,i #aai? ,,congress #a/ ,session ,h4 ,r4 #dhfb ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,augu/ #a1 #bjbe,mr4 ,scott ( ,virg9ia 7= himself1 ,mr4 ,subramanyam1 ,ms4 ,und]wood1 ,ms4 ,moore ( ,wiscons91 & ,mr4 ,?an$>7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ,work=ce1 & 9 addition to ! ,committee on ! ,budget1 = 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 am5d ! ,high] ,education ,act ( #aife to d\ble ! ,pell ,grant aw>d am\nt1 improve ! ,public ,s]vice ,loan ,=giv5ess program1 & r$uce int]e/ rates1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,l[]+ ,ob/acles to ,a*ievem5t ,n[ ,act or ! ,,loan ,act4 #b4 ,repeal ,subtitles ,a ?r\gh ,f ( title ,,viii ( ,public ,law #aai-ba are repeal$4 ,! provisions ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajja et seq47 am5d$ by su* subtitles are re/or$ & reviv$ z if su* subtitles _h n be5 enact$4 #c4 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title4,sec4 #b4 ,repeal4,sec4 #c4 ,table ( cont5ts4,title ,i--,f$]al ,pell ,grants,sec4 #aja4 ,d\bl+ ,f$]al ,pell ,grants & provid+ all ,f$]al ,pell ,grants ?r\gh m&atory fund+4,sec4 #ajb4 ,provid+ increas$ ,f$]al ,pell ,grants & o!r assi/ance = recipi5ts ( means-te/$ b5efits4,sec4 #ajc4 ,f$]al aid eligibility = dream] /ud5ts4,sec4 #ajd4 ,re/or+ ! total seme/]s ( ,f$]al ,pell ,grant eligibility4,sec4 #aje4 ,r$uc+ f9ancial aid p5alties f satisfactory academic progress det]m9ations4,sec4 #ajf4 ,f$]al ,pell ,grants = graduate /ud5ts4,title ,,ii--,am5dm5ts to t]ms & conditions ( loans & repaym5t plans,part ,a--,g5]al t]ms & conditions,sec4 #bja4 ,subsidiz$ loans = graduate & pr(essional /ud5ts4,sec4 #bjb4 ,repeal ( orig9ation fees4,sec4 #bjc4 ,prepaym5t am\nts4,sec4 #bjd4 ,default requirem5ts4,"p ,b--,"o income-,cont+5t repaym5t plan & "o fix$ repaym5t plan,sec4 #baa4 ,notification to borr[]s4,sec4 #bab4 ,new repaym5t plans4,sec4 #bac4 ,maximum repaym5t p]iod = income-cont+5t repaym5t & income-bas$ repaym5t4,sec4 #bad4 ,borr[]s ineligible = loans4,"p ,c--,automatic enrollm5t 9 ! ,income-,driv5 ,repaym5t ,plan = c]ta9 borrowers,sec4 #bba4 ,notification & automatic enrollm5t proc$ures = borr[]s :o are del9qu5t on loans4,sec4 #bbb4 ,notification & automatic enrollm5t proc$ures = borr[]s :o are rehabilitat+ default$ loans4,sec4 #bbc4 ,cov]$ loan & non-cov]$ loan def9$4,sec4 #bbd4 ,automatic rec]tification ( income = income-driv5 repaym5t plans4,sec4 #bbe4 ,proc$ure & requirem5t = reque/+ tax return in=mation f ! ,,irs4,"p ,d--,/reaml9+ ,public ,s]vice ,loan ,forgiveness,sec4 #bca4 ,am5dm5ts to t]ms & conditions ( public s]vice loan =giv5ess4,sec4 #bcb4 ,t]ms & conditions ( employm5t4,sec4 #bcc4 ,onl9e portal & database ( public s]vice jobs4,sec4 #bcd4 ,treatm5t ( consolidat$ & ref9anc$ loans4,sec4 #bce4 ,loan =giv5ess = tea*]s4,sec4 #bcf4 ,,gao /udy on data mat*+ agreem5ts = public s]vice loan =giv5ess4,"p ,e--,support = ,borr[]s 9 ,default,sec4 #bda4 ,removal ( record ( default4,sec4 #bdb4 ,removal ( record ( default f cr$it hi/ory ^u loan consolidation4,sec4 #bdc4 ,default r$uction program4,title ,,iii--,int]e/ ,capitalization,sec4 #cja4 ,elim9ation ( int]e/ capitalization4,sec4 #cjb4 ,elim9ation ( disclosure requirem5ts relat+ to capitalization4,title ,,iv--,int]e/ ,rates,sec4 #dja4 ,int]e/ rate provisions = new ,f$]al /ud5t loans on or aft] ,july #a1 #bjbf4,sec4 #djb4 ,ref9anc+ ,,ffel & ,f$]al ,direct ,loans4,sec4 #djc4 ,ref9anc+ private /ud5t loans4 ,i ,f$]al ,pell ,grants #aja4 ,d\bl+ ,f$]al ,pell ,grants & provid+ all ,f$]al ,pell ,grants ?r\gh m&atory fund+ 7a7 ,am\nt ( m9imum ,f$]al ,pell ,grants ,section #dja ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a7 is am5d$-- 7#a7 9 subsection 7a77#b77;,f71 by /rik+ #aj p]c5t & ins]t+ #e p]c5t2 7#b7 9 subsection 7b7-- 7,a7 9 p>agraph 7#a77;,b77i71 by /rik+ p>agraph 7#e77;,a7 & ins]t+ p>agraph 7#e72 7,b7 by /rik+ p>agraph 7#e7 & ins]t+ ! foll[+3 7#e7 ,total ,maximum ,f$]al ,pell ,grant 7,a7 ,aw>d ye> #bjbf-bjbg ,= aw>d ye> #bjbf-bjbg1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #aj1jjj4 7,b7 ,aw>d ye> #bjbg-bjbh ,= aw>d ye> #bjbg-bjbh1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #aa1jjj4 7,c7 ,aw>d ye> #bjbh-bjbi ,= aw>d ye> #bjbh-bjbi1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #ab1jjj4 7,d7 ,aw>d ye> #bjbi-bjcj ,= aw>d ye> #bjbi-bjcj1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #ac1jjj4 7,e7 ,aw>d ye> #bjcj-bjca ,= aw>d ye> #bjcj-bjca1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #ad1jjj4 7,f7 ,aw>d ye> #bjca-bjcb & subsequ5t ye>s ,= aw>d ye> #bjca-bjcb1 & ea* subsequ5t aw>d ye>1 ! total maximum ,f$]al ,pell ,grant aw>d %all be #ad1jjj-- 7i7 increas$ by ! adju/m5t p]c5tage = ! aw>d ye> = :i* ! am\nt "u ?is subp>agraph is be+ det]m9$2 & 7ii7 r\nd$ to ! ne>e/ #ej4 7,g7 ,def9ition ( adju/m5t p]c5tage ,9 ?is p>agraph1 ! t]m adju/m5t p]c5tage1 z appli$ to an aw>d ye>1 is equal to ! p]c5tage increase 9 ! ,consum] ,price ,index1 z def9$ 9 section #dgh7;f71 = ! mo/ rec5t cal5d> ye> end+ prior to ! beg9n+ ( ! aw>d ye>4 2 7,c7 by /rik+ p>agraphs 7#f7 & 7#g7 & ins]t+ ! foll[+3 7#f7 ,appropriation ( funds ,!re are au?oriz$ to be appropriat$1 & !re are appropriat$1 out ( any money 9 ! ,treasury n o!rwise appropriat$1 su* sums z may be necess>y = fiscal ye> #bjbf & ea* subsequ5t fiscal ye> to provide ! total maximum ,f$]al ,pell ,grant = :i* a /ud5t %all be eligible "u ?is section dur+ an aw>d ye>4 2 & 7,d7 by r$esignat+ p>agraphs 7#h7 & 7#i7 z p>agraphs 7#g7 & 7#h71 respectively2 7#c7 9 subsection 7d77#e77;,b77ii7-- 7,a7 9 subclause 7,i77bb71 by /rik+ or aft] ! semicolon2 7,b7 9 subclause 7,,ii77bb77,,cc71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7,c7 by add+ at ! end ! foll[+3 7,,iii7 dur+ a p]iod = :i* ! /ud5t did n receive a loan "u ?is title b = :i*1 if ! /ud5t _h receiv$ su* a loan1 su* loan w\ld h be5 dis*>g$ "u ! circum/ances describ$ 9 subclause 7,,ii77bb77,,cc74 2 7#d7 by /rik+ subsections 7g7 & 7h72 & 7#e7 by r$esignat+ subsections 7i7 & 7j7 z subsections 7g7 & 7h71 respectively4 7b7 ,repeal ( scor+ requirem5t 7#a7 ,9 g5]al ,section #djf ( ,h4 ,con4 ,res4 #ie 7#aji? ,congress7 is am5d$-- 7,a7 by /rik+ subsection 7b72 & 7,b7 by /rik+ 7a7 ,9 g5]al4--,^u & ins]t+ ! foll[+3 ,^u4 7#b7 ,effective date ,! am5dm5ts made by p>agraph 7#a7 %all take effect beg9n+ on ,july #a1 #bjbf4 7c7 ,/ud5t support s]vices ,section #djb;,d7d77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a-#ad7;d77#a77 is am5d$ by /rik+ ! m9imum & ins]t+ #aj p]c5t ( ! maximum4 7d7 ,s*ol>%ip compon5t ,section #djd;,e7d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a-#be7;d77 is am5d$ by /rik+ less ?an ! m9imum & ins]t+ less ?an #aj p]c5t ( ! maximum4 #ajb4 ,provid+ increas$ ,f$]al ,pell ,grants & o!r assi/ance = recipi5ts ( means-te/$ b5efits 7a7 ,increas$ am\nt ( maximum ,f$]al ,pell ,grants = /ud5ts ) negative /ud5t aid indexes ,section #dja7;b77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a7b77#a771 z am5d$ by section #aja ( ?is ,act1 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 9 ! matt] prec$+ clause 7i71 by /rik+ ,a /ud5t & ins]t+ ,except 9 ! case ( a /ud5t ) a /ud5t aid index ( less ?an z]o1 a /ud5t2 7,b7 by /rik+ clause 7i72 & 7,c7 by r$esignat+ clauses 7ii7 & 7iii7 z clauses 7i7 & 7ii71 respectively2 7#b7 by r$esignat+ subp>agraphs 7,b7 ?r\gh 7,e7 z subp>agraphs 7,c7 ?r\gh 7,f71 respectively2 7#c7 by ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,a /ud5t ) a /ud5t aid index ( less ?an z]o %all be eligible = a ,f$]al ,pell ,grant aw>d t exce$s ! total maximum ,f$]al ,pell ,grant by an am\nt equal to ! am\nt by :i* ! /ud5t's /ud5t aid index is less ?an z]o4 2 7#d7 9 subp>agraph 7,c71 z r$esignat$ by p>agraph 7#b7-- 7,a7 9 ! matt] prec$+ clause 7i71 by /rik+ subp>agraph 7,a7 = an academic ye>1 & ins]t+ subp>agraph 7,a71 or an increas$ ,f$]al ,pell ,grant "u subp>agraph 7,b71 = an academic ye>12 & 7,b7 9 clause 7ii71 by /rik+ 1 except t a /ud5t aid index ( less ?an z]o %all be consid]$ to be z]o = ! purposes ( ?is clause2 7#e7 9 subp>agraph 7,d71 z r$esignat$ by p>agraph 7#b71 by /rik+ 7,a7 or 7,b7 & ins]t+ 7,a71 7,b71 or 7,c72 7#f7 9 subp>agraph 7,e71 z r$esignat$ by p>agraph 7#b71 by ins]t+ or an increas$ ,f$]al ,pell ,grant "u subp>agraph 7,b7 aft] subp>agraph 7,a72 or 7#g7 9 subp>agraph 7,f71 z r$esignat$ by p>agraph 7#b71 by /rik+ or a m9imum ,f$]al ,pell ,grant "u subp>agraph 7,c7 & ins]t+ an increas$ ,f$]al ,pell ,grant "u subp>agraph 7,b71 or a m9imum ,f$]al ,pell ,grant "u subp>agraph 7,d74 7b7 ,special /ud5t aid index rule = recipi5ts ( means-,te/$ b5efits ,section #dgc ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhgmm7 is am5d$ by add+ at ! end ! foll[+3 7d7 ,special rule = means-,te/$ b5efit recipi5ts ,not)/&+ subsection 7b71 = an applicant 7or1 z applicable1 an applicant & sp\se1 or an applicant's p>5ts7 :o1 at any "t dur+ ! previ\s #bd-mon? p]iod1 receiv$ a b5efit "u a means-te/$ ,f$]al b5efit program 7or ^: p>5t or sp\se receiv$ su* a b5efit1 z applicable71 ! ,secret>y %all = ! purposes ( ?is title consid] ! /ud5t aid index z equal to -#a1ejj = ! applicant4 4 #ajc4 ,f$]al aid eligibility = dream] /ud5ts ,section #dhd ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7 is am5d$-- 7#a7 9 subsection 7a77#e71 by ins]t+ 1 or be a ,dream] /ud5t1 z def9$ 9 subsection 7u7 aft] becom+ a citiz5 or p]man5t resid5t2 & 7#b7 by add+ at ! end ! foll[+3 7u7 ,dream] /ud5ts 7#a7 ,9 g5]al ,9 ?is section1 ! t]m ,dream] /ud5t means an individual :o-- 7,a7 7i7 is n a citiz5 or national ( ! ,unit$ ,/ates2 & 7ii7 is inadmissible or deportable "u ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq472 & 7,b7 7i7 9 ! case ( su* an individual :o 0 y\ng] ?an #ah ye>s ( age on ! date on :i* ! individual initially ent]$ ! ,unit$ ,/ates-- 7,i7 has e>n$ a high s*ool diploma1 ! recogniz$ equival5t ( su* diploma f a second>y s*ool1 or a high s*ool equival5cy diploma recogniz$ by ,/ate law1 or is s*$ul$ to complete ! requirem5ts = su* a diploma or equival5t be=e ! next academic ye> beg9s2 7,,ii7 is enroll$ at an in/itution ( high] education pursuant to subsection 7d72 7,,iii7 has s]v$ 9 ! uni=m$ s]vices 7z su* t]m is def9$ 9 section #aja ( title #aj1 ,unit$ ,/ates ,code7 = n less ?an #b ye>s &1 if dis*>g$1 receiv$ an honorable dis*>ge2 7,,iv7 has acquir$ a degree1 c]tificate1 or recogniz$ po/second>y cr$5tial f an in/itution ( high] education or area c>e] & te*nical education s*ool 7z su* t]m is def9$ 9 section #c ( ! ,c>l ,d4 ,p]k9s ,c>e] & ,te*nical ,education ,act ( #bjjf 7#bj ,u4,s4,c4 #bcjb772 or 7,v7 has complet$ n less ?an #b ye>s 9 a po/second>y program at an in/itution ( high] education1 or area c>e] & te*nical education s*ool1 9 ! ,unit$ ,/ates & has made satisfactory academic progress1 z def9$ 9 subsection 7c71 dur+ su* "t p]iod2 or 7ii7 7,i7 is1 or at any "t 01 eligible = a grant ( def]r$ action pursuant to-- 7aa7 ! memor&um ( ! ,dep>tm5t ( ,homel& ,security entitl$ ,ex]cis+ ,prosecutorial ,discretion ) ,respect to ,individuals ,:o ,came to ! ,unit$ ,/ates z ,*ildr5 issu$ on ,june #ae1 #bjab2 or 7bb7 ! memor&um ( ! ,dep>tm5t ( ,homel& ,security entitl$ ,ex]cis+ ,prosecutorial ,discretion ) ,respect to ,individuals ,:o ,came to ! ,unit$ ,/ates z ,*ildr5 & ) ,respect to ,c]ta9 ,individuals ,:o ,are ! ,p>5ts ( ,u4,s4 ,citiz5s or ,p]man5t ,resid5ts issu$ on ,novemb] #bj1 #bjad2 or 7,,ii7 w\ld h be5 eligible = su* a grant ( def]r$ action if ! applicable memor&um describ$ 9 subclause 7,i7 _h be5 fully 9 effect s9ce ! date on :i* x 0 issu$4 7#b7 ,h>d%ip exception ,! ,secret>y %all issue regulations t direct :5 ! ,dep>tm5t %all waive ! age requirem5t ( p>agraph 7#a77;,b77i7 = an individual to qualify z a ,dream] /ud5t "u su* p>agraph1 if ! individual demon/rates compell+ circum/ances1 su* z economic h>d%ip 7z def9$ 9 section #dce7o774 4 #ajd4 ,re/or+ ! total seme/]s ( ,f$]al ,pell ,grant eligibility ,section #dja7;d77#e77;,a7 ( ! ,high] ,education ,act ( #aife is am5d$ by /rik+ #ab ea* place ! t]m appe>s & ins]t+ #ah4 #aje4 ,r$uc+ f9ancial aid p5alties f satisfactory academic progress det]m9ations ,section #dhd7;c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7;c77 is am5d$ to read z foll[s3 7c7 ,satisfactory progress 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,appeal ,! t]m appeal means a process by :i* a /ud5t :o is n meet+ ! in/itution's satisfactory academic progress /&>ds petitions ! in/itution = reconsid]ation ( ! /ud5t's eligibility = assi/ance "u ?is title4 7,b7 ,f9ancial aid probation ,! t]m f9ancial aid probation means a /atus assign$ by an in/itution to a /ud5t :o fails to make satisfactory academic progress & :o has appeal$ & has _h eligibility = aid re9/at$4 7,c7 ,f9ancial aid w>n+ ,! t]m f9ancial aid w>n+ means a /atus assign$ to a /ud5t :o fails to make satisfactory academic progress at ! end ( ! seme/] or equival5t p]iod 9 :i* ! /ud5t fir/ fails to make su* progress4 7,d7 ,paym5t p]iod ,! t]m paym5t p]iod means ! applicable paym5t p]iod describ$ 9 section #ffh4d ( title #cd1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7#b7 ,satisfactory academic progress policy ,an in/itution %all e/abli% a reasonable satisfactory academic progress policy = det]m9+ :e!r an o!rwise eligible /ud5t is mak+ satisfactory academic progress 9 ! /ud5t's educational program & may receive assi/ance "u ?is title4 ,! ,secret>y %all consid] ! in/itution's policy to be reasonable if-- 7,a7 ! policy is at lea/ z /rict z ! policy ! in/itution applies to a /ud5t :o is n receiv+ assi/ance "u ?is title2 7,b7 ! policy provides = consi/5t application ( /&>ds to all /ud5ts1 includ+ full-"t1 "p-"t1 und]graduate1 & graduate /ud5ts1 & all educational programs e/abli%$ by ! in/itution2 7,c7 7i7 ! policy specifies ! grade po9t av]age t a /ud5t mu/ a*ieve at ea* evaluation1 or if a grade po9t av]age is n an appropriate qualitative measure1 a comp>able assessm5t measur$ aga9/ a norm2 & 7ii7 if a /ud5t is enroll$ 9 an educational program ( m ?an #b academic ye>s1 ! policy specifies t at ! end ( ! second academic ye>1 ! /ud5t mu/ h a grade po9t av]age ( at lea/ a ,c or its equival5t1 or h academic /&+ consi/5t ) ! in/itution's requirem5ts = graduation2 7,d7 ! policy provides = measurem5t ( ! /ud5t's progress at ea* evaluation2 7,e7 ! policy describes-- 7i7 h[ a /ud5t's grade po9t av]age & ! pace at :i* ! /ud5t progresses t[>d completion are affect$ by c\rse incompletes1 )drawals1 or repetitions1 or transf]s ( cr$it f o!r in/itutions1 includ+ t cr$it h\rs f ano!r in/itution t are accept$ t[>d ! /ud5t's educational program are c\nt$ z bo? attempt$ & complet$ h\rs2 & 7ii7 h[ aft] a /ud5t re5rolls aft] ! /ud5t's satisfactory academic progress 0 reset pursuant to p>agraph 7#c77;,b71 ! /ud5t may h any cr$its t 7 e>n$ be=e ! /ud5t 0 det]m9$ n to be mak+ satisfactory academic progress c\nt$ = purposes ( det]m9+ progress :5 ! /ud5t re5rolls1 b any attempt$ h\rs t 7 n e>n$ by ! /ud5t 7includ+ incompletes1 )drawn c\rses1 & fail$ c\rses7 be=e ! /ud5t 0 det]m9$ n to be mak+ satisfactory academic progress w n negatively impact ! det]m9ation ( :e!r ! /ud5t made satisfactory academic progress aft] su* reset2 7,f7 ! policy provides t1 except z provid$ 9 subp>agraph 7,g7 ) respect to a /ud5t plac$ on f9ancial aid w>n+ or f9ancial aid probation & p>agraph 7#c71 a /ud5t is no long] eligible to receive assi/ance "u ?is title if ! /ud5t has n a*iev$ ! requir$ grade po9t av]age or :o is n mak+ progress t[>d completion 9 ! /ud5t's educational program-- 7i7 at ! "t ( ea* evaluation ) respect to a /ud5t :o is 9 an educational program ( #b academic ye>s or less 9 l5g?2 or 7ii7 at ! end ( ! second academic ye> ) respect to a /ud5t :o is 9 an educational program ( m ?an #b academic ye>s 9 l5g?2 7,g7 ! policy describes :5 /ud5ts w be plac$ on f9ancial aid w>n+ or f9ancial aid probation1 9 accordance ) p>agraph 7#d71 & provides t-- 7i7 a /ud5t on f9ancial aid w>n+-- 7,i7 %all receive assi/ance "u ?is title = "o paym5t p]iod despite a det]m9ation t ! /ud5t is n mak+ satisfactory academic progress2 & 7,,ii7 may be assign$ su* /atus )\t an appeal or o!r action by ! /ud5t2 & 7ii7 7,i7 a /ud5t on f9ancial aid probation may receive assi/ance "u ?is title = "o paym5t p]iod & ! in/itution may require ! /ud5t to fulfill specific t]ms & conditions1 su* z tak+ a r$uc$ c\rse load or enroll+ 9 specific c\rses2 & 7,,ii7 at ! end ( su* "o paym5t p]iod1 ! /ud5t is requir$ to meet ! in/itution's satisfactory academic progress /&>ds1 or meet ! requirem5ts ( ! academic plan develop$ by ! in/itution & ! /ud5t1 9 ord] to qualify = cont9u$ assi/ance "u ?is title2 7,h7 if ! in/itution p]mits a /ud5t to appeal a det]m9ation by ! in/itution t ! /ud5t is n mak+ satisfactory academic progress1 ! policy describes-- 7i7 h[ ! /ud5t may ree/abli% ! /ud5t's eligibility to receive assi/ance "u ?is title2 7ii7 ! basis on :i* ! /ud5t may file an appeal1 includ+ because ( ! dea? ( a relative1 an injury or illness ( ! /ud5t1 or ano!r special circum/ance2 & 7iii7 in=mation ! /ud5t is requir$ to submit reg>d+ :y ! /ud5t fail$ to make satisfactory academic progress1 & :at has *ang$ 9 ! /ud5t's situation t w all[ ! /ud5t to demon/rate satisfactory academic progress at ! next evaluation2 7,i7 if ! in/itution does n p]mit a /ud5t to appeal a det]m9ation by ! in/itution t ! /ud5t is n mak+ satisfactory academic progress1 ! policy describes h[ ! /ud5t may ree/abli% ! /ud5t's eligibility to receive assi/ance "u ?is title2 7,j7 ! policy provides = notification to /ud5ts ( ! results ( an evaluation t impacts ! /ud5t's eligibility = assi/ance "u ?is title2 & 7,k7 ! policy does n impose satisfactory progress limitations on ne$-bas$ in/itutional aid t are m /r+5t ?an ! /&>d appli$ "u ?is subsection )\t demon/rat+ to ! ,secret>y ! effectiv5ess ( su* limitations on improv+ /ud5t p]si/5ce 91 & completion (1 po/second>y /udy4 7#c7 ,rega9+ eligibility 7,a7 ,/ud5ts :o rema9 9 s*ool ,:5ev] a /ud5t fails to meet ! eligibility requirem5ts ( subsection 7a77#b7 z a result ( ! application ( ?is subsection &1 subsequ5t to t failure1 ! /ud5t has academic /&+ = any grad+ p]iod consi/5t ) ! requirem5ts = /ay+ on track to graduate )9 #aej p]c5t ( ! publi%$ l5g? ( ! educational program1 z det]m9$ by ! in/itution1 ! /ud5t %all aga9 be eligible "u subsection 7a77#b7 = a grant1 loan1 or "w assi/ance "u ?is title1 z long z ! /ud5t ma9ta9s satisfactory academic progress "u p>agraph 7#b7 beg9n+ on & aft] ! date t ! /ud5t rega9s eligibility4 7,b7 ,/ud5ts :o leave s*ool 7i7 ,9 g5]al ,if a /ud5t has n be5 enroll$ 9 any in/itution ( high] education = ! imm$iately prec$+ #b ye>s1 any previ\s failure to meet ! eligibility requirem5ts ( subsection 7a77#b7 %all n be us$ 9 any det]m9ation ( eligibility ( su* /ud5t "u su* subsection4 ,su* /ud5t %all1 on ! date ( enrollm5t subsequ5t to su* #b-ye> p]iod1 h ! /ud5t's eligibility = a grant1 loan1 or "w assi/ance "u ?is title reset & be deem$ z meet+ ! requirem5ts describ$ 9 p>agraph 7#b74 ,beg9n+ on & aft] su* date1 ! /ud5t's satisfactory academic progress %all be det]m9$ 9 accordance ) p>agraph 7#b77;,e77ii74 7ii7 ,maximum numb] ( resets ,a /ud5t %all be eligible = a reset ( eligibility pursuant to ?is subp>agraph n m ?an #b times4 7,c7 ,duties ( ! ,secret>y ,! ,secret>y %all-- 7i7 s5d1 to ea* /ud5t :o fail$ to meet ! eligibility requirem5ts ( subsection 7a77#b7 & :o has n rega9$ eligibility = a grant1 loan1 or "w assi/ance "u subp>agraph 7,a71 a notice1 two ye>s aft] su* failure1 t includes-- 7,i7 a notification t1 if ! /ud5t has n be5 enroll$ 9 any in/itution ( high] education = ! prec$+ two ye>s & has n receiv$ two resets ( eligibility "u subp>agraph 7,b71 ! /ud5t may use grant1 loan1 or "w assi/ance "u ?is title = enrollm5t at any eligible in/itution1 includ+ an in/itution o!r ?an ! in/itution 9 :i* ! /ud5t 0 previ\sly enroll$2 7,,ii7 a notification t1 if ! /ud5t has rema9$ enroll$1 or resum$ enrollm5t1 at an in/itution ( high] education1 ! /ud5t may be eligible = a grant1 loan1 or "w assi/ance "u ?is title subject to ! requirem5ts ( subp>agraph 7,a72 7,,iii7 in=mation on h[ _m seme/]s ( eligibility = a grant1 loan1 or "w assi/ance "u ?is title to :i* ! /ud5t /ill has access2 & 7,,iv7 a notification t ! /ud5t %\ld ask any prospective eligible in/itution h[ _m ( ! /ud5t's previ\sly complet$ cr$its ! /ud5t w\ld be able to transf]2 & 7ii7 submit an annual report to ,congress on ! outcomes ( /ud5ts :o h receiv$ a reset ( eligibility pursuant to ?is p>agraph1 includ+-- 7,i7 ! numb] ( /ud5ts :o re5roll 9 an eligible in/itution aft] su* reset1 disaggregat$ by race or e?nicity1 sex1 age1 socioeconomic /atus1 & disability /atus2 7,,ii7 ! #bej eligible in/itutions ) ! highe/ numb]s ( enroll$ /ud5ts receiv+ grant1 loan1 or "w assi/ance "u ?is title aft] su* a reset2 7,,iii7 ! #bej eligible in/itutions ) ! highe/ %>e ( enroll$ /ud5ts receiv+ grant1 loan1 or "w assi/ance "u ?is title aft] su* a reset2 & 7,,iv7 ! av]age completion rate & "t to completion = /ud5ts :o re5roll 9 an eligible in/itution aft] su* reset1 disaggregat$ by in/itution4 7#d7 ,evaluation ( academic progress 7,a7 ,9 g5]al ,an in/itution t det]m9es t a /ud5t is n mak+ satisfactory academic progress "u its policy may disburse funds provid$ ?r\gh /ud5t f9ancial assi/ance programs "u ?is title 7includ+ "w-/udy programs "u subtitle ,c7 to ! /ud5t 9 accordance ) subp>agraphs 7,b71 7,c71 & 7,d74 7,b7 ,paym5t p]iod foll[+ n mak+ satisfactory academic progress ,= ! paym5t p]iod foll[+ ! paym5t p]iod 9 :i* a /ud5t did n make satisfactory academic progress1 ! in/itution %all place ! /ud5t on f9ancial aid w>n+ & disburse funds "u ?is title to ! /ud5t4 7,c7 ,paym5t p]iod foll[+ f9ancial aid w>n+ ,= ! paym5t p]iod foll[+ a paym5t p]iod dur+ :i* a /ud5t 0 on f9ancial aid w>n+1 ! in/itution may place ! /ud5t on f9ancial aid probation1 & disburse funds "u ?is title to ! /ud5t if-- 7i7 ! in/itution evaluates ! /ud5t's progress & det]m9es t /ud5t did n make satisfactory academic progress dur+ ! paym5t p]iod ! /ud5t 0 on f9ancial aid w>n+2 7ii7 ! /ud5t appeals ! det]m9ation2 & 7iii7 7,i7 ! in/itution det]m9es t ! /ud5t %\ld be able to meet ! in/itution's satisfactory academic progress /&>ds by ! end ( ! subsequ5t paym5t p]iod2 or 7,,ii7 ! in/itution develops an academic plan = ! /ud5t t1 if foll[$1 w ensure t ! /ud5t is able to meet ! in/itution's satisfactory academic progress /&>ds by a specific po9t 9 "t4 7,d7 ,paym5t p]iod foll[+ f9ancial aid probation ,a /ud5t on f9ancial aid probation = a paym5t p]iod may n receive funds "u ?is title = ! subsequ5t paym5t p]iod unless ! /ud5t makes satisfactory academic progress or ! in/itution det]m9es t ! /ud5t met ! requirem5ts specifi$ by ! in/itution 9 ! academic plan = ! /ud5t develop$ "u subp>agraph 7,c77iii77,,ii74 7,e7 ,frequ5cy ( academic progress evaluation & communication 7i7 ,9 g5]al ,subject to clause 7ii71 = ! purpose ( det]m9+ :e!r pres5tly enroll$ /ud5ts are ma9ta9+ satisfactory progress1 ea* in/itution ( high] education t enrolls /ud5ts :o receive any grant1 loan1 or "w assi/ance "u ?is title %all review ! progress ( su* /ud5ts at ! end ( ea* paym5t p]iod4 7ii7 ,%ort] paym5t p]iods ,= ea* in/itution describ$ 9 clause 7i7 t has paym5t p]iods t are %ort] ?an on ! seme/] sy/em basis 7su* z on a qu>t]ly or trime/] sy/em basis or by clock h\r program or non-t]m program71 su* in/itution %all review ! progress ( pres5tly enroll$ /ud5ts at ! end ( ea* seme/] or equival5t p]iod ( #ab to #ah weeks4 7iii7 ,f9ancial aid w>n+ ,at ! end ( ea* paym5t p]iod 7or1 9 ! case ( an in/itution describ$ 9 clause 7ii71 at ! end ( ea* seme/] or equival5t p]iod71 ea* in/itution %all s5d a f9ancial aid w>n+ to pres5tly enroll$ /ud5ts t d n meet ! grade po9t av]age requirem5t describ$ 9 p>agraph 7#b71 or its equival5t or academic /&+ consi/5t ) ! requirem5ts = graduation1 z det]m9$ by ! in/itution1 t in=ms ! /ud5ts ( _! risk ( be+ det]m9$ to n be ma9ta9+ satisfactory progress & !re=e los+ eligibility = grant1 loan1 or "w assi/ance "u ?is title & provides in=mation on-- 7,i7 ! specific crit]ia ( ! in/itution's academic requirem5ts t ! /ud5t is n meet+ & ! specific improvem5ts ne$$ to meet ! requirem5ts2 & 7,,ii7 h[ to meet ) ! /ud5t's academic advisor to get ! academic support ! /ud5t ne$s4 7#e7 ,detail+ requirem5ts to /ud5ts ,ea* in/itution ( high] education t enrolls /ud5ts :o receive any grant1 loan1 or "w assi/ance "u ?is title %all detail ! in/itution's requirem5ts reg>d+ /ud5ts ma9ta9+ satisfactory academic progress-- 7,a7 to su* /ud5ts be=e ! /ud5ts beg9 classes at ! in/itution ?r\gh a detail$ communication t may be sep>ate f a f9ancial aid (f]2 & 7,b7 on ! f9ancial aid webpage ( ! website ( ! in/itution4 7#f7 ,consum] te/+ ,! ,secret>y-- 7,a7 %all conduct consum] te/+ to develop exempl>y practices & templates-- 7i7 to support in/itutions ( high] education 9 c>ry+ out p>agraph 7#e72 & 7ii7 :i* %all be available z res\rces = in/itutions ( high] education2 & 7,b7 %all n require ! use ( su* practices & templates by in/itutions ( high] education4 4 #ajf4 ,f$]al ,pell ,grants = graduate /ud5ts ,section #dja ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a7 is am5d$-- 7#a7 9 subsection 7b77#h77;,a71 by ins]t+ or z a po/baccalaureate /ud5t 9 accordance ) subsection 7d77#a7 aft] z an und]graduate2 & 7#b7 9 subsection 7d7-- 7,a7 by am5d+ p>agraph 7#a7 to read z foll[s3 7#a7 ,9 g5]al ,! p]iod dur+ :i* a /ud5t may receive ,f$]al ,pell ,grants %all be ! p]iod requir$ = ! completion ( ! fir/ und]graduate baccalaureate c\rse ( /udy be+ pursu$ by t /ud5t at ! in/itution at :i* ! /ud5t is 9 att5dance except t-- 7,a7 any #a-ye> p]iod dur+ :i* ! /ud5t is enroll$ 9 a noncr$it or rem$ial c\rse ( /udy z def9$ 9 p>agraph 7#b7 %all n be c\nt$ = ! purpose ( ?is p>agraph2 & 7,b7 ! p]iod dur+ :i* a /ud5t may receive ,f$]al ,pell ,grants %all also include ! p]iod requir$ = ! completion ( ! fir/ po/baccalaureate c\rse ( /udy 9 a case 9 :i*-- 7i7 ! /ud5t receiv$ a ,f$]al ,pell ,grant dur+ ! p]iod requir$ = ! completion ( ! /ud5t's fir/ und]graduate baccalaureate c\rse ( /udy = at lea/ #a b few] ?an #ah seme/]s1 or ! equival5t ( at lea/ #a b few] ?an #ah seme/]s1 z det]m9$ "u p>agraph 7#e72 7ii7 ! /ud5t w\ld o!rwise be eligible = a ,f$]al ,pell ,grant1 b = ! completion ( su* baccalaureate c\rse ( /udy2 & 7iii7 ! p]iod dur+ :i* ! /ud5t receives ,f$]al ,pell ,grants does n exce$ ! /ud5t's duration limits "u p>agraph 7#e74 2 & 7,b7 9 p>agraph 7#b71 by /rik+ or c]tificate & ins]t+ 1 c]tificate1 or fir/ po/baccalaureate degree4 ,,ii ,am5dm5ts to t]ms & conditions ( loans & repaym5t plans ,a ,g5]al t]ms & conditions #bja4 ,subsidiz$ loans = graduate & pr(essional /ud5ts ,section #dee7;a77#c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7a77#c77 is am5d$-- 7#a7 9 subp>agraph 7,a71 9 ! matt] prec$+ clause 7i71 by /rik+ subp>agraph 7,b7 & ins]t+ subp>agraphs 7,b7 & 7,c72 & 7#b7 by add+ at ! end ! foll[+3 7,c7 ,au?ority to make int]e/ subsidiz$ loans to graduate & pr(essional /ud5ts 7i7 ,9 g5]al ,beg9n+ on or aft] ,july #a1 #bjbf1 a graduate or pr(essional /ud5t %all be eligible to receive a ,f$]al ,direct ,/af=d loan "u ?is "p = a graduate or pr(essional program at a cov]$ in/itution ( high] education4 7ii7 ,cov]$ in/itution ( high] education ,9 ?is subp>agraph1 ! t]m cov]$ in/itution ( high] education-- 7,i7 means an in/itution ( high] education def9$ 9 section #aja or section #ajb7;a77#a77;,c72 & 7,,ii7 does n include a graduate m$ical s*ool1 nurs+ s*ool1 or a vet]9>y s*ool1 locat$ outside ! ,unit$ ,/ates t does n meet ! requirem5ts ( section #aja7;a77#d74 4 #bjb4 ,repeal ( orig9ation fees ,section #dee7;c77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7c77#b77 is am5d$-- 7#a7 by /rik+ & at ! end ( subp>agraph 7,d72 & 7#b7 by add+ at ! end ! foll[+3 7,e7 by sub/itut+ #j4j p]c5t = #d4j p]c5t ) respect to loans = :i* ! fir/ disbursem5t ( pr9cipal is made on or aft] ,july #a1 #bjbf4 4 #bjc4 ,prepaym5t am\nts ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhh7 is am5d$ by add+ at ! end ! foll[+3 #did;,a4 ,prepaym5t am\nts 7a7 ,prepaym5ts au?oriz$ ,a borr[] may pay1 )\t p5alty1 an am\nt 9 excess ( ! am\nt due on an out/&+ loan made "u "p ,b or ,d1 & su* excess am\nt %all be ref]r$ to z a prepaym5t am\nt = purposes ( ?is subsection4 ,except z provid$ 9 subsection 7b7 a prepaym5t am\nt %all be appli$ fir/ t[>d ! fees 7includ+ any collection co/s & au?oriz$ late *>ges7 ow$ by ! borr[] on su* loan1 next on out/&+ pr9cipal1 & !n on out/&+ int]e/4 ,if ! prepaym5t am\nt exce$s ! mon?ly paym5t am\nt ow$ on su* loan1 ! due date ( ! next paym5t %all be advanc$1 unless ! borr[] reque/s o!rwise1 & ! ,secret>y %all notify ! borr[] ( su* revis$ due date = ! next paym5t4 7b7 ,application ( prepaym5t am\nts 7#a7 ,borr[]s )\t fee balances 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ) respect to a borr[] :o does n owe an out/&+ balance ( fees 7includ+ collection co/s & au?oriz$ late *>ges7 on any loan made "u "p ,b or ,d1 & :o makes a prepaym5t on #b or m loans made "u ?is "p-- 7i7 if su* loans h diff]5t applicable rates ( int]e/1 ! hold] ( su* loans %all apply ! borr[]'s prepaym5t am\nt1 fir/ t[>d ! out/&+ balance ( pr9cipal due on ! loan ) ! highe/ applicable rate ( int]e/ among su* loans1 next on any fees ow$ on su* loan1 & !n on out/&+ int]e/ ow$ on su* loan2 or 7ii7 if su* loans h ! same applicable rates ( int]e/1 ! hold] ( su* loans %all apply ! borr[]'s prepaym5t am\nt1 fir/ t[>d ! out/&+ balance ( pr9cipal due on ! loan ) ! highe/ pr9cipal balance among su* loans1 next on any fees on su* loan1 & !n on out/&+ int]e/ ow$ on su* loan4 7,b7 ,writt5 exception ,a borr[] describ$ 9 subp>agraph 7,a7 :o does n want prepaym5t am\nts appli$ 9 ! mann] describ$ 9 clause 7i7 or 7ii7 ( su* subp>agraph %all provide to ! ,secret>y1 a writt5 reque/ = a diff]5t application ( prepaym5t am\nts4 7#b7 ,borr[]s ) fee balances ,) respect to a borr[] :o owes fees 7:i* may include collection co/s & au?oriz$ late *>ges7 on a loan made "u "p ,b or "p ,d1 a prepaym5t am\nt made by ! borr[] %all be appli$ fir/ t[>d ! fees 7includ+ any collection co/s & au?oriz$ late *>ges7 ow$ by ! borr[] on su* loan1 next on out/&+ pr9cipal1 & !n on out/&+ int]e/4 4 #bjd4 ,default requirem5ts ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhh71 z am5d$ by ! prec$+ section1 is fur!r am5d$ by add+ at ! end ! foll[+3 #did;,b4 ,default requirem5ts 7a7 ,9 g5]al ,if a borr[] defaults on a loan made "u "p ,b or ,d-- 7#a7 ! entire unpaid balance & accru$ int]e/ %all be imm$iately due & payable2 & 7#b7 ! ,secret>y %all assess collection *>ges4 7b7 ,collection ( a default$ loan ,! ,secret>y may1 ) respect to a borr[] :o defaults on a loan made "u "p ,b or ,d-- 7#a7 take any action au?oriz$ by law to collect su* loan1 includ+ fil+ a lawsuit aga9/ ! borr[]1 report+ ! default to nationwide consum] report+ ag5cies1 reque/+ ! ,int]nal ,rev5ue ,s]vice to (fset ! borr[]'s ,f$]al income tax refund1 & g>ni%+ ! borr[]'s wages2 & 7#b7 may designate ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c7 = ! borr[]4 4 ,b ,"o income-cont+5t repaym5t plan & "o fix$ repaym5t plan #baa4 ,notification to borr[]s 7a7 ,9 g5]al ,beg9n+ on ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,education1 9 coord9ation ) ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 %all und]take a campaign to al]t all borr[]s ( loans made "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife t !y are eligible to *ange repaym5t plans & to enroll 9 "o ( ! foll[+ repaym5t plans3 7#a7 ,! fix$ repaym5t plan "u section #dee;,a7b7 ( ! ,high] ,education ,act ( #aife1 z add$ by section #bab4 7#b7 ,! ,income-,driv5 ,repaym5t plan "u section #dee;,a7c7 ( ! ,high] ,education ,act ( #aife1 z add$ by section #bab4 7b7 ,campaign activities ,! campaign %all include ! foll[+ activities3 7#a7 ,develop+ consum] in=mation mat]ials ab\t ! opportunity to *ange repaym5t plans & to enroll 9 "o ( ! repaym5t plans describ$ 9 p>agraphs 7#a7 & 7#b7 ( subsection 7a74 7#b7 ,requir+ s]vic]s ( loans made "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife to provide su* consum] in=mation to borr[]s 9 a mann] det]m9$ appropriate by ! ,secret>y4 #bab4 ,new repaym5t plans 7a7 ,sunset ( repaym5t plans available be=e ,july #a1 #bjbf ,section #dee7;d77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d77#a77 is am5d$1 9 ! matt] prec$+ subp>agraph 7,a71 by ins]t+ 1 be=e ,july #a1 #bjbf aft] may *oose4 7b7 ,repaym5t plans available on & aft] ,july #a1 #bjbf ,"p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is am5d$ by ins]t+ aft] section #dee ! foll[+3 #dee;,a4 ,repaym5t plans available on & aft] ,july #a1 #bjbf 7a7 ,repaym5t plans = loans made on or aft] ,july #a1 #bjbf 7#a7 ,sunset ( repaym5t plans available be=e ,july #a1 #bjbf ,p>agraphs 7#a7 ?r\gh 7#e7 ( section #dee7;d7 %all only apply to loans made "u ?is "p be=e ,july #a1 #bjbf4 7#b7 ,prohibitions ,! ,secret>y may n1 = any loan made "u ?is "p on or aft] ,july #a1 #bjbf-- 7,a7 au?orize a borr[] ( su* a loan to repay su* loan pursuant to a repaym5t plan t is n describ$ 9 p>agraph 7#c72 or 7,b7 c>ry out or modify a repaym5t plan t is n describ$ 9 su* p>agraph4 7#c7 ,design & selection ,not)/&+ section #dee7;d71 beg9n+ on ,july #a1 #bjbf1 ! ,secret>y %all (f] a borr[] ( a loan made "u ?is "p on or aft] su* date 7includ+ a ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,,plus ,loan 7includ+ su* a loan made on behalf ( a dep5d5t /ud5t71 a ,f$]al ,direct ,consolidation ,loan 7includ+ su* a loan t dis*>g$ ! liability on a ,f$]al ,direct ,,plus ,loan made on behalf ( a dep5d5t /ud5t71 & a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan7 two plans = repaym5t ( su* loan 9 accordance ) subsection 7d71 includ+ pr9cipal & int]e/ on ! loan4 ,! borr[] %all be entitl$ to accel]ate1 )\t p5alty1 repaym5t on ! borr[]'s loan "u ?is "p4 ,! borr[] may *oose-- 7,a7 a fix$ repaym5t plan "u subsection 7b72 or 7,b7 ! ,income-,driv5 ,repaym5t ,plan "u subsection 7c74 7#d7 ,selection by ,secret>y ,if a borr[] ( a loan made "u ?is "p on or aft] ,july #a1 #bjbf1 does n select a repaym5t plan describ$ 9 p>agraph 7#c71 ! ,secret>y %all provide ! borr[] ) ! fix$ repaym5t plan describ$ 9 subsection 7b74 7#e7 ,selection available = ea* new loan ,ea* "t a borr[] receives a new loan made "u ?is "p on or aft] ,july #a1 #bjbf1 ! borr[] may select ei!r ! fix$ repaym5t plan "u subsection 7b7 or ! ,income-,driv5 ,repaym5t ,plan "u subsection 7c71 :i* %all apply to all su* loans ( ! borr[] 9 accordance ) p>agraph 7#f74 7#f7 ,same repaym5t plan requir$ 7,a7 ,loans made on or aft] ,july #a1 #bjbf ,all loans made to a borr[] "u ?is "p on or aft] ,july #a1 #bjbf1 mu/ be repaid toge!r "u ! same repaym5t plan4 7,b7 ,loans made be=e & on or aft] ,july #a1 #bjbf ,a borr[] ) a loan made "u ?is "p be=e ,july #a1 #bjbf1 & ) a loan made on or aft] ,july #a1 #bjbf1 7includ+ a ,f$]al ,direct ,,plus loan made on behalf ( a dep5d5t /ud5t made be=e1 on1 or aft] su* date7 may repay su* loans on diff]5t repaym5t plans1 provid$ t-- 7i7 all su* loans made on or aft] ,july #a1 #bjbf1 are repaid "u ! same repaym5t plan 9 accordance ) subp>agraph 7,a72 & 7ii7 all su* loans made be=e ,july #a1 #bjbf1 are repaid "u ! repaym5t plan t ! borr[] 0 enroll$ 9 ) respect to ea* su* loan on ,june #cj1 #bjbf4 7#g7 ,p]missible *anges ( repaym5t plan 7,a7 ,*ange f fix$ repaym5t plan ,a borr[] may *ange ! borr[]'s selection ( a fix$ repaym5t plan "u subsection 7b71 or ! ,secret>y's selection ( su* plan = ! borr[] "u p>agraph 7#d71 z applicable1 to ! ,income-,driv5 ,repaym5t ,plan "u subsection 7c7 at any "t4 7,b7 ,*ange f ! ,income-,driv5 ,repaym5t ,plan ,a borr[] may *ange ! borr[]'s selection ( ! ,income-,driv5 ,repaym5t ,plan "u subsection 7c7 to a fix$ repaym5t plan "u subsection 7b71 provid$ t ! requir$ fix$ mon?ly paym5t am\nt ( ! borr[] "u su* plan is det]m9$ bas$ on-- 7i7 ! total am\nt ( ! out/&+ pr9cipal & int]e/ & fees on ! loans ( ! borr[] to be repaid "u su* fix$ plan1 z ( ! date on :i* ! borr[]'s *ange 9 selection takes effect2 7ii7 ! int]e/ rates on su* loans2 & 7iii7 ! applicable repaym5t p]iod det]m9$ "u subsection 7b77#b74 7#h7 ,treatm5t ( borr[]s ) loans made be=e ,july #a1 #bjbf ,) respect to an out/&+ loan made "u ?is "p 7includ+ a ,f$]al ,direct ,,plus loan made on behalf ( a dep5d5t /ud5t7 be=e ,july #a1 #bjbf1 a borr[] ) su* a loan-- 7,a7 %all n be eligible to *ange ! borr[]'s selection ( a repaym5t plan "u p>agraph 7#a7 ( section #dee7;d71 or ! ,secret>y's selection ( a plan = ! borr[] "u p>agraph 7#b7 ( su* section1 z applicable1 to ano!r repaym5t plan "u su* p>agraph 7#a7 on or aft] ,july #a1 #bjbf2 7,b7 may1 at any "t1 *ange ! borr[]'s selection ( a repaym5t plan to a repaym5t plan describ$ 9 p>agraph 7#c72 & 7,c7 ^u *ang+ ! borr[]'s selection ( a repaym5t plan 9 accordance ) subp>agraph 7,b71 %all make any su* subsequ5t *ange 9 selection 9 accordance ) p>agraphs 7#f7 & 7#g74 7b7 ,fix$ repaym5t plan 7#a7 ,9 g5]al ,! fix$ repaym5t plan made available to borr[]s 9 accordance ) ?is section %all be a repaym5t plan consi/5t ) subsection 7a77#a7 ( section #dee & section #dbh7;b77#i77;,a77i71 except z expressly provid$ 9 ?is subsection1 ) a fix$ annual repaym5t am\nt paid ov] a fix$ p]iod ( "t4 ,except z provid$ 9 p>agraph 7#c71 ! requir$ fix$ mon?ly paym5t am\nt ( a borr[] %all be det]m9$ bas$ on ! total am\nt ( ! out/&+ pr9cipal & int]e/ ( ! ,f$]al ,direct ,loans ( ! borr[] to be repaid pursuant to su* plan1 ! int]e/ rates on su* loans1 & ! applicable repaym5t p]iod det]m9$ "u ?is subsection4 7#b7 ,applicable repaym5t p]iod 7,a7 ,direct loans o!r ?an consolidation loans ,! applicable repaym5t p]iod ( a ,f$]al ,direct loan "u ?is "p1 o!r ?an a ,f$]al ,direct ,consolidation ,loan1 %all be #aj ye>s4 7,b7 ,direct consolidation loans ,! applicable repaym5t p]iod = a ,f$]al ,direct ,consolidation loan made on or aft] ,july #a1 #bjbf1 repaid pursuant to a fix$ repaym5t plan ) a total out/&+ am\nt ( pr9cipal & int]e/ on all ( ! borr[]'s ,f$]al ,direct ,loans1 includ+ su* ,consolidation loan 7z ( ! day be=e ent]+ repaym5t on su* ,consolidation loan7 is-- 7i7 less ?an #g1ejj1 %all be #aj ye>s2 7ii7 equal to or great] ?an #g1ejj b less ?an #aj1jjj1 %all be #ab ye>s2 7iii7 equal to or great] ?an #aj1jjj b less ?an #bj1jjj1 %all be #ae ye>s2 7iv7 equal to or great] ?an #bj1jjj b less ?an #dj1jjj1 %all be #bj ye>s2 7v7 equal to or great] ?an #dj1jjj b less ?an #fj1jjj1 %all be #be ye>s2 & 7vi7 equal to or great] ?an #fj1jjj1 %all be #cj ye>s4 7,c7 ,m9imum p]iod ,no fix$ repaym5t plan may require a borr[] to repay a loan 9 less ?an #aj ye>s unless ! borr[]1 dur+ ! #f mon?s imm$iately prec$+ ! />t ( ! repaym5t p]iod1 specifically reque/s t repaym5t be made ov] a %ort] p]iod4 7#c7 ,m9imum mon?ly paym5t ,! m9imum mon?ly paym5t am\nt ( a borr[] "u a fix$ repaym5t plan %all be #ej p] mon?1 except t ! f9al paym5t ( ! borr[] pursuant to su* plan may be less ?an #ej4 7#d7 ,p]iods ( def]m5t & =be>ance ,! fix$ repaym5t plan p]iod applicable to a borr[] %all n include p]iods :5 ! borr[] is 9 au?oriz$ def]m5t or =be>ance4 7#e7 ,adju/m5ts = v>iable int]e/ rates ,! numb] ( paym5ts or ! fix$ mon?ly repaym5t am\nt may be adju/$ to reflect *anges 9 ! v>iable int]e/ rate id5tifi$ 9 section #fhe4bjb7;a7 ( title #cd1 ,code ( ,f$]al ,regulations 7z 9 effect on ,july #a1 #bjbf74 7c7 ,income-,driv5 ,repaym5t ,plan 7#a7 ,t]ms & conditions ,not)/&+ any o!r provision ( ?is ,act1 beg9n+ on ,july #a1 #bjbf1 ! ,secret>y %all c>ry out an income-cont+5t repaym5t plan1 to be kn[n z ! ,income-,driv5 ,repaym5t ,plan1 t %all h ! foll[+ t]ms & conditions3 7,a7 ,a borr[] ( any loan made "u ?is "p may elect to h ! borr[]'s total mon?ly paym5t am\nt ow$ = all ( ! loans ( ! borr[] made "u ?is "p t are repaid "u ! ,income-,driv5 ,repaym5t ,plan n exce$ ! applicable mon?ly paym5t ( ! borr[]4 7,b7 ,! ,secret>y %all apply ! borr[]'s applicable mon?ly paym5t fir/ t[>ds pr9cipal due1 next t[>d any fees due on ! loan1 & !n t[>d ! int]e/ due on ! loan4 7,c7 ,9 ! case ( an applicable mon?ly paym5t t does n fully cov] ! am\nt ( int]e/ t has accru$ on ! borr[]'s loans = ! mon? to :i* su* applicable mon?ly paym5t applies1 ! ,secret>y %all n *>ge su* rema9+ int]e/ to ! borr[] & su* rema9+ int]e/ %all n be capitaliz$4 7,d7 ,! ,secret>y %all h ! discretion to det]m9e-- 7i7 h[ a borr[]'s applicable mon?ly paym5t is appli$ to ea* out/&+ loan ( ! borr[] repay$ "u ! ,income-,driv5 ,repaym5t ,plan2 & 7ii7 ! am\nt ( pr9cipal1 fees1 & int]e/ due on ea* out/&+ loan ( ! borr[] repay$ "u ! ,income-,driv5 ,repaym5t ,plan4 7,e7 ,! ,secret>y %all cancel any out/&+ balance ( pr9cipal & int]e/ due on all loans ( ! borr[] repaid "u ! ,income-,driv5 ,repaym5t ,plan by a borr[]1 )\t ! ne$ = an application or o!r docum5tation f ! borr[]1 on ! e>li] (-- 7i7 9 ! case ( a borr[] :o does n h at lea/ "o out/&+ loan "u ?is "p attributable to a graduate or pr(essional c\rse ( /udy1 ! date t ! borr[] has made #bdj qualify+ paym5ts ov] a p]iod ( at lea/ #bj ye>s2 7ii7 9 ! case ( a borr[] :o has at lea/ "o out/&+ loan "u ?is "p attributable to a graduate or pr(essional c\rse ( /udy1 ! date t ! borr[] has made #cjj qualify+ paym5ts ov] a p]iod ( at lea/ #be ye>s2 or 7iii7 ! date t ! borr[] has made-- 7,i7 9 ! case ( a borr[] ) a total orig9al balance ( pr9cipal due on all su* loans t is equal to or less ?an #ab1jjj1 #abj qualify+ paym5ts ov] a p]iod ( at lea/ #aj ye>s2 or 7,,ii7 9 ! case ( a borr[] ) a total orig9al balance ( pr9cipal due on all su* loans t is great] ?an #ab1jjj-- 7aa7 #abj qualify+ paym5ts ov] a p]iod ( at lea/ #aj ye>s2 plus 7bb7 = ea* increm5t ( #a to #a1jjj above #ab1dii ( su* total orig9al pr9cipal balance1 #ab additional qualify+ paym5ts ov] a p]iod ( at lea/ #a ye>4 7#b7 ,annual income v]ification 7,a7 ,9 g5]al ,! proc$ures e/abli%$ by ! ,secret>y "u section #dee7;e77#h7 %all apply = annually det]m9+ ! borr[]'s eligibility = ! ,income-,driv5 ,repaym5t ,plan1 includ+ v]ification ( a borr[]'s annual income & ! annual am\nt due on ! total am\nt ( loans eligible to be repaid "u ?is subsection1 & su* o!r proc$ures z are necess>y to effectively implem5t ! ,income-,driv5 ,repaym5t ,plan4 ,) respect to c>ry+ out section #did7;a77#b7 = ! ,income-,driv5 ,repaym5t ,plan1 an individual may elect to opt out ( ! disclosures requir$ "u section #did7;a77#b77;,a77ii7 9 accordance ) ! proc$ures e/abli%$ "u #dee7;e77#h74 7,b7 ,additional proc$ures ,9 addition to c>ry+ out ! proc$ures describ$ 9 subp>agraph 7,a71 ! ,secret>y %all e/abli% & implem5t-- 7i7 9 ! case t ! ,secret>y receives ! return in=mation disclos$ "u section #fajc7l77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 pursuant to approval provid$ "u section #did1 to det]m9e ! repaym5t obligation ( ! borr[] b is unable to det]m9e ! repaym5t obligation ( ! borr[]1 proc$ures to require ! borr[] to provide su* in=mation z ! ,secret>y may require to det]m9e su* repaym5t obligation "u ! ,income-,driv5 ,repaym5t ,plan2 & 7ii7 su* o!r proc$ures z are necess>y to implem5t effectively ! ,income- ,driv5 ,repaym5t ,plan4 7,c7 ,reconsid]ation 7i7 ,9 g5]al ,9 ! case t a borr[] believes t ! annual repaym5t obligation ( ! borr[] det]m9$ pursuant to ?is p>agraph is n reflective ( ! borr[]'s income or family size1 ! borr[] may reque/ t ! ,secret>y recalculate su* annual repaym5t obligation4 ,su* reque/ %all include docum5tation ( income or family size n bas$ on tax in=mation to acc\nt = a decrease 9 income s9ce ! borr[] la/ fil$ a tax return1 ! borr[]'s sep>ation f a sp\se ) :om ! borr[] _h previ\sly fil$ a jo9t tax return1 ! bir? or imp5d+ bir? ( a *ild1 or o!r comp>able circum/ances4 7ii7 ,adju/m5t to repaym5t obligation ,if ! ,secret>y det]m9es t ! annual repaym5t obligation ( ! borr[] det]m9$ pursuant to ?is p>agraph is n reflective ( ! borr[]'s income or family size bas$ on a reque/ describ$ 9 clause 7i71 ! ,secret>y %all adju/ ! annual repaym5t obligation ( ! borr[] z det]m9$ appropriate by ! ,secret>y & 9 a mann] consi/5t ) ?is subsection4 7,d7 ,=be>ance ,9 ! case t a borr[] provides in=mation or docum5tation pursuant to subp>agraph 7,b77i7 or subp>agraph 7,c77i71 ! ,secret>y %all grant ! borr[] adm9i/rative =be>ance = a p]iod ( up to #fj days 9 ord] = ! ,secret>y to collect & process su* in=mation or docum5tation4 7#c7 ,repaym5t disclosure ,aft] ! ,secret>y obta9s suffici5t in=mation to calculate a borr[]'s annual repaym5t obligation "u ! ,income-,driv5 ,repaym5t ,plan pursuant to p>agraph 7#b7 & n lat] ?an #c mon?s be=e any paym5ts 9 accordance ) su* annual repaym5t obligation are due1 ! ,secret>y %all provide to ! borr[] a repaym5t disclosure t-- 7,a7 specifies ! borr[]'s applicable mon?ly paym5t am\nt2 7,b7 expla9s h[ su* applicable mon?ly paym5t am\nt 0 calculat$2 7,c7 in=ms ! borr[] ( ! t]ms & conditions ( ! ,income-,driv5 ,repaym5t ,plan2 & 7,d7 in=ms ! borr[] ( h[ to contact ! ,secret>y if ! calculat$ applicable mon?ly paym5t am\nt is n reflective ( ! borr[]'s curr5t income or family size4 7#d7 ,failure to provide in=mation ,9 ! case t ! ,secret>y requires in=mation f ! borr[] to det]m9e ! annual repaym5t obligation ( ! borr[] & ! borr[] does n provide ! necess>y in=mation to ! ,secret>y 9 accordance ) ! proc$ures describ$ 9 p>agraph 7#b71 ! ,secret>y %all remove ! borr[] f ! ,income-,driv5 ,repaym5t ,plan & provide ! borr[] ) ! fix$ repaym5t plan describ$ 9 subsection 7b74 7#e7 ,treatm5t ( consolidation loans ,) respect to cancell+ any out/&+ balance ( pr9cipal & int]e/ due on all loans ( ! borr[] repaid "u ! ,income-,driv5 ,repaym5t ,plan pursuant to p>agraph 7#a77;,e71 ! ,secret>y %all-- 7,a7 = a borr[] ) an out/&+ ,f$]al ,direct ,consolidation ,loan t dis*>ges ! liability on loans ) m ?an "o p]iod ( qualify+ paym5ts1 det]m9e ! numb] ( qualify+ paym5ts made t[>ds su* ,direct ,consolidation ,loan bas$ on ! weight$ av]age ( ! numb] ( qualify+ paym5ts made on ea* su* dis*>g$ loan4 7,b7 = a borr[] ) an out/&+ jo9t consolidation loan t is sep>at$ into individual ,f$]al ,direct ,consolidation ,loans1 det]m9e ! numb] ( qualify+ paym5ts made t[>ds ea* su* sep>at$ loan bas$ on ! numb] ( qualify+ paym5ts t ! borr[] made prior to ! sep>ation4 7#f7 ,def9itions ,9 ?is subsection3 7,a7 ,applicable mon?ly paym5t 7i7 ,9 g5]al ,! t]m applicable mon?ly paym5t means1 :5 us$ ) respect to a borr[] & except z provid$ 9 clause 7ii71 ! am\nt equal to-- 7,i7 #j = ! portion ( ! borr[]'s income 7& ! borr[]'s sp\se's income1 if applicable7 t is less ?an or equal to #bbe p]c5t ( ! pov]ty l9e applicable to ! borr[]'s family size 7z det]m9$ "u section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b7772 plus 7,,ii7 9 ! case ( a borr[] ) an out/&+ loan made "u ?is "p = an und]graduate program ( /udy1 #e p]c5t ( ! portion ( ! borr[]'s income 7& ! borr[]'s sp\se's income1 if applicable7 t is great] ?an #bbe p]c5t ( ! pov]ty l9e applicable to ! borr[]'s family size 7z det]m9$ "u section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b7771 prorat$ by ! p]c5tage t is ! result ( divid+-- 7aa7 ! borr[]'s total out/&+ balance ( loans t is attributable to loans made "u ?is "p = an und]graduate program ( /udy1 det]m9$ at ! "t ! borr[] ent]s into repaym5t = su* loans2 by 7bb7 ! result ( divid+-- 7,,aa7 ! borr[]'s total out/&+ balance ( loans made "u ?is "p1 det]m9$ at ! "t ! borr[] ent]s into repaym5t = su* loans2 by 7,,bb7 #ab2 plus 7,,iii7 9 ! case ( a borr[] ) an out/&+ loan made "u ?is "p n describ$ 9 subclause 7,,ii71 #aj p]c5t ( ! portion ( ! borr[]'s income 7& ! borr[]'s sp\se's income1 if applicable7 t is great] ?an #bbe p]c5t ( ! pov]ty l9e applicable to ! borr[]'s family size 7z det]m9$ "u section #fgc7b7 ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b7771 prorat$ by ! p]c5tage t is ! result ( divid+-- 7aa7 ! diff]5ce betwe5-- 7,,aa7 ! borr[]'s total out/&+ balance ( loans made "u ?is "p1 det]m9$ at ! "t ! borr[] ent]s into repaym5t = su* loans2 & 7,,bb7 ! balance ( loans subject to subclause 7,,ii72 by 7bb7 ! result ( divid+-- 7,,aa7 ! borr[]'s total out/&+ balance ( loans made "u ?is "p1 det]m9$ at ! "t ! borr[] ent]s into repaym5t = su* loans2 by 7,,bb7 #ab4 7ii7 ,adju/m5ts to applicable mon?ly paym5t ,not)/&+ clause 7i71 ! applicable mon?ly paym5t ( a borr[] %all be-- 7,i7 9 ! case t ! am\nt calculat$ = su* borr[] pursuant to clause 7i7 is less ?an #e1 #j2 7,,ii7 9 ! case t ! am\nt calculat$ = su* borr[] pursuant to clause 7i7 is great] ?an #e b less ?an #aj1 #aj2 or 7,,iii7 9 ! case ( a m>ri$ borr[] :o is n an exempt$ borr[]1 ! am\nt result+ by multiply+-- 7aa7 ! am\nt calculat$ = su* borr[] pursuant to clause 7i72 by 7bb7 ! result ( divid+-- 7,,aa7 ! out/&+ balance ( pr9cipal & int]e/ due on all loans ( ! borr[] made "u ?is "p2 by 7,,bb7 ! sum ( ! am\nt describ$ 9 subitem 7,,aa7 plus ! out/&+ balance ( pr9cipal & int]e/ due on all loans ( ! borr[]'s sp\se made "u ?is "p4 7,b7 ,income ,! t]m income1 :5 us$ ) respect to a borr[]1 means-- 7i7 ! borr[]'s 7& ! borr[]'s sp\se1 if applicable7 adju/$ gross income z report$ to ! ,int]nal ,rev5ue ,s]vice2 or 7ii7 ! am\nt calculat$ bas$ on alt]native docum5tation ( all =ms ( taxable income receiv$ by ! borr[] 7& ! borr[]'s sp\se1 if applicable7 & provid$ to ! ,secret>y4 7,c7 ,adju/$ gross income ,! t]m adju/$ gross income1 :5 us$ ) respect to a borr[]1 means-- 7i7 9 ! case ( an exempt$ borr[]1 ! borr[]'s adju/$ gross income 7z su* t]m is def9$ 9 section #fb ( ! ,int]nal ,rev5ue ,code ( #aihf7 ( su* borr[] = ! mo/ rec5t taxable ye>2 & 7ii7 9 ! case ( a m>ri$ borr[] :o is n an exempt$ borr[]1 ! sum ( ! adju/$ gross income 7z su* t]m is def9$ 9 section #fb ( ! ,int]nal ,rev5ue ,code ( #aihf7 ( ! borr[] & ( ! borr[]'s sp\se = ! mo/ rec5t taxable ye>4 7,d7 ,exempt$ borr[] ,! t]m exempt$ borr[] means a borr[]-- 7i7 :o is unm>ri$2 7ii7 :o is m>ri$ & files a ,f$]al income tax return sep>ately f ! borr[]'s sp\se2 or 7iii7 :o is m>ri$1 files a ,f$]al income tax return jo9tly ) ! borr[]'s sp\se1 & c]tifies at ! "t ! borr[] applies = a repaym5t plan or submits in=mation = annual income v]ification t-- 7,i7 ! borr[] is sep>at$ f ! borr[]'s sp\se2 or 7,,ii7 ! borr[] is unable to reasonably assess ! income ( ! borr[]'s sp\se4 7,e7 ,qualify+ paym5t ,! t]m qualify+ paym5t1 :5 us$ ) respect to a borr[]1 means any ( ! foll[+3 7i7 ,an applicable mon?ly paym5t4 7ii7 ,a mon?ly paym5t made "u ! fix$ repaym5t plan describ$ 9 subsection 7b74 7iii7 ,a mon?ly paym5t made "u a repaym5t plan describ$ 9 p>agraph 7#a7 ( section #dee7;d74 7iv7 ,a paym5t "u a repaym5t plan ) paym5ts t are z lea/ z mu* z !y w\ld h be5 "u a /&>d repaym5t plan = a t]m ( #aj ye>s consi/5t ) subsection 7a77#a7 ( section #dee & section #dbh7;b77#i77;,a77i71 except t1 9 ! case ( a borr[] :o 0 mov$ by ! ,secret>y to su* a repaym5t plan due to ! borr[]'s failure to submit in=mation = annual income v]ification or _! failure to provide o!r necess>y in=mation1 no m ?an #ab paym5ts made "u su* a repaym5t plan may be c\nt$ z qualify+ paym5ts4 7v7 ,a =be>ance or def]m5t ( an applicable mon?ly paym5t o!rwise due "u ! ,income-,driv5 ,repaym5t ,plan pursuant to any ( ! foll[+3 7,i7 ,canc] treatm5t def]m5t "u section #dee7;f77#c71 section #dbh7;b77#a77,m77v71 or section #dbg7;a77#b77;,c77iv74 7,,ii7 ,rehabilitation tra9+ program def]m5t "u section #dee7;f77#b77;,a77ii71 section #dbh7;b77#a77,m77i77,,ii71 or section #dbg7;a77#b77;,c77i77,,ii74 7,,iii7 ,def]m5t relat+ to a p]iod ( unemploym5t "u section #dee7;f77#b77;,b7 or section #dbh7;b77#a77,m77ii74 7,,iv7 ,def]m5t due to an economic h>d%ip describ$ 9 section #dce7o71 section #dbh7;b77#a77,m77iv71 or section #dbg7;a77#b77;,c77iii74 7,v7 ,def]m5t provid$ 9 connection ) s]vices 9 ! ,peace ,corps4 7,,vi7 ,milit>y s]vice def]m5t "u section #dee7;f77#b77;,c7 or section #dbh7;b77#a77,m77iii74 7,,vii7 ,po/-active-duty /ud5t def]m5t "u section #dic;,d4 7,,viii7 ,=be>ance provid$ "u section #dbh7;c77#c77;,a77i77,,iii7 on or aft] ,july #a1 #bjbd1 because ! borr[] is s]v+ 9 a national s]vice position = :i* ! borr[] receives a national s]vice educational aw>d "u ! ,national & ,community ,s]vice ,tru/ ,act ( #aiic 7#db ,u4,s4,c4 #abeja et seq474 7,,ix7 ,national ,gu>d ,duty =be>ance "u section #fhb4baa7;h77#b77;iii7 or section #fhe4bje7;a77#g7 ( title #cd1 ,code ( ,f$]al ,regulations 7or successor regulations71 on or aft] ,july #a1 #bjbd4 7,x7 ,dep>tm5t ( ,def5se /ud5t loan repaym5t program =be>ance "u section #dbh7;c77#c77;,a77i77,,iv7 on or aft] ,july #a1 #bjbd4 7,,xi7 ,adm9i/rative =be>ance or m&atory adm9i/rative =be>ance "u section #dbh7;c77#c77;,d7 or section #dbh;,h7e77#g7 on or aft] ,july #a1 #bjbd4 7,,xii7 ,=be>ance grant$ by ! ,secret>y :ile ! ,secret>y det]m9es :e!r ! borr[] is eligible = ! ,secret>y to dis*>ge ! borr[]'s liability on a loan due to ! borr[]'s bankruptcy4 7vi7 ,a paym5t = any mon? 9 :i* ! borr[] 0 9 a p]iod ( def]m5t or =be>ance n describ$ 9 clause 7iv7 7o!r ?an an 9-s*ool def]m5t7 if su* paym5t-- 7,i7 is made n lat] ?an #c ye>s aft] su* p]iod ( def]m5t or =be>ance end$2 & 7,,ii7 is equal to or great] ?an ! applicable mon?ly paym5t ( ! borr[]4 4 #bac4 ,maximum repaym5t p]iod = income-cont+5t repaym5t & income-bas$ repaym5t 7a7 ,,icr ,section #dee7;e77#g77;,b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#g77;,b77 is fur!r am5d$-- 7#a7 by /rik+ or at ! end ( clause 7iv72 7#b7 by /rik+ ! p]iod at ! end ( clause 7v7 & ins]t+ a semicolon2 & 7#c7 by add+ at ! end ! foll[+3 7vi7 makes paym5ts "u ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c72 or 7vii7 makes paym5ts "u ! fix$ repaym5t plan "u section #dee;,a7b72 4 7b7 ,,ibr ,section #dic;,c7b77#g77;,b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajih;e7b77#g77;,b77 is am5d$-- 7#a7 9 clause 7iv71 by /rik+ or2 7#b7 9 clause 7v71 by add+ or at ! end2 & 7#c7 by add+ at ! end ! foll[+3 7vi7 makes paym5ts "u ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c72 or 7vii7 makes paym5ts "u ! fix$ repaym5t plan "u #dee;,a7b72 4 #bad4 ,borr[]s ineligible = loans 7a7 ,ineligible borr[]s ,section #dhd ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7 is am5d$-- 7#a7 9 subsection 7a77#f71 by /rik+ if ! & ins]t+ if1 9 accordance ) subsection 7u71 !2 & 7#b7 by add+ at ! end ! foll[+3 7u7 ,ineligible borr[]s 7#a7 ,9 g5]al ,! ,secret>y det]m9es t a borr[] is ineligible pursuant to subsection 7a77#f7 if1 at ! "t ! loan 0 made & )\t ! k ( ! in/itution ( high] education or ! ,secret>y1 ! borr[] 7or ! /ud5t on ^: behalf a p>5t borr[$7 provid$ false or errone\s in=mation1 has be5 convict$ (1 or has pl$ nolo cont5d]e or guilty to1 a crime involv+ fraud 9 obta9+ funds "u ?is title1 or took actions t caus$ ! borr[] or /ud5t-- 7,a7 to receive a loan = :i* ! borr[] is :olly or p>tially ineligible2 7,b7 to receive int]e/ b5efits = :i* ! borr[] 0 ineligible2 or 7,c7 to receive loan proce$s = a p]iod ( enrollm5t = :i* ! borr[] 0 n eligible4 7#b7 ,dem& lett] 7,a7 ,9 g5]al ,if ! ,secret>y makes ! det]m9ation describ$ 9 p>agraph 7#a71 ! ,secret>y %all s5d an ineligible borr[] a dem& lett] t requires t1 )9 #cj days f ! date ! lett] is mail$1 ! borr[] repay any pr9cipal am\nt = :i* ! borr[] is ineligible & any accru$ int]e/1 includ+ int]e/ subsidiz$ by ! ,secret>y1 ?r\gh ! previ\s qu>t]4 7,b7 ,default ,if a borr[] fails to comply ) ! dem& lett] describ$ 9 p>agraph 7#b71 ! borr[] %all be 9 default on ! entire loan4 7#c7 ,prohibition on consolidation ,a borr[] may n consolidate a loan "u ?is "p = :i* ! borr[] is :olly or p>tially ineligible4 4 ,c ,automatic enrollm5t 9 ! ,income-,driv5 ,repaym5t ,plan = c]ta9 borr[]s #bba4 ,notification & automatic enrollm5t proc$ures = borr[]s :o are del9qu5t on loans ,section #dee7;d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#f7 ,notification & automatic enrollm5t proc$ures = borr[]s :o are del9qu5t on loans 7,a7 ,au?ority to obta9 income in=mation ,! ,secret>y %all e/abli% & implem5t1 ) respect to any borr[] describ$ 9 subp>agraph 7,b71 proc$ures to-- 7i7 use return in=mation ( ! borr[] 7& ! borr[]'s sp\se1 if applicable7 disclos$ "u section #fajc7l77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 pursuant to approval provid$ "u section #did1 to det]m9e ! income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable7 )\t fur!r action by ! borr[]2 7ii7 all[ ! borr[] 7or ! sp\se ( ! borr[]71 at any "t1 to opt out ( disclosure "u su* section #fajc7l77#ac7 & in/ead provide su* in=mation z ! ,secret>y may require to det]m9e ! income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable72 & 7iii7 provide ! borr[] ) an opportunity to update ! return in=mation s disclos$ be=e ! det]m9ation ( ! income & family size ( ! borr[] = purposes ( ?is p>agraph4 7,b7 ,borr[] notification ,) respect to ea* borr[] ( a loan made "u ?is "p :o is n repay+ su* loan pursuant to ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c71 :o is at lea/ #ca days del9qu5t on su* loan1 & :o has n be5 subject to ! proc$ures "u ?is p>agraph = su* loan 9 ! prec$+ #fb days1 ! ,secret>y %all1 z soon z practicable aft] su* #ca-;day del9qu5cy1 provide to ! borr[] ! foll[+3 7i7 ,notification t ! borr[] is at lea/ #ca days del9qu5t on at lea/ #a loan made "u ?is "p1 & a description ( all del9qu5t cov]$ loans1 nondel9qu5t cov]$ loans1 & noncov]$ loans ( ! borr[]4 7ii7 ,a brief description ( ! repaym5t plans = :i* ! borr[] is eligible & ! cov]$ loans & noncov]$ loans ( ! borr[] t may be eligible = su* plans1 bas$ on in=mation available to ! ,secret>y4 7iii7 ,! am\nt ( mon?ly paym5ts = ! cov]$ & noncov]$ loans "u ea* repaym5t plan id5tifi$ "u clause 7ii71 bas$ on in=mation available to ! ,secret>y1 includ+1 if ! income in=mation ( ! borr[] is available to ! ,secret>y "u subp>agraph 7,a71 ! income1 family size1 tax fil+ /atus1 & tax ye> in=mation on :i* ea* su* mon?ly paym5t is bas$4 7iv7 ,cle> & simple in/ructions on h[ to select ! repaym5t plans4 7v7 ,an explanation t ! ,secret>y %all take ! actions "u subp>agraph 7,c7 ) respect to su* borr[]1 if-- 7,i7 ! borr[] is #hj days del9qu5t on #a or m loans made "u ?is "p & has n select$ ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c7 = borr[]'s loans made "u ?is "p2 & 7,,ii7 9 ! case ( su* a borr[] ^: exi/+ repaym5t plan = ! borr[]'s loans made "u ?is "p is n su* ,income-,driv5 ,repaym5t ,plan1 ! mon?ly paym5ts "u su* exi/+ repaym5t plan are high] ?an su* mon?ly paym5ts w\ld be "u su* ,income-,driv5 ,repaym5t ,plan4 7vi7 ,in/ructions on updat+ ! in=mation ( ! borr[] obta9$ "u subp>agraph 7,a74 7,c7 ,secret>y's selection ( a plan ,) respect to ea* borr[] describ$ 9 subp>agraph 7,b77v7 :o has n select$ ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c7 = ! borr[]'s loans made "u ?is "p t are del9qu5t & :o is at lea/ #hj days del9qu5t on su* a loan1 ! ,secret>y %all1 z soon z practicable-- 7i7 enroll ! borr[] 9 su* ,income-,driv5 ,repaym5t ,plan2 & 7ii7 au?orize ! borr[] to *ange ! ,secret>y's selection ( ! ,income-,driv5 ,repaym5t ,plan to ! fix$-repaym5t plan "u section #dee;,a7b71 z long z su* selection is made 9 accordance ) p>agraphs 7#f7 & 7#g7 ( section #dee;,a7a74 4 #bbb4 ,notification & automatic enrollm5t proc$ures = borr[]s :o are rehabilitat+ default$ loans ,section #dee7;d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#g7 ,notification & automatic enrollm5t proc$ures = borr[]s :o are rehabilitat+ default$ loans 7,a7 ,au?ority to obta9 income in=mation ,! ,secret>y %all e/abli% & implem5t1 ) respect to any borr[] :o is rehabilitat+ a loan made "u ?is "p pursuant to section #dbh;,f7d71 proc$ures to-- 7i7 use return in=mation ( ! borr[] 7& ! borr[]'s sp\se1 if applicable7 disclos$ section #fajc7l77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 pursuant to approval provid$ "u section #did1 to obta9 su* in=mation z is reasonably necess>y reg>d+ ! income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable72 7ii7 all[ ! borr[] 7or ! sp\se ( ! borr[]71 at any "t1 to opt out ( disclosure "u su* section #fajc7l77#ac7 & in/ead provide su* in=mation z ! ,secret>y may require to obta9 su* in=mation2 & 7iii7 provide ! borr[] ) an opportunity to update ! return in=mation s disclos$ be=e ! det]m9ation ( income & family size ( ! borr[] 7& ! borr[]'s sp\se1 if applicable7 = purposes ( ?is p>agraph4 7,b7 ,borr[] notification ,n lat] ?an #cj days aft] a borr[] makes ! #f? paym5t requir$ on su* loan pursuant to section #dbh;,f7d71 ! ,secret>y %all notify ! borr[] ( ! process "u subp>agraph 7,c7 ) respect to su* loan4 7,c7 ,secret>y's selection ( plan ,) respect to ea* borr[] :o has made ! #i? paym5t requir$ on su* loan pursuant to section #dbh;,f7d71 ! ,secret>y %all1 z soon z practicable aft] su* paym5t1 c>ry out ! proc$ures describ$ 9 p>agraph 7#f77;,c7 ) respect to su* loan4 4 #bbc4 ,cov]$ loan & non-cov]$ loan def9$ ,section #dee7;d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7d771 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#h7 ,def9itions ,9 ?is subsection3 7,a7 ,cov]$ loan ,! t]m cov]$ loan means-- 7i7 a loan made "u ?is "p2 7ii7 a loan pur*as$ "u section #dei;,a2 or 7iii7 a loan t has be5 assign$ to ! ,secret>y "u subsection 7c77#h7 or 7j77#c77;,b7 ( section #dbh1 or subsection 7a77#a77;,a77ii7 or 7a77#a77;,g7 ( section #dbh;,f4 7,b7 ,noncov]$ loan ,! t]m noncov]$ loan means a loan made1 insur$1 or gu>ante$ "u ?is title t is n a cov]$ loan4 4 #bbd4 ,automatic rec]tification ( income = income-driv5 repaym5t plans 7a7 ,income-,cont+5t repaym5t plans ,section #dee7;e77#h77;,a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#h77;,a77 is am5d$-- 7#a7 by /rik+ & at ! end ( clause 7ii72 7#b7 by r$esignat+ clause 7iii7 z clause 7iv72 7#c7 9 clause 7iv7 7z s r$esignat$71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#d7 by ins]t+ aft] clause 7ii71 ! foll[+3 7iii7 9 ! case ( a borr[] :o has select$ to repay a loan made "u ?is "p pursuant to an income cont+5t repaym5t plan t def9es discretion>y income 9 su* a mann] t ! borr[] w\ld h a calculat$ mon?ly paym5t equal to #j1 n require ! borr[] to provide ! ,secret>y ! in=mation describ$ 9 clause 7i7 or 7ii71 & ensure t ! borr[] w h a calculat$ mon?ly paym5t ( #j2 & 4 7b7 ,income-,bas$ repaym5t plans ,section #dic;,c7c77#b77;,b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajih;e7c77#b77;,b77 is am5d$ by /rik+ any loan made "u "p ,d 7o!r ?an an except$ ,,plus loan or except$ consolidation loan7 & ins]t+ any cov]$ loan 7z def9$ 9 section #dee7;d77#h774 #bbe4 ,proc$ure & requirem5t = reque/+ tax return in=mation f ! ,,irs ,section #did7;a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajih;h7a77 is am5d$-- 7#a7 9 p>agraph 7#b7-- 7,a7 9 subp>agraph 7,a71 9 ! matt] prec$+ clause 7i71 by /rik+ a loan "u "p ,d & ins]t+ a cov]$ loan 7z def9$ 9 section #dee7;d77#h72 & 7,b7 9 subp>agraph 7,b71 by /rik+ a loan "u "p ,d & ins]t+ a cov]$ loan 7z def9$ 9 section #dee7;d77#h772 & 7#b7 by add+ at ! end ! foll[+3 7#d7 ,loan del9qu5cy & rehabilitation 7,a7 ,borr[]s del9qu5t on loans ,9 ! case ( an individual :o is a borr[] ( a loan made "u ?is "p & :o is at lea/ #ca days del9qu5t on su* loan1 ! ,secret>y1 ) respect to su* individual & any sp\se ( su* individual1 %all-- 7i7 provide to su* individuals ! notification describ$ 9 p>agraph 7#a77;,a77i72 & 7ii7 require1 z a condition ( eligibility = ! notification & automatic enrollm5t proc$ures "u section #dee7;d77#f71 t su* individuals-- 7,i7 affirmatively approve ! disclosure describ$ 9 p>agraph 7#a77;,a77i7 & agree t su* approval %all s]ve z an ongo+ approval ( su* disclosure until ! date on :i* ! individual elects to opt out ( su* disclosure "u section #dee7;d77#f77;,a77ii72 or 7,,ii7 provide su* in=mation z ! ,secret>y may require to c>ry out ! proc$ures "u section #dee7;d77#f7 ) respect to su* individual4 7,b7 ,loan rehabilitation ,9 ! case ( any writt5 or electronic application by an individual = ! rehabilitation ( a loan made "u ?is "p pursuant to section #dbh;,f7d71 ! ,secret>y1 ) respect to su* individual & any sp\se ( su* individual1 %all-- 7i7 provide to su* individuals ! notification describ$ 9 p>agraph 7#a77;,a77i72 & 7ii7 require1 z a condition ( eligibility = loan rehabilitation pursuant to section #dbh;,f7a71 t su* individuals-- 7,i7 affirmatively approve ! disclosure describ$ 9 p>agraph 7#a77;,a77i7 & agree t su* approval %all s]ve z an ongo+ approval ( su* disclosure until ! date on :i* ! individual elects to opt out ( su* disclosure "u section #dee7;d77#g77;,a77ii72 or 7,,ii7 provide su* in=mation z ! ,secret>y may require to c>ry out ! proc$ures "u section #dee7;d77#g7 ) respect to su* individual4 4 ,d ,/reaml9+ ,public ,s]vice ,loan ,=giv5ess #bca4 ,am5dm5ts to t]ms & conditions ( public s]vice loan =giv5ess 7a7 ,numb] ( mon?ly paym5ts ,p>agraph 7#a7 ( section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is am5d$-- 7#a7 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ a borr[] :o & ins]t+ a borr[]2 7#b7 by am5d+ subp>agraph 7,a7 to read z foll[s3 7,a7 :o-- 7i7 has made #if qualify+ mon?ly paym5ts on ! eligible ,f$]al ,direct ,loan aft] ,octob] #a1 #bjjg2 & 7ii7 has be5 employ$ 9 a public s]vice job dur+ ! p]iod 9 :i* ! borr[] makes ea* ( ! #if qualify+ mon?ly paym5ts2 & 2 & 7#c7 by am5d+ subp>agraph 7,b7 to read z foll[s3 7,b7 )\t reg>d to ! employm5t /atus ( ! borr[] at ! "t ( su* cancellation4 4 7b7 ,r$esignations ,section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is fur!r am5d$ by r$esignat+ p>agraphs 7#b71 7#c71 & 7#d71 z p>agraphs 7#c71 7#f71 & 7#g71 respectively4 7c7 ,mon?ly paym5ts ,section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is fur!r am5d$-- 7#a7 by ins]t+ aft] p>agraph 7#a71 z s am5d$1 ! foll[+3 7#b7 ,mon?ly paym5ts 7,a7 ,qualify+ mon?ly paym5ts ,= ! purpose ( det]m9+ "u p>agraph 7#a7 ! numb] ( qualify+ mon?ly paym5ts made by a borr[] on an eligible ,f$]al ,direct ,loan1 ! ,secret>y %all consid] ! borr[] to h made a qualify+ mon?ly paym5t = ea* mon? t-- 7i7 ! borr[] pays 7z a lump sum or 9 multiple in/allm5ts7 an am\nt t is n less ?an ! mon?ly paym5t am\nt due on ! eligible ,f$]al ,direct ,loan pursuant to any "o or a comb9ation ( ! foll[+-- 7,i7 paym5ts "u an income-bas$ repaym5t plan "u section #dic;,c2 7,,ii7 paym5ts "u a /&>d repaym5t plan "u subsection 7d77#a77;,a71 bas$ on a #aj-ye> repaym5t p]iod2 7,,iii7 mon?ly paym5ts "u a repaym5t plan "u subsection 7d77#a7 or 7g7 ( n less ?an ! mon?ly am\nt calculat$ "u subsection 7d77#a77;,a71 bas$ on a #aj-ye> repaym5t p]iod2 7,,iv7 paym5ts "u an income cont+5t repaym5t plan "u subsection 7d77#a77;,d72 7,v7 paym5ts "u ! ,income-,driv5 ,repaym5t ,plan "u section #dee;,a7c72 or 7,,vi7 paym5ts "u ! fix$ repaym5t plan "u section #dee;,a7b72 or 7ii7 9 lieu ( a paym5t describ$ 9 clause 7i71 ! borr[] is 9 "o ( ! foll[+ p]iods ( def]m5t or =be>ance-- 7,i7 canc] treatm5t def]m5t "u section #dbg7;a77#b77;,c77iv71 #dbh7;b77#a77,m77v71 or #dee7;f77#c72 7,,ii7 rehabilitation tra9+ program def]m5t "u section #dbg7;a77#b77;,c77i77,,ii71 #dbh7;b77#a77,m77i77,,ii71 or #dee7;f77#b77;,a77ii72 7,,iii7 milit>y s]vice def]m5t "u section #dbh7;b77#a77,m77iii7 or #dee7;f77#b77;,c72 7,,iv7 unemploym5t def]m5t "u section #dbg7;a77#b77;,c77ii71 #dbh7;b77#a77,m77ii71 #dbh;,b7d77#a77;,a77i71 or #dee7;f77#b77;,b72 7,v7 def]m5t due to an economic h>d%ip describ$ 9 section #dbg7;a77#b77;,c77iii71 section #dbh7;b77#a77,m77iv71 section #dbh;,b7d77#a77;,a77i71 section #dce7o71 or section #dee7;f77#b77;,d72 7,,vi7 ,peace ,corps s]vice def]m5t "u section #fhb4baj7;b77#b77;ii7 or #fhb4baj7k7 ( title #cd1 ,code ( ,f$]al ,regulations 7or successor regulations71 z made applicable to ,direct ,loan borr[]s "u section #fhe4bjd7;j7 ( su* title #cd2 7,,vii7 po/-active-duty /ud5t def]m5t "u section #dic;,d2 7,,viii7 ,ameri,corps =be>ance "u section #dbh7;c77#c77;,a77i77,,iii72 7,,ix7 ,national ,gu>d ,duty =be>ance "u section #fhb4baa7;h77#b77;iii7 or #fhe4bje7;a77#g7 ( title #cd1 ,code ( ,f$]al ,regulations 7or successor regulations72 7,x7 ,dep>tm5t ( ,def5se /ud5t loan repaym5t program =be>ance "u section #dbh7;c77#c77;,a77i77,,iv72 7,,xi7 adm9i/rative =be>ance or m&atory adm9i/rative =be>ance "u section #dbh7;c77#c77;,d7 or #dbh;,h7e77#g72 or 7,,xii7 /ud5t loan debt burd5 =be>ance "u section #dbh7;c77#c77;,a77i77,,ii74 7,b7 ,prepaym5ts 7i7 ,9 g5]al ,subject to clause 7ii71 if1 = any mon?1 a borr[] makes a qualify+ mon?ly paym5t on an eligible ,f$]al ,direct ,loan 9 an am\nt t exce$s ! mon?ly paym5t am\nt due on su* loan = su* mon?1 ! ,secret>y %all-- 7,i7 if ! excess am\nt is less ?an ! mon?ly paym5t am\nt due = ! subsequ5t mon? on su* loan1 apply ! excess am\nt t[>d ! mon?ly paym5t am\nt due = su* subsequ5t mon?2 7,,ii7 if ! excess am\nt is equal to ! mon?ly paym5t am\nt due = ! subsequ5t mon? on su* loan1 treat ! excess am\nt z ! mon?ly paym5t = su* subsequ5t mon?2 7,,iii7 if ! excess am\nt is great] ?an ! mon?ly paym5t am\nt due = ! subsequ5t mon? on su* loan1 b less ?an ! total mon?ly paym5t am\nts due = ! #b subsequ5t mon?s on su* loan-- 7aa7 treat ! portion ( ! excess am\nt t cov]s ! mon?ly paym5t am\nt due = ! subsequ5t mon? z ! mon?ly paym5t = su* subsequ5t mon?2 & 7bb7 apply ! rema9d] ( ! excess am\nt t[>d ! mon?ly paym5t am\nt due = ! second subsequ5t mon?2 7,,iv7 if ! excess am\nt is equal to or great] ?an ! mon?ly paym5t am\nt due = ! #b subsequ5t mon?s on su* loan1 b less ?an ! total mon?ly paym5t am\nts due = ! #c subsequ5t mon?s on su* loan-- 7aa7 treat ! portion ( ! excess am\nt t cov]s ! mon?ly paym5t am\nts due = ! subsequ5t mon? & ! second subsequ5t mon? z ! mon?ly paym5ts = su* mon?s2 & 7bb7 apply any rema9d] ( su* excess am\nt t[>d ! mon?ly paym5t am\nt due = ! ?ird subsequ5t mon?2 7,v7 if ! excess am\nt is equal to ! mon?ly paym5t am\nts due = ! #c subsequ5t mon?s on su* loan1 treat ! excess am\nt z ! mon?ly paym5ts = su* mon?s2 7,,vi7 if ! excess am\nt is great] ?an ! mon?ly paym5t am\nts due = ! #c subsequ5t mon?s on su* loan-- 7aa7 treat ! portion ( ! excess am\nt t cov]s ! mon?ly paym5t am\nts due = ! #c subsequ5t mon?s z ! mon?ly paym5ts = su* mon?s2 & 7bb7 apply any rema9d] ( su* excess am\nt to ! pr9cipal balance ( ! eligible ,f$]al ,direct loan2 & 7,,vii7 not)/&+ subclauses 7,i7 ?r\gh 7,,vi71 if ! borr[] has a mon?ly paym5t am\nt due on su* loan = su* mon? t is equal to #j1 apply any excess am\nt = su* mon? to ! pr9cipal balance ( ! eligible ,f$]al ,direct loan4 7ii7 ,alt]native application ,prior to or at ! "t ( mak+ a paym5t t exce$s ! mon?ly paym5t am\nt due on an eligible ,f$]al ,direct ,loan = su* mon?1 a borr[] may reque/ t any excess am\nt = su* mon? be appli$ to ! pr9cipal balance ( an eligible ,f$]al ,direct loan 9 lieu ( su* excess am\nt be+ appli$ 9 accordance ) clause 7i74 7,c7 ,buyback paym5t process 7i7 ,9 g5]al ,! ,secret>y %all e/abli% a buyback paym5t process "u :i* a qualifi$ borr[] ( an eligible ,f$]al ,direct ,loan may make a buyback paym5t 9 ord] to h eligible mon?s ( ! borr[]'s public s]vice employm5t p]iod dur+ :i* ! borr[] did n make a qualify+ mon?ly paym5t on su* loan be treat$ z if ! borr[] _h made a qualify+ mon?ly paym5t on su* loan4 7ii7 ,qualifi$ borr[] ,a borr[] is a qualifi$ borr[] = ! purposes ( mak+ a buyback paym5t 9 accordance ) ?is subp>agraph if ! borr[]-- 7,i7 has an eligible ,f$]al ,direct ,loan t is n 9 default2 7,,ii7 has be5 employ$ 9 a public s]vice job = n less ?an a #if mon? employm5t p]iod1 b dur+ su* employm5t p]iod has made few] ?an #if qualify+ mon?ly paym5ts on an eligible ,f$]al ,direct ,loan2 & 7,,iii7 reque/s to make a buyback paym5t 9 accordance ) ?is subp>agraph4 7iii7 ,eligible mon? ,= ! purposes ( ?is subp>agraph1 an eligible mon? means a mon? dur+ :i* a qualifi$ borr[] 0 employ$ 9 a public s]vice job1 0 n 9 an 9-s*ool def]m5t or grace p]iod1 & did n make a qualify+ mon?ly paym5t on an eligible ,f$]al ,direct ,loan = su* mon?-- 7,i7 because ! borr[] made a mon?ly paym5t on su* eligible ,f$]al ,direct ,loan pursuant to a repaym5t plan t is n a qualify+ repaym5t plan2 7,,ii7 because ! borr[] 0 9 a p]iod ( def]m5t or =be>ance o!r ?an a p]iod describ$ 9 clause 7ii7 ( subp>agraph 7,a72 or 7,,iii7 = ano!r reason det]m9$ appropriate by ! ,secret>y4 7iv7 ,buyback paym5t requirem5ts ,a buyback paym5t made 9 accordance ) ?is subp>agraph-- 7,i7 %all be made by a qualifi$ borr[] z a lump sum paym5t am\nt1 & 9 an am\nt t equals ! total am\nt ! borr[] w\ld h paid 9 qualify+ mon?ly paym5ts on ! eligible ,f$]al ,direct ,loan = all eligible mon?s ! borr[] is reque/+ to buyback1 pursuant to a qualify+ repaym5t plan applicable to ! borr[]1 9 accordance ) section #fhe4bai7;g77#f7 ( title #cd1 ,code ( ,f$]al ,regulations 7z su* section is 9 effect on ! date ( enactm5t ( ?is p>agraph7 or any o!r relevant regulations 9 effect on su* date2 7,,ii7 may n be made ) respect to an eligible ,f$]al ,direct ,loan t has be5 paid (f1 dis*>g$1 or cancell$2 & 7,,iii7 ) respect to an eligible ,f$]al ,direct ,loan t is a consolidation loan1 may n be us$ to buyback eligible mon?s t occurr$ be=e ! date ( ! consolidation ( su* loan4 7,d7 ,hold h>mless aga9/ retroactive det]m9ations ,= purposes ( det]m9+ "u p>agraph 7#a7 ! numb] ( qualify+ mon?ly paym5ts made by a borr[]1 any paym5t or p]iod ( def]m5t or =be>ance t is det]m9$ to be a qualify+ mon?ly paym5t may n1 at a lat] "t1 be det]m9$ n to be a qualify+ mon?ly paym5t4 2 & 7#b7 9 p>agraph 7#f71 z r$esignat$ by subsection 7b71 by add+ at ! end ! foll[+3 7,c7 ,qualify+ repaym5t plan ,! t]m qualify+ repaym5t plan means any ( ! repaym5t plans li/$ 9 clause 7i7 ( p>agraph 7#b77;,a74 4 7d7 ,loan cancellation ,p>agraph 7#c7 ( section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m771 z r$esignat$ by subsection 7b71 is am5d$ to read z foll[s3 7#c7 ,loan cancellation am\nt ,^u c]tification by a borr[] ( completion ( #if qualify+ mon?ly paym5ts by ! borr[]1 ! ,secret>y %all det]m9e :e!r ! borr[] meets ea* ( ! requirem5ts ( p>agraph 7#a71 &-- 7,a7 if ! ,secret>y det]m9es t ! borr[] does meet su* requirem5ts1 cancel ! obligation to repay ! balance ( pr9cipal & int]e/ due z ( ! "t ( su* cancellation on ! eligible ,f$]al ,direct ,loans made to ! borr[] "u ?is "p1 )\t fur!r action by ! borr[]2 or 7,b7 if ! ,secret>y det]m9es t ! borr[] does n meet su* requirem5ts1 notify ! borr[] ( su* det]m9ation 9 accordance ) p>agraph 7#d74 4 7e7 ,reconsid]ation process ,section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m771 z r$esignat$ by subsection 7b71 is fur!r am5d$ by ins]t+ aft] p>agraph 7#c71 z s am5d$1 ! foll[+3 7#d7 ,initial det]m9ation ( ineligibility = loan cancellation ,9 a case 9 :i* ! ,secret>y det]m9es t a borr[] has n met ! requirem5ts ( p>agraph 7#a71 ! ,secret>y %all-- 7,a7 notify ! borr[] t-- 7i7 ! borr[]'s application has be5 d5i$1 includ+ ! basis = su* d5ial2 7ii7 ! borr[] is 9 a #ij-;day =be>ance p]iod describ$ 9 subp>agraph 7,b72 & 7iii7 ! ,secret>y w resume collection ( ! eligible ,f$]al ,direct ,loans = :i* ! borr[] 0 seek+ loan cancellation "u ?is subsection aft] su* #ij-;day =be>ance p]iod1 unless ! borr[] opts to ext5d su* =be>ance p]iod "u p>agraph 7#e77;,a77ii72 & 7,b7 grant ! borr[] a #ij-;day =be>ance p]iod1 beg9n+ on ! date ( ! notice describ$ 9 subp>agraph 7,a7 provid$ to ! borr[]1 & dur+ :i*-- 7i7 paym5ts ( pr9cipal & int]e/ ne$ n be made on ! eligible ,f$]al ,direct ,loans = :i* ! borr[] 0 seek+ loan cancellation "u ?is subsection2 & 7ii7 any int]e/ accru$ & n paid may n be capitaliz$4 7#e7 ,reconsid]ation process 7,a7 ,reque/ = reconsid]ation ,n lat] ?an #ij days aft] ! date ( ! notice describ$ 9 p>agraph 7#d77;,a7 provid$ to ! borr[]-- 7i7 ! borr[] may reque/1 on a =m approv$ by ! ,secret>y1 t ! ,secret>y reconsid] ! basis = ! ,secret>y's d5ial "u p>agraph 7#d77;,a77i72 & 7ii7 if ! ,secret>y grants ! borr[]'s reconsid]ation reque/1 (f] ! borr[] an ext5sion ( ! #ij-;day =be>ance p]iod describ$ 9 p>agraph 7#d77;,b71 :i* %all-- 7,i7 beg9 on ! date ( ! borr[]'s reconsid]ation reque/ "u ?is subp>agraph2 & 7,,ii7 end on ! date ( ! notice provid$ to ! borr[] "u subp>agraph 7,c77i77,i7 ( ! ,secret>y's reconsid]ation decision4 7,b7 ,consid]ation ( reconsid]ation reque/ ,9 evaluat+ a reconsid]ation reque/ f a borr[]1 ! ,secret>y %all consid] any relevant evid5ce or support+ docum5tation t may assi/ ! ,secret>y 9 det]m9+ :e!r ! borr[] meets ea* ( ! requirem5ts ( p>agraph 7#a7 to qualify = loan cancellation "u ?is subsection4 7,c7 ,decision by ! ,secret>y 7i7 ,9 g5]al ,n lat] ?an #f mon?s aft] receipt ( a borr[]'s reconsid]ation reque/1 ! ,secret>y %all-- 7,i7 notify ! borr[] ( ! reconsid]ation decision & ! reason = ! ,secret>y's det]m9ation2 7,,ii7 9 a case 9 :i* ! reconsid]ation reque/ is grant$1 adju/ ! borr[]'s numb] ( qualify+ mon?ly paym5ts "u p>agraph 7#a7 or cancel ! loan "u p>agraph 7#c72 & 7,,iii7 9 a case 9 :i* ! ,secret>y d5ies ! reconsid]ation reque/1 ) respect to a borr[] :o agrees to ! =be>ance ext5sion describ$ 9 subp>agraph 7,a77ii71 include 9 ! notice provid$ to ! borr[] "u subclause 7,i71 a rem9d] t ! ,secret>y w resume collection ( ! eligible ,f$]al ,direct ,loans = :i* ! borr[] 0 seek+ loan cancellation "u ?is subsection z ( ! date ( su* notice4 7ii7 ,f9al decision ,aft] ! ,secret>y makes a decision on ! borr[]'s reconsid]ation reque/1 ! ,secret>y's decision is f9al1 & ! borr[] w n receive additional reconsid]ation4 4 #bcb4 ,t]ms & conditions ( employm5t 7a7 ,indep5d5t contractors ,section #dee7m7 is fur!r am5d$ by add+ at ! end ! foll[+3 7#h7 ,treatm5t ( indep5d5t contractors ,= purposes ( ?is subsection1 ea* ref]5ce to employm5t & employ$ %all be treat$ z includ+ "w z an indep5d5t contractor4 4 7b7 ,def9itions ,p>agraph 7#f7 ( section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m771 z r$esignat$ by section #bca7;b71 is fur!r am5d$ by add+ at ! end ! foll[+3 7,d7 ,full-"t ,! t]m full-"t means1 ) respect to a public s]vice job1 work+ #a or m su* jobs-- 7i7 a m9imum av]age ( #cj h\rs p] week dur+ ! p]iod be+ c]tifi$2 7ii7 a m9imum ( #cj h\rs p] week ?r\gh\t a contractual or employm5t p]iod ( at lea/ #h mon?s 9 a #ab-mon? p]iod2 & 7iii7 ) respect to an individual :o is 9 nont5ure track employm5t at an in/itution ( high] education1 ! equival5t ( #cj h\rs p] week z det]m9$ by multiply+ ea* cr$it or contact h\r taught by su* individual p] week by a numb] to be det]m9$ by ! ,secret>y4 7,e7 ,indep5d5t contractor ,! t]m indep5d5t contractor means an individual :o is n an employee & :o is work+ 9 a public s]vice job 9 a position or provid+ s]vices :i*1 "u applicable ,/ate law1 _c be fill$ or provid$ by an employee ( ! public s]vice job4 4 #bcc4 ,onl9e portal & database ( public s]vice jobs ,section #dee7m7 ( ! ,high] ,education ,act ( #aife is fur!r am5d$ by add+ at ! end ! foll[+3 7#i7 ,onl9e portal & database ( public s]vice jobs 7,a7 ,onl9e portal 7i7 ,borr[]s ,! ,secret>y %all e/abli% an onl9e portal t provides to borr[]s ( eligible ,f$]al ,direct ,loans ! foll[+ in=mation3 7,i7 ,in/ructions on h[ to access ! database e/abli%$ "u subp>agraph 7,b7 s t ! borr[] c det]m9e :e!r ! borr[] is employ$ 9 a public s]vice job4 7,,ii7 ,an id5tification ( ! loans ( ! borr[] t are eligible ,f$]al ,direct ,loans1 & an id5tification ( ! qualify+ repaym5t plans = :i* su* eligible ,f$]al ,direct ,loans qualify4 7,,iii7 ,) respect to ea* su* eligible ,f$]al ,direct ,loan-- 7aa7 ! numb] ( qualify+ mon?ly paym5ts ! borr[] has made 9 accordance ) p>agraph 7#a72 & 7bb7 ! e/imat$ numb] ( qualify+ mon?ly paym5ts "u su* p>agraph rema9+ on su* loan be=e ! borr[] may be eligible = loan cancellation "u ?is subsection4 7,,iv7 ,) respect to ea* loan ( ! borr[] t is n eligible = loan cancellation "u p>agraph 7#c7 ( ?is subsection1 an explanation ( :y ! loan is n s eligible & in/ructions on h[ :at1 if any?+1 ! borr[] may d to make ! loan s eligible4 7,v7 ,in/ructions = ! submission ( any =ms associat$ ) su* loan cancellation1 & an ability = ! borr[] to use ! portal to electronically sign & submit su* =ms4 7,,vi7 ,9 a case 9 :i* a borr[] submits to ! ,secret>y an application = loan cancellation "u ?is subsection t is d5i$ by ! ,secret>y-- 7aa7 a notice ( su* d5ial t meets ea* ( ! requirem5ts ( p>agraph 7#d77;,a71 includ+ an explanation ( ! #ij-;day =be>ance p]iod2 7bb7 a =m t meets ea* ( ! requirem5ts ( p>agraph 7#e77;,a71 :i* ! borr[] may use to reque/ reconsid]ation ( su* d5ial1 includ+ accept+ an ext5sion ( ! #ij-;day =be>ance p]iod2 & 7cc7 a notice ( ! ,secret>y's reconsid]ation decision1 :i* meets ea* ( ! requirem5ts ( p>agraph 7#e77;,c74 7,,vii7 ,an explanation ( ! buyback paym5t process describ$ 9 p>agraph 7#b77;,c71 & a =m to reque/ su* a buyback1 includ+ ! eligible mon?s = :i* ! borr[] may reque/ a buyback1 & ! am\nt t ! borr[] w\ld be requir$ to pay = su* buyback4 7,,viii7 ,an explanation ( h[ consolidat+ "o or m ,direct ,loans into a ,direct ,consolidation ,loan1 includ+ a ,direct ,,plus ,loan made to a p>5t borr[]1 w affect ! numb] ( qualify+ mon?ly paym5ts attribut$ to ! borr[]4 7ii7 ,appropriate contacts ,! ,secret>y %all ensure t an appropriate contact = a public s]vice job ( a borr[] has ! option to electronically sign & submit any =ms associat$ ) loan cancellation "u p>agraph 7#c7 ( ?is subsection4 7iii7 ,in=mation ,! ,secret>y %all ensure t any in=mation provid$ ?r\gh ! onl9e portal describ$ 9 ?is subp>agraph conta9s up-to-date in=mation4 7,b7 ,database ( public s]vice jobs 7i7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! ,secret>y ( ,labor1 %all e/abli% & regul>ly update a database t li/s public s]vice jobs4 7ii7 ,public availability ,! database e/abli%$ "u clause 7i7 %all be made available on a publicly accessible website ( ! ,dep>tm5t ( ,education 9 an easily se>*able =mat4 4 #bcd4 ,treatm5t ( consolidat$ & ref9anc$ loans ,section #dee7m77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77#b771 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ by ins]t+ aft] subp>agraph 7,d7 ! foll[+3 7,e7 ,det]m9ation ( numb] ( qualify+ mon?ly paym5ts = consolidation loans ,) respect to det]m9+ ! numb] ( qualify+ mon?ly paym5ts = a borr[] seek+ loan =giv5ess "u ?is subsection :o consolidates "o or m ,direct ,loans into a ,direct ,consolidation ,loan1 includ+ a ,direct ,,plus ,loan made to a p>5t borr[]1 ! ,secret>y %all use ! weight$ av]age ( ! paym5ts ! borr[] made on ! ,direct ,loans prior to consolidat+ t met ! crit]ia "u ?is subsection4 4 #bce4 ,loan =giv5ess = tea*]s 7a7 ,9 g5]al ,! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajja et seq47 is fur!r am5d$-- 7#a7 9 section #dbh;,j7g77#b7 7#bj ,u4,s4,c4 #ajgh-aj7;g77#b77-- 7,a7 9 subp>agraph 7,a71 by ins]t+ or aft] ! semicolon at ! end2 7,b7 by /rik+ subp>agraph 7,b72 & 7,c7 by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b72 & 7#b7 9 section #dfj7;g77#b7 7#bj ,u4,s4,c4 #ajhg;j7g77#b77-- 7,a7 9 subp>agraph 7,a71 by ins]t+ or aft] ! semicolon at ! end2 7,b7 by /rik+ subp>agraph 7,b72 & 7,c7 by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b74 7b7 ,con=m+ am5dm5t ,section #dee7m77#g7 ( ! ,high] ,education ,act ( #aife1 z r$esignat$ by section #bca7;b7 ( ?is ,act1 is am5d$ by /rik+ section #dbh;,j1 #dbh,k1 #dbh,l1 or #dfj & ins]t+ section #dbh,k or #dbh,l4 #bcf4 ,,gao /udy on data mat*+ agreem5ts = public s]vice loan =giv5ess 7a7 ,9 g5]al ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy on ! feasibility ( e/abli%+ data mat*+ agreem5ts = public s]vice loan =giv5ess "u section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 t w\ld all[ a borr[] to =ego reque/+ c]tification ( employm5t f ! appropriate contact = ! public s]vice job ( ! borr[]4 ,! /udy %all include an exam9ation ( ! ,dep>tm5t ( ,education & ! ,dep>tm5t ( ,def5se's progress t[>ds automatic data mat*+ = milit>y & vet]an borr[]s4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al %all submit a report to ! ,committee on ,education & ,work=ce ( ! ,h\se ( ,repres5tatives & ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate conta9+ ! f9d+s & recomm5dations result+ f ! /udy requir$ "u subsection 7a74 7c7 ,coop]ation ,! head ( ea* relevant ,f$]al ag5cy1 includ+ ! ,secret>y ( ,education1 ,secret>y ( ,def5se1 & ,commission] ( ,int]nal ,rev5ue1 %all coop]ate ) ! ,comptroll] ,g5]al to facilitate ! completion ( ! /udy requir$ "u subsection 7a74 ,e ,support = ,borr[]s 9 ,default #bda4 ,removal ( record ( default ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhh et seq471 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 #did;,c4 ,removal ( record ( default ,^u repay+ 9 full ! am\nt due on a default$ loan made1 insur$1 or gu>ante$ "u ?is title1 ! ,secret>y1 gu>anty ag5cy1 or o!r hold] ( ! loan %all reque/ any consum] report+ ag5cy to :i* ! ,secret>y1 gu>anty ag5cy1 or hold]1 z applicable1 report$ ! default ( ! loan1 to remove any adv]se item ( in=mation relat+ to su* loan f ! borr[]'s cr$it hi/ory4 4 #bdb4 ,removal ( record ( default f cr$it hi/ory ^u loan consolidation ,section #dee7;g7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7g77 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,consum] report+ ag5cies ,^u obta9+ a ,f$]al ,direct ,consolidation ,loan t dis*>ges ! liability on a default$ loan made1 insur$1 or gu>ante$ "u ?is title1 ! ,secret>y1 gu>anty ag5cy1 or o!r hold] ( ! loan %all reque/ any consum] report+ ag5cy to :i* ! ,secret>y1 gu>anty ag5cy or hold]1 z applicable1 report$ ! default ( ! loan1 to remove any adv]se item ( in=mation relat+ to su* loan f ! borr[]'s cr$it hi/ory4 4 #bdc4 ,default r$uction program ,section #dbh;,f ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-f7;a77 is am5d$ by add+ at ! end ! foll[+3 7d7 ,default r$uction program ,not)/&+ subsection 7a71 beg9n+ on ,july #a1 #bjbf1 ) respect to a default$ loan made1 insur$1 or gu>ante$ "u ?is "p or "p ,d1 ! foll[+ %all apply3 7#a7 ,rehabilitation au?oriz$ 7,a7 ,9 g5]al ,su* a default$ loan 7o!r ?an a loan describ$ 9 subp>agraph 7,b77 %all be rehabilitat$ if ! borr[] makes #i volunt>y1 reasonable & af=dable mon?ly paym5ts )9 #bj days ( ! due date dur+ #aj consecutive mon?s4 ,! ,secret>y det]m9es ! am\nt ( a borr[]'s reasonable & af=dable paym5t on ! basis ( a borr[]'s total f9ancial circum/ances4 7,b7 ,ineligible loans ,a default$ loan may n be eligible = rehabilitation "u ?is subsection if-- 7i7 a judgm5t has be5 obta9$ on su* loan2 or 7ii7 su* loan has be5 obta9$ by fraud = :i* ! borr[] has be5 convict$ (1 or has pl$ nolo cont5d]e or guilty to1 a crime involv+ fraud 9 obta9+ f9ancial assi/ance "u ?is title4 7,c7 ,limitation on borr[] ,a borr[] may obta9 ! b5efits available "u ?is subsection ) respect to rehabilitat+ a loan n m ?an two times p] loan4 7,d7 ,limitation on ! ,secret>y ,dur+ ! rehabilitation p]iod describ$ 9 ?is p>agraph1 ! ,secret>y %all limit contact ) ! borr[] on ! loan be+ rehabilitat$ to collection activities t are requir$ by law or regulation & to communications t support ! rehabilitation4 7#b7 ,det]m9ation ( reasonable & af=dable paym5t 7,a7 ,9 g5]al ,subject to subp>agraphs 7,a7 ?r\gh 7,h71 ! ,secret>y %all consid] ! borr[]'s reasonable & af=dable paym5t am\nt to be an am\nt equal to ! m9imum paym5t requir$ "u ! ,income-,driv5 ,repaym5t ,plan1 except t if su* am\nt is less ?an #e1 ! borr[]'s mon?ly paym5t %all be #e4 7,b7 ,docum5tation requirem5t ,! ,secret>y may calculate ! paym5t am\nt bas$ on in=mation provid$ orally by ! borr[] or ! borr[]'s repres5tative & provide ! borr[] ) a rehabilitation agreem5t us+ t am\nt4 ,! ,secret>y requires ! borr[] to provide docum5tation to confirm ! borr[]'s adju/$ gross income & family size4 ,if ! borr[] does n provide ! ,secret>y ) any docum5tation reque/$ by ! ,secret>y to calculate or confirm ! reasonable & af=dable paym5t am\nt )9 a reasonable "t deadl9e set by ! ,secret>y1 ! rehabilitation agreem5t provid$ is null & void4 ,a borr[] may reque/ t ! mon?ly paym5t am\nt be adju/$ due to a *ange 9 ! borr[]'s total f9ancial circum/ances only ^u provid+ ! docum5tation specifi$ 9 p>agraph 7#c74 7,c7 ,prohibitions ,= purposes ( subp>agraph 7,a71 a reasonable & af=dable paym5t am\nt %all n-- 7i7 be a requir$ m9imum loan paym5t am\nt if ! ,secret>y det]m9es t a small] am\nt is reasonable & af=dable2 7ii7 a p]c5tage ( ! borr[]'s total loan balance2 or 7iii7 bas$ on o!r crit]ia unrelat$ to ! borr[]'s total f9ancial circum/ances4 7,d7 ,rehabilitation paym5t agreem5t 7i7 ,9 g5]al ,n lat] ?an #ae bus9ess days ( ! ,secret>y's det]m9ation ( ! borr[]'s loan rehabilitation paym5t am\nt1 ! ,secret>y %all provide ! borr[] ) a writt5 rehabilitation agreem5t :i* %all include-- 7,i7 ! borr[]'s reasonable & af=dable paym5t am\nt1 a prom95t /atem5t t ! borr[] may object orally or 9 writ+ to ! reasonable & af=dable paym5t am\nt ) ! me?od & timeframe = rais+ su* an objection2 7,,ii7 a /atem5t t ! rehabilitation is null & void if ! borr[] does n provide ! docum5tation requir$ to calculate ! reasonable & af=dable paym5t am\nt2 7,,iii7 an explanation ( any o!r t]ms & conditions applicable to ! requir$ s]ies ( paym5ts t mu/ be made2 & 7,,iv7 in=mation on ! effects ( hav+ ! loans rehabilitat$4 7ii7 ,acceptance by ! borr[] ,to accept ! agreem5t1 ! borr[] %all sign & return ! agreem5t or accept ! agreem5t electronically "u a process provid$ by ! ,secret>y4 7iii7 ,prohibition ,! ,secret>y may n impose any o!r conditions unrelat$ to ! am\nt or tim+ ( ! rehabilitation paym5ts 9 ! rehabilitation agreem5t4 7,e7 ,/atem5t confirm+ reasonable & af=dable paym5t am\nt ,! ,secret>y %all provide ! borr[] ) a writt5 /atem5t t-- 7i7 confirms ! borr[]'s reasonable & af=dable paym5t am\nt1 z det]m9$ by ! ,secret>y2 7ii7 expla9s any o!r t]ms & conditions applicable to ! requir$ s]ies ( paym5ts t %all be made be=e ! borr[]'s acc\nt c be rehabilitat$2 7iii7 in=ms ! borr[] t ! borr[] may object to ! t]ms & conditions ( ! rehabilitation agreem5t2 & 7iv7 expla9s ! me?od & timeframe = object+ to ! t]ms & conditions ( ! rehabilitation agreem5t4 7,f7 ,objection by borr[] ,if ! borr[] objects to ! mon?ly paym5t am\nt describ$ 9 ! /atem5t "u subp>agraph 7,e71 ! ,secret>y %all recalculate ! paym5t bas$ solely on in=mation provid$ on a =m approv$ by ! ,secret>y &1 if reque/$1 support+ docum5tation f ! borr[] & o!r s\rces1 & %all consid] ea* ( ! foll[+3 7i7 ,! borr[]'s1 & if applicable1 ! sp\se's curr5t disposable income1 includ+ public assi/ance paym5ts1 & o!r income receiv$ by ! borr[] & ! sp\se1 su* z welf>e b5efits1 ,social ,security b5efits1 ,supplem5tal ,security ,income1 & work]s' comp5sation4 ,sp\sal income is n consid]$ if ! sp\se does n contribute to ! borr[]'s h\sehold income4 7ii7 ,family size4 7iii7 ,reasonable & necess>y exp5ses1 :i* %all include-- 7,i7 ,food4 7,,ii7 ,h\s+4 7,,iii7 ,utilities4 7,,iv7 ,basic communication exp5ses4 7,v7 ,necess>y m$ical & d5tal co/s4 7,,vi7 ,necess>y insurance co/s4 7,,vii7 ,transportation co/s4 7,,viii7 ,dep5d5t c>e & o!r "w-relat$ exp5ses4 7,,ix7 ,legally requir$ *ild & sp\sal support4 7,x7 ,o!r /ud5t loan paym5ts = loans made1 insur$1 or gu>ante$ "u ?is title1 or any o!r ,f$]al law4 7,,xi7 ,o!r exp5ses approv$ by ! ,secret>y4 7,g7 ,new rehabilitation agreem5t ,! ,secret>y %all provide ! borr[] ) a new writt5 rehabilitation agreem5t confirm+ ! borr[]'s recalculat$ reasonable & af=dable paym5t am\nt4 ,to accept ! agreem5t1 ! borr[] mu/ sign & return ! agreem5t or accept ! agreem5t electronically "u a process provid$ by ! ,secret>y4 7,h7 ,*ange 9 circum/ances ,a borr[] may reque/ t ! mon?ly paym5t am\nt be adju/$ due to a *ange 9 ! borr[]'s total f9ancial circum/ances only ^u provid+ ! docum5tation specifi$ 9 subp>agraph 7,f74 7#c7 ,adm9i/rative wage g>ni%m5t 7,a7 ,9 g5]al ,if a borr[]'s loan is be+ collect$ by adm9i/rative wage g>ni%m5t :ile ! borr[] is also mak+ mon?ly paym5ts on ! same loan "u a loan rehabilitation agreem5t1 ! ,secret>y %all cont9ue collect+ ! loan by adm9i/rative wage g>ni%m5t until ! borr[] makes five qualify+ mon?ly paym5ts "u ! rehabilitation agreem5t1 unless ! ,secret>y is o!rwise preclud$ f do+ s4 7,b7 ,susp5sion ,aft] ! borr[] makes ! fif? qualify+ mon?ly paym5t1 ! ,secret>y1 unless o!rwise direct$ by ! borr[]1 susp5ds ! g>ni%m5t ord] issu$ to ! borr[]'s employ]4 7,c7 ,limitation ,a borr[] may only obta9 ! b5efit ( a susp5sion ( adm9i/rative wage g>ni%m5t :ile also attempt+ to rehabilitate a default$ loan once4 7#d7 ,in/ruction to consum] report+ ag5cy ,if a default$ loan is rehabilitat$1 ! ,secret>y %all in/ruct any consum] report+ ag5cy to :i* ! default 0 report$ to remove ! default1 & any adv]se item ( in=mation relat+ to su* loan1 f ! borr[]'s cr$it hi/ory4 7e7 ,removal f default ,beg9n+ on ,july #a1 #bjbf1 ! ,secret>y %all n consid] a borr[] 9 default on a loan if-- 7#a7 ! borr[] provides in=mation necess>y to calculate a paym5t "u an income-cont+5t or income-bas$ repaym5t plan "u ?is "p or2 7#b7 ! paym5t calculat$ pursuant to su* a repaym5t plan is #j2 & 7#c7 ! income in=mation us$ to calculate su* paym5t cov]s ! date on :i* ! loan default$4 4 ,,iii ,int]e/ ,capitalization #cja4 ,elim9ation ( int]e/ capitalization 7a7 ,f$]al ,,plus loans ,section #dbh;,b7d77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-b7;d77#b77 is am5d$ to read z foll[s3 7#b7 ,no capitalization ( int]e/ ,int]e/ on loans made "u ?is section = :i* paym5ts ( pr9cipal are def]r$ pursuant to p>agraph 7#a7 %all be paid by ! borr[] & %all n be capitaliz$4 4 7b7 ,f$]al consolidation loans def]rals ,section #dbh;,c7b77#d77;,c77ii77,,iii7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-c7;b77#d77;,c77,,iii77 is am5d$ by /rik+ or capitaliz$14 7c7 ,default r$uction program ,section #dbh;,f7a77#a77;,e7 ( su* ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-f7;a77#a77;,e77 is am5d$ to read z foll[s3 7,e7 ,duties ^u assignm5t ,) respect to a loan assign$ "u subp>agraph 7,a77ii7-- 7i7 ! gu>anty ag5cy %all add to ! pr9cipal & int]e/ out/&+ at ! "t ( ! assignm5t ( su* loan an am\nt equal to ! am\nt describ$ 9 subp>agraph 7,d77i77,,ii77aa72 7ii7 ! ,secret>y %all pay ! gu>anty ag5cy1 = deposit 9 ! ag5cy's ,op]at+ ,fund e/abli%$ pursuant to section #dbb;,b1 an am\nt equal to ! am\nt add$ to ! pr9cipal & int]e/ out/&+ at ! "t ( ! assignm5t 9 accordance ) clause 7i72 7iii7 = a loan assign$ on or aft] ! date ( enactm5t ( ! ,,loan ,act1 ! int]e/ out/&+ at ! "t ( ! assignm5t ( su* loan1 & any int]e/ accru+ aft] su* "t1 %all n be capitaliz$2 & 7iv7 beg9n+ on ! date ( enactm5t ( ,,loan ,act1 int]e/ %all only accrue on ! p]c5tage ( su* a loan t is equal to-- 7,i7 ! am\nt ( ! out/&+ pr9cipal on ! orig9al loan on ! date x 0 assign$2 divid$ by 7,,ii7 ! total am\nt ( su* assign$ loan1 includ+ int]e/ out/&+ at ! "t ( ! assignm5t ( su* loan & ! am\nt add$ by ! gu>anty ag5cy 9 accordance ) clause 7i71 on ! date su* loan 0 assign$4 4 7d7 ,loan limits = ,unsubsidiz$ ,/af=d ,loans ,section #dbh;,h7d77#e7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-h7;d77#e77 is am5d$ by ins]t+ be=e ! date ( enactm5t ( ! ,,loan ,act aft] ,int]e/ capitaliz$4 7e7 ,unsubsidiz$ ,/af=d loans = middle income borr[]s ,section #dbh;,h7e77#b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-h7;e77#b77 is am5d$-- 7#a7 9 ! head]1 by /rik+ ,capitalization & ins]t+ ,no capitalization2 7#b7 9 subp>agraph 7,a71 9 ! matt] be=e clause 7i71 by /rik+ 1 if agre$ ^u by ! borr[] & ! l5d] & all t foll[s ?r\gh clause 7ii77,,iv7 & ins]t+ be paid by ! borr[] & %all n be capitaliz$42 7#c7 by /rik+ subp>agraph 7,b72 & 7#d7 by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b74 7f7 ,income cont+5t repaym5t ,section #dee7;e77#e7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#e77 is am5d$ by /rik+ ! la/ s5t5ce & ins]t+ ,no int]e/ may be capitaliz$ on su* loan on or aft] ! date ( ! enactm5t ( ! ,,loan ,act1 & ! ,secret>y %all promulgate regulations ) respect to ! treatm5t ( accru$ int]e/ t is n capitaliz$4 7g7 ,def]m5t & =be>ance 7#a7 ,9 g5]al ,section #dee7;f7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7f77 is am5d$-- 7,a7 9 ! subsection head+1 by ins]t+ at ! end ! foll[+3 & =be>ance2 7,b7 9 subp>agraph 7,b71 by /rik+ capitaliz$ or2 & 7,c7 by add+ at ! end ! foll[+3 7#f7 ,=be>ance ,at ! expiration ( a p]iod ( =be>ance1 int]e/ %all n be capitaliz$ on any loans made "u ?is "p4 4 7#b7 ,application ( am5dm5t ,! am5dm5ts made by p>agraph 7#a7 %all apply to any def]m5t or =be>ance p]iod 9 effect on ! date ( enactm5t ( ?is ,act1 or any def]m5t or =be>ance p]iod beg9n+ on or aft] su* date ( enactm5t4 7h7 ,income-,bas$ ,repaym5t program ,section #dic;,c7b77#c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajih;e7b77#c77 is am5d$ to read z foll[s3 7#c7 on subsidiz$ loans1 any int]e/ due & n paid "u p>agraph 7#b7 %all be paid by ! ,secret>y = a p]iod ( n m ?an #c ye>s aft] ! date ( ! borr[]'s election "u p>agraph 7#a71 except t su* p]iod %all n include any p]iod dur+ :i* ! borr[] is 9 def]m5t due to an economic h>d%ip describ$ 9 section #dce7o72 4 7i7 ,notes & insurance c]tificates 9 ,comb9$ ,paym5t plans ,section #dhe;,a7f7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib;a7f77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,treatm5t ( int]e/ ,n )/&+ p>agraphs 7#a7 & 7#b71 beg9n+ on ! date ( enactm5t ( ! ,,loan ,act1 int]e/ on a loan reissu$ "u subsection 7e7 %all n be capitaliz$1 & int]e/ %all only accrue on ! p]c5tage ( su* reissu$ loan t is equal to-- 7,a7 ! am\nt ( ! out/&+ pr9cipal on ! orig9al loan on ! date x 0 reissu$2 divid$ by 7,b7 ! total am\nt ( su* reissu$ loan on ! date su* loan 0 reissu$4 4 #cjb4 ,elim9ation ( disclosure requirem5ts relat+ to capitalization 7a7 ,insurance ,program ,agreem5ts ,to ,qualify ,loans = ,int]e/ ,subsidies ,section #dbh7;b77#a77,y7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh7;b77#a77,y77 is am5d$-- 7#a7 9 clause 7i77,,iv71 by ins]t+ & aft] ! semicolon2 7#b7 9 clause 7ii71 by /rik+ 2 & & ins]t+ a p]iod2 & 7#c7 by /rik+ clause 7iii74 7b7 ,=be>ance ,section #dbh7;c77#c77;,c7 ( su* ,act ( #aife 7#bj ,u4,s4,c4 #ajgh7;c77#c77;,c77 is am5d$-- 7#a7 9 clause 7ii71 by ins]t+ & aft] ! semicolon2 & 7#b7 by /rik+ clauses 7iii7 & 7iv7 & ins]t+ ! foll[+3 7iii7 ! l5d] %all contact ! borr[] n less (t5 ?an once e #ahj days dur+ ! p]iod ( =be>ance to in=m ! borr[] (-- 7,i7 ! am\nt ( unpaid pr9cipal & ! am\nt ( int]e/ t has accru$ s9ce ! la/ /atem5t ( su* am\nts provid$ to ! borr[] by ! l5d]2 7,,ii7 ! fact t int]e/ w accrue on ! loan = ! p]iod ( =be>ance2 7,,iii7 ! responsibility ( ! borr[] to pay ! int]e/ t has accru$2 & 7,,iv7 ! borr[]'s option to discont9ue ! =be>ance at any "t2 & 4 7c7 ,requir$ ,disclosure ,be=e ,disbursem5t ,section #dcc7;a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhc7;a77 is am5d$-- 7#a7 by am5d+ p>agraph 7#f7 to read z foll[s3 7#f7 = loans made "u section #dbh;,h or to a /ud5t borr[] "u section #dbh;,b1 an explanation t ! borr[] has ! option to pay ! int]e/ t accrues on ! loan :ile ! borr[] is a /ud5t at an in/itution ( high] education2 2 & 7#b7 9 p>agraph 7#g7-- 7,a7 9 subp>agraph 7,a71 by ins]t+ & aft] ! semicolon2 7,b7 by /rik+ subp>agraph 7,b72 & 7,c7 by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b74 7d7 ,requir$ disclosure be=e repaym5t ,section #dcc7;b77#c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhc7;b77#c77 is am5d$ by /rik+ 7includ+1 if applicable1 ! e/imat$ am\nt ( int]e/ to be capitaliz$74 7e7 ,special ,disclosure ,rules on ,,plus ,loans & ,unsubsidiz$ ,loans ,section #dcc7;d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhc7;d77 is am5d$-- 7#a7 9 ! matt] prec$+ p>agraph 7#a7-- 7,a7 by /rik+ result+ f capitalization ( int]e/2 & 7,b7 by /rik+ borr[] (-- & ins]t+ borr[] ( pay+ ! int]e/ z ! int]e/ accrues42 & 7#b7 by /rik+ p>agraphs 7#a7 & 7#b74 7f7 ,disclosure ,requir$ prior to ,p]k9s repaym5t ,section #dfc;,a7b77#c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;cc-#a7;b77#c77 is am5d$ by /rik+ 7includ+1 if applicable1 ! e/imat$ am\nt ( int]e/ to be capitaliz$74 7g7 ,dep>tm5tal ,publication ( ,descriptions ( ,assi/ance ,programs ,section #dhe7;d77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7;d77#a77 is am5d$ by /rik+ 1 includ+ ! increase 9 debt t results f capitalization ( int]e/4 7h7 ,in=mation ,to be provid$ dur+ ,entrance ,c\nsel+ = ,borr[]s ,section #dhe7l77#b77;,c7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajib7l77#b77 is am5d$ by /rik+ & is capitaliz$4 ,,iv ,int]e/ ,rates #dja4 ,int]e/ rate provisions = new ,f$]al /ud5t loans on or aft] ,july #a1 #bjbf ,section #dee7;b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7b77 is am5d$-- 7#a7 9 p>agraph 7#h7-- 7,a7 9 ! p>agraph head+1 by ins]t+ 1 & be=e ,july #a1 #bjbf be=e ! p]iod2 & 7,b7 by ins]t+ & be=e ,july #a1 #bjbf1 aft] ,july #a1 #bjac1 ea* place x appe>s2 7#b7 by r$esignat+ p>agraphs 7#i7 & 7#aj7 z p>agraphs 7#aj7 & 7#aa71 respectively2 & 7#c7 by ins]t+ aft] p>agraph 7#h7 ! foll[+ new p>agraph3 7#i7 ,int]e/ rate provisions = new loans on or aft] ,july #a1 #bjbf 7,a7 ,rate = ,,fdsl1 ,,fdusl1 & ,,plus loans ,not)/&+ ! prec$+ p>agraphs ( ?is subsection1 = ,f$]al ,direct ,/af=d ,loans1 ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans1 & ,f$]al ,direct ,,plus ,loans1 = :i* ! fir/ disbursem5t is made on or aft] ,july #a1 #bjbf1 ! applicable rate ( int]e/ %all1 = loans disburs$ dur+ any #ab-mon? p]iod beg9n+ on ,july #a & end+ on ,june #cj1 be det]m9$ on ! prec$+ ,june #a & be equal to ! less] (-- 7i7 a rate equal to ! high yield ( ! #aj-ye> ,treasury note auction$ at ! f9al auction held prior to su* ,june #a2 or 7ii7 #e4j p]c5t4 7,b7 ,consolidation loans ,not)/&+ ! prec$+ p>agraphs ( ?is subsection1 any ,f$]al ,direct ,consolidation ,loan = :i* ! application is receiv$ on or aft] ,july #a1 #bjbf1 %all-- 7i7 be> int]e/ at an annual rate on ! unpaid pr9cipal balance ( ! loan t is equal to ! less] (-- 7,i7 ! weight$ av]age ( ! int]e/ rates on ! loans consolidat$1 r\nd$ to ! ne>e/ high] "o-eigh? ( "o p]c5t2 or 7,,ii7 #e4j p]c5t2 & 7ii7 only accrue int]e/ on ! p]c5tage ( su* ,f$]al ,direct ,consolidation ,loan t is equal to-- 7,i7 ! am\nt ( ! sum ( ! unpaid pr9cipal on ! loans consolidat$2 divid$ by 7,,ii7 ! total am\nt ( su* ,f$]al ,direct ,consolidation ,loan4 7,c7 ,consultation ,! ,secret>y %all det]m9e ! applicable rate ( int]e/ "u ?is p>agraph aft] consultation ) ! ,secret>y ( ! ,treasury & %all publi% su* rate 9 ! ,f$]al ,regi/] z soon z practicable aft] ! date ( det]m9ation4 7,d7 ,fix$ rate ,! applicable rate ( int]e/ det]m9$ "u ?is p>agraph = a ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 a ,f$]al ,direct ,,plus ,loan1 or a ,f$]al ,direct ,consolidation ,loan %all be fix$ = ! p]iod ( ! loan4 4 #djb4 ,ref9anc+ ,,ffel & ,f$]al ,direct ,loans ,"p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is am5d$ by add+ at ! end ! foll[+3 #dfj;,a4 ,ref9anc+ ,,ffel & ,f$]al ,direct ,loans 7a7 ,9 g5]al ,! ,secret>y %all e/abli% a program "u :i* ! ,secret>y1 ^u ! receipt ( an application f a qualifi$ borr[]1 makes a loan "u ?is "p1 9 accordance ) ! provisions ( ?is section1 9 ord] to p]mit ! borr[] to obta9 ! int]e/ rate provid$ "u subsection 7c74 7b7 ,ref9anc+ ,direct loans 7#a7 ,f$]al direct loans ,^u application ( a qualifi$ borr[]1 ! ,secret>y %all repay a ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 a ,f$]al ,direct ,,plus ,loan1 or a ,f$]al ,direct ,consolidation ,loan ( ! qualifi$ borr[]1 = :i* ! fir/ disbursem5t 0 made1 or ! application = ! consolidation loan 0 receiv$1 be=e ,july #a1 #bjbf1 ) ! proce$s ( a ref9anc$ ,f$]al ,direct ,/af=d ,loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 a ,f$]al ,direct ,,plus ,loan1 or a ,f$]al ,direct ,consolidation ,loan1 respectively1 issu$ to ! borr[] 9 an am\nt equal to ! sum ( ! unpaid pr9cipal1 accru$ unpaid int]e/1 & late *>ges ( ! orig9al loan4 7#b7 ,ref9anc+ ,,ffel program loans z ref9anc$ ,f$]al ,direct ,loans ,^u application ( a qualifi$ borr[] = any loan t 0 made1 insur$1 or gu>ante$ "u "p ,b & = :i* ! fir/ disbursem5t 0 made1 or ! application = ! consolidation loan 0 receiv$1 be=e ,july #a1 #bjaj1 ! ,secret>y %all make a loan "u ?is "p1 9 an am\nt equal to ! sum ( ! unpaid pr9cipal1 accru$ unpaid int]e/1 & late *>ges ( ! orig9al loan to ! borr[] 9 accordance ) ! foll[+3 7,a7 ,! ,secret>y %all pay ! proce$s ( su* loan to ! eligible l5d] ( ! loan made1 insur$1 or gu>ante$ "u "p ,b1 9 ord] to dis*>ge ! borr[] f any rema9+ obligation to ! l5d] ) respect to ! orig9al loan4 7,b7 ,a loan made "u ?is section t 0 orig9ally-- 7i7 a loan orig9ally made1 insur$1 or gu>ante$ "u section #dbh %all be a ,f$]al ,direct ,/af=d ,loan2 7ii7 a loan orig9ally made1 insur$1 or gu>ante$ "u section #dbh;,b %all be a ,f$]al ,direct ,,plus ,loan2 7iii7 a loan orig9ally made1 insur$1 or gu>ante$ "u section #dbh;,h %all be a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan2 & 7iv7 a loan orig9ally made1 insur$1 or gu>ante$ "u section #dbh;,c %all be a ,f$]al ,direct ,consolidation ,loan4 7,c7 ,! int]e/ rate = ea* loan made by ! ,secret>y "u ?is p>agraph %all be ! rate provid$ "u subsection 7c74 7c7 ,int]e/ rates 7#a7 ,9 g5]al ,! int]e/ rate = ! ref9anc$ ,f$]al ,direct ,/af=d ,loans1 ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loans1 ,f$]al ,direct ,,plus ,loans1 & ,f$]al ,direct ,consolidation ,loans1 %all be a rate equal to-- 7,a7 9 any case :]e ! orig9al loan 0 a loan "u section #dbh1 #dbh;,b1 #dbh;,h1 a ,f$]al ,direct ,/af=d loan1 a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or a ,f$]al ,direct ,,plus ,loan1 a rate equal to ! int]e/ rate det]m9$ "u section #dee7;b77#i77;,a7 = ! date on :i* ! ref9anc$ loan is made2 & 7,b7 9 any case :]e ! orig9al loan 0 a loan "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan1 a rate calculat$ 9 accordance ) p>agraph 7#b74 7#b7 ,int]e/ rates = consolidation loans 7,a7 ,me?od ( calculation ,9 ord] to det]m9e ! int]e/ rate = any ref9anc$ ,f$]al ,direct ,consolidation ,loan "u p>agraph 7#a77;,b71 ! ,secret>y %all-- 7i7 det]m9e ea* ( ! compon5t loans t 7 orig9ally consolidat$ 9 ! loan "u section #dbh;,c or ! ,f$]al ,direct ,consolidation ,loan1 & calculate ! proportion ( ! unpaid pr9cipal balance ( ! loan "u section #dbh;,c or ! ,f$]al ,direct ,consolidation ,loan t ea* compon5t loan repres5ts2 7ii7 use ! proportions det]m9$ 9 accordance ) clause 7i7 & ! int]e/ rate applicable = ea* compon5t loan1 z det]m9$ "u subp>agraph 7,b71 to calculate ! weight$ av]age ( ! int]e/ rates on ! loans consolidat$ into ! loan "u section #dbh;,c or ! ,f$]al ,direct ,consolidation ,loan2 & 7iii7 make ! applicable int]e/ rate = ! ref9anc$ ,f$]al ,direct ,consolidation ,loan ! less] (-- 7,i7 ! weight$ av]age calculat$ "u clause 7ii72 or 7,,ii7 #e4j p]c5t4 7,b7 ,int]e/ rates = compon5t loans ,! int]e/ rates = ! compon5t loans ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan %all be ! foll[+3 7i7 ,! int]e/ rate = any loan "u section #dbh1 #dbh;,b1 #dbh;,h1 ,f$]al ,direct ,/af=d ,loan1 ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 or ,f$]al ,direct ,,plus ,loan %all be a rate equal to ! less] (-- 7,i7 ! int]e/ rate det]m9$ "u section #dee7;b77#i77;,a7 = ! date on :i* ! compon5t loan is made2 or 7,,ii7 ! orig9al int]e/ rate ( ! compon5t loan4 7ii7 ,! int]e/ rate = any compon5t loan t is a loan "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan %all be ! less] (-- 7,i7 ! weight$ av]age ( ! int]e/ rates t w\ld apply "u ?is subp>agraph = ea* loan compris+ ! compon5t consolidation loan2 or 7,,ii7 #e p]c5t4 7iii7 ,! int]e/ rate = any eligible loan t is a compon5t ( a loan made "u section #dbh;,c or a ,f$]al ,direct ,consolidation ,loan & is n describ$ 9 clauses 7i7 or 7ii7 %all be ! less] (-- 7,i7 ! int]e/ rate on ! orig9al compon5t loan2 or 7,,ii7 #e p]c5t4 7#c7 ,fix$ rate ,! applicable rate ( int]e/ det]m9$ "u p>agraph 7#a7 = a ref9anc$ loan "u ?is section %all be fix$ = ! p]iod ( ! loan4 7#d7 ,capitaliz$ int]e/ & fees exclud$ ,) respect to a ref9anc$ loan "u ?is section1 int]e/ %all only accrue on ! p]c5tage ( su* ref9anc$ loan t is equal to-- 7,a7 ! am\nt ( ! unpaid pr9cipal ( ! orig9al loan1 or 9 ! case ( a ref9anc$ ,f$]al ,direct ,consolidation ,loan1 ! sum ( ! unpaid pr9cipal ( all ! compon5t loans1 compris+ ! ref9anc$ loan2 divid$ by 7,b7 ! total am\nt ( su* ref9anc$ loan4 7d7 ,t]ms & conditions ( loans 7#a7 ,9 g5]al ,a loan t is ref9anc$ "u ?is section %all h ! same t]ms & conditions z ! orig9al loan1 except z o!rwise provid$ 9 ?is section4 7#b7 ,no automatic ext5sion ( repaym5t p]iod ,ref9anc+ a loan "u ?is section %all n result 9 ! ext5sion ( ! duration ( ! repaym5t p]iod ( ! loan1 & ! borr[] %all reta9 ! same repaym5t t]m t 0 9 effect on ! orig9al loan4 ,no?+ 9 ?is p>agraph %all be con/ru$ to prev5t a borr[] f elect+ a diff]5t repaym5t plan at any "t 9 accordance ) section #dee;,a7a74 7e7 ,def9ition ( qualifi$ borr[] ,= purposes ( ?is section1 ! t]m qualifi$ borr[] means a borr[]-- 7#a7 ( a loan "u ?is "p or "p ,b = :i* ! fir/ disbursem5t 0 made1 or ! application = a consolidation loan 0 receiv$1 be=e ,july #a1 #bjbf2 & 7#b7 :o has "o or m loans describ$ 9 p>agraph 7#a7 or 7#b7 ( subsection 7b7 ) an int]e/ rate t exce$s #e p]c5t4 7f7 ,notification to borr[]s ,! ,secret>y1 9 coord9ation ) ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection1 %all und]take a campaign to al]t borr[]s ( loans t are eligible = ref9anc+ "u ?is section t ! borr[]s are eligible to apply = su* ref9anc+4 ,! campaign %all include ! foll[+ activities3 7#a7 ,develop+ consum] in=mation mat]ials ab\t ! availability ( ,f$]al /ud5t loan ref9anc+4 7#b7 ,requir+ s]vic]s ( loans "u ?is "p or "p ,b to provide su* consum] in=mation to borr[]s 9 a mann] det]m9$ appropriate by ! ,secret>y1 9 consultation ) ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection4 4 #djc4 ,ref9anc+ private /ud5t loans ,"p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq471 z am5d$ by section #djb1 is fur!r am5d$ by add+ at ! end ! foll[+3 #dfj;,b4 ,f$]al ,direct ,ref9anc$ ,private ,loan program 7a7 ,def9itions ,9 ?is section3 7#a7 ,eligible private education loan ,! t]m eligible private education loan means a private education loan1 z def9$ 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a771 t-- 7,a7 0 disburs$ to ! borr[] be=e ,july #a1 #bjbf2 & 7,b7 0 = ! borr[]'s own po/second>y educational exp5ses = an eligible program at an in/itution ( high] education p>ticipat+ 9 ! loan program "u ?is "p1 z ( ! date t ! loan 0 disburs$4 7#b7 ,f$]al direct ref9anc$ private loan ,! t]m ,f$]al ,direct ,ref9anc$ ,private ,loan means a loan issu$ "u subsection 7b77#a74 7#c7 ,private educational l5d] ,! t]m private educational l5d] has ! mean+ giv5 ! t]m 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a774 7#d7 ,qualifi$ borr[] ,! t]m qualifi$ borr[] means an individual :o-- 7,a7 has an eligible private education loan2 7,b7 has be5 curr5t on paym5ts on ! eligible private education loan = ! #f mon?s prior to ! date ( ! qualifi$ borr[]'s application = ref9anc+ "u ?is section1 & is 9 good /&+ on ! loan at ! "t ( su* application2 7,c7 is n 9 default on ! eligible private education loan or on any loan made1 insur$1 or gu>ante$ "u ?is "p or "p ,b or ,e2 & 7,d7 meets ! eligibility requirem5ts describ$ 9 subsection 7b77#b74 7b7 ,program au?oriz$ 7#a7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! ,secret>y ( ! ,treasury1 %all c>ry out a program "u :i* ! ,secret>y1 ^u application by a qualifi$ borr[] :o has an eligible private education loan1 %all issue su* borr[] a loan "u ?is "p 9 accordance ) ! foll[+3 7,a7 ,! loan issu$ "u ?is program %all be 9 an am\nt equal to ! sum ( ! unpaid pr9cipal1 accru$ unpaid int]e/1 & late *>ges ( ! private education loan4 7,b7 ,! ,secret>y %all pay ! proce$s ( ! loan issu$ "u ?is program to ! private educational l5d] ( ! private education loan1 9 ord] to dis*>ge ! qualifi$ borr[] f any rema9+ obligation to ! l5d] ) respect to ! orig9al loan4 7,c7 ,! ,secret>y %all require t ! qualifi$ borr[] und]go loan c\nsel+ t provides all ( ! relevant in=mation & c\nsel+ requir$ "u section #dhe7l77#b7 be=e ! loan is ref9anc$ 9 accordance ) ?is section1 & be=e ! proce$s ( su* loan are paid to ! private educational l5d]4 7,d7 ,! ,secret>y %all issue ! loan z a ,f$]al ,direct ,ref9anc$ ,private ,loan1 :i* %all h ! same t]ms1 conditions1 & b5efits z a ,f$]al ,direct ,unsubsidiz$ ,/af=d ,loan1 except z o!rwise provid$ 9 ?is section4 7,e7 ,! int]e/ rate = ea* loan made by ! ,secret>y "u ?is section %all be ! rate provid$ "u subsection 7c74 7#b7 ,borr[] eligibility ,! ,secret>y1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 %all e/abli% eligibility requirem5ts-- 7,a7 to ensure eligibility only = borr[]s 9 good /&+2 7,b7 to m9imize inequities betwe5 ,f$]al ,direct ,ref9anc$ ,private ,loans & o!r ,f$]al /ud5t loans2 7,c7 to preclude w9dfall pr(its = private educational l5d]s2 & 7,d7 to ensure full access to ! program au?oriz$ 9 ?is subsection = borr[]s ) private loans :o o!rwise meet ! crit]ia e/abli%$ 9 accordance ) subp>agraph 7,a74 7c7 ,int]e/ rate 7#a7 ,9 g5]al ,! int]e/ rate = a ,f$]al ,direct ,ref9anc$ ,private ,loan is a rate equal to ! int]e/ rate det]m9$ "u section #dee7;b77#i77;,a7 = ! date on :i* ! ref9anc$ private loan is made4 7#b7 ,fix$ rate ,! int]e/ rate det]m9$ "u ?is subsection = a ,f$]al ,direct ,ref9anc$ ,private ,loan %all be fix$ = ! p]iod ( ! loan4 7#c7 ,capitaliz$ int]e/ & fees exclud$ ,) respect to a ,f$]al ,direct ,ref9anc$ ,private ,loan "u ?is section1 int]e/ %all only accrue on ! p]c5tage ( su* ,ref9anc$ ,private ,loan t is equal to-- 7,a7 ! am\nt ( ! unpaid pr9cipal ( ! orig9al loan compris+ ! ,ref9anc$ ,private ,loan on ! date su* orig9al loan 0 ref9anc$2 divid$ by 7,b7 ! total am\nt ( su* ,ref9anc$ ,private ,loan4 7d7 ,no inclusion 9 aggregate limits ,! am\nt ( a ,f$]al ,direct ,ref9anc$ ,private ,loan1 or a ,f$]al ,direct ,consolidat$ ,loan to ! ext5t su* loan 0 us$ to repay a ,f$]al ,direct ,ref9anc$ ,private ,loan1 %all n be includ$ 9 calculat+ a borr[]'s annual or aggregate loan limits "u section #dbh or #dbh;,h4 7e7 ,no eligibility = s]vice-,relat$ repaym5t ,a ,f$]al ,direct ,ref9anc$ ,private ,loan1 or any ,f$]al ,direct ,consolidation ,loan to ! ext5t su* loan 0 us$ to repay a ,f$]al ,direct ,ref9anc$ ,private ,loan1 %all n be eligible = any loan repaym5t or loan =giv5ess program "u section #dbh,k1 #dbh,l1 or #dfj or = ! loan cancellation repaym5t plan = public s]vice employees "u section #dee7m74 7f7 ,private educational l5d] report+ requirem5t 7#a7 ,report+ requir$ ,! ,secret>y1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection1 %all e/abli% a requirem5t t1 9 ord] to all[ = an assessm5t ( ! private education loan m>ket1 private educational l5d]s report ! data describ$ 9 p>agraph 7#b7 to-- 7,a7 ! ,secret>y2 7,b7 ! ,secret>y ( ! ,treasury2 7,c7 ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau2 7,d7 ! ,committee on ,education & ,work=ce ( ! ,h\se ( ,repres5tatives2 7,e7 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives2 7,f7 ! ,s5ate ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions2 & 7,g7 ! ,s5ate ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs4 7#b7 ,cont5ts ( report+ ,! data t private educational l5d]s %all report 9 accordance ) p>agraph 7#a7 %all include ea* ( ! foll[+ ab\t private education loans 7z def9$ 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a7773 7,a7 ,! total am\nt ( private education loan debt ! l5d] holds4 7,b7 ,! total numb] ( private education loan borr[]s ! l5d] s]ves4 7,c7 ,! av]age int]e/ rate on ! out/&+ private education loan debt held by ! l5d]4 7,d7 ,! proportion ( private education loan borr[]s :o are 9 default on a loan held by ! l5d]4 7,e7 ,! proportion ( ! out/&+ private education loan volume held by ! l5d] t is 9 default4 7,f7 ,! proportions ( out/&+ private education loan borr[]s :o are #cj1 #fj1 & #ij days del9qu5t4 7,g7 ,! proportions ( out/&+ private education loan volume t is #cj1 #fj1 & #ij days del9qu5t4 7g7 ,notification to borr[]s ,! ,secret>y1 9 coord9ation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,consum] ,f9ancial ,protection ,bureau1 %all und]take a campaign to al]t borr[]s ab\t ! availability ( private /ud5t loan ref9anc+ "u ?is section4 4