,i #aagth ,,congress #b;d ,session ,h4 ,r4 #hebb ,,in ,,the ,,house ,,of ,,representatives ,july #bg1 #bjbb,ms4 ,bonamici 7for herself1 ,mr4 ,fitzpatrick1 and ,mr4 ,lamb7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to include notification and automatic enrollment procedures for borrowers who are delinquent on loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,streamlining ,income-driven1 ,manageable ,payments on ,loans for ,education ,act or the ,,simple ,act4 #b4 ,notification and automatic enrollment procedures for borrowers who are delinquent on loans and for borrowers who are rehabilitating defaulted loans 7a7 ,amendments 7#a7 ,notification and automatic enrollment procedures ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is amended by adding at the end the following3 7#f7 ,notification and automatic enrollment procedures for borrowers who are delinquent on loans 7,a7 ,authority to obtain income information ,the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,b71 procedures to-- 7i7 use return information of the borrower 7and the borrower's spouse1 if applicable7 disclosed under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 pursuant to approval provided under section #did1 to determine the income and family size of the borrower 7and the borrower's spouse1 if applicable7 without further action by the borrower2 7ii7 allow the borrower 7or the spouse of the borrower71 at any time1 to opt out of disclosure under such section #fajc7l77#ac7 and instead provide such information as the ,secretary may require to determine the income and family size of the borrower 7and the borrower's spouse1 if applicable72 and 7iii7 provide the borrower with an opportunity to update the return information so disclosed before the determination of the income and family size of the borrower for purposes of this paragraph4 7,b7 ,borrower notification ,with respect to each borrower of a covered loan who is at least #ca days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding #abj days1 the ,secretary shall1 as soon as practicable after such #ca-;day delinquency1 provide to the borrower the following3 7i7 ,notification that the borrower is at least #ca days delinquent on at least #a covered loan1 and a description of all delinquent covered loans1 nondelinquent covered loans1 and noncovered loans of the borrower4 7ii7 ,a brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans1 based on information available to the ,secretary4 7iii7 ,clear and simple instructions on how to select the repayment plans4 7iv7 ,in the case of a borrower of a loan under section #dbh;,b1 or a ,federal ,direct ,,plus ,loan1 that is made1 insured1 or guaranteed on behalf of a dependent student1 an explanation that the borrower may qualify for an income-driven repayment plan if the borrower consolidates such loan into a ,federal ,direct ,consolidation ,loan1 and the amount of the monthly payment of such consolidation loan if the borrower does so consolidate4 7v7 ,the amount of monthly payments for the covered and noncovered loans under the repayment plans for which the borrower is eligible1 based on information available to the ,secretary1 including1 if the income information of the borrower is available to the ,secretary under subparagraph 7,a7-- 7,i7 the amount of the monthly payment under each income-driven repayment plan for which the borrower is eligible for the borrower's covered and noncovered loans1 based on such income information2 and 7,,ii7 the income1 family size1 tax filing status1 and tax year information on which each monthly payment is based4 7vi7 ,an explanation that in the case of a borrower for whom adjusted gross income is unavailable-- 7,i7 if the borrower selects to repay the covered loans of such borrower pursuant to an income-driven repayment plan that defines discretionary income in such a manner that an individual not required under section #fjab7;a77#a7 of the ,internal ,revenue ,code of #aihf to file a return with respect to income taxes imposed by subtitle ,a of such ,code may have a calculated monthly payment greater than #j1 the borrower will be required to provide the ,secretary with other documentation of income satisfactory to the ,secretary1 which documentation the ,secretary may use to determine an appropriate repayment schedule2 and 7,,ii7 if the borrower selects to repay such loans pursuant to an income-driven repayment plan that is not described in subclause 7,i71 the borrower will not be required to provide the ,secretary with such other documentation of income1 and the borrower will have a calculated monthly payment of #j4 7vii7 ,an explanation that the ,secretary shall take the actions under subparagraph 7,c7 with respect to such borrower1 if-- 7,i7 the borrower is #hj days delinquent on one or more covered loans and has not selected a new repayment plan for the covered loans of the borrower2 and 7,,ii7 in the case of such a borrower whose repayment plan for the covered loans of the borrower is not an income-driven repayment plan1 the monthly payments under such repayment plan are higher than such monthly payments would be under an income-driven repayment plan for such loans4 7viii7 ,instructions on updating the information of the borrower obtained under subparagraph 7,a74 7,c7 ,secretary's initial selection of plan ,with respect to each borrower described in subparagraph 7,b7 who has a repayment plan for the covered loans of the borrower that meets the requirements of clause 7vi77,,ii7 of subparagraph 7,b7 and has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph1 and who is at least #hj days delinquent on such a loan1 the ,secretary shall1 as soon as practicable-- 7i7 in a case in which any of the borrower's covered loans are eligible for an income-driven repayment plan-- 7,i7 7aa7 provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower1 compared to any other such plan for which the borrower is eligible2 or 7bb7 if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount1 provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower2 7,,ii7 if the plan selected under subclause 7,i7 is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower's covered loans and noncovered loans1 notify the borrower of the actions1 if any1 the borrower may take to become eligible for such income-driven repayment plan2 and 7,,iii7 authorize the borrower to change the ,secretary's selection of a plan under this clause to any plan described in paragraph 7#a7 for which the borrower is eligible2 and 7ii7 in a case in which none of the borrower's covered loans are eligible for an income-driven repayment plan1 notify the borrower of the actions1 if any1 the borrower may take for such loans to become eligible for such a plan4 7,d7 ,secretary's additional selection of plan 7i7 ,in general ,with respect to each borrower of a covered loan who selects a new repayment plan in accordance with the notice received under subparagraph 7,b7 and who continues to be delinquent on such loan for a period described in clause 7ii71 the ,secretary shall1 as soon as practicable after such period1 carry out the procedures described in clauses 7i7 and 7ii7 of subparagraph 7,c7 for the covered loans of the borrower1 if such procedures would result in lower monthly repayment amounts on such loan4 7ii7 ,description of period ,the duration of the period described in clause 7i7 shall be the amount of time that the ,secretary determines is sufficient to indicate that the borrower may benefit from repaying such loan under a new repayment plan1 but in no case shall such period be less than #fj days4 7#g7 ,notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans 7,a7 ,authority to obtain income information ,the ,secretary shall establish and implement1 with respect to any borrower who is rehabilitating a covered loan pursuant to section #dbh;,f7a71 procedures to-- 7i7 use return information of the borrower 7and the borrower's spouse1 if applicable7 disclosed section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 pursuant to approval provided under section #did1 to obtain such information as is reasonably necessary regarding the income and family size of the borrower 7and the borrower's spouse1 if applicable72 7ii7 allow the borrower 7or the spouse of the borrower71 at any time1 to opt out of disclosure under such section #fajc7l77#ac7 and instead provide such information as the ,secretary may require to obtain such information2 and 7iii7 provide the borrower with an opportunity to update the return information so disclosed before the determination of income and family size of the borrower 7and the borrower's spouse1 if applicable7 for purposes of this paragraph4 7,b7 ,borrower notification ,not later than #cj days after a borrower makes the #fth payment required for the loan rehabilitation described in subparagraph 7,a71 the ,secretary shall notify the borrower of the process under subparagraph 7,c7 with respect to such loan4 7,c7 ,secretary's selection of plan ,with respect to each borrower who has made the #ith payment required for the loan rehabilitation described in subparagraph 7,a71 the ,secretary shall1 as soon as practicable after such payment-- 7i7 in a case in which any of the borrower's covered loans1 without regard to whether the loan has been so rehabilitated1 is eligible for an income-driven repayment plan-- 7,i7 7aa7 provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower1 compared to any other such plan for which the borrower is eligible2 or 7bb7 if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount1 provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower2 and 7,,ii7 if the plan selected under subclause 7,i7 is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower's covered loans and noncovered loans1 notify the borrower of the actions1 if any1 the borrower may take to become eligible for such income-driven repayment plan2 and 7ii7 in a case in which none of the borrower's covered loans are eligible for an income-driven repayment plan1 notify the borrower of the actions1 if any1 the borrower may take for such a loan to become eligible for such a plan4 4 7#b7 ,definitions ,section #dee7;d7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 as amended by paragraph 7#a71 is further amended by adding at the end the following3 7#h7 ,definitions ,in this subsection3 7,a7 ,covered loan ,the term covered loan means-- 7i7 a loan made under this part2 7ii7 a loan purchased under section #dei;,a2 or 7iii7 a loan that has been assigned to the ,secretary under section #dbh7;c77#h74 7,b7 ,income-driven repayment plan ,the term income-driven repayment plan means a plan described in subparagraph 7,d7 or 7,e7 of paragraph 7#a74 7,c7 ,noncovered loan ,the term noncovered loan means a loan made1 insured1 or guaranteed under this title that is not a covered loan4 4 7#c7 ,automatic recertification 7,a7 ,borrower for whom adjusted gross income is unavailable ,section #dee7;e77#h77;,a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#h77;,a77 is amended-- 7i7 by striking and at the end of clause 7ii72 7ii7 by redesignating clause 7iii7 as clause 7iv72 7iii7 in clause 7iv7 7as so redesignated71 by striking the period at the end and inserting 2 and2 and 7iv7 by inserting after clause 7ii71 the following3 7iii7 in the case of a borrower who has selected to repay a covered loan 7as defined in subsection 7d77#h77 pursuant to an income contingent repayment plan that defines discretionary income in such a manner that the borrower would have a calculated monthly payment equal to #j1 not require the borrower to provide the ,secretary the information described in clause 7i7 or 7ii71 and ensure that the borrower will have a calculated monthly payment of #j2 and 4 7,b7 ,inclusion of covered loans ,section #dee7;e77#h77;,b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#h77;,b77 is amended by striking a loan made under this part and inserting a covered loan 7as defined in subsection 7d77#h774 7#d7 ,changing plans ,section #dic;,c7b77#h7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7b77#h77 is amended to read as follows3 7#h7 a borrower who is repaying a loan made1 insured1 or guaranteed under part ,b or ,d pursuant to income-based repayment may elect1 at any time1 to terminate repayment pursuant to income-based repayment and repay such loan under any repayment plan for which the loan is eligible in accordance with the requirements of part ,b or part ,d1 respectively2 and 4 7#e7 ,procedure and requirement for requesting tax return information from the ,,irs ,section #did7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;h7a77 is amended-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,a71 in the matter preceding clause 7i71 by striking a loan under part ,d and inserting a covered loan 7as defined in section #dee7;d77#h772 and 7ii7 in subparagraph 7,b71 by striking a loan under part ,d and inserting a covered loan 7as defined in section #dee7;d77#h772 and 7,b7 by adding at the end the following3 7#d7 ,loan delinquency and rehabilitation 7,a7 ,borrowers delinquent on loans ,in the case of an individual who is a borrower of a covered loan and who is at least #ca days delinquent on such loan1 the ,secretary1 with respect to such individual and any spouse of such individual1 shall-- 7i7 provide to such individuals the notification described in paragraph 7#a77;,a77i72 and 7ii7 require1 as a condition of eligibility for the notification and automatic enrollment procedures for borrowers who are delinquent on loans under section #dee7;d77#f71 that such individuals-- 7,i7 affirmatively approve the disclosure described in paragraph 7#a77;,a77i7 and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section #dee7;d77#f77;,a77ii72 or 7,,ii7 provide such information as the ,secretary may require to carry out the procedures under section #dee7;d77#f7 with respect to such individual4 7,b7 ,loan rehabilitation ,in the case of any written or electronic application by an individual for the rehabilitation of a covered loan pursuant to section #dbh;,f7a71 the ,secretary1 with respect to such individual and any spouse of such individual1 shall-- 7i7 provide to such individuals the notification described in paragraph 7#a77;,a77i72 and 7ii7 require1 as a condition of eligibility for loan rehabilitation pursuant to section #dbh;,f7a71 that such individuals-- 7,i7 affirmatively approve the disclosure described in paragraph 7#a77;,a77i7 and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section #dee7;d77#g77;,a77ii72 or 7,,ii7 provide such information as the ,secretary may require to carry out the procedures under section #dee7;d77#g7 with respect to such individual4 7,c7 ,covered loan defined ,in this paragraph1 the term covered loan has the meaning given the term in section #dee7;d77#h74 4 7b7 ,secure disclosure of tax-,return information 7#a7 ,in general ,section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraphs 7,d71 7,e71 and 7,f7 as paragraphs 7,e71 7,f71 and 7,g71 respectively1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 ,notification and automatic enrollment for certain borrowers ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to any authorized person1 only for the purpose of 7and to the extent necessary in7 carrying out paragraphs 7#f7 and 7#g7 of section #dee7;d7 of the ,higher ,education ,act of #aife1 return information described in clauses 7i7 through 7vi7 of subparagraph 7,a7 from returns of an individual certified by the ,secretary of ,education as having provided approval under section #did7;a77#d7 of such ,act 7as in effect on the date of enactment of this paragraph7 for such disclosure4 4 7#b7 ,conforming amendments 7,a7 ,section #fajc7l77#ac77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking loans under part ,d of such title and inserting covered loans 7as defined in section #dee7;d77#h7 of such ,act74 7,b7 ,section #fajc7l77#ac77;,e77i7 of the ,internal ,revenue ,code of #aihf 7as redesignated by paragraph 7#a77 is amended by striking and 7,c7 and inserting 7,c71 and 7,d74 7,c7 ,subparagraphs 7,f7 and 7,g7 of section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf 7as redesignated by paragraph 7#a77 are each amended by striking or 7,c7 and inserting 7,c71 or 7,d74 7c7 ,effective date2 application 7#a7 ,automatic enrollment ,the amendments made by paragraphs 7#a71 7#b71 7#c71 and 7#e7 of subsection 7a7 shall-- 7,a7 apply to all borrowers of covered loans 7as defined in section #dee7;d77#h7 of the ,higher ,education ,act of #aife1 as added by subsection 7a772 and 7,b7 take effect on ,july #a1 #bjbd1 and shall apply with respect to award year #bjbd-bjbe and each subsequent award year1 as determined under the ,higher ,education ,act of #aife4 7#b7 ,changing plans ,the amendment made by subsection 7a77#d7 shall take effect on the date of enactment of this ,act4 7#c7 ,disclosure ,the amendments made by subsection 7b7 shall apply to disclosures after the date of enactment of this ,act4