,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #hdeg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ba1 #bjbb,mr4  
,cicill9e introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means1 & 9 addition to ! ,committee on 
,education & ,labor1 = a p]iod to be    
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to c>ry out an     
income-cont+5t repaym5t program = ,f$]al
 ,direct ,int]e/-,free ,education ,loans
 = und]graduate /ud5ts1 & = o!r         
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,mak+ ,college ,m ,af=dable
 ,act4  #b4 ,f$]al ,direct ,int]e/-,free
 ,loans = und]graduate /ud5ts & repaym5t
 plan  7a7 ,int]e/ rates ,section       
#dee7;a7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7a77 is     
am5d$ by add+ at ! end ! foll[+3  7#d7  
,f$]al ,direct ,int]e/-,free ,education 
,loans = und]graduate education  7,a7   
,new borr[]s ,not)/&+ any o!r provision 

( ?is ,act & subject to subp>agraphs    
7,c7 & 7,d71 an und]graduate /ud5t :o is
 a new borr[] on or aft] ,july #a1      
#bjbc1 %all only be eligible to receive 
,f$]al ,direct ,int]e/-,free ,education 
,loans "u ?is "p4  7,b7 ,exi/+ borr[]s  
,beg9n+ on ,july #a1 #bjbc1 ! ,secret>y 
%all cancel ! obligation ( a borr[]1 if 
! borr[] submits an application to !    
,secret>y "u ?is subp>agraph1 to repay  
any loan made "u ?is "p = ! borr[]'s    
und]graduate education & = :i* ! fir/   
disbursem5t 0 made1 or ! application = !
 consolidation loan 0 receiv$1 on or    
be=e ,june #cj1 #bjbc1 & issue to su*   
borr[] a ,f$]al ,direct ,int]e/-,free   
,education ,loan 9 an am\nt equal to !  
sum ( ! unpaid pr9cipal1 accru$ unpaid  
int]e/1 & late *>ges ( ! orig9al loan4  
7,c7 ,p>5t ,,plus loans = und]graduate  
education ,no?+ 9 ?is section %all be   
con/ru$ to prohibit a p>5t f borr[+ a   
,f$]al ,direct ,,plus ,loan on behalf ( 
a dep5d5t1 und]graduate /ud5t on or aft]
 ,july #a1 #bjbc4  7,d7 ,f$]al ,direct  

,consolidation ,loans ,a borr[] ( a     
,f$]al ,direct ,int]e/-,free ,education 
,loan & any o!r loan made "u ?is "p 7su*
 z a ,f$]al ,direct ,,plus ,loan or a   
,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan
 = graduate or pr(essional education7   
may consolidate su* loans into a ,f$]al 
,direct ,consolidation ,loan4  7,e7     
,t]ms1 conditions1 & b5efits ,a ,f$]al  
,direct ,int]e/-,free ,education ,loan  
%all h ! same t]ms & conditions1 &      
b5efits to borr[]s z a ,f$]al ,direct   
,/af=d ,loan ) respect to und]graduate  
borr[]s1 except t su* a loan-- 7i7 %all 
h an applicable rate ( int]e/ ( #c4gc   
p]c5t = ! t]m ( ! loan2  7ii7 !         
aggregate maximum am\nt t may be aw>d$  
to a borr[] %all be #ij1jjj1 = n m ?an a
 #d-ye> academic p]iod2  7iii7 may only 
be repaid "u ! income-cont+5t repaym5t  
plan "u subsection 7r7 or a /&>d        
repaym5t plan "u subsection             
7d77#a77;,a72  7iv7 int]e/ on su* loan  
%all only accrue dur+ p]iods :5 a borr[]
 is e>n+ taxable income1 is 9 repaym5t  

on su* loan1 & n mak+ paym5ts "u a      
repaym5t plan describ$ 9 clause 7iii72 &
  7v7 may include o!r t]ms & conditions1
 & b5efits to borr[]s ( su* loan1 z     
det]m9$ by ! ,secret>y4  4  7b7         
,income-,cont+5t repaym5t plan =        
und]graduate loans ,section #dee ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;e7 is fur!r am5d$ by    
add+ at ! end ! foll[+3  7r7            
,income-,cont+5t repaym5t plan =        
und]graduate loans ,not)/&+ any o!r     
provision ( ?is ,act1 ! ,secret>y %all  
c>ry out a program "u :i*-- 7#a7 a      
borr[] ( a ,f$]al ,direct ,int]e/-,free 
,education ,loan-- 7,a7 %all h an       
aggregate mon?ly paym5t = ! out/&+      
balance ( pr9cipal & int]e/ due on all  
su* loans automatically )held f ! wages 
7z su* t]m is def9$ 9 section #cdja7;a7 
( ! ,int]nal ,rev5ue ,code ( #aihf7 ( ! 
borr[] by ! employ] ( ! borr[] 9 a mann]
 :i*-- 7i7 prohibits employ]s f us+ any 
in=mation ab\t an employee's out/&+     
balance or pr9cipal & int]e/ due on su* 

loans = any purpose ( use z an advantage
 aga9/ ! employee2  7ii7 is det]m9$ by !
 ,secret>y1 9 coord9ation ) ! heads (   
o!r appropriate ,f$]al ag5cies 7includ+ 
! ,secret>y ( ! ,treasury & !           
,commission] ( ! ,social ,security      
,adm9i/ration72 &  7iii7 is an am\nt    
equal to-- 7,i7 if ! borr[]'s gross     
income is less ?an #ccg p]c5t ( ! pov]ty
 l9e applicable to ! borr[]'s family    
size z det]m9$ "u section #fgc7b7 ( !   
,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b771 #j2  7,,ii7 if
 ! borr[]'s gross income is equal to or 
great] ?an #ccg p]c5t1 b n m ?an #hda   
p]c5t ( su* pov]ty l9e1 #d p]c5t ( !    
borr[]'s gross income2  7,,iii7 if !    
borr[]'s gross income is equal to or    
great] ?an #hdb p]c5t1 b n m ?an #ibe   
p]c5t ( su* pov]ty l9e1 #e p]c5t ( !    
borr[]'s gross income2  7,,iv7 if !     
borr[]'s gross income is equal to or    
great] ?an #ibf p]c5t1 b n m ?an #a1jaj 
p]c5t ( su* pov]ty l9e1 #f p]c5t ( !    
borr[]'s gross income2  7,v7 if !       

borr[]'s gross income is equal to or    
great] ?an #a1jaa p]c5t1 b n m ?an      
#a1jid p]c5t ( su* pov]ty l9e1 #g p]c5t 
( ! borr[]'s gross income2  7,,vi7 if ! 
borr[]'s gross income is equal to or    
great] ?an #a1jie p]c5t1 b n m ?an      
#a1agh p]c5t ( su* pov]ty l9e1 #h p]c5t 
( ! borr[]'s gross income2  7,,vii7 if !
 borr[]'s gross income is equal to or   
great] ?an #a1agi p]c5t1 & #a1bfb p]c5t 
( su* pov]ty l9e1 #i p]c5t ( ! borr[]'s 
gross income2 &  7,,viii7 if ! borr[]'s 
gross income is equal to or great] ?an  
#a1bfc p]c5t ( su* pov]ty l9e1 #aj p]c5t
 ( ! borr[]'s gross income2 &  7,b7 may 
elect to h any paym5ts made "u          
subp>agraph 7,a7 t exce$ ! am\nt ow$ by 
! borr[] on su* loans = a cal5d> ye> be 
refund$ to ! borr[] or appli$ to ! am\nt
 ow$ by ! borr[] on su* loans = !       
succe$+ cal5d> ye>2  7#b7 ! ,secret>y   
%all cancel any out/&+ balance (        
pr9cipal or int]e/ due on all ,f$]al    
,direct ,int]e/-,free ,education ,loans 
made to a borr[] :o has made #cfj mon?ly

 paym5ts "u ?is subsection2 &  7#c7 !   
am\nt cancell$ "u p>agraph 7#b7 %all n  
be includible 9 ! gross income ( !      
borr[]4  4  #c4 ,f$]al ,direct          
,int]e/-,free ,education ,loan paym5ts  
d$uctible  7a7 ,9 g5]al ,"p ,,vii (     
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ section #bbd z section #bbe &
 by ins]t+ aft] section #bbc ! foll[+   
new section3  #bbd4 ,f$]al ,direct      
,int]e/-,free ,education ,loans  7a7 ,9 
g5]al ,9 ! case ( an individual1 !re    
%all be all[$ z a d$uction = ! taxable  
ye> an am\nt equal to ! am\nts paid by !
 taxpay] dur+ ! taxable ye> on any      
,f$]al ,direct ,int]e/-,free ,education 
,loan describ$ 9 section #dee7;a77#d7 ( 
! ,high] ,education ,act ( #aife4  7b7  
,def9itions & special rules ,= purposes 
( ?is section-- 7#a7 ,d5ial ( d\ble     
b5efit ,no d$uction %all be all[$ "u ?is
 section = any am\nt = :i* a d$uction is
 all[able "u any o!r provision ( ?is    
*apt]1 or = :i* an exclusion is all[able

 "u section #abg to ! taxpay] by reason 
( ! paym5t by ! taxpay]'s employ] ( any 
indebt$ness on a qualifi$ education loan
 ( ! taxpay]4  7#b7 ,dep5d5ts n eligible
 = d$uction ,no d$uction %all be all[$  
by ?is section to an individual = !     
taxable ye> if a d$uction "u section    
#aea ) respect to su* individual is     
all[$ to ano!r taxpay] = ! taxable ye>  
beg9n+ 9 ! cal5d> ye> 9 :i* su*         
individual's taxable ye> beg9s4  7#c7   
,m>ri$ c\ples mu/ file jo9t return ,if !
 taxpay] is m>ri$ at ! close ( ! taxable
 ye>1 ! d$uction %all be all[$ "u       
subsection 7a7 only if ! taxpay] & !    
taxpay]'s sp\se file a jo9t return = !  
taxable ye>4  7#d7 ,m>ital /atus ,m>ital
 /atus %all be det]m9$ 9 accordance )   
section #ggjc4  4  7b7 ,d$uction all[$  
:e!r or n taxpay] itemizes ,section     
#fb7;a7 ( su* ,code is am5d$ by ins]t+  
aft] p>agraph 7#ba7 ! foll[+ new        
p>agraph3  7#bb7 ,/ud5t loan pr9cipal   
paym5ts ,! d$uction all[$ by section    
#bbd4  4  7c7 ,cl]ical am5dm5t ,! table 

( sections = "p ,,vii ( sub*apt] ,b (   
*apt] #a ( su* ,code is am5d$ by /rik+ !
 item relat+ to section #bbd & ins]t+ ! 
foll[+3  ,sec4 #bbd4 ,f$]al ,direct     
,int]e/-,free ,education ,loans4,sec4   
#bbe4 ,cross-ref]5ce4  4  7d7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4