,,ii #aaf? ,,congress #a/ ,session ,s4 #ajjb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #c1 #bjai,mr4 ,m]kley 7= himself1 ,ms4 ,/ab5[1 ,mrs4 ,gillibr&1 ,ms4 ,baldw91 ,mr4 ,blum5?al1 ,mr4 ,s*atz1 ,mr4 ,c>d91 ,ms4 ,cortez ,ma/o1 ,mr4 ,van ,holl51 & ,mr4 ,wyd57 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to am5d ! ,high] ,education ,act ( #aife 9 ord] to increase usage ( ! ,f$]al /ud5t loan income-bas$ repaym5t plan & improve repaym5t options = borr[]s1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,af=dable ,loans = ,any ,/ud5t ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,ref]5ces 9 ,act4 ,,title ,i--,simplify+ repaym5t plans ,sec4 #aja4 ,income-bas$ repaym5t plan4 ,sec4 #ajb4 ,fix$ repaym5t plan4 ,sec4 #ajc4 ,t]m9ation ( c]ta9 repaym5t plan options4 ,sec4 #ajd4 ,provid+ inc5tives to swit* into simplifi$ repaym5t plans4 ,sec4 #aje4 ,automatic rec]tification ( income4 ,sec4 #ajf4 ,disclosure ( tax return in=mation to c>ry out c]ta9 high] education loan programs4 ,sec4 #ajg4 ,/udy & proc$ures on det]m9+ family size4 ,,title ,,ii--,end+ int]e/ capitalization & orig9ation fees ,sec4 #bja4 ,end+ int]e/ capitalization = ,f$]al ,direct ,loans4 ,sec4 #bjb4 ,elim9ation ( orig9ation fees = ,f$]al ,direct ,loans4 ,,title ,,iii--,provid+ assi/ance 9 situations ( borr[] di/ress ,sec4 #cja4 ,limits on seiz+ income = debt relat+ to ,f$]al /ud5t loans4 ,sec4 #cjb4 ,all[+ = multiple loan rehabilitations4 ,sec4 #cjc4 ,pause paym5t process4 ,sec4 #cjd4 ,automatic enrollm5t into income-bas$ repaym5t = borr[]s :o are del9qu5t on loans & = borr[]s :o rehabilitate default$ loans4 ,sec4 #cje4 ,sep>at+ jo9t consolidation loans4 ,sec4 #cjf4 ,remov+ ! collection co/ requirem5t4 ,,title ,,iv--,improv+ loan in=mation & c\nsel+ ,sec4 #dja4 ,/ud5t loan contract2 simplify+ loan disclosures4 ,sec4 #djb4 ,annual & pre-loan in=mation & c\nsel+ requirem5ts4 ,sec4 #djc4 ,exit c\nsel+4 ,sec4 #djd4 ,onl9e c\nsel+ tools4 ,sec4 #dje4 ,private education loan c]tification & in=mation4 ,,title ,v--,effective date2 transition ,sec4 #eja4 ,effective date2 rulemak+ reg>d+ t]m9ation ( c]ta9 repaym5t plans4 #b4 ,ref]5ces 9 ,act ,except z o!rwise expressly provid$ 9 ?is ,act1 :]ev] an am5dm5t or repeal is express$ 9 t]ms ( an am5dm5t to or repeal ( a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to t section or o!r provision ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajja et seq474 ,i ,simplify+ repaym5t plans #aja4 ,income-bas$ repaym5t plan 7a7 ,simplify+ ! income-,bas$ repaym5t plan ,section #dic;,c 7#bj ,u4,s4,c4 #ajih;e7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 by /rik+ ,income-,bas$ repaym5t program au?oriz$4-- & ins]t+ ! foll[+3 ,income-,bas$ repaym5t program = borr[]s :o ent] income-,bas$ repaym5t be=e ,july #a1 #bjbj4--2 7,b7 9 p>agraph 7#c77;,a71 by /rik+ except t & all t foll[s ?r\gh section #dce7o72 & 7,c7 9 p>agraph 7#h71 by /rik+ ! /&>d repaym5t plan2 & ins]t+ ! fix$ repaym5t plan "u section #dic;,e22 & 7#b7 by /rik+ subsection 7c7 & ins]t+ ! foll[+3 7c7 ,income-,bas$ repaym5t program = new loans on & aft] ,july #a1 #bjbj1 & = borr[]s :o ent] income-,bas$ repaym5t aft] ,july #a1 #bjbj 7#a7 ,9 ,g5]al ,not)/&+ any o!r provision ( ?is section1 ! provisions ( ?is subsection %all apply-- 7,a7 ) respect to any loan made1 insur$1 or gu>ante$ "u "p ,b or ,d on or aft] ,july #a1 #bjbj1 = :i* ! borr[] elects ! income-bas$ repaym5t plan "u ?is section2 & 7,b7 ) respect to any loan made1 insur$1 or gu>ante$ "u "p ,b or ,d be=e ,july #a1 #bjbj1 if su* borr[] elects to repay ! loan "u ! income-bas$ repaym5t plan on or aft] ,july #a1 #bjbj1 9 accordance ) p>agraph 7#c7 & section #dbh7;b77#a77;,d77ii7 or #dee7;d77#g71 z applicable4 7#b7 ,special t]ms ,) respect to a loan describ$ 9 p>agraph 7#a71 ! foll[+ t]ms %all apply to ! income-bas$ repaym5t plan c>ri$ out "u ?is section3 7,a7 7i7 ,not)/&+ subsection 7a77#c77;,b71 7b71 or 7e7-- 7,i7 ! annual 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*-- 7aa7 ! borr[]'s1 & ! borr[]'s sp\se's 7if applicable71 adju/$ gross income2 exce$s 7bb7 ! applicable p]c5tage ( ! pov]ty l9e 9 accordance ) clause 7ii7 t is applicable to ! borr[]'s family size z det]m9$ "u section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b772 & 7,,ii7 a borr[]'s mon?ly paym5t %all be det]m9$ 9 accordance ) subclause 7,i7 divid$ by #ab1 :i* am\nt may exce$ ! mon?ly repaym5t am\nt "u a /&>d #aj-ye> repaym5t plan or a fix$ repaym5t plan describ$ 9 section #dic;,e4 7ii7 ,= purposes ( clause 7i71 ! t]m applicable p]c5tage means #bej p]c5t r$uc$ by #e p]c5tage po9ts = ea* #a1jjj by :i* ! borr[]'s adju/$ gross income exce$s #abj1jjj4 7,b7 ,not)/&+ subsection 7e77#b71 subsection 7b77#g77;,b7 %all be appli$ by sub/itut+ #bj ye>s = #be ye>s4 7,c7 ,not)/&+ subp>agraph 7,a7 ( subsection 7b77#f71 a borr[] ( su* a loan %all n be requir$ to h a p>tial f9ancial h>d%ip & may elect1 & rema9 enroll$ 91 ! income-bas$ repaym5t plan "u ?is section reg>dless ( income level1 ) ! repaym5t am\nt calculat$ "u subp>agraph 7,a74 7,d7 ,not)/&+ subsection 7b71 a borr[] ( an except$ ,,plus loan or except$ consolidation loan may elect ! income-bas$ repaym5t plan "u ?is subsection = ! except$ ,,plus loan or except$ consolidation loan1 & ! ,secret>y %all treat su* loan = purposes only ( ! repaym5t t]ms z a ,f$]al ,direct ,,plus ,loan issu$ to a /ud5t borr[]4 ,! ,secret>y may issue rules & regulations1 z ! ,secret>y det]m9es necess>y1 reg>d+ ! treatm5t ( except$ ,,plus loans or except$ consolidation loans t are to be repaid "u an income-bas$ repaym5t plan "u ?is subsection4 7#c7 ,rule = borr[]s 9 income-bas$ repaym5t be=e ,july #a1 #bjbj ,a borr[] ( a loan made1 insur$1 or gu>ante$ "u "p ,b or ,d :o enroll$ 9 ! income-bas$ repaym5t plan "u subsection 7b71 z su* plan 0 9 effect on ,july #a1 #bjbj1 may *oose to reta9 su* repaym5t plan or elect to ent] an income-bas$ repaym5t plan "u ?is subsection or a fix$ repaym5t plan describ$ 9 section #dic;,e1 z provid$ 9 section #dbh7;b77#a77;,d77ii7 or #dee7;d77#g7 7z applicable74 7#d7 ,int]e/ paym5ts & accrual ,not)/&+ any o!r provision ( ?is ,act1 if a borr[]'s mon?ly paym5t = a loan "u an income-bas$ repaym5t plan "u ?is subsection is insuffici5t to pay ! accru$ int]e/ on ! borr[]'s loan = su* mon?-- 7,a7 9 ! case ( a subsidiz$ loan 7includ+ ! portion ( a consolidat$ loan t is a subsidiz$ loan71 any int]e/ due & n paid "u subsection 7b77#b7 on ! subsidiz$ loan = t mon? %all be paid or =giv5 by ! ,secret>y1 except t a borr[] ( a subsidiz$ loan %all only receive ! b5efits ( ?is subp>agraph = su* loan = #cf mon?s ( paym5ts "u ! income-bas$ repaym5t plan1 exclud+ any p]iod ( pause paym5t "u section #dfj;,b2 & 7,b7 9 ! case ( an unsubsidiz$ loan or a subsidiz$ loan t no long] qualifies "u subp>agraph 7,a71 #ej p]c5t ( ! int]e/ n cov]$ by ! borr[]'s mon?ly paym5t %all be paid or =giv5 by ! ,secret>y & ! am\nt ( ! rema9+ int]e/ %all be add$ to ! balance ( int]e/ due on ! loan1 b %all n be capitaliz$4 7#e7 ,writt51 electronic1 or v]bal enrollm5t 9 income-bas$ repaym5t 7,a7 ,9 g5]al ,a borr[] ( a loan made "u ?is "p may elect to repay su* loan "u ! income-bas$ repaym5t plan "u ?is subsection by provid+ writt51 electronic1 or v]bal notice to ! ,secret>y ( ! borr[]'s desire to make su* election1 subject to subp>agraph 7,c74 7,b7 ,use ( in=mation 7i7 ,9 g5]al ,! e/imat$ mon?ly paym5t am\nt "u ?is section = a loan = a borr[] :o makes an election describ$ 9 subp>agraph 7,a7 %all be imm$iately calculat$ us+ ! income & family size in=mation provid$ ?r\gh ! borr[]'s writt51 electronic1 or v]bal /atem5t4 7ii7 ,v]ification ,! in=mation describ$ 9 clause 7i7 %all be v]ifi$ by ! ,secret>y n lat] ?an #ij days aft] ! date ! borr[] /ates su* income & family size in=mation4 ,if ! ,secret>y is unable to v]ify ! in=mation by ! end ( ! #ij-;day p]iod1 ! borr[]'s paym5t aft] su* #ij-;day p]iod w be ! am\nt applicable "u ! fix$ repaym5t plan "u section #dic;,e4 7iii7 ,adju/m5t if necess>y ,^u v]ification by ! ,secret>y "u clause 7ii71 ! ,secret>y %all adju/ ! e/imat$ mon?ly paym5t describ$ 9 clause 7i7 bas$ on ! v]ifi$ income & family size in=mation ( ! borr[]1 if necess>y4 ,any adju/$ mon?ly paym5t %all take effect beg9n+ ) ! paym5t due n less ?an #fj days aft] ! ,secret>y notifies ! borr[] ( ! adju/$ am\nt4 ,! ,secret>y %all consid] any paym5ts made prior to ! adju/$ mon?ly paym5t z hav+ satisfi$ ! am\nt due to qualify t[>d loan cancellation or =giv5ess options "u ?is title4 7,c7 ,limitation ,! ,secret>y %all p]mit a borr[] to make an election ( income-bas$ repaym5t 9 ! writt51 electronic1 or v]bal mann] describ$ 9 subp>agraph 7,a7 only 9 connection ) ! fir/ in/ance ( ea* ( ! foll[+3 7i7 ,! borr[]'s selection ( a repaym5t plan dur+ ! grace p]iod = su* loan4 7ii7 ,! borr[] *ang+ f ! fix$ repaym5t plan "u section #dic;,e to income-bas$ repaym5t4 7iii7 ,! borr[]'s failure to complete ! v]ification process describ$ 9 subp>agraph 7,b77ii74 7iv7 ,! borr[]'s failure to rec]tify enrollm5t 9 income-bas$ repaym5t "u ?is subsection4 4 7b7 ,includ+ income ( sp\ses ,subsection 7d7 ( section #dic;,c 7#bj ,u4,s4,c4 #ajih;e7d77 is am5d$ to read z foll[s3 7d7 ,calculation ( adju/$ gross income = m>ri$ borr[]s ,! ,secret>y %all calculate ! adju/$ gross income ( a m>ri$ borr[] "u ?is section-- 7#a7 9 ! case ( a m>ri$ borr[] & sp\se :o jo9tly file a ,f$]al income tax return1 bas$ on ! adju/$ gross income ( ! borr[] & sp\se z report$ on ! ,f$]al income tax return2 & 7#b7 9 ! case ( a m>ri$ borr[] :o files a ,f$]al income tax return sep>ately f ! borr[]'s sp\se1 bas$ on ! sum ( ! adju/$ gross income ( ! borr[] & ! sp\se1 z report$ on ! applicable ,f$]al income tax returns1 unless ! borr[] c]tifies1 on a =m approv$ by ! ,secret>y1 t ! borr[] is-- 7,a7 sep>at$ f ! borr[]'s sp\se2 or 7,b7 unable to reasonably access ! income in=mation ( ! borr[]'s sp\se4 4 #ajb4 ,fix$ repaym5t plan ,"p ,g ( title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq47 is am5d$ by add+ at ! end ! foll[+3 #dic;,e4 ,fix$ repaym5t plan 7a7 ,9 ,g5]al ,a borr[] ( a loan made "u "p ,d on or aft] ,july #a1 #bjbj1 & a borr[] :o is 9 repaym5t on a loan made1 insur$1 or gu>ante$ "u "p ,b or ,d be=e ,july #a1 #bjbj1 may elect to repay su* loan "u ! fix$ repaym5t plan describ$ 9 ?is section4 7b7 ,fix$ repaym5t plan ,"u ! fix$ repaym5t plan1 a borr[] %all repay ea* loan describ$ 9 subsection 7a7 ) a fix$ mon?ly repaym5t am\nt paid ov] a p]iod ( #aj ye>s1 subject to subsection 7c74 7c7 ,special rules 7#a7 ,m9imum ,if a borr[]'s mon?ly paym5t "u ?is section 7except = ! f9al paym5t on ! loan7 is less ?an #be1 ! ,secret>y %all e/abli% ! borr[]'s mon?ly paym5t z #be4 7#b7 ,alt]native m9imum paym5ts ,not)/&+ p>agraph 7#a71 ! ,secret>y may accept an alt]native m9imum paym5t am\nt1 :i* may include an am\nt ( less ?an #be1 to acc\nt = a borr[]'s exceptional circum/ances4 4 #ajc4 ,t]m9ation ( c]ta9 repaym5t plan options 7a7 ,,ffel program repaym5t plan options ,section #dbh7;b7 7#bj ,u4,s4,c4 #ajgh7;b77 is am5d$-- 7#a7 9 p>agraph 7#a7-- 7,a7 9 subp>agraph 7,d7-- 7i7 9 clause 7ii71 by /rik+ may annually *ange ! selection ( a repaym5t plan "u ?is "p1 & ins]t+ may at any "t aft] ,july #a1 #bjbj1 *ange ! selection ( a repaym5t plan "u ?is "p or "p ,g to "o ( ! #b repaym5t plans describ$ 9 p>agraph 7#i77;,c712 & 7ii7 9 clause 7iii71 by ins]t+ or1 9 ! case ( a default t occurs aft] ,july #a1 #bjbj1 be subject to income-bas$ repaym5t 9 accordance ) section #dic;,c7c7 be=e ! semicolon at ! end2 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 ) an applicable repaym5t plan describ$ 9 p>agraph 7#i77;,c72 & 7,c7 by /rik+ subp>agraph 7,l72 & 7#b7 9 p>agraph 7#i7-- 7,a7 9 subp>agraph 7,a7-- 7i7 9 ! subp>agraph head+1 by ins]t+ be=e ,july #a1 #bjbj aft] selection2 & 7ii7 9 ! matt] prec$+ clause 7i7-- 7,i7 by ins]t+ or subp>agraph 7,c71 z applicable1 aft] ?is subp>agraph2 & 7,,ii7 by /rik+ ,! borr[] & ins]t+ ,be=e ,july #a1 #bjbj1 ! borr[]2 7,b7 9 subp>agraph 7,b71 by ins]t+ be=e ! p]iod at ! end or1 = a borr[] ent]+ repaym5t aft] ,july #a1 #bjbj1 ! l5d] %all provide ! borr[] ) ! fix$ repaym5t plan describ$ 9 section #dic;,e2 & 7,c7 by add+ at ! end ! foll[+3 7,c7 ,selection ( repaym5t plans on & aft] ,july #a1 #bjbj ,not)/&+ any o!r provision ( law1 & 9 accordance ) regulations promulgat$1 beg9n+ on ,july #a1 #bjbj1 a l5d] %all (f] a borr[] ( a loan made1 insur$1 or gu>ante$ "u ?is "p ! opportunity to *ange repaym5t plans at any "t aft] ,july #a1 #bjbj1 & !n n m ?an once p] cal5d> ye> !reaft]4 ,! borr[] may *oose betwe5 ! foll[+ repaym5t plans3 7i7 ,a fix$ repaym5t plan describ$ 9 section #dic;,e4 7ii7 ,! income-bas$ repaym5t plan "u section #dic;,c7c74 4 7b7 ,f$]al ,direct ,loan program repaym5t plan options ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d77 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#b7 ?r\gh 7#e7 z p>agraphs 7#c7 ?r\gh 7#f71 respectively2 7#b7 9 p>agraph 7#a7-- 7,a7 9 ! p>agraph head+1 by ins]t+ be=e ,july #a1 #bjbj aft] selection2 & 7,b7 9 ! matt] prec$+ subp>agraph 7,a71 by ins]t+ t ent]s repaym5t be=e ,july #a1 #bjbj1 be=e a v>iety2 7#c7 by ins]t+ aft] p>agraph 7#a7 ! foll[+3 7#b7 ,design & selection beg9n+ ,july #a1 #bjbj 7,a7 ,9 ,g5]al ,not)/&+ p>agraph 7#a71 = any borr[] ( a loan made "u ?is "p t ent]s repaym5t on or aft] ,july #a1 #bjbj1 & = any borr[] subject to p>agraph 7#g71 ! ,secret>y %all (f] ! borr[] a *oice betwe5 ! foll[+ #b plans = repaym5t ( su* loan1 includ+ pr9cipal & int]e/ on ! loan4 ,! borr[] may *oose-- 7i7 a fix$ repaym5t plan describ$ 9 section #dic;,e2 or 7ii7 an income-bas$ repaym5t plan "u section #dic;,c7c74 7,b7 ,accel]ation ,a borr[] 9 repaym5t %all be entitl$ to accel]ate1 )\t p5alty1 repaym5t on ! borr[]'s loans "u ?is "p4 7,c7 ,selection by ! ,secret>y ,if a borr[] ( a loan made "u ?is "p t ent]s repaym5t on or aft] ,july #a1 #bjbj1 does n select a repaym5t plan describ$ 9 subp>agraph 7,a7 be=e ! fir/ paym5t on su* loan is due1 ! ,secret>y %all provide ! borr[] ) a fix$ repaym5t plan describ$ 9 section #dic;,e4 7,d7 ,*anges 9 selections ,a borr[] ( a loan made "u ?is "p t ent]s repaym5t or on aft] ,july #a1 #bjbj1 may *ange ! borr[]'s selection ( a repaym5t plan 9 accordance ) subp>agraphs 7,b7 & 7,c7 ( p>agraph 7#g74 7,e7 ,borr[] 9 default ,beg9n+ on ,july #a1 #bjbj1 9 lieu ( ! requirem5ts ( p>agraph 7#f71 ! ,secret>y may require any borr[] :o has default$ on a loan made "u ?is "p on or aft] ,july #a1 #bjbj1 to repay ! loan pursuant to an income-bas$ repaym5t plan "u section #dic;,c7c74 2 & 7#d7 by add+ at ! end ! foll[+3 7#g7 ,borr[]s ( loans made be=e ,july #a1 #bjbj ,a borr[] :o is 9 repaym5t on a loan made "u ?is "p be=e ,july #a1 #bjbj-- 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] an income-bas$ repaym5t plan "u section #dic;,c7c72 7ii7 ent] a fix$ repaym5t plan describ$ 9 section #dic;,e2 or 7iii7 swit* betwe5 ! repaym5t plans describ$ 9 clauses 7i7 & 7ii72 7,c7 aft] swit*+ to a repaym5t plan describ$ 9 clause 7i7 or 7ii7 ( subp>agraph 7,b71 %all n be p]mitt$ to select a repaym5t plan n describ$ 9 subp>agraph 7,b7 = ! loan2 & 7,d7 %all reta91 = purposes ( repaym5t or cancellation ( any out/&+ balance ( pr9cipal & int]e/ due on a loan 7z describ$ 9 section #dic;,c7b77#g771 any paym5ts on su* loan "u ano!r income-bas$ or income cont+5t repaym5t plan "u ?is title t w\ld o!rwise be qualify+4 4 7c7 ,con=m+ am5dm5t ,section #dcc7;b77#g77;,b7 7#bj ,u4,s4,c4 #ajhc7;b77#g77;,b77 is am5d$ by /rik+ on a /&>d repaym5t plan & ins]t+ 1 9 ! case ( a borr[] :o has n select$ a repaym5t plan1 on ! repaym5t plan designat$ "u subp>agraph 7,b7 ( section #dbh7;b77#i74 #ajd4 ,provid+ inc5tives to swit* into simplifi$ repaym5t plans 7a7 ,enabl+ consolidation 9 ord] ,to simplify repaym5t ,section #dee7;g7 7#bj ,u4,s4,c4 #ajhg;e7g77 is am5d$-- 7#a7 by /rik+ ,loans4-- & all t foll[s ?r\gh ,a borr[] ( & ins]t+ ! foll[+3 ,loans4-- 7#a7 ,9 g5]al ,a borr[] ( 2 7#b7 by /rik+ ! second s5t5ce2 & 7#c7 by add+ at ! end ! foll[+3 7#b7 ,eligibility ,to be eligible = a ,f$]al ,direct ,consolidation ,loan "u ?is "p1 a borr[] %all meet ! eligibility crit]ia set =? 9 section #dbh;,c7a77#c71 except t1 not)/&+ section #dbh;,c7a77#c77;,b71 a borr[] may obta9 a ,f$]al ,direct ,consolidation ,loan if ! borr[]-- 7,a7 obta9s ! ,f$]al ,direct ,consolidation ,loan = ! purpose (-- 7i7 select+ ! income-bas$ repaym5t plan "u section #dic;,c7c7 or fix$-income repaym5t plan "u section #die;,e2 or 7ii7 p>ticipat+ 9 ! pause paym5t process "u section #dfj;,b2 & 7,b7 meets ! requirem5ts ( section #dbh;,c7a77#c77;,a74 4 7b7 ,inc5tives = simplifi$ repaym5t plans ,"p ,g ( title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq471 z am5d$ by section #ajb1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dic;,f4 ,inc5tives = simplifi$ repaym5t plans 7a7 ,9 g5]al ,to facilitate ! transition ( borr[]s to simplifi$ repaym5t plan options1 ! ,secret>y %all r$uce ! int]e/ rate applicable "u section #dee7;b7 or #dbg;,a to a loan "u "p ,b or ,d held by a borr[] z ( ,july #a1 #bjbj1 by #ajj basis po9ts 7or ! equival5t71 if ! borr[] ( ! loan1 aft] ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act-- 7#a7 *anges f a repaym5t plan describ$ 9 subp>agraphs 7,a7 ?r\gh 7,e7 ( section #dee7;d77#a7 = su* loan to an income-bas$ repaym5t plan "u section #dic;,c7c7 or a fix$ repaym5t plan "u section #dic;,e2 or 7#b7 consolidates #a or m loans "u ?is title1 or describ$ 9 section #dbh;,c7a77#d71 t 7 "u a repaym5t plan describ$ 9 subp>agraphs 7,a7 ?r\gh 7,e7 ( section #dee7;d77#a71 or clauses 7i7 ?r\gh 7v7 ( section #dbh7;b77#i71 into a ,f$]al ,direct ,consolidation ,loan & selects an income-bas$ repaym5t plan "u section #dic;,c7c7 or a fix$ repaym5t plan "u section #dic;,e = ! loan4 7b7 ,limitation ,! int]e/ rate = a loan eligible = ! inc5tive "u subsection 7a7 may be r$uc$ only once "u ?is section4 7c7 ,regulations ,! ,secret>y %all promulgate rules c>ry+ out ! inc5tive program e/abli%$ "u ?is section4 4 #aje4 ,automatic rec]tification ( income 7a7 ,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 ,eligibility det]m9ations & automatic rec]tification 7#a7 ,9 g5]al ,beg9n+ z soon z ! ,secret>y det]m9es practicable aft] ! ,secret>y f9alizes ! proc$ures "u section #ajg ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,secret>y %all e/abli% & implem5t1 ) respect to any borr[] describ$ 9 p>agraph 7#b71 proc$ures to-- 7,a7 obta9 7= ea* ye> ( repaym5t & )\t fur!r action by ! borr[]7 su* in=mation z is reasonably necess>y reg>d+ ! income ( su* borr[] 7& ! borr[]'s sp\se1 if applicable71 = ! purpose ( det]m9+ ! repaym5t obligation ( ! borr[] = su* ye>1 includ+ in=mation ) respect to ! borr[]'s family size 9 accordance ) ! proc$ures "u su* section #ajg1 subject to subp>agraph 7,b72 7,b7 all[ ! borr[]1 at any "t1 to opt out ( subp>agraph 7,a7 & prev5t ! ,secret>y f obta9+ in=mation "u su* subp>agraph )\t fur!r action by ! borr[]2 7,c7 provide ! borr[] ) an opportunity to update ! in=mation obta9$ "u subp>agraph 7,a7 be=e ! det]m9ation ( ! annual repaym5t obligation ( ! borr[]2 & 7,d7 9 ! case ( a borr[] = :om adju/$ gross income is unavailable 7except z provid$ 9 p>agraph 7#b77;,b771 ensure t ! borr[] w n be requir$ to provide ! ,secret>y ) o!r docum5tation ( income & provide ! borr[] ) a calculat$ mon?ly paym5t ( #j4 7#b7 ,applicability 7,a7 ,9 g5]al ,p>agraph 7#a7 %all apply to ea* borr[] ( a loan made "u ?is "p :o1 on or aft] ! date on :i* ! ,secret>y e/abli%es proc$ures "u su* p>agraph-- 7i7 selects1 or = :om ! ,secret>y select$ "u subp>agraphs 7,c7 or 7,d7 ( p>agraph 7#h71 or p>agraph 7#i71 ( subsection 7d71 or section #dbh7m77#a71 an income-bas$ repaym5t plan2 or 7ii7 rec]tifies income & family size "u su* plan4 7,b7 ,eligibility exception ,a borr[] = :om adju/$ gross income is unavailable because ! borr[] has be5 grant$ an ext5sion on fil+ ! borr[]'s income taxes or is und]go+ an audit or exam9ation by ! ,int]nal ,rev5ue ,s]vice %all n automatically be eligible = ! calculat$ mon?ly paym5t ( #j 9 accordance ) p>agraph 7#a77;,d7 dur+ su* p]iod4 ,:5 ! ext5sion1 audit1 or exam9ation is complet$1 ! ,secret>y %all resume consid]ation ( ! borr[] = automatic rec]tification "u ! proc$ures describ$ 9 p>agraph 7#a71 includ+ subp>agraph 7,d7 ( su* p>agraph 7if applicable74 7#c7 ,availability ( returns & return in=mation ,returns & return in=mation 7z def9$ 9 section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf7 may be obta9$ "u p>agraph 7#a77;,a7 only to ! ext5t au?oriz$ by section #fajc7l77#ac7 ( su* ,code4 4 7b7 ,income-,cont+5t repaym5t ,section #dee7;e7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is am5d$-- 7#a7 9 p>agraph 7#c71 by ins]t+ 1 consi/5t ) ! proc$ures e/abli%$ "u p>agraph 7#h77;,b77iv7 be=e ! p]iod at ! end2 & 7#b7 by add+ at ! end ! foll[+3 7#h7 ,automatic rec]tification 7,a7 ,9 g5]al ,beg9n+ z soon z ! ,secret>y det]m9es practicable aft] ! ,secret>y f9alizes ! proc$ures "u section #ajg ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,secret>y %all e/abli% & implem5t proc$ures t all[ ! automatic rec]tification ( income ) respect to borr[]s describ$ 9 subp>agraph 7,b74 ,su* proc$ures %all1 to ! ext5t practicable1 be ! same proc$ures describ$ 9 section #dic;,c7f74 7,b7 ,applicability ,subp>agraph 7,a7 %all apply to ea* borr[] ( a loan made "u ?is "p-- 7i7 :o1 on or aft] ! date on :i* ! ,secret>y e/abli%es proc$ures "u su* subp>agraph1 applies to rec]tify income & family size "u su* plan2 or 7ii7 = :om ! ,secret>y select$ an income-cont+5t repaym5t plan "u section #dbh7m77#a74 7,c7 ,availability ( returns & return in=mation ,returns & return in=mation 7z def9$ 9 section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf7 may be obta9$ "u subp>agraph 7,a7 only to ! ext5t au?oriz$ by section #fajc7l77#ac7 ( su* ,code4 7,d7 ,o!r requirem5ts ,! proc$ures e/abli%$ by ! ,secret>y "u ?is p>agraph %all be consi/5t ) ! requirem5ts ( p>agraphs 7#a7 ?r\gh 7#g71 except z o!rwise provid$ 9 ?is p>agraph4 4 #ajf4 ,disclosure ( tax return in=mation to c>ry out c]ta9 high] education loan programs 7a7 ,9 g5]al ,p>agraph 7#ac7 ( section #fajc7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#ac7 ,disclosure ( return in=mation to c>ry out ! high] education act ( #aife 7,a7 ,income-cont+5t or income-bas$ repaym5t & total & p]man5t disability dis*>ge ,! ,secret>y %all1 ^u writt5 reque/ f ! ,secret>y ( ,education1 disclose to (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education1 z specifically au?oriz$ & designat$ by ! ,secret>y ( ,education1 only = ! purpose ( 7& to ! ext5t necess>y 97 e/abli%+1 r5ew+1 adm9i/]+1 & conduct+ analyses & =eca/s = e/imat+ co/s relat$ to income-cont+5t or income-bas$ repaym5t programs1 & ! dis*>ge ( loans bas$ on a total & p]man5t disability 7)9 ! mean+ ( section #dcg7;a7 ( ! ,high] ,education ,act ( #aife71 "u title ,,iv ( ! ,high] ,education ,act ( #aife1 ! foll[+ return in=mation 7z def9$ 9 subsection 7b77#b77 ) respect to taxpay]s id5tifi$ by ! ,secret>y ( ,education z p>ticipat+ 9 ! loan programs "u title ,,iv ( su* ,act1 = taxable ye>s specifi$ by su* ,secret>y3 7i7 ,taxpay] id5tity in=mation ) respect to su* taxpay]4 7ii7 ,! fil+ /atus ( su* taxpay]4 7iii7 ,type ( tax return f :i* ! return in=mation is provid$4 7iv7 ,! adju/$ gross income ( su* taxpay]4 7v7 ,total numb] ( exemptions claim$1 or total numb] ( individuals & dep5d5ts claim$1 z applicable1 on ! return4 7vi7 ,numb] ( *ildr5 ) respect to :i* tax cr$its "u section #bd are claim$ on ! return4 7vii7 ,o!r in=mation det]m9$ to be necess>y by agreem5t betwe5 ! ,secret>y & ! ,secret>y ( ,education to adm9i/] ! ,f$]al f9ancial aid programs z requir$ by ! ,high] ,education ,act ( #aife4 7,b7 ,f$]al /ud5t f9ancial aid ,! ,secret>y %all1 ^u writt5 reque/ f ! ,secret>y ( ,education1 disclose to (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education1 z specifically au?oriz$ & designat$ by ! ,secret>y ( ,education1 only = ! purpose ( 7& to ! ext5t necess>y 97 det]m9+ eligibility =1 & am\nt (1 ,f$]al /ud5t f9ancial aid "u programs au?oriz$ by title ,,iv ( ! ,high] ,education ,act ( #aife & conduct+ analyses & =eca/s = e/imat+ co/s relat$ to su* programs1 ! foll[+ return in=mation 7z def9$ 9 subsection 7b77#b77 ) respect to taxpay]s id5tifi$ by ! ,secret>y ( ,education z applicants = ,f$]al /ud5t f9ancial aid "u title ,,iv ( su* ,act1 = taxable ye>s specifi$ by su* ,secret>y3 7i7 ,taxpay] id5tity in=mation ) respect to su* taxpay]4 7ii7 ,! fil+ /atus ( su* taxpay]4 7iii7 ,type ( tax return f :i* ! return in=mation is provid$4 7iv7 ,! adju/$ gross income ( su* taxpay]4 7v7 ,! am\nt ( any net e>n+s f self-employm5t 7z def9$ 9 section #adjb71 wages 7z def9$ 9 section #caba7;a7 or #cdja7;a771 & taxable income f a f>m+ bus9ess 7z def9$ 9 section #bcf;,a7e77#d77 = ! p]iod report$ on ! return4 7vi7 ,! total income tax ( su* taxpay]4 7vii7 ,total numb] ( exemptions claim$1 or total numb] ( individuals & dep5d5ts claim$1 z applicable1 on ! return4 7viii7 ,numb] ( *ildr5 ) respect to :i* tax cr$its "u section #bd are claim$ on ! return4 7ix7 ,am\nt ( any cr$it claim$ "u section #be;,a = ! taxable ye>4 7x7 ,am\nt ( individual retirem5t acc\nt di/ributions n includ$ 9 adju/$ gross income = ! taxable ye>4 7xi7 ,am\nt ( individual retirem5t acc\nt contributions & paym5ts to self-employ$ ,,sep1 ,keogh1 & o!r qualifi$ plans :i* 7 d$uct$ f income = ! taxable ye>4 7xii7 ,! am\nt ( tax-exempt int]e/4 7xiii7 ,am\nts f retirem5t p5sions & annuities n includ$ 9 adju/$ gross income = ! taxable ye>4 7xiv7 ,if applicable1 ! fact t !re is no return fil$ = su* taxpay] = ! applicable ye>4 7xv7 ,o!r in=mation det]m9$ to be necess>y by agreem5t betwe5 ! ,secret>y & ! ,secret>y ( ,education to adm9i/] ! ,f$]al f9ancial aid programs z requir$ by ! ,high] ,education ,act ( #aife4 7,c7 ,re/riction on use ( disclos$ in=mation 7i7 ,9 g5]al ,return in=mation disclos$ "u subp>agraphs 7,a7 & 7,b7 may be us$ by (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education1 z specifically au?oriz$ & designat$ by ! ,secret>y ( ,education1 only = ! purposes & to ! ext5t necess>y describ$ 9 su* subp>agraphs & = mitigat+ risks 7z def9$ 9 clause 7ii77 relat+ to ! programs describ$ 9 su* subp>agraphs4 7ii7 ,mitigat+ risks ,= purposes ( ?is subp>agraph1 ! t]m mitigat+ risks means1 ) respect to ! programs describ$ 9 subp>agraphs 7,a7 & 7,b7-- 7,i7 analyz+ or e/imat+ co/s associat$ ) pot5tial *anges to ! ne$-analysis =mula1 7,,ii7 ov]sight activities by ! ,(fice ( ,inspector ,g5]al ( ! ,dep>tm5t ( ,education z au?oriz$ by ! ,inspector ,g5]al ,act ( #aigh1 z am5d$1 7,,iii7 develop+ or adm9i/]+ /ati/ical models t in=m support to populations ( ,f$]al /ud5t loan borr[]s :o are at risk ( default or del9qu5cy1 7,,iv7 r$uc+ ! net co/ ( improp] paym5ts to ,f$]al f9ancial aid recipi5ts1 & 7,v7 produc+ aggregate /ati/ics = report+1 rese>*1 or consum] in=mation on ! p]=mance ( programs or in/itutions ( high] education p>ticipat+ 9 ! programs "u title ,,iv ( ! ,high] ,education ,act ( #aife4 ,su* t]m does n include ! conduct ( crim9al inve/igations or prosecutions4 7iii7 ,r$isclosure to in/itutions ( high] education1 /ate high] education ag5cies1 & designat$ s*ol>%ip organizations ,! ,secret>y ( ,education1 & (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education1 may disclose return in=mation receiv$ "u subp>agraph 7,b71 solely = ! use 9 ! application1 aw>d1 & adm9i/ration ( ,f$]al /ud5t f9ancial aid1 ,/ate aid1 or aid aw>d$ by eligible in/itutions or su* entities z ! ,secret>y ( ,education may designate1 to ! foll[+ p]sons3 7,i7 ,an in/itution ( high] education ) :i* ! ,secret>y ( ,education has an agreem5t "u subp>t #a ( "p ,a1 or "p ,d or ,e1 ( title ,,iv ( ! ,high] ,education ,act ( #aife4 7,,ii7 ,a ,/ate high] education ag5cy4 7,,iii7 ,a s*ol>%ip organization :i* is designat$ by ! ,secret>y ( ,education z ( ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act z an organization eligible to receive ! in=mation provid$ "u ?is clause4 ,! prec$+ s5t5ce %all only apply to ! ext5t t ! taxpay] ) respect to :om ! return in=mation relates provides cons5t = su* disclosure to ! ,secret>y ( ,education z "p ( ! application = ,f$]al /ud5t f9ancial aid "u title ,,iv ( ! ,high] ,education ,act ( #aife4 7,d7 ,requir$ notification p]iods 7i7 ,notification to congress ,! ,secret>y & ! ,secret>y ( ,education %all issue jo9t notifications to ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate & ! ,committees on ,ways & ,means & ,education & ,labor ( ! ,h\se ( ,repres5tatives n less ?an #abj days prior to ! fir/ disclosure ( any type ( return in=mation "u subp>agraph 7,a77vii7 or 7,b77xv7 ) respect to :i* su* a notification has n be5 previ\sly made4 7ii7 ,public notice & comm5t ,!re %all be a public notice & comm5t p]iod beg9n+ n less ?an #fj days prior to ! fir/ disclosure ( any type ( return in=mation "u subp>agraph 7,a77vii7 or 7,b77xv7 ) respect to :i* su* a notification has n be5 previ\sly made1 subsequ5t to ! p]iod allott$ = ,congressional comm5t "u clause 7i74 4 7b7 ,confid5tiality ( return in=mation ,section #fajc7;a77#c7 ( su* ,code is am5d$ by ins]t+ 1 7#ac77;,a71 7#ac77;,b7 aft] 7#ab74 7c7 ,con=m+ am5dm5ts ,section #fajc7p77#d7 ( su* ,code is am5d$-- 7#a7 by ins]t+ 7,a71 7#ac77;,b7 aft] 7#ac7 ea* place x occurs2 & 7#b7 by ins]t+ 1 7#ac77;,a71 7#ac77;,b7 aft] 7l77#aj7 ea* place x occurs4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to disclosures made "u section #fajc7l77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z am5d$ by ?is section7 aft] ! date ( ! enactm5t ( ?is ,act4 7e7 ,9 g5]al ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is am5d$ by add+ at ! end ! foll[+3 #did4 ,notification ( reque/ = tax return in=mation ,! ,secret>y %all advise /ud5ts & borr[]s :o submit an application = ,f$]al /ud5t f9ancial aid "u ?is title or = ! dis*>ge ( a loan bas$ on p]man5t & total disability1 z describ$ 9 section #dcg7;a71 or :o reque/ an income-cont+5t or income-bas$ repaym5t plan on _! loan 7z well z p>5ts & sp\ses :o sign su* an application or reque/ or a ,ma/] ,promissory ,note on behalf ( ^? /ud5ts & borr[]s7 t ! ,secret>y has ! au?ority to reque/ t ! ,int]nal ,rev5ue ,s]vice disclose _! tax return in=mation 7z well z t ( p>5ts & sp\ses :o sign su* an application or reque/ or a ,ma/] ,promissory ,note on behalf ( ^? /ud5ts & borr[]s7 to (fic]s1 employees1 & contractors ( ! ,dep>tm5t ( ,education z au?oriz$ "u section #fajc7a77ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 to ! ext5t necess>y = ! ,secret>y to c>ry out ?is title4 4 7f7 ,con=m+ am5dm5t ,section #dhd7q7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7q77 is am5d$ to read z foll[s3 7q7 res]v$ 4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to disclosures made aft] ! date ( enactm5t ( ?is ,act4 #ajg4 ,/udy & proc$ures on det]m9+ family size 7a7 ,9 g5]al ,! ,secret>y ( ,education1 act+ jo9tly ) ! ,secret>y ( ! ,treasury1 %all-- 7#a7 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 publi%1 9 ! ,f$]al ,regi/]1 notice ( ! ,secret>y's int5t to conduct a /udy on ! effect ( us+ data f ! ,int]nal ,rev5ue ,s]vice su* z p]sonal exemptions1 fil+ /atus1 or *ild tax cr$its1 z proxies = family size 9 an income-driv5 repaym5t plan1 & invite public comm5t reg>d+ ! /udy2 7#b7 aft] review+ any public comm5ts provid$ "u p>agraph 7#a71 conduct ! /udy & publi% ! results ( ! /udy 9 ! ,f$]al ,regi/]2 7#c7 use ! results ( ! /udy conduct$ "u p>agraph 7#a7 to develop proc$ures = det]m9+ family size = ! automatic rec]tification ( income = an income-driv5 repaym5t plan 9 a mann] t m9imizes burd5s & un9t5d$ h>m to borr[]s2 7#d7 publi% ! proc$ures develop$ "u p>agraph 7#c7 9 ! ,f$]al ,regi/]2 & 7#e7 aft] a notice & comm5t p]iod on su* proc$ures1 use su* comm5ts to f9alize ! proc$ures4 7b7 ,specifications ,! /udy conduct$ "u subsection 7a7 %all-- 7#a7 be complet$1 ) ! results publi%$ pursuant to subsection 7a77#b71 n lat] ?an #c ye>s aft] ! date ( enactm5t ( ?is ,act2 7#b7 det]m9e h[ closely p]sonal exemptions1 fil+ /atus1 or *ild tax cr$its mat* ! family size t borr[]s report on _! income-driv5 repaym5t plan reque/ =m2 7#c7 comp>e ! borr[]'s actual mon?ly paym5t am\nt ) ! mon?ly paym5t am\nt borr[]s w\ld h us+ family size in=mation d]iv$ f tax returns2 7#d7 include data f tax ye> #bjah or lat] tax ye>s2 & 7#e7 use data f m ?an "o ye>1 :]e possible1 to analyze h[ mu* family size *anges ov] "t4 7c7 ,def9ition ,! t]m income-driv5 repaym5t plan has ! mean+ giv5 ! t]m 9 section #fajc7l77#ac77;,f7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$ by section #ajf4 ,,ii ,end+ int]e/ capitalization & orig9ation fees #bja4 ,end+ int]e/ capitalization = ,f$]al ,direct ,loans 7a7 ,9 g5]al ,section #dee 7#bj ,u4,s4,c4 #ajhg;e7 is am5d$-- 7#a7 9 subsection 7b7-- 7,a7 9 ! subsection head+1 by ins]t+ & ,practices aft] ,rate2 & 7,b7 by add+ at ! end ! foll[+3 7#aa7 ,int]e/ practices 7,a7 ,9 g5]al ,beg9n+ on ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 int]e/ on a loan made "u ?is "p %all accrue & only be add$ to ! balance ( int]e/ due on ! loan1 & %all n ev] be capitaliz$4 7,b7 ,no capitalization ( int]e/ dur+ 9-s*ool or grace p]iods 7i7 ,9 g5]al ,beg9n+ on ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 int]e/ on loans made "u ?is "p = :i* paym5ts ( pr9cipal are n requir$ dur+ ! 9-s*ool & grace p]iods or = :i* paym5ts are def]r$ 9 accordance ) sections #dbg7;a77#b77;,c7 & #dbh7;b77#a77,m7 %all accrue & be add$ to ! balance ( int]e/ due f ! borr[] :5 ! loan ent]s repaym5t1 b %all n ev] be capitaliz$4 7ii7 ,notice requirem5t ,! ,secret>y %all adju/ any =be>ance notice requir$ 9 accordance ) section #dbh7;a77#c77;,a77iii7 to reflect ! availability ( ! pause paym5t process pursuant to section #dfj;,b & ! treatm5t ( int]e/ "u su* section4 7,c7 ,limit$ retroactivity ,= a borr[] ( a loan made "u ?is "p on or be=e ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act t is 9 a /atus1 on ! day be=e su* effective date1 t involves int]e/ capitalization1 su* loan %all h capitalization pro-rat$ to ! effective date ( su* ,act1 b %all n be subject to fur!r capitalization aft] ! effective date ( su* ,act4 2 7#b7 9 subsection 7e77#e7-- 7,a7 by ins]t+ 7:i*1 beg9n+ aft] ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 %all n be capitaliz$7 aft] accru$ int]e/2 & 7,b7 by /rik+ ! second s5t5ce2 & 7#c7 9 subsection 7q77#b71 by /rik+ ! second s5t5ce & ins]t+ ! foll[+3 ,su* int]e/ %all be paid or %all accrue b n be capitaliz$ 9 accordance ) subsection 7b77#aa77;,b744 7b7 ,income-,bas$ repaym5t plans ,p>agraph 7#c77;,b7 ( section #dic;,c7b7 7#bj ,u4,s4,c4 #ajih;e7b77#c77;,b77 is am5d$ to read z foll[s3 7,b7 7i7 beg9n+ on ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 = an eligible loan issu$ "u "p ,d or n o!rwise describ$ 9 clause 7ii71 %all n be capitaliz$ & %all be add$ to ! balance ( int]e/ due = ! loan2 & 7ii7 = an eligible loan made1 insur$1 or gu>ante$ "u "p ,b & held by a private l5d]1 %all be add$ to ! pr9cipal am\nt & capitaliz$ at ! "t ! borr[]-- 7,i7 ends ! election to make income-bas$ repaym5t "u ?is subsection2 or 7,,ii7 beg9s mak+ paym5ts ( n less ?an ! am\nt specifi$ 9 p>agraph 7#f77;,a72 4 #bjb4 ,elim9ation ( orig9ation fees = ,f$]al ,direct ,loans 7a7 ,repeal ( orig9ation fees ,subsection 7c7 ( section #dee 7#bj ,u4,s4,c4 #ajhg;e7c77 is repeal$4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply ) respect to loans made "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 = :i* ! fir/ disbursem5t ( pr9cipal is made1 or1 9 ! case ( a ,f$]al ,direct ,consolidation ,loan1 ! application is receiv$1 on or aft] ,july #a1 #bjbj4 ,,iii ,provid+ assi/ance 9 situations ( borr[] di/ress #cja4 ,limits on seiz+ income = debt relat+ to ,f$]al /ud5t loans ,"p ,d ( title ,,iv 7#bj ,u4,s4,c4 #ajhg;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #dfj;,a4 ,limits on seiz+ income = debt relat+ to ,f$]al /ud5t loans 7a7 ,def9itions ,9 ?is section-- 7#a7 ! t]m adju/$ gross income has ! mean+ giv5 ! t]m 9 section #fb ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7#b7 ! t]m pov]ty l9e means ! pov]ty l9e 7z def9$ by ! ,(fice ( ,managem5t & ,budget & revis$ annually 9 accordance ) section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b777 applicable to a family ( ! size involv$4 7b7 ,limitation on collection 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 any entity engag$ 9 ! collection ( debts relat+ to loans made "u ?is title may n take any action to cause1 or seek to cause1 ! collection ( su* a debt t is tak5 f ! wages1 ,f$]al b5efits1 or o!r am\nts due to a borr[] ?r\gh g>ni%m5t1 d$uction1 (fset1 or seizure 9 an am\nt on a mon?ly basis t is m ?an ! am\nt describ$ 9 p>agraph 7#b74 7#b7 ,calculation ,! am\nt describ$ 9 ?is p>agraph is ! am\nt obta9$ by calculat+ :at ! mon?ly repaym5t am\nt w\ld be = loans made "u ?is title1 ) respect to ! borr[]1 "u ! income-bas$ repaym5t plan "u section #dic;,c7c74 7#c7 ,presumption ,= purposes ( ?is section1 if an entity describ$ 9 p>agraph 7#a7 is unable to det]m9e ! family size ( a borr[] aft] tak+ reasonable /eps to collect ! in=mation necess>y to d s1 t p]son %all presume t ! family size ( ! borr[] is #a individual4 7c7 ,communications ,any communication by an entity describ$ 9 subsection 7b77#a7 t is = ! purpose ( seiz+ income ( a consum] = debt t relates to a loan made "u ?is title %all-- 7#a7 be consid]$-- 7,a7 an attempt to collect a debt2 & 7,b7 conduct 9 connection ) ! collection ( a debt = ! purposes ( ?is title2 & 7#b7 conta9 a notice to ! borr[] t1 consi/5t ) ! proc$ures = rehabilitat+ a loan pursuant to section #dbh;,f7a7 or consolidat+ loans out ( default z describ$ 9 section #dbh;,c7a77#c77;,b77i77,v71 ! borr[] may exit default & re5t] curr5t repaym5t /atus 7z def9$ 9 section #dbh7l77#b77;,c77 ) a simil> mon?ly paym5t am\nt on an income-bas$ repaym5t plan "u section #dic;,c7c7 & !reby obta9 ! full flexibility & b5efits ( su* /atus1 includ+ ! ability to adju/ family size & make qualify+ paym5ts = purposes ( repaym5t or cancellation ( any out/&+ balance ( pr9cipal & int]e/ due on a loan 7z describ$ 9 section #dic;,c7b77#g774 7d7 ,rem$ies 7#a7 ,fir/ ti] ,! ,secret>y may impose a civil p5alty on an entity = a violation ( ?is section n to exce$ #e1jjj = ea* day dur+ :i* su* violation cont9ues4 7#b7 ,second ti] ,not)/&+ p>agraph 7#a71 ! ,secret>y may impose a civil p5alty on an entity t recklessly engages 9 a violation ( ?is section n to exce$ #be1jjj = ea* day dur+ :i* su* violation cont9ues4 7#c7 ,?ird ti] ,not)/&+ p>agraphs 7#a7 & 7#b71 ! ,secret>y may impose a civil p5alty on an entity t kn[+ly violates ?is section n to exce$ #a1jjj1jjj = ea* day dur+ :i* su* violation cont9ues4 7#d7 ,no exempl>y or punitive damages ,no?+ 9 ?is subsection %all be con/ru$ z au?oriz+ ! imposition ( exempl>y or punitive damages4 7#e7 ,entities subject to p5alty ,an entity subject to a p5alty "u ?is subsection may include a contractor or ag5t ( ! ,dep>tm5t4 4 #cjb4 ,all[+ = multiple loan rehabilitations 7a7 ,,ffel ,loans ,section #dbh;,f7a77#e7 7#bj ,u4,s4,c4 #ajgh-f7;a77#e77 is am5d$ by /rik+ "o "t p] loan & ins]t+ #b times p] loan4 7b7 ,direct ,loans ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d771 z am5d$ by section #ajc1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#h7 ,loan rehabilitation ,9 c>ry+ out ! process = loan rehabilitation describ$ 9 section #dbh;,f7a77#e7 ) respect to loans made "u ?is "p & 9 accordance ) subsection 7a71 ! ,secret>y %all all[ a borr[] to obta9 ! b5efits available "u su* section n m ?an #b times p] loan4 4 #cjc4 ,pause paym5t process 7a7 ,e/abli%m5t ( pause paym5t process ,"p ,d ( title ,,iv 7#bj ,u4,s4,c4 #ajhg;a et seq471 z am5d$ by section #cja1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dfj;,b4 ,pause paym5t process 7a7 ,9 g5]al ,! ,secret>y %all e/abli% a s+le1 /reaml9$ pause paym5t process available 9 a s+le application ) respect to loans made "u ?is "p t replaces ! def]m5t & =be>ance options & _! respective applications t are available to borr[]s be=e ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act & provides tempor>y relief f repaym5t ( su* loans 9 accordance ) ?is section4 7b7 ,application = relief ,not)/&+ any o!r provision ( ?is ,act1 a borr[] ( a loan made "u ?is "p t desires to receive tempor>y relief f repaym5t ) respect to su* loan %all reque/ relief 9 accordance ) ! pause paym5t process e/abli%$ by ! ,secret>y "u subsection 7a71 :i* %all include ! options to select a tempor>y cessation ( paym5ts & to make small] paym5ts ?an ! mon?ly paym5ts requir$ "u ! borr[]'s repaym5t plan4 7c7 ,pause paym5t 7#a7 ,9 g5]al ,a borr[] ( a loan made "u ?is "p :o meets ! requirem5ts describ$ 9 p>agraph 7#b7 %all be eligible = a pause paym5t1 dur+ :i* p]iodic in/allm5ts ( pr9cipal ne$ n be paid1 & int]e/-- 7,a7 %all n accrue1 9 ! case ( a-- 7i7 ,f$]al ,direct ,/af=d ,loan2 or 7ii7 a ,f$]al ,direct ,consolidation ,loan t consolidat$ only ,f$]al ,direct ,/af=d ,loans1 or a comb9ation ( su* loans & ,f$]al ,/af=d ,loans = :i* ! /ud5t borr[] receiv$ an int]e/ subsidy "u section #dbh2 or 7,b7 %all accrue & be add$ to ! balance ( int]e/ due b n be capitaliz$1 or be paid by ! borr[]1 9 ! case ( a ,f$]al ,direct ,,plus ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or a ,f$]al ,direct ,consolidation ,loan n describ$ 9 subp>agraph 7,a77ii74 7#b7 ,eligibility ,a borr[] ( a loan made "u ?is "p %all be eligible = a pause paym5t dur+ any p]iod-- 7,a7 dur+ :i*-- 7i7 ! borr[] is c>ry+ at lea/ "o-half ! normal full-"t "w load = ! c\rse ( /udy t ! borr[] is pursu+1 z det]m9$ by ! eligible in/itution 7z su* t]m is def9$ 9 section #dce7;a77 ! /ud5t is att5d+2 or 7ii7 9 ! case ( a p>5t borr[]1 ! borr[] or ! /ud5t on ^: behalf ! loan 0 borr[$ is c>ry+ at lea/ "o-half ! normal full-"t "w load1 9 accordance ) clause 7i72 7,b7 dur+ :i* ! borr[] is pursu+ a c\rse ( /udy pursuant to a graduate fell[%ip program approv$ by ! ,secret>y2 7,c7 dur+ :i* ! borr[] is s]v+ 9 a m$ical or d5tal int]n%ip or resid5cy program2 7,d7 dur+ :i* ! borr[] is 9 a rehabilitation tra9+ program = individuals ) disabilities approv$ by ! ,secret>y2 7,e7 dur+ :i* ! borr[]-- 7i7 is s]v+ on active duty dur+ a w> or o!r milit>y op]ation or national em]g5cy & = ! #ahj-;day p]iod foll[+ ! demobilization date = ! s]vice2 or 7ii7 qualifies = p>tial repaym5t ( ! borr[]'s loans "u a provision ( *apt] #aji or #afji ( title #aj1 ,unit$ ,/ates ,code2 7,f7 dur+ :i* ! borr[] is p]=m+ qualify+ ,national ,gu>d duty dur+ a w> or o!r milit>y op]ation or national em]g5cy & = ! #ahj-;day p]iod foll[+ ! demobilization date = ! s]vice2 7,g7 dur+ :i* ! borr[] is s]v+ 9-- 7i7 an approv$ national s]vice position 7z def9$ 9 section #aja ( ! ,national & ,community ,s]vice ,act ( #aiij 7#db ,u4,s4,c4 #abeaa77 9 an ,am]icorps program 7def9$ = purposes ( ?is subp>agraph z a program c>ri$ out "u subtitle ,c or ,e ( title ,i ( ! ,national & ,community ,s]vice ,act ( #aiij 7#db ,u4,s4,c4 #abega et seq41 #abfaa et seq47 or title ,i ( ! ,dome/ic ,volunte] ,s]vice ,act ( #aigc 7#db ,u4,s4,c4 #diea et seq4772 7ii7 9 ! ,peace ,corps2 or 7iii7 9 a tea*+ position t w\ld qualify = tea*] loan =giv5ess "u section #dbh;,j2 7,h7 n 9 excess ( #c ye>s dur+ :i* ! ,secret>y det]m9es1 9 accordance ) regulations prescrib$ "u section #dce7o71 t ! borr[] has exp]i5c$ or w exp]i5ce an economic h>d%ip1 su* z exp]i5c+ f9ancial difficulties1 hav+ unexpect$ or significant m$ical exp5ses1 or be+ unable to f9d full-"t employm5t2 7,i7 dur+ :i* a borr[]'s ability to make paym5ts1 z det]m9$ by ! ,secret>y1 has be5 adv]sely affect$ by-- 7i7 any major disa/] or em]g5cy decl>$ by ! ,presid5t "u section #dja or #eja1 respectively1 ( ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act 7#db ,u4,s4,c4 #eagj1 #eaia72 7ii7 a local em]g5cy1 z decl>$ by ! appropriate gov]nm5t ag5cy2 or 7iii7 a milit>y mobilization2 7,j7 dur+ :i* ! borr[] is await+ a det]m9ation by ! ,secret>y ( ! borr[]'s reque/ = a pause paym5t1 *ange 9 repaym5t plan1 loan =giv5ess or cancellation1 or consolidation loan2 or 7,k7 dur+ :i* ! borr[] is exp]i5c+ o!r exceptional circum/ances = :i* pause paym5t "u ?is section is 9 ! be/ int]e/ ( ! borr[]1 z det]m9$ by ! ,secret>y ?r\gh regulation4 4 7b7 ,con=m+ am5dm5ts ,section #dee 7#bj ,u4,s4,c4 #ajhg;e7 is am5d$-- 7#a7 9 subsection 7e77#g77;,b77i71 by /rik+ is 9 def]m5t & ins]t+ is "u pause paym5t pursuant to section #dfj;,b2 7#b7 by /rik+ subsection 7f7 & ins]t+ ! foll[+3 7f7 res]v$ 2 & 7#c7 9 subsection 7l7-- 7,a7 by /rik+ ,program4-- & all t foll[s ?r\gh ,us+ funds & ins]t+ ! foll[+3 ,program4--,us+ funds2 & 7,b7 by /rik+ p>agraph 7#b74 #cjd4 ,automatic enrollm5t into income-bas$ repaym5t = borr[]s :o are del9qu5t on loans & = borr[]s :o rehabilitate default$ loans 7a7 ,notification & automatic enrollm5t proc$ures ,section #dee7;d7 7#bj ,u4,s4,c4 #ajhg;e7d771 z am5d$ by section #ajc & #cjb1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#i7 ,notification & automatic enrollm5t proc$ures = borr[]s :o are del9qu5t on loans 7,a7 ,au?ority to obta9 income in=mation 7i7 ,9 g5]al ,9 ! case ( any borr[] :o is at lea/ #fj days del9qu5t on a loan made "u ?is "p1 ! ,secret>y may obta9 su* in=mation z is reasonably necess>y reg>d+ ! income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable74 7ii7 ,availability ( returns & return in=mation ,returns & return in=mation 7z def9$ 9 section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf7 may be obta9$ "u ?is subp>agraph only to ! ext5t au?oriz$ by section #fajc7l77#ac7 ( su* ,code4 7,b7 ,borr[] notification ,) respect to ea* borr[] ( a loan made "u ?is "p :o is at lea/ #fj days del9qu5t on su* loan & :o has n be5 subject to ! proc$ures "u ?is p>agraph = su* loan 9 ! prec$+ #abj days1 ! ,secret>y %all1 z soon z practicable aft] su* #fj-;day del9qu5cy1 provide to ! borr[] ! foll[+3 7i7 ,notification t ! borr[] is at lea/ #fj days del9qu5t on at lea/ #a loan "u ?is "p1 & a description ( all del9qu5t loans "u ?is "p1 & nondel9qu5t loans "u ?is "p1 ( ! borr[]4 7ii7 ,a brief description ( ! repaym5t plans = :i* ! borr[] is eligible & ! borr[]'s loans made "u ?is "p1 & loans made1 insur$1 or gu>ante$ "u "p ,b or ,e1 t may be eligible = su* plans1 bas$ on in=mation available to ! ,secret>y4 7iii7 ,cle> & simple in/ructions on h[ to select ! repaym5t plans4 7iv7 ,! am\nt ( mon?ly paym5ts = ! loans made "u ?is "p1 & any loans made1 insur$1 or gu>ante$ "u "p ,b or ,e1 "u ! repaym5t plans = :i* ! borr[] is eligible1 bas$ on in=mation available to ! ,secret>y1 includ+1 if ! income in=mation ( ! borr[] is available to ! ,secret>y "u subp>agraph 7,a7-- 7,i7 ! am\nt ( ! mon?ly paym5t "u ! income-bas$ repaym5t plan "u section #dic;,c7c7 = :i* ! borr[] is eligible = ! borr[]'s loans made "u ?is "p1 bas$ on su* income in=mation2 & 7,,ii7 ! income1 family size1 tax fil+ /atus1 & tax ye> in=mation on :i* ea* ! mon?ly paym5t is bas$4 7v7 ,an explanation t ! ,secret>y %all take ! actions "u subp>agraph 7,c7 ) respect to su* borr[]1 if-- 7,i7 ! borr[] is #abj days del9qu5t on "o or m loans "u ?is "p & has n select$ a new repaym5t plan = ! borr[]'s loans "u ?is "p2 & 7,,ii7 9 ! case ( su* a borr[] ^: repaym5t plan = any loans made "u ?is "p is n an income-bas$ repaym5t plan "u section #dic;,c7c71 ! mon?ly paym5ts "u su* repaym5t plan are high] ?an su* mon?ly paym5ts w\ld be "u an income-bas$ repaym5t plan = su* loans4 7vi7 ,in/ructions on updat+ ! in=mation ( ! borr[] obta9$ "u subp>agraph 7,a74 7,c7 ,secret>y's initial selection ( plan ,) respect to ea* borr[] describ$ 9 subp>agraph 7,b7 :o has a repaym5t plan = loans made "u ?is "p t meets ! requirem5ts ( clause 7v77,,ii7 ( subp>agraph 7,b71 :o has n select$ a new repaym5t plan = su* loans 9 accordance ) ! notice receiv$ "u su* subp>agraph1 & :o is at lea/ #abj days del9qu5t on su* a loan1 ! ,secret>y %all1 z soon z practicable-- 7i7 9 a case 9 :i* any ( ! borr[]'s loans made "u "p ,b or ,e are eligible = an income-bas$ repaym5t plan "u section #dic;,c7c71 provide ! borr[] ) ! income-bas$ repaym5t plan2 & 7ii7 9 a case 9 :i* none ( ! borr[]'s loans made "u "p ,b or ,e are eligible = an income-bas$ repaym5t plan "u section #dic;,c7c71 notify ! borr[] ( ! actions1 if any1 ! borr[] may take = su* loans to become eligible = su* a plan4 7,d7 ,secret>y's additional selection ( plan 7i7 ,9 g5]al ,) respect to ea* borr[] ( a loan made "u ?is "p :o selects a new repaym5t plan 9 accordance ) ! notice receiv$ "u subp>agraph 7,b7 & :o cont9ues to be del9qu5t on su* loan = a p]iod describ$ 9 clause 7ii71 ! ,secret>y %all1 z soon z practicable aft] su* p]iod1 c>ry out ! proc$ures describ$ 9 subp>agraph 7,c7 = ! borr[]'s loans made "u ?is "p1 if su* proc$ures w\ld result 9 l[] mon?ly repaym5t am\nts on su* loan4 7ii7 ,description ( p]iod ,! duration ( ! p]iod describ$ 9 clause 7i7 %all be ! am\nt ( "t t ! ,secret>y det]m9es is suffici5t to indicate t ! borr[] may b5efit f repay+ su* loan "u a new repaym5t plan1 b 9 no case %all su* p]iod be less ?an #fj days4 7,e7 ,opt-out ,a borr[] ( a loan made "u ?is "p %all h ! "r to opt out ( ! proc$ures "u ?is p>agraph4 7,f7 ,proc$ures ,! ,secret>y %all e/abli% proc$ures z are necess>y to effectively implem5t ?is p>agraph4 7#aj7 ,notification & automatic enrollm5t proc$ures = borr[]s :o are rehabilitat+ default$ loans 7,a7 ,au?ority to obta9 income in=mation 7i7 ,9 g5]al ,9 ! case ( any borr[] :o is rehabilitat+ a loan made "u ?is "p pursuant to section #dbh;,f7a71 ! ,secret>y may obta9 su* in=mation z is reasonably necess>y reg>d+ ! income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable74 7ii7 ,availability ( returns & return in=mation ,returns & return in=mation 7z def9$ 9 section #fajc ( ! ,int]nal ,rev5ue ,code ( #aihf7 may be obta9$ "u ?is subp>agraph only to ! ext5t au?oriz$ by section #fajc7l77#ac7 ( su* ,code4 7,b7 ,borr[] notification ,n lat] ?an #cj days aft] a borr[] makes ! #f? paym5t requir$ = ! loan rehabilitation describ$ 9 subp>agraph 7,a71 ! ,secret>y %all notify ! borr[] ( ! process "u subp>agraph 7,c7 ) respect to su* loan4 7,c7 ,secret>y's automatic enrollm5t ,) respect to ea* borr[] :o has made ! #i? paym5t requir$ = ! loan rehabilitation describ$ 9 subp>agraph 7,a7 & is eligible = ! income-bas$ repaym5t plan "u section #dic;,c7c71 ! ,secret>y %all1 z soon z practicable aft] su* paym5t1 provide ! borr[] ) ! income-bas$ repaym5t plan4 7,d7 ,opt-out ,a borr[] ( a loan made "u ?is "p %all h ! "r to opt out ( ! proc$ures "u ?is p>agraph4 7,e7 ,proc$ures ,! ,secret>y %all e/abli% proc$ures z are necess>y to effectively implem5t ?is p>agraph4 4 7b7 ,effective date ,! am5dm5ts made by subsection 7a7 %all-- 7#a7 take effect z soon z ! ,secret>y ( ,education det]m9es practicable aft] ! ,secret>y f9alizes ! proc$ures "u section #ajg2 & 7#b7 apply to all borr[]s ( loans made "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq474 #cje4 ,sep>at+ jo9t consolidation loans 7a7 ,9 g5]al ,section #dee7;g7 7#bj ,u4,s4,c4 #ajhg;e7g771 z am5d$ by section #ajd1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#c7 ,sep>at+ jo9t consolidation loans 7,a7 ,9 g5]al ,a m>ri$ c\ple1 or #b individuals :o 7 previ\sly a m>ri$ c\ple1 & :o receiv$ a jo9t consolidation loan z su* m>ri$ c\ple "u subp>agraph 7,c7 ( section #dbh;,c7a77#c7 7z su* subp>agraph 0 9 effect on or be=e ,june #cj1 #bjjf71 may apply to ! ,secret>y = ea* individual borr[] 9 ! m>ri$ c\ple 7or previ\sly m>ri$ c\ple7 to receive a sep>ate ,f$]al ,direct ,consolidation ,loan "u ?is "p-- 7i7 t %all-- 7,i7 unless ! ,secret>y receives notice ( an agreem5t describ$ 9 subclause 7,,ii77aa71 be equal to ! sum (-- 7aa7 ! unpaid pr9cipal & accru$ unpaid int]e/ ( ! p]c5tage ( ! jo9t consolidation loan t1 z ( ! day be=e su* jo9t consolidation loan 0 made1 0 attributable to ! loans ( ! individual borr[] = :om su* sep>ate consolidation loan is be+ made2 & 7bb7 any o!r loans describ$ 9 section #dbh;,c7a77#d7 t su* individual borr[] selects = consolidation "u ?is "p2 or 7,,ii7 be equal to ! sum (-- 7aa7 ! unpaid pr9cipal & accru$ unpaid int]e/ ( ! p]c5tage ( ! jo9t consolidation loan t1 z ( ! date ( application "u ?is p>agraph1 ! m>ri$ c\ple 7or previ\sly m>ri$ c\ple7 agrees %all be consid]$ attributable to ! loans ( ! individual borr[] = :om su* sep>ate consolidation loan is be+ made2 & 7bb7 any o!r loans describ$ 9 section #dbh;,c7a77#d7 t su* individual borr[] selects = consolidation "u ?is "p2 7ii7 ! proce$s ( :i* %all be paid by ! ,secret>y to ! hold] or hold]s-- 7,i7 ( ! jo9t consolidation loan = ! purpose ( dis*>g+ ! liability on ! p]c5tage ( su* jo9t consolidation loan describ$ 9 subclause 7,i77aa7 or 7,,ii77aa7 ( clause 7i72 & 7,,ii7 ( ! loans select$ = consolidation "u subclause 7,i77bb7 or 7,,ii77bb7 ( clause 7i7 = ! purpose ( dis*>g+ ! liability on su* loans2 7iii7 except z o!rwise provid$ 9 ?is p>agraph1 t has ! same t]ms & conditions1 & rate ( int]e/ z ! jo9t consolidation loan2 7iv7 = :i* any paym5t made "u subsection 7m77#a77;,a7 on ! jo9t consolidation loan dur+ a p]iod 9 :i* ! individual borr[] = :om su* sep>ate consolidation loan is be+ made 0 employ$ 9 a public s]vice job describ$ 9 subsection 7m77#a77;,b7 %all be treat$ z if su* paym5t 7 made on su* sep>ate consolidation loan2 & 7v7 = :i* any paym5t made "u an income cont+5t repaym5t plan "u subsection 7d77#a77;,d71 or an income-bas$ repaym5t plan "u p>agraph 7#a77;,e7 or 7#b77;,a77ii7 ( subsection 7d71 on ! jo9t consolidation loan %all be treat$ z if su* paym5t 7 made on su* sep>ate consolidation loan4 7,b7 ,application = sep>ate direct consolidation loans 7i7 ,jo9t application ,except z provid$ 9 clause 7ii71 to receive sep>ate consolidation loans "u subp>agraph 7,a71 bo? individual borr[]s 9 a m>ri$ c\ple 7or previ\sly m>ri$ c\ple7 %all jo9tly apply "u su* subp>agraph4 7ii7 ,sep>ate application ,an individual borr[] 9 a m>ri$ c\ple 7or previ\sly m>ri$ c\ple7 may apply = a sep>ate consolidation loan "u subp>agraph 7,a7 sep>ately & )\t reg>d to :e!r or :5 ! o!r individual borr[] 9 ! m>ri$ c\ple 7or previ\sly m>ri$ c\ple7 applies "u su* subp>agraph1 9 a case 9 :i*-- 7,i7 ! individual borr[] has exp]i5c$ f ! o!r individual borr[]-- 7aa7 dome/ic viol5ce 7z def9$ 9 section #djjjb7;a7 ( ! ,viol5ce ,aga9/ ,wom5 ,act ( #aiid 7#db ,u4,s4,c4 #acibe7;a7772 7bb7 economic abuse 7includ+ behaviors t control su* borr[]'s ability to acquire1 use1 & ma9ta9 access to money1 cr$it1 or ! jo9t f9ancial obligations ( bo? borr[]s72 or 7cc7 o!r exceptional circum/ances1 z det]m9$ by ! ,secret>y2 & 7,,ii7 ! ,secret>y det]m9es t au?oriz+ ea* individual borr[] to apply sep>ately "u subp>agraph 7,a7 w\ld be 9 ! be/ fiscal int]e/s ( ! ,f$]al ,gov]nm5t1 includ+ by r$uc+ ! risk ( del9qu5cy or default4 7,c7 ,borr[] eligibility ,not)/&+ section #dbh;,c7a77#c77;,a71 ! ,secret>y %all provide a consolidation loan "u ?is "p to ea* borr[] :o-- 7i7 applies = su* loan "u subp>agraph 7,a72 & 7ii7 meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 7,d7 ,special rule ,not)/&+ any o!r provision ( ?is title1 an individual :o has a jo9t consolidation loan & wi%es = ! ,secret>y to dis*>ge ! loans due to total & p]man5t disability pursuant to section #dcg7;a71 %all fir/ sep>ate ! jo9t consolidation loan 9 accordance ) ?is section be=e ! ,secret>y may dis*>ge any portion ( ! loan4 4 7b7 ,con=m+ am5dm5t ,section #dbh;,c7a77#c77;,b77i77,v7 7#bj ,u4,s4,c4 #ajgh-c7c77;,b77i77,v77 is am5d$-- 7#a7 by /rik+ or at ! end ( item 7bb72 7#b7 by /rik+ ! p]iod at ! end ( item 7cc7 & ins]t+ 2 or2 & 7#c7 by add+ at ! end ! foll[+3 7dd7 = ! purpose ( sep>at+ a jo9t consolidation loan into #b sep>ate ,f$]al ,direct ,consolidation ,loans "u section #dee7;g77#c74 4 #cjf4 ,remov+ ! collection co/ requirem5t 7a7 ,removal ( requirem5t ,section #dhd;,a7b77#a7 7#bj ,u4,s4,c4 #ajia;a7b77#a77 is am5d$ by /rik+ %all be requir$ to pay1 9 addition to o!r *>ges specifi$ 9 ?is title1 reasonable collection co/s & ins]t+ %all n be requir$ to pay collection co/s4 7b7 ,repaym5t aft] default ,section #dee7;d77#f7 7#bj ,u4,s4,c4 #ajhg;e7d77#f771 z r$esignat$ "u section #ajc7;b71 is am5d$ by /rik+ to-- & all t foll[s ?r\gh ! p]iod at ! end & ins]t+ to repay ! loan pursuant to an income-bas$ repaym5t plan "u section #dic;,c7c744 ,,iv ,improv+ loan in=mation & c\nsel+ #dja4 ,/ud5t loan contract2 simplify+ loan disclosures 7a7 ,/ud5t loan contract ,section #dee 7#bj ,u4,s4,c4 #ajhg;e71 z am5d$ by section #bjb1 is fur!r am5d$ by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 ,/ud5t loan contract2 simplify+ loan disclosures 7#a7 ,/ud5t loan contract 7,a7 ,9 g5]al ,any ma/] promissory note =m describ$ 9 section #dcb7m77#a77;,d7 t is develop$ or us$ = cov]$ loans %all be ref]r$ to z a /ud5t loan contract4 7,b7 ,cl>ification on use ,not)/&+ section #dcb7m77#a77;,d77i71 ea* /ud5t loan contract = a cov]$ loan %all-- 7i7 n be ent]$ into by a /ud5t unless ! /ud5t has complet$ all requir$ c\nsel+ relat$ to su* loan1 includ+ c\nsel+ requir$ "u section #dhe7l72 7ii7 be sign$ by ! /ud5t ent]+ su* /ud5t loan contract aft] completion ( su* c\nsel+2 7iii7 be us$ only = ! academic ye> = :i* ! initial loans are made "u ! contract & %all be valid = additional loans )9 an academic ye>2 & 7iv7 include options = ! /ud5t to ent] bo? ! /ud5t's curr5t contact in=mation & p]man5t contact in=mation t is likely to rema9 valid ^u ! /ud5t's exit f ! in/itution4 7,c7 ,cov]$ loan 7i7 ,9 g5]al ,9 ?is subsection1 ! t]m cov]$ loan means a loan made "u ?is "p on or aft] ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 except ) respect to a borr[] describ$ 9 clause 7ii74 7ii7 ,exception ,a borr[] is describ$ 9 ?is clause if ! loan made "u ?is "p on or aft] ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act ) respect to su* borr[] is = ! #bjbj-bjba academic ye> & ! borr[] has already tak5 out a loan "u ?is "p 7o!r ?an a ,f$]al ,direct ,consolidation ,loan7 = su* academic ye> 7includ+ any su* loan = att5dance at ano!r in/itution f :i* ! /ud5t transf]r$ or 9 :i* ! /ud5t _h previ\sly enroll$74 7#b7 ,loan disclosures ,= loans made "u ?is "p = p]iods ( enrollm5t beg9n+ on or aft] ! effective date ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,secret>y %all take su* /eps z are necess>y to /reaml9e ! /ud5t loan disclosure requirem5ts "u ?is ,act4 ,! ,secret>y %all ensure t in=mation requir$ to be disclos$ to a /ud5t :o is apply+ =1 receiv+1 or prep>+ to repay a loan "u ?is "p %all be consum]-te/$ & deliv]$ 9 a mann] t-- 7,a7 r$uces & simplifies ! pap]work /ud5ts are requir$ to complete2 7,b7 limits ! numb] ( times a /ud5t is pres5t$ ) disclosures by incorporat+ ! /reaml9$ disclosures into requir$ /ud5t loan c\nsel+ "u section #dhe7l71 ! /ud5t loan contract "u ?is subsection1 or bo?2 & 7,c7 is effective 9 help+ ! /ud5t und]/& ! /ud5t's rights & obligations z a ,f$]al /ud5t loan borr[]4 7#c7 ,annual loan acceptance ,prior to mak+ ! fir/ disbursem5t ( a cov]$ loan 7o!r ?an a ,f$]al ,direct ,consolidation ,loan7 to a borr[] = an academic ye>1 ! eligible in/itution %all ensure t ! borr[]-- 7,a7 has complet$ ! applicable c\nsel+ "u p>agraph 7#b7 or 7#c7 ( section #dhe7l72 & 7,b7 aft] complet+ su* c\nsel+1 accepts ! loan = su* academic ye> by-- 7i7 sign+ & return+ to ! in/itution ! /ud5t loan contract describ$ 9 section #dee7;c77#a7 t affirmatively /ates t ! borr[] accepts ! loan2 or 7ii7 electronically sign+ an electronic v]sion ( su* /ud5t loan contract1 :i* may be done ?r\gh ! onl9e c\nsel+ tool 9 accordance ) section #dhe7n77#a77;,b74 4 7b7 ,con=m+ am5dm5t ,section #dhg7;a77#g7 7#bj ,u4,s4,c4 #ajid7;a77#g77 is am5d$ by /rik+ section #dhe & ins]t+ sections #dee7;c77#c7 & #dhe4 #djb4 ,annual & pre-loan in=mation & c\nsel+ requirem5ts ,section #dhe7l7 7#bj ,u4,s4,c4 #ajib7l77 is am5d$ to read z foll[s3 7l7 ,annual /ud5t loan c\nsel+ = borr[]s 7#a7 ,annual c\nsel+ requirem5t = in/itutions 7,a7 ,9 g5]al ,ea* eligible in/itution %all ensure t ea* individual = :om ! in/itution has k t ! /ud5t has accept$1 or w accept1 #a or m /ud5t loans "u "p ,d 7includ+ any su* loans = att5dance at ano!r in/itution f :i* ! /ud5t transf]r$ or 9 :i* ! /ud5t _h previ\sly enroll$1 o!r ?an a ,f$]al ,direct ,consolidation ,loan7 = an academic ye>1 receives compreh5sive in=mation on ! t]ms & conditions ( su* loans & ! responsibilities ! individual has ) respect to su* loans4 ,su* in=mation %all be provid$1 = ea* academic ye> = :i* ! individual receives su* loans1 9 a simple1 und]/&able1 & consum]-fri5dly mann]-- 7i7 dur+ a c\nsel+ session conduct$ 9 p]son2 7ii7 onl9e1 ) ! individual ackn[l$g+ receipt ( ! in=mation2 or 7iii7 ?r\gh ! use ( ! onl9e c\nsel+ tool describ$ 9 subsection 7n77#a77;,b74 7,b7 ,use ( int]active programs ,9 ! case ( in/itutions n us+ ! onl9e c\nsel+ tool describ$ 9 subsection 7n77#a77;,b71 ! ,secret>y %all require su* in/itutions to c>ry out ! requirem5ts ( subp>agraph 7,a7 ?r\gh ! use ( int]active programs1 dur+ an annual c\nsel+ session t is 9-p]son or onl9e1 t te/ ! individual's und]/&+ ( ! t]ms & conditions ( ! loan aw>d$ to ! individual1 us+ simple & und]/&able language & cle> =matt+4 7#b7 ,annual loan c\nsel+ = borr[]s receiv+ loans made "u "p d 7o!r ?an p>5t plus loans7 ,! in=mation to be provid$ "u p>agraph 7#a77;,a7 to a borr[] ( a loan made "u "p ,d 7o!r ?an a ,f$]al ,direct ,,plus ,loan made on behalf ( a dep5d5t /ud5t7 %all include ! foll[+3 7,a7 ,a notification t "s /ud5ts may qualify = o!r f9ancial aid t does n ne$ to be repaid1 & an explanation t ! borr[] %\ld consid] accept+ any su* grant1 s*ol>%ip1 milit>y tuition assi/ance1 vet]ans b5efits1 ,f$]al or ,/ate "w-/udy jobs1 or o!r programs = :i* ! borr[] is eligible1 prior to accept+ /ud5t loans4 7,b7 ,in=mation on ! total out/&+ /ud5t loan debt t ! in/itution is aw>e t ! /ud5t has borr[$1 disaggregat$ by type ( loan1 includ+ loans issu$ "u ?is title1 private education loans 7z def9$ 9 section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej77 t ! in/itution has c]tifi$ 9 accordance ) section #dhg7;a77#bh71 & education loans f ! in/itution1 z applicable4 7,c7 ,! /ud5t's e/imat$ mon?ly paym5t am\nts = loans made1 insur$1 or gu>ante$ "u ?is title bas$ on-- 7i7 ! fix$ repaym5t plan describ$ "u section #dic;,e = loans issu$ "u "p ,b or ,d2 & 7ii7 ! income-bas$ repaym5t plan "u section #dic;,c7c71 utiliz+ individualiz$ data applicable to ! borr[] z describ$ 9 p>agraph 7#d74 7,d7 ,a /atem5t t ! mon?ly am\nt describ$ 9 subp>agraph 7,c7 does n include any am\nts t ! /ud5t may be requir$ to repay = non-,f$]al education loans1 includ+ private education loans or in/itutional education loans4 7,e7 ,an explanation ( ! use ( ! /ud5t loan contract ref]r$ to 9 section #dee7;c74 7,f7 ,a recomm5dation to ! borr[] to exhau/ ! borr[]'s ,f$]al /ud5t loan options prior to tak+ out private education loans1 an explanation t ,f$]al /ud5t loans typically (f] bett] t]ms & conditions ?an private education loans1 an explanation t ,f$]al /ud5t loans (f] consum] protections typically n available 9 ! private education loan m>ket1 an explanation ( treatm5t ( loans made "u "p ,d & private education loans 9 bankruptcy1 & an explanation t if a borr[] decides to take out a private education loan-- 7i7 ! borr[] has ! ability to select a private educational l5d] ( ! borr[]'s *oice2 7ii7 ! propos$ private education loan may impact ! borr[]'s pot5tial eligibility = o!r f9ancial assi/ance1 includ+ ,f$]al f9ancial assi/ance "u ?is title2 & 7iii7 ! borr[] has a "r-- 7,i7 to accept ! t]ms ( ! private education loan )9 #cj cal5d> days foll[+ ! date on :i* ! application = su* loan is approv$ & ! borr[] receives ! requir$ disclosure docum5ts1 pursuant to section #abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e772 & 7,,ii7 to cancel su* loan )9 #c bus9ess days ( ! date on :i* ! loan is consummat$1 pursuant to section #abh7;e77#g7 ( su* ,act 7#ae ,u4,s4,c4 #afch7;e77#g774 7,g7 ,an explanation ( ! importance ( contact+ ! appropriate (fices at ! in/itution ( high] education if ! borr[] )draws prior to complet+ ! borr[]'s program ( /udy s t ! in/itution c provide exit c\nsel+1 includ+ in=mation reg>d+ ! borr[]'s repaym5t options & loan consolidation4 7,h7 ,an explanation ( ! obligation ( ! borr[] to repay ! full am\nt ( ! loan1 reg>dless ( :e!r ! borr[] completes or does n complete ! program 9 :i* ! borr[] is enroll$ )9 ! regul> "t = program completion4 7,i7 ,a g5]al description ( ! t]ms & conditions "u :i* ! /ud5t may obta9 =giv5ess or cancellation ( any pr9cipal & int]e/ ( a loan issu$ "u ?is title4 7,j7 ,in=mation z to h[ ! /ud5t c access ! loan records ( ! /ud5t & ! contact in=mation = inquiries reg>d+ repay+ ! loan4 7,k7 ,! contact in=mation = ! f9ancial aid (fice1 or o!r appropriate (fice1 at ! in/itution t ! borr[] may contact if ! borr[] has any que/ions ab\t ! borr[]'s rights & responsibilities or ! t]ms & conditions ( ! loan4 7,l7 ,an explanation t ! /ud5t has ! "r to annually reque/ a copy ( ! cr$it report ( ! /ud5t f a consum] report+ ag5cy pursuant to section #fab7;a7 ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;j7a774 7,m7 ,= a fir/-"t borr[]1 9 addition to all ! in=mation describ$ 9 subp>agraphs 7,a7 ?r\gh 7,l7-- 7i7 ! anticipat$ balance on ! loan = :i* ! borr[] is receiv+ c\nsel+ "u ?is subsection2 & 7ii7 in=mation on ! annual & aggregate loan limits = ,f$]al ,direct ,/af=d ,loans & ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans z x p]ta9s to ! loan = :i* ! borr[] is receiv+ c\nsel+1 & a /atem5t t su* aggregate borr[+ limit may *ange bas$ on ! borr[]'s /ud5t /atus 7:e!r und]graduate or graduate7 or if !re is a *ange 9 ! borr[]'s dep5d5cy /atus4 7,n7 ,= a borr[] ) an out/&+ balance ( pr9cipal or int]e/ due on a loan made "u ?is title1 includ+ loans made "u "p ,b1 9 addition to all ! in=mation describ$ 9 subp>agraphs 7,a7 ?r\gh 7,l71 ! p]c5tage ( ! total aggregate borr[+ limit t ! /ud5t has rea*$1 z ( ! date ( ! c\nsel+1 & a /atem5t t su* aggregate borr[+ limit may *ange bas$ on ! borr[]'s /ud5t /atus 7:e!r und]graduate or graduate7 or if !re is a *ange 9 ! borr[]'s dep5d5cy /atus4 7#c7 ,borr[]s receiv+ p>5t plus loans = dep5d5t /ud5ts ,! in=mation to be provid$ "u p>agraph 7#a77;,a7 to a borr[] ( a ,f$]al ,direct ,,plus ,loan made on behalf ( a dep5d5t /ud5t %all include ! foll[+3 7,a7 ,a notification t "s /ud5ts may qualify = o!r f9ancial aid & an explanation t ! /ud5t = :om ! borr[] is tak+ out ! loan %\ld consid] accept+ any su* grant1 s*ol>%ip1 milit>y tuition assi/ance1 vet]ans b5efits1 ,f$]al or ,/ate "w-/udy jobs1 or o!r programs = :i* ! /ud5t = :om ! borr[] is tak+ out ! loan is eligible1 prior to borr[+ any ,f$]al ,direct ,,plus ,loan on behalf ( a dep5d5t /ud5t4 7,b7 ,! in=mation describ$ 9 subp>agraphs 7,b7 ?r\gh 7,l7 ( p>agraph 7#b71 z applicable4 7,c7 ,! option ( ! borr[] to pay ! int]e/ on ! loan :ile ! loan is "u pause paym5t4 7,d7 ,an explanation t ! borr[] has ! options to prepay ea* loan1 pay ea* loan on a %ort] s*$ule1 & *ange repaym5t plans4 7,e7 ,= ea* ,f$]al ,direct ,,plus ,loan made on behalf ( a dep5d5t /ud5t = :i* ! borr[] is receiv+ c\nsel+ "u ?is subsection1 ! contact in=mation = ! loan s]vic] ( ! loan & a l9k to su* s]vic]'s website4 7,f7 ,= a fir/-"t borr[] ( su* loan-- 7i7 ! anticipat$ balance on ! loan = :i* ! borr[] is receiv+ c\nsel+ "u ?is p>agraph2 & 7ii7 ! e/imat$ mon?ly paym5t am\nts = su* loan bas$ on-- 7,i7 ! fix$ repaym5t plan describ$ 9 section #dic;,e = ! loan2 & 7,,ii7 ! income-bas$ repaym5t plan "u section #dic;,c7c71 utiliz+ individualiz$ data applicable to ! borr[] z describ$ 9 p>agraph 7#d74 7,g7 ,= a borr[] und]go+ c\nsel+ t already has an out/&+ balance ( pr9cipal or int]e/ due on a ,f$]al ,direct ,,plus ,loan made on behalf ( a dep5d5t /ud5t-- 7i7 ! anticipat$ balance ( all ,f$]al ,direct ,,plus ,loans held by ! borr[] 7includ+ ! "o = :i* c\nsel+ is provid$72 & 7ii7 ! e/imat$ mon?ly paym5t am\nts = all su* loans bas$ on-- 7,i7 ! fix$ repaym5t plan describ$ 9 section #dic;,e = loans issu$ "u "p ,b or ,d2 & 7,,ii7 ! income-bas$ repaym5t plan "u section #dic;,c7c71 utiliz+ individualiz$ data applicable to ! borr[] z describ$ 9 p>agraph 7#d74 7#d7 ,e/imat$ repaym5t in=mation ,9 provid+ e/imat$ paym5ts = income-bas$ repaym5t plans "u section #dic;,c7c7 = purposes ( ?is section1 ! ,secret>y %all develop & implem5t a database to g5]ate repaym5t e/imate = borr[]s by-- 7,a7 enabl+ ea* in/itution to ent] relevant loan1 program co/1 & av]age indebt$ness at graduation in=mation electronically2 7,b7 integrat+ applicable data on ,f$]al loans made1 insur$1 or gu>ante$ "u ?is title f ! ,national ,/ud5t ,loan ,data ,sy/em or a successor sy/em2 7,c7 integrat+ available data on occupational e>n+s reasonably relat$ to ! /ud5t's program ( /udy2 7,d7 us+ a hypo!tical family size ( #a2 & 7,e7 provid+ a borr[] ! option to adju/ ^! data elem5ts & obs]ve ! correspond+ *ange 9 e/imat$ mon?ly paym5t am\nts4 4 #djc4 ,exit c\nsel+ ,section #dhe7;b7 7#bj ,u4,s4,c4 #ajib7;b77 is am5d$-- 7#a7 9 p>agraph 7#a7-- 7,a7 9 subp>agraph 7,a7-- 7i7 9 ! matt] prec$+ clause 7i71 /rik+ ?r\gh f9ancial aid (fices or o!rwise & ins]t+ ?r\gh ! use ( an int]active program1 dur+ an exit c\nsel+ session t is 9-p]son or onl9e1 or ?r\gh ! use ( ! onl9e c\nsel+ tool describ$ 9 subsection 7n77#a77;,a72 7ii7 by r$esignat+ clauses 7i7 ?r\gh 7ix7 z clauses 7v7 ?r\gh 7xiii71 respectively2 7iii7 by ins]t+ be=e clause 7v71 z r$esignat$ by clause 7ii71 ! foll[+3 7i7 a summ>y ( ! out/&+ balance ( pr9cipal & int]e/ due on ! loans made to ! borr[] "u "p ,b1 ,d1 or ,e2 7ii7 an explanation ( ! grace p]iod prec$+ repaym5t & ! expect$ date t ! borr[] w ent] repaym5t2 7iii7 an explanation t ! borr[] has ! option to pay any int]e/ t has accru$ :ile ! borr[] 0 9 s*ool or t may accrue dur+ ! grace p]iod prec$+ repaym5t or dur+ an au?oriz$ p]iod ( pause paym5t2 7iv7 an explanation t ! borr[] may be approa*$ dur+ ! repaym5t process by ?ird-p>ty /ud5t debt relief companies1 t ! borr[] %\ld use caution 9 any su* deal+s1 & t ! typical s]vices provid$ by ^! companies are already (f]$ to borr[]s free ( *>ge ?r\gh ! ,dep>tm5t or its contractors2 2 7iv7 9 clause 7v71 z r$esignat$ by clause 7ii7-- 7,i7 by /rik+ sample in=mation %[+ ! av]age & ins]t+ in=mation1 bas$ on ! borr[]'s out/&+ balance describ$ 9 clause 7i71 %[+ ! borr[]'s2 & 7,,ii7 by /rik+ ( ea* plan & ins]t+ ( ! fix$ repaym5t plan describ$ 9 section #dic;,e & ! income-bas$ repaym5t plan "u section #dic;,c7c71 & any o!r repaym5t plan = :i* ea* loan may be eligible2 7v7 9 clause 7x71 z r$esignat$ by clause 7ii7-- 7,i7 by ins]t+ decreas$ cr$it score1 aft] cr$it reports12 & 7,,ii7 by ins]t+ r$uc$ ability to r5t or pur*ase a home or c>1 pot5tial difficulty 9 secur+ employm5t1 aft] ,f$]al law12 7vi7 9 ! matt] prec$+ subclause 7,i7 ( clause 7xi71 z r$esignat$ by clause 7ii71 by /rik+ consolidation loan "u section #dbh;,c or a2 7vii7 9 ea* ( clauses 7xii7 & 7xiii71 z r$esignat$ by clause 7ii71 by /rik+ & at ! end2 & 7viii7 by add+ at ! end ! foll[+3 7xiv7 = ea* ( ! borr[]'s loans made "u "p ,b1 ,d1 or ,e = :i* ! borr[] is receiv+ c\nsel+ "u ?is subsection1 ! contact in=mation = ! loan s]vic] ( ! loan & a l9k to su* s]vic]'s website2 & 7xv7 an explanation t an individual has a "r to annually reque/ a disclosure ( in=mation collect$ by a consum] report+ ag5cy pursuant to section #fab7;a7 ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;j7a774 2 & 7,b7 9 subp>agraph 7,b71 by /rik+ 9 writ+ & ins]t+ onl9e or 9 writ+1 except t 9 ! case ( an in/itution us+ ! onl9e c\nsel+ tool describ$ 9 subsection 7n77#a77;,a71 ! ,secret>y %all attempt to provide su* in=mation to ! /ud5t 9 ! mann] describ$ 9 subsection 7n77#c77;,c72 & 7#b7 9 p>agraph 7#b77;,c71 by ins]t+ 1 su* z ! onl9e c\nsel+ tool describ$ 9 subsection 7n77#a77;,a71 aft] electronic means4 #djd4 ,onl9e c\nsel+ tools ,section #dhe 7#bj ,u4,s4,c4 #ajib7 is am5d$ by add+ at ! end ! foll[+3 7n7 ,onl9e c\nsel+ tools 7#a7 ,9 g5]al ,beg9n+ n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,secret>y %all ma9ta9-- 7,a7 an onl9e c\nsel+ tool t provides ! exit c\nsel+ requir$ "u subsection 7b7 & meets ! applicable requirem5ts ( ?is subsection2 & 7,b7 an onl9e c\nsel+ tool t provides ! annual c\nsel+ requir$ "u subsection 7l71 enables a borr[] to electronically sign & accept ! borr[]'s /ud5t loan contract = ! upcom+ academic ye> "u section #dee7;c77#c77;,b77ii71 & meets ! applicable requirem5ts ( ?is subsection4 7#b7 ,requirem5ts ( tools ,9 ma9ta9+ ! onl9e c\nsel+ tools describ$ 9 p>agraph 7#a71 ! ,secret>y %all ensure t ea* su* tool1 & its und]ly+ cont5t-- 7,a7 are consum] te/$1 9 consultation ) o!r relevant ,f$]al ag5cies1 /ud5ts1 borr[]s1 in/itutions ( high] education1 second>y s*ool & po/second>y c\nselors1 & consum] advocacy organizations1 to ensure t ! tool is effective 9 help+ individuals und]/& _! rights & obligations ) respect to borr[+ a loan made "u "p ,d2 7,b7 are und]/&able to borr[]s ( loans made "u "p ,d2 7,c7 freely available to all eligible in/itutions2 & 7,d7 integrate applicable loan data f ! ,national ,/ud5t ,loan ,data ,sy/em or a successor sy/em1 includ+ data reg>d+ loans made1 insur$1 or gu>ante$ "u ?is title & data reg>d+ private education loans1 pursuant to section #dhe;,b7i74 7#c7 ,record ( c\nsel+ completion ,! ,secret>y %all-- 7,a7 use ea* onl9e c\nsel+ tool describ$ 9 p>agraph 7#a7 to keep a record ( :i* individuals h receiv$ c\nsel+ us+ ! tool & notify ! applicable in/itutions ( ! individual's completion ( su* c\nsel+2 7,b7 9 ! case ( a borr[] :o receives annual c\nsel+ = a loan made "u "p ,d us+ ! tool describ$ 9 p>agraph 7#a77;,b7-- 7i7 enable ! borr[] to accept & electronically sign ! /ud5t loan contract z requir$ "u section #dee7;c77#c77;,b77ii7 & notify ! applicable in/itutions t ! individual complet$ ! c\nsel+ & electronically sign$ ! contract2 & 7ii7 if ! borr[] *ooses n to sign ! /ud5t loan contract ?r\gh ! onl9e c\nsel+-- 7,i7 in=m ! borr[]1 ?r\gh ! onl9e c\nsel+ tool1 ( ! date by :5 ! borr[] %\ld accept & sign ! /ud5t loan contract = :i* ! borr[] has receiv$ su* c\nsel+2 & 7,,ii7 notify ! applicable in/itution t ! borr[] complet$ ! c\nsel+ b did n sign ! /ud5t loan contract2 & 7,c7 9 ! case ( a borr[] describ$ 9 subsection 7b77#a77;,b7 at an in/itution t uses ! onl9e c\nsel+ tool describ$ 9 p>agraph 7#a77;,a7 ( ?is subsection1 attempt to provide ! in=mation describ$ 9 subsection 7b77#a77;,a7 to ! borr[] ?r\gh su* tool4 7o7 ,longitud9al /udy on ! effectiv5ess ( /ud5t loan c\nsel+ 7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,secret>y1 act+ ?r\gh ! ,director ( ! ,in/itute ( ,education ,sci5ces1 %all beg9 conduct+ a rigor\s1 longitud9al /udy ( ! impact & effectiv5ess ( ! /ud5t loan c\nsel+ provid$ "u section #dhe7n74 7#b7 ,cont5ts 7,a7 ,borr[] in=mation ,! longitud9al /udy c>ri$ out "u p>agraph 7#a7 %all include borr[] in=mation1 9 ! aggregate & disaggregat$ by race & e?nicity1 g5d]1 income qu>tile1 & /atus z an individual ) a disability1 on-- 7i7 /ud5t p]si/5ce2 7ii7 degree atta9m5t2 7iii7 program completion2 7iv7 successfully ma9ta9+ curr5t /ud5t loan repaym5t /atus foll[+ ! /ud5t's exit f ! in/itution2 7v7 cumulative borr[+ levels2 & 7vi7 su* o!r factors z ! ,secret>y may det]m9e4 7,b7 ,exception ,! disaggregation "u subp>agraph 7,a7 %all n be requir$ 9 a case 9 :i* ! numb] ( borr[]s 9 a category is insuffici5t to yield /ati/ically reliable in=mation or ! results w\ld reveal p]sonally id5tifiable in=mation ab\t an individual borr[]4 7#c7 ,int]im reports ,n lat] ?an #ah mon?s aft] ! comm5cem5t ( ! /udy "u p>agraph 7#a71 & annually !reaft]1 ! ,secret>y %all evaluate ! progress ( ! /udy & report any %ort-t]m f9d+s to ! au?oriz+ committees4 4 #dje4 ,private education loan c]tification & in=mation 7a7 ,am5dm5t to ! ,high] ,education ,act ( #aife 7#a7 ,9 g5]al ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a77 is am5d$ by /rik+ p>agraph 7#bh7 & ins]t+ ! foll[+3 7#bh7 7,a7 ,! in/itution %all-- 7i7 ^u ! reque/ ( a private educational l5d]1 act+ 9 connection ) an application initiat$ by a borr[] = a private education loan 9 accordance ) section #abh7;e77#c7 ( ! ,tru? 9 ,l5d+ ,act1 provide c]tification to su* private educational l5d]-- 7,i7 t ! /ud5t :o initiat$ ! application = ! private education loan1 or on ^: behalf ! application 0 initiat$1 is enroll$ or is s*$ul$ to enroll at ! in/itution2 7,,ii7 ( su* /ud5t's co/ ( att5dance at ! in/itution z det]m9$ "u "p ,f2 & 7,,iii7 ( ! diff]5ce betwe5-- 7aa7 ! co/ ( att5dance at ! in/itution2 & 7bb7 ! /ud5t's e/imat$ f9ancial assi/ance receiv$ "u ?is title & o!r assi/ance kn[n to ! in/itution1 z applicable2 & 7ii7 provide ! c]tification describ$ 9 clause 7i71 or notify ! private educational l5d] t ! in/itution has receiv$ ! reque/ = c]tification & w ne$ additional "t to comply ) ! c]tification reque/-- 7,i7 )9 #ae bus9ess days ( receipt ( su* c]tification reque/2 & 7,,ii7 only aft] ! in/itution has complet$ ! activities describ$ 9 subp>agraph 7,b74 7,b7 ,! in/itution %all1 ^u receipt ( a c]tification reque/ describ$ 9 subp>agraph 7,a77i71 & prior to provid+ su* c]tification-- 7i7 det]m9e :e!r ! /ud5t :o initiat$ ! application = ! private education loan1 or on ^: behalf ! application 0 initiat$1 has appli$ = & exhau/$ ! ,f$]al f9ancial assi/ance available to su* /ud5t "u ?is title & in=m ! /ud5t accord+ly2 & 7ii7 provide ! borr[] ^: loan application has prompt$ ! c]tification reque/ by a private education l5d]1 z describ$ 9 subp>agraph 7,a77i71 ) ! foll[+ in=mation & disclosures3 7,i7 ,if ! borr[] has n yet exhau/$ ! f9ancial assi/ance available to ! borr[] "u ?is title1 ! am\nt ( additional ,f$]al /ud5t assi/ance = :i* ! borr[] is eligible & ! pot5tial advantages ( ,f$]al loans "u ?is title1 includ+ disclosure (-- 7aa7 ! fix$ int]e/ rates & pause paym5t processes2 7bb7 ! option = & t]ms ( income-bas$ repaym5t1 loan =giv5ess programs1 & additional protections2 & 7cc7 ! high] /ud5t loan limits = dep5d5t /ud5ts ^: p>5ts are n eligible = a ,f$]al ,direct ,,plus ,loan4 7,,ii7 ,! borr[]'s ability to select a private educational l5d] ( ! borr[]'s *oice4 7,,iii7 ,! impact ( a propos$ private education loan on ! borr[]'s pot5tial eligibility = o!r f9ancial assi/ance1 includ+ ,f$]al f9ancial assi/ance "u ?is title4 7,,iv7 ,! borr[]'s "r to accept or reject a private education loan )9 ! #cj-;day p]iod foll[+ a private educational l5d]'s approval ( a borr[]'s application & ab\t a borr[]'s #c-;day "r to cancel p]iod "u section #abh7;e77#g7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;e77#g774 7,c7 ,= purposes ( ?is p>agraph1 ! t]ms private educational l5d] & private education loan h ! mean+s giv5 su* t]ms 9 section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej74 4 7#b7 ,national /ud5t loan data sy/em ,section #dhe;,b 7#bj ,u4,s4,c4 #ajib;b7 is am5d$-- 7,a7 9 subsection 7a71 by /rik+ & loans made "u p>ts ,d & ,e & ins]t+ 1 loans made "u p>ts ,d & ,e1 & private education loans 79 accordance ) subsection 7i772 7,b7 9 subsection 7f71 by ins]t+ = ,f$]al loans aft] ,data report+2 & 7,c7 by add+ at ! end ! foll[+3 7i7 ,private education loan report+ ,! ,secret>y %all include 9 ! ,national ,/ud5t ,loan ,data ,sy/em ! in=mation reg>d+ private education loans t ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 9 coord9ation ) ! ,secret>y1 det]m9es necess>y to be includ$ pursuant to section #abh7;e77#i77;,b77ii7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e77#i77;,b77ii774 4 7#c7 ,effective date ,! am5dm5ts made by p>agraphs 7#a7 & 7#b7 %all take effect on ! effective date ( ! regulations describ$ 9 subsection 7b77#c74 7b7 ,am5dm5ts to ! ,tru? 9 ,l5d+ ,act 7#a7 ,9 g5]al ,section #abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e77 is am5d$-- 7,a7 by /rik+ p>agraph 7#c7 & ins]t+ ! foll[+3 7#c7 ,in/itutional c]tification requir$ 7,a7 ,9 ,g5]al ,except z provid$ 9 subp>agraph 7,b71 be=e a private educational l5d] may issue any funds ) respect to a private education loan1 ! private educational l5d] %all obta91 f ! relevant in/itution ( high] education :]e su* loan is to be us$ = a /ud5t1 a c]tification 9 accordance ) section #dhe7;a77#bh77;,a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajid7;a77#bh77;,a77-- 7i7 confirm+ t ! /ud5t is enroll$ or is s*$ul$ to enroll at ! in/itution2 & 7ii7 /at+-- 7,i7 ! /ud5t's co/ ( att5dance at ! in/itution1 z det]m9$ by ! in/itution "u "p ,f ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhgkk et seq472 & 7,,ii7 ! diff]5ce betwe5-- 7aa7 su* co/ ( att5dance2 & 7bb7 ! /ud5t's e/imat$ f9ancial assi/ance1 includ+ su* assi/ance receiv$ "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 & o!r f9ancial assi/ance kn[n to ! in/itution1 z applicable4 7,b7 ,tim+ ,pursuant to section #dhe7;a77#bh77;,a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajid7;a77#bh77;,a771 a private education l5d] %all receive ! c]tification describ$ 9 subp>agraph 7,a7 )9 #ae days ( a reque/ by ! private education l5d]1 unless ! in/itution ( high] education notifies ! private educational l5d] pursuant to section #dhe7;a77#bh77;,a77ii7 ( su* ,act t additional "t is ne$$4 7,c7 ,additional requirem5ts ,^u receiv+ ! c]tification describ$ 9 subp>agraph 7,a7 = a private education loan1 ! private educational l5d]-- 7i7 may proce$ to issue funds ) respect to ! private education loan2 & 7ii7 aft] issu+ ! private education loan1 %all-- 7,i7 notify ! in/itution ( high] education involv$ t ! private education loan has be5 issu$ to ! borr[]1 & ! am\nt ( su* loan2 & 7,,ii7 provide ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau & ! ,secret>y ( ,education ) ! in=mation describ$ 9 p>agraph 7#i77;,b74 2 7,b7 by r$esignat+ p>agraphs 7#i71 7#aj71 & 7#aa7 z p>agraphs 7#aj71 7#aa71 & 7#ab71 respectively2 & 7,c7 by ins]t+ aft] p>agraph 7#h7 ! foll[+3 7#i7 ,provision ( in=mation 7,a7 ,provision ( in=mation to borr[]s 7i7 ,loan /atem5ts ,a private educational l5d] t issues any funds ) respect to a private education loan %all-- 7,i7 s5d loan /atem5ts1 if ! loan is to be us$ = a /ud5t1 to borr[]s ( ! funds n less ?an once e #c mon?s dur+ ! "t t ! /ud5t is enroll$ at an in/itution ( high] education2 & 7,,ii7 9 ! case ( a private education loan t includes a cosign]1 annually s5d a loan /atem5t to ! borr[]'s cosign]1 notify+ ! cosign] ( ! t]ms1 conditions1 & /atus ( su* private education loan4 7ii7 ,cont5ts ( loan /atem5t ,ea* /atem5t describ$ 9 clause 7i7 %all-- 7,i7 report ! borr[]'s total rema9+ debt to ! private educational l5d]1 includ+ accru$ b unpaid int]e/ & capitaliz$ int]e/2 7,,ii7 report any debt increases s9ce ! la/ /atem5t2 & 7,,iii7 li/ ! curr5t int]e/ rate = ea* loan4 7,b7 ,provision ( in=mation to ,f$]al ag5cies 7i7 ,in=mation f l5d] ,ea* private educational l5d] %all-- 7,i7 submit to ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau & ! ,secret>y ( ,education su* in=mation reg>d+ a private education loan z may be det]m9$ necess>y by ! ,director & ! ,secret>y "u clause 7ii7 = inclusion 9 ! ,national ,/ud5t ,loan ,data ,sy/em "u section #dhe;,b7i7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib;b7i772 & 7,,ii7 prep>e & submit an annual report to ! ,consum] ,f9ancial ,protection ,bureau reg>d+ ! private education loans issu$ by ! private educational l5d]4 7ii7 ,promulgation ( regulations ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,af=dable ,loans = ,any ,/ud5t ,act1 ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 9 coord9ation ) ! ,secret>y ( ,education1 %all promulgate regulations reg>d+ ! private education loan in=mation requir$ to be submitt$ "u clause 7i71 includ+ ! cont5t1 me?od1 & =mat = submission4 ,! in=mation requir$ = inclusion 9 ! ,national ,/ud5t ,loan ,data ,sy/em %all include1 at a m9imum-- 7,i7 in=mation id5tify+ ! borr[]1 includ+ ! borr[]'s "n & social security numb]2 7,,ii7 ! "n ( ! in/itution ( high] education t has c]tifi$ ! private education loan2 7,,iii7 ! "n ( ! l5d]2 7,,iv7 ! am\nt ( ! private education loan2 7,v7 ! t]m1 or o!r enrollm5t p]iod1 = :i* ! private education loan is issu$2 & 7,,vi7 :e!r a cosign] 0 requir$ z a condition ( ! private education loan4 4 7#b7 ,def9ition ( ,private ,education ,loan ,section #adj7;a77#h77;,a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a77#h77;,a77 is am5d$-- 7,a7 by r$esignat+ clause 7ii7 z clause 7iii72 7,b7 9 clause 7i71 by /rik+ & aft] ! semicolon2 & 7,c7 by add+ aft] clause 7i7 ! foll[+3 7ii7 is n made1 insur$1 or gu>ante$ "u title ,,vii or title ,,viii ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bib et seq4 & #bif et seq472 & 4 7#c7 ,regulations 7,a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 9 coord9ation ) ! ,secret>y ( ,education1 %all promulgate regulations to implem5t p>agraphs 7#c7 & 7#i7 ( section #abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e771 z am5d$ by p>agraph 7#a7 ( ?is subsection4 7,b7 ,effective date ,! regulations promulgat$ "u subp>agraph 7,a7 %all take effect on ! date t is #ahj days aft] ! date on :i* ! regulations are promulgat$4 ,v ,effective date2 transition #eja4 ,effective date2 rulemak+ reg>d+ t]m9ation ( c]ta9 repaym5t plans 7a7 ,effective date ,except z o!rwise specifically provid$1 ?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect on ,july #a1 #bjbj4 7b7 ,applicability ) respect to int]e/ capitalization ,section #bja1 & ! am5dm5ts made by su* section1 %all apply ) respect to loans made1 insur$1 or gu>ante$ "u "p ,b or ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajga et seq41 #ajhg;a et seq47 t-- 7#a7 z ( ! effective date describ$ 9 subsection 7a71 are n curr5tly 9 a p]iod :]e int]e/ is capitaliz$ "u su* "p2 or 7#b7 9 ! case ( a loan t1 z ( ! effective date describ$ 9 subsection 7a71 is 9 a p]iod :]e int]e/ is accru+ & n add$1 b w be capitaliz$ "u su* "p1 ! day aft] ! int]e/ is capitaliz$ "u su* "p1 z 9 effect be=e ! effective date4 7c7 ,applicability ) respect to =be>ance & def]m5t = ,direct ,loan borr[]s ,) respect to any borr[] ( a loan "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 t is1 or has be51 9 =be>ance or def]m5t z ( ! day be=e ! effective date describ$ 9 subsection 7a71 ! ,secret>y %all take su* /eps z are necess>y-- 7#a7 to transf] a borr[] ) a loan 9 =be>ance or def]m5t z ( su* day automatically into relief provid$ "u ! pause paym5t process e/abli%$ "u section #dfj;,b ( su* ,act 7z am5d$ by ?is ,act72 & 7#b7 to ensure t ! p]iod ( "t = :i* a borr[] is eligible = pause paym5t "u su* section #dfj;,b = a loan is appropriately r$uc$ to acc\nt = any "t ! loan 0 previ\sly 9 =be>ance or def]m5t4 7d7 ,regulations ,be=e ! effective date describ$ 9 subsection 7a71 ! ,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 #ajih;b7 & an income-bas$ repaym5t plan "u section #dic;,c7c7 ( su* ,act 7#bj ,u4,s4,c4 #ajih;e7f77 = loans made "u "p ,b or ,d ( title ,,iv ( su* ,act1 unless ! borr[] is enroll$ 9 ano!r repaym5t plan be=e su* effective date1 9 accordance ) ! am5dm5ts made by ?is ,act4