+ /atus71    
clause 7i7 %all be appli$ by sub/itut+ !
 adju/$ gross income ( ! borr[] & !     

borr[]'s sp\se = ! adju/$ gross income (
 ! borr[]4  7,,ii7 ,subclause 7,i7 %all 
n be applicable to any borr[] :o is     
m>ri$ & :o c]tifies to ! ,secret>y ?r\gh
 a =m approv$ by ! ,secret>y t ! borr[] 
is--  7aa7 sep>at$ f ! sp\se ( ! borr[]2
 or  7bb7 unable to reasonably access ! 
income in=mation ! sp\se ( su* borr[]4  
7iii7 ,= purposes ( clause 7i71 ! t]m   
applicable p]c5tage means #bjj p]c5t ( !
 pov]ty l9e applicable to ! borr[]'s    
family size 7z det]m9$ "u section       
#fgc7b7 ( ! ,community ,s]vices ,block  
,grant ,act 7#db ,u4,s4,c4 #iijb7b777   
r$uc$ by #e p]c5tage po9ts = ea* #a1jjj 
by :i* ! borr[]'s adju/$ gross income   
exce$s--  7,i7 9 ! case ( a s+le borr[]1
 #hj1jjj2 &  7,,ii7 9 ! case ( a m>ri$  
borr[] 7reg>dless ( tax fil+ /atus71    
#afj1jjj4  7,b7 ,subsection 7b77#g77;,b7
 %all apply by sub/itut+ #bj ye>s = #be 
ye>s4  7,c7 ,a borr[] ( su* a loan may  
elect1 & rema9 enroll$ 91 ! income-bas$ 
repaym5t plan "u ?is subsection         
reg>dless (--  7i7 :e!r su* borr[] has a

 p>tial f9ancial h>d%ip2 &  7ii7 !      
income level ( ! borr[]4  7,d7 ,not)/&+ 
subp>agraph 7,a7 ( subsection 7b77#f71 a
 borr[]'s mon?ly paym5t-- 7i7 %all be   
equal to ! repaym5t am\nt det]m9$ "u    
subp>agraph 7,a7 divid$ by #ab2 &  7ii7 
may exce$ ! mon?ly repaym5t am\nt "u a  
/&>d #aj-ye> repaym5t plan or a fix$    
repaym5t plan describ$ 9 section        
#dic;,e4  7,e7 ,subp>agraph 7,b7 (      
subsection 7b77#c7 %all n apply4  7,f7  
,subsection 7d7 %all n apply4  7,g7 ,9 !
 case ( a consolidation loan made "u "p 
,b or ,d on or aft] ! date ( enactm5t ( 
! ,simplify+ ,/ud5t ,loans ,act t is be+
 repaid "u ?is subsection1 any mon?ly   
paym5t made pursuant to any repaym5t    
plan li/$ 9 subsection 7b77#g77;,b7 on a
 loan = :i* ! liability has be5 dis*>g$ 
by ! proce$s ( su* consolidation loan   
%all be treat$ z a mon?ly paym5t "u ?is 
subsection on ! portion ( su*           
consolidation loan t is attributable to 
su* dis*>g$ loan1 except t 9 ! case ( a 
subsequ5t consolidation loan1 any mon?ly

 paym5t on a loan = :i* ! liability has 
be5 dis*>g$ by ! fir/ consolidation loan
 %all n be applicable = ! purposes ( ?is
 subp>agraph4  7#c7 ,additional special 
t]ms = c]ta9 borr[]s ,a borr[] describ$ 
9 p>agraph 7#a77;,b7-- 7,a7 may--  7i7  
*oose to cont9ue repaym5t pursuant to ! 
repaym5t plan 9 :i* ! borr[] is enroll$ 
on ,june #cj1 #bjba2 or  7ii7 make a    
"o-"t election to-- 7,i7 t]m9ate        
repaym5t pursuant to ! repaym5t plan    
describ$ 9 clause 7i7 & ent] !          
income-bas$ repaym5t plan "u ?is        
subsection2 or  7,,ii7 t]m9ate repaym5t 
pursuant to ! repaym5t plan describ$ 9  
clause 7i7 & ent] a fix$ repaym5t plan  
describ$ 9 section #dic;,e2 &  7,b7 :o  
makes an election "u subp>agraph        
7,a77ii71 %all n repay a loan describ$ 9
 p>agraph 7#a77;,b7 "u a repaym5t plan t
 is n an income-bas$ repaym5t plan "u   
?is subsection or a fix$ repaym5t plan  
describ$ 9 section #dic;,e4  4  #e4     
,fix$ repaym5t plan ,"p ,g ( title ,,iv 
( ! ,high] ,education ,act ( #aife 7#bj 

,u4,s4,c4 #ajhh et seq47 is fur!r am5d$ 
by add+ at ! end ! foll[+3  #dic;,e4    
,fix$ repaym5t plan  7a7 ,9 g5]al ,a    
borr[] ( a loan made "u ?is "p on or    
aft] ,july #a1 #bjba1 & a borr[] :o is 9
 repaym5t on a loan made1 insur$1 or    
gu>ante$ "u "p ,b or "p ,d be=e ,july   
#a1 #bjba1 may elect to repay su* loan  
"u ! fix$ repaym5t plan describ$ 9 ?is  
section4  7b7 ,fix$ repaym5t plan ,"u ! 
fix$ repaym5t plan1 a borr[] ^: total   
out/&+ am\nt ( pr9cipal & int]e/ on su* 
a loan 7z ( ! day be=e ent]+ repaym5t on
 su* loan7--  7#a7 is equal to or less  
?an #bj1jjj1 %all repay su* loan ) a    
fix$ mon?ly repaym5t am\nt paid ov] a   
p]iod ( #aj ye>s2  7#b7 is m ?an #bj1jjj
 & less ?an #cj1jjj1 %all repay su* loan
 ) a fix$ mon?ly repaym5t am\nt paid ov]
 a p]iod (--  7,a7 #ae ye>s2 or  7,b7 ! 
p]iod describ$ 9 p>agraph 7#a71 if !    
borr[] elects su* p]iod2  7#c7 is equal 
to or great] ?an #cj1jjj1 & less ?an    
#dj1jjj1 %all repay su* loan ) a fix$   
mon?ly repaym5t am\nt paid ov] a p]iod  

(--  7,a7 #bj ye>s2 or  7,b7 ! p]iod    
describ$ 9 p>agraph 7#a7 or 7#b71 if !  
borr[] elects su* p]iod2 &  7#d7 is     
equal to or great] ?an #dj1jjj1 %all    
repay su* loan ) a fix$ mon?ly repaym5t 
am\nt paid ov] a p]iod (--  7,a7 #be    
ye>s2 or  7,b7 ! p]iod describ$ 9 any ( 
p>agraphs 7#a7 ?r\gh 7#c71 if ! borr[]  
elects su* p]iod4  7c7 ,treatm5t ( c]ta9
 consolidation loans ,9 ! case ( a      
consolidation loan made "u "p ,b or ,d  
on or aft] ! date ( enactm5t ( !        
,simplify+ ,/ud5t ,loans ,act t is be+  
repaid "u ?is section1 any mon?ly paym5t
 made pursuant to any repaym5t plan li/$
 9 section #dic;,c7b77#g77;,b7 on a loan
 = :i* ! liability has be5 dis*>g$ by ! 
proce$s ( su* consolidation loan %all be
 treat$ z a mon?ly paym5t "u ?is section
 on ! portion ( su* consolidation loan t
 is attributable to su* dis*>g$ loan1   
except t 9 ! case ( a subsequ5t         
consolidation loan1 any mon?ly paym5t on
 a loan = :i* ! liability has be5       
dis*>g$ by ! fir/ consolidation loan    

%all n be applicable = ! purposes ( ?is 
subsection4  4