,,ii #aag? ,,congress #a/ ,session ,s4 #beih ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,augu/ #d1 #bjba,mr4 ,durb9 7= himself & ,mr4 ,cornyn7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to am5d title #aa1 ,unit$ ,/ates ,code1 to improve ! treatm5t ( /ud5t loans 9 bankruptcy1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fo/]+ ,responsible ,education ,/>ts ) ,help+ ,/ud5ts ,?r\gh ,acc\ntability1 ,relief1 & ,taxpay] ,protection ,?r\gh ,bankruptcy ,act ( #bjba or ! ,,fre% ,,/>t ,?r\gh ,bankruptcy ,act4 #b4 ,exceptions to dis*>ge ,section #ebc7;a7 ( title #aa1 ,unit$ ,/ates code1 is am5d$ by /rik+ p>agraph 7#h7 & ins]t+ ! foll[+3 7#h7 = an educational b5efit ov]paym5t or loan made1 insur$1 or gu>ante$ by a gov]nm5tal unit1 or made "u any program fund$ 9 :ole or 9 "p by a gov]nm5tal unit or nonpr(it in/itution1 or = an obligation to repay funds receiv$ z an educational b5efit1 s*ol>%ip1 or /ip5d receiv$ f a gov]nm5tal unit or nonpr(it in/itution1 unless-- 7,a7 except+ su* debt f dis*>ge "u ?is p>agraph w\ld impose an undue h>d%ip on ! debtor & ! debtor's dep5d5ts2 or 7,b7 ! fir/ paym5t on su* debt became due be=e ! #aj-ye> p]iod 7exclusive ( any applicable susp5sion ( ! repaym5t p]iod7 end+ on ! date ( ! fil+ ( ! petition2 7#h;,a7 unless except+ su* debt f dis*>ge "u ?is p>agraph w\ld impose an undue h>d%ip on ! debtor & ! debtor's dep5d5ts1 =-- 7,a7 an obligation to repay funds receiv$ z an educational b5efit1 s*ol>%ip1 or /ip5d1 o!r ?an an obligation describ$ 9 p>agraph 7#h72 or 7,b7 any educational loan1 o!r ?an a loan describ$ 9 p>agraph 7#h71 t is a qualifi$ education loan1 z def9$ 9 section #bba7;d77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 incurr$ by a debtor :o is an individual2 4 #c4 ,effect ( dis*>ge ( c]ta9 /ud5t loans ,section #ebd ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7n7 7#a7 ,9 ?is subsection3 7,a7 ,! t]m cohort repaym5t rate1 ) respect to a cov]$ in/itution ( high] education1 means ! p]c5tage ( /ud5t borr[]s :o are mak+ at lea/ "s progress pay+ d[n _! /ud5t loans )9 #c ye>s ( ent]+ repaym5t4 7,b7 ,! t]m cov]$ in/itution ( high] education means an in/itution ( high] education 7z def9$ 9 section #ajb ( ! ,high] ,education ,act ( #aife 7#bj ,u4,,sc4 #ajjb77 t-- 7i7 is a p>ticipant 9 ! ,f$]al ,direct ,loan ,program "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq472 & 7ii7 has an enrollm5t ( /ud5ts t is n less ?an #cc p]c5t /ud5ts :o h receiv$ a loan made1 insur$1 or gu>ante$ "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq4774 7,c7 ,! t]m cov]$ /ud5t loan means ! orig9al pr9cipal ( a loan-- 7i7 ! fir/ paym5t on :i* became due be=e ! #aj-ye> p]iod 7exclusive ( any applicable susp5sion ( ! repaym5t p]iod7 end+ on ! date ( ! fil+ ( ! petition2 & 7ii7 us$ by ! debtor to make a paym5t to a cov]$ in/itution ( high] education on behalf ( ! debtor = ! purpose ( atta9+ an educational b5efit4 7,d7 ,! t]m ,f$]al ,direct ,,plus ,loan means a ,f$]al ,direct ,,plus ,loan "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 7#b7 ,if a cov]$ /ud5t loan is dis*>g$ 9 a bankruptcy case "u ?is title1 ! cov]$ in/itution ( high] education to :i* ! debtor ( ! bankruptcy case made a paym5t ) ! cov]$ /ud5t loan %all pay to ! ,dep>tm5t ( ,education an am\nt det]m9$ 9 accordance ) ! foll[+3 7,a7 ,an am\nt equal to #ej p]c5t ( ! am\nt ( ! cov]$ /ud5t loan t is dis*>g$1 if ! cov]$ in/itution ( high] education1 on ! date on :i* ! fir/ paym5t on ! cov]$ /ud5t loan became due-- 7i7 _h a cohort default rate 7z det]m9$ "u section #dce7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhe7m77 = ea* ( ! #c fiscal ye>s prec$+ t date t 0 equal to or m ?an #be p]c5t2 & 7ii7 _h a cohort repaym5t rate-- 7,i7 except = borr[]s describ$ 9 subclause 7,,ii71 t 0 equal to or less ?an #bj p]c5t2 & 7,,ii7 ) respect to borr[]s :o 7 graduate or pr(essional /ud5ts :o receiv$ a ,f$]al ,direct ,,plus ,loan = enrollm5t at ! in/itution1 t 0 equal to or less ?an #ce p]c5t4 7,b7 ,an am\nt equal to #cj p]c5t ( ! am\nt ( ! cov]$ /ud5t loan t is dis*>g$1 if ! cov]$ in/itution ( high] education1 on ! date on :i* ! fir/ paym5t on ! cov]$ /ud5t loan became due-- 7i7 _h a cohort default rate 7z det]m9$ "u section #dce7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhe7m77 = ea* ( ! #c fiscal ye>s prec$+ t date t 0 equal to or m ?an #bj p]c5t & less ?an #be p]c5t2 & 7ii7 _h a cohort repaym5t rate-- 7,i7 except = borr[]s describ$ 9 subclause 7,,ii71 t 0 equal to or less ?an #be p]c5t & m ?an #bj p]c5t2 & 7,,ii7 ) respect to borr[]s :o 7 graduate or pr(essional /ud5ts :o receiv$ a ,f$]al ,direct ,,plus ,loan = enrollm5t at ! in/itution1 t 0 equal to or less ?an #dj p]c5t & m ?an #ce p]c5t4 7,c7 ,an am\nt equal to #bj p]c5t ( ! am\nt ( ! cov]$ /ud5t loan t is dis*>g$1 if ! cov]$ in/itution ( high] education1 on ! date on :i* ! fir/ paym5t on ! cov]$ /ud5t loan became due-- 7i7 _h a cohort default rate 7z det]m9$ "u section #dce7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhe7m77 = ea* ( ! #c fiscal ye>s prec$+ t date t 0 equal to or m ?an #ae p]c5t & less ?an #bj p]c5t2 & 7ii7 _h a cohort repaym5t rate-- 7,i7 except = borr[]s describ$ 9 subclause 7,,ii71 t 0 equal to or less ?an #cj p]c5t & m ?an #be p]c5t2 & 7,,ii7 ) respect to borr[]s :o 7 graduate or pr(essional /ud5ts :o receiv$ a ,f$]al ,direct ,,plus ,loan = enrollm5t at ! in/itution1 t 0 equal to or less ?an #de p]c5t & m ?an #dj p]c5t4 4 #d4 ,effective date2 applicability ,?is ,act & ! am5dm5ts made by ?is ,act %all-- 7#a7 take effect on ! date t is #ahj days aft] ! date ( enactm5t ( ?is ,act2 & 7#b7 apply to a petition fil$ or am5d$ "u ?is title on or aft] ! effective date "u p>agraph 7#a7 ) respect to a debt = an educational b5efit1 ov]paym5t1 loan1 s*ol>%ip1 or /ip5d ( a debtor4