,,ii #aaith ,,congress #ast ,session ,s4 #abbj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #a 7legislative day1 ,march #ca71 #bjbe,mr4 ,merkley 7for himself1 ,mr4 ,kaine1 ,mr4 ,schumer1 ,ms4 ,hirono1 ,mr4 ,blumenthal1 ,ms4 ,warren1 ,mr4 ,welch1 ,mrs4 ,gillibrand1 ,mr4 ,padilla1 ,mr4 ,booker1 ,ms4 ,smith1 ,mr4 ,sanders1 ,mr4 ,wyden1 ,mr4 ,kim1 and ,mr4 ,markey7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide for a ,savings ,opportunity and ,affordable ,repayment plan as an income contingent repayment plan4 #a4 ,short title ,this ,act may be cited as the ,savings ,opportunity and ,affordable ,repayment ,act4 #b4 ,savings ,opportunity and ,affordable ,repayment plan 7a7 ,amendments to the ,higher ,education ,act of #aife ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in section #dbh7;b77#i77;,a7-- 7,a7 in clause 7iv71 by striking and after the semicolon2 7,b7 in clause 7v71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7vi7 beginning on the date that is #ahj days after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 an income contingent repayment plan known as the ,savings ,opportunity and ,affordable ,repayment plan1 consistent with section #dic;,e4 2 7#b7 in section #dbh;,c7c77#b77;,a7-- 7,a7 in the first sentence1 by striking or income-based and inserting income-based1 or income contingent ,savings ,opportunity and ,affordable ,repayment 7consistent with section #dic;,e72 and 7,b7 in the second sentence1 by striking or income-based and inserting income-based1 or income contingent ,savings ,opportunity and ,affordable ,repayment2 7#c7 in section #dee7;d7-- 7,a7 in paragraph 7#a71 by striking subparagraph 7,d7 and inserting the following3 7,d7 except as provided in paragraph 7#f71 an income contingent repayment plan-- 7i7 with varying annual repayment amounts based on the income of the borrower1 paid over an extended period of time prescribed by the ,secretary1 not to exceed #be years1 except that the plan described in this clause shall not be available to the borrower of a ,federal ,direct ,,plus loan made on behalf of a dependent student2 and 7ii7 which1 beginning on the date that is #ahj days after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 shall include the ,savings ,opportunity and ,affordable ,repayment plan1 consistent with section #dic;,e2 and 2 and 7,b7 by adding at the end the following3 7#f7 ,phase outs 7,a7 ,,paye repayment plan 7i7 ,in general ,a borrower may choose the ,pay ,as ,you ,earn ,repayment ,plan1 as described in section #fhe4bji of title #cd1 ,code of ,federal ,regulations 7as in effect on ,january #ai1 #bjbe71 as an income contingent repayment plan pursuant to paragraph 7#a77;,d7-- 7,i7 before the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 only if the borrower-- 7aa7 has loans eligible for repayment under such plan1 as described in such section as in effect on such date2 and 7bb7 has a partial financial hardship when the borrower initially enters such plan1 as described in such section as in effect on such date2 and 7,,ii7 on or after the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 only if the borrower meets the conditions described in subclause 7,i7 and was repaying a loan under such plan before such date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act4 7ii7 ,prohibition against re-enrollment ,beginning on the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 a borrower who was repaying a loan under the ,pay ,as ,you ,earn ,repayment ,plan1 as described in clause 7i71 and changes to a different repayment plan may not re-enroll in the ,pay ,as ,you ,earn ,repayment ,plan4 7,b7 ,income contingent repayment plan 7i7 ,in general ,a borrower may choose the ,,icr plan1 as described in section #fhe4bji of title #cd1 ,code of ,federal ,regulations 7as in effect on ,january #ai1 #bjbe71 as an income contingent repayment plan pursuant to paragraph 7#a77;,d7-- 7,i7 before the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 only if the borrower has loans eligible for repayment under such plan1 as described in such section as in effect on such date1 except as provided in clause 7iii72 and 7,,ii7 on or after the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 only if the borrower has loans eligible for repayment under such plan1 as described in such section as in effect on such date1 except as provided in clause 7iii71 and was repaying a loan under such plan before such date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act4 7ii7 ,prohibition against re-enrollment ,beginning on the date that is #b years after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act1 a borrower who was repaying a loan under the ,,icr plan1 as described in clause 7i71 and changes to a different repayment plan may not re-enroll in the ,,icr plan4 7iii7 ,eligible loans for purposes of ,,icr repayment ,in addition to the loans eligible for repayment under the ,,icr plan as described in section #fhe4bji of title #cd1 ,code of ,federal ,regulations 7as in effect on ,january #ai1 #bjbe71 an eligible loan for purposes of repayment under the ,,icr plan may include-- 7,i7 a ,federal ,direct ,,plus ,loan made on behalf of a dependent student2 7,,ii7 a ,federal ,direct ,consolidation ,loan for which the proceeds were used to discharge the liability on a ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student2 7,,iii7 a loan under section #dbh;,b made on behalf of a dependent student2 or 7,,iv7 a loan under section #dbh;,c for which the proceeds were used to discharge the liability on a ,federal ,direct ,,plus ,loan or a loan under section #dbh;,b made on behalf of a dependent student4 2 7#d7 by inserting after section #dic;,d the following3 #dic;,e4 ,savings ,opportunity and ,affordable ,repayment plan 7a7 ,definitions ,in this section3 7#a7 ,eligible loan ,the term eligible loan means a loan made1 insured1 or guaranteed under part ,b or ,d4 7#b7 ,monthly payment obligation 7,a7 ,in general ,the term monthly payment obligation1 when used with respect to a borrower1 means that for such borrower the monthly payment amount due on the total amount of eligible loans made to such borrower that is equal to1 except as provided in subparagraph 7,b7-- 7i7 #j for the portion of the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 that is less than or equal to #bej percent of the poverty line applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b772 plus 7ii7 #e percent of the portion of the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 that is greater than #bej percent of the poverty line applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b771 prorated by the percentage that is the result of dividing the borrower's original total loan balance attributable to eligible loans received for the borrower's undergraduate study by the original total loan balance attributable to all eligible loans1 divided by #ab2 plus 7iii7 for loans not subject to clause 7ii71 #aj percent of the portion of the borrower's1 and the borrower's spouse's 7if applicable71 adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 that is greater than #bej percent of the poverty line applicable to the borrower's family size as determined under section #fgc7b7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iijb7b771 prorated by the percentage that is the result of dividing the borrower's original total loan balance minus the original total loan balance of loans subject to clause 7ii7 by the borrower's original total loan balance attributable to all eligible loans1 divided by #ab4 7,b7 ,minimal payment obligation ,if the calculation of the monthly payment amount due under subparagraph 7,a7 for a borrower is-- 7i7 less than #e1 then the monthly payment obligation for such borrower is equal to #j2 and 7ii7 equal to or greater than #e but less than #aj1 then the monthly payment obligation for such borrower is equal to #aj4 7b7 ,savings ,opportunity and ,affordable ,repayment authorized ,notwithstanding any other provision of this ,act1 the ,secretary shall carry out a ,savings ,opportunity and ,affordable ,repayment plan program that complies with the following3 7#a7 ,a borrower of any eligible loan may elect to have the borrower's aggregate monthly payment for all such loans not exceed the monthly payment obligation of such borrower4 7#b7 ,the holder of such eligible loan shall apply-- 7,a7 #ej percent of the borrower's monthly payment under this subsection toward outstanding principal2 and 7,b7 #ej percent of the borrower's monthly payment under this subsection-- 7i7 first toward accrued charges and collection costs on the loan2 7ii7 then toward outstanding interest2 and 7iii7 then toward outstanding principal4 7#c7 ,during all periods of repayment on all loans being repaid under the ,savings ,opportunity and ,affordable ,repayment plan1 the ,secretary shall not charge the borrower's account any accrued interest that is not covered by the borrower's monthly payment obligation4 7#d7 ,any principal due and not paid under paragraph 7#b7 shall be deferred4 7#e7 ,in the case of a borrower repaying under the ,savings ,opportunity and ,affordable ,repayment plan1 the ,secretary shall cancel the remaining balance due on all eligible loans for a borrower in the case the borrower-- 7,a7 is repaying only eligible loans received for undergraduate study1 or a consolidation loan that repaid only loans received for such study1 for which the borrower's attendance in such undergraduate study was not more than #b years1 after the borrower has satisfied #abj monthly payments or the equivalent 7as described in paragraph 7#f771 over a period of at least #aj years2 and 7,b7 is repaying at least one eligible loan not described in subparagraph 7,a71 after the borrower has satisfied #ahj monthly payments or the equivalent 7as described in paragraph 7#f771 over a period of at least #ae years4 7#f7 ,a monthly payment or the equivalent shall be satisfied by any of the following3 7,a7 ,a month in which the borrower-- 7i7 makes a monthly payment that is equal to not less than the monthly payment obligation of the borrower2 or 7ii7 has a monthly payment obligation of #j4 7,b7 ,a month in which the borrower receives a deferment or forbearance of repayment under any of the following3 7i7 ,a cancer treatment deferment under section #dee7;f77#c74 7ii7 ,a rehabilitation training program deferment4 7iii7 ,an unemployment deferment4 7iv7 ,an economic hardship deferment1 which includes volunteer service in the ,peace ,corps as an economic hardship condition4 7v7 ,a military service deferment4 7vi7 ,a post active-duty student deferment4 7vii7 ,a national service forbearance4 7viii7 ,a national guard duty forbearance4 7ix7 ,a ,department of ,defense ,student ,loan ,repayment forbearance4 7x7 ,an administrative forbearance under a period-- 7,i7 during which the ,secretary has authorized forbearance due to a national military mobilization or other local or national emergency2 7,,ii7 necessary for the ,secretary to collect and process documentation supporting the borrower's request for a deferment1 forbearance1 change in repayment plan1 or consolidation loan2 or 7,,iii7 determined necessary by the ,secretary4 7xi7 ,a bankruptcy forbearance if the borrower made the required payments on a confirmed bankruptcy plan4 7,c7 ,a month in which the borrower receives a deferment or forbearance of repayment not described in subparagraph 7,b71 but for which the borrower makes an additional payment equal to or greater than their monthly payment obligation 7including a monthly payment obligation of #j71 for a deferment or forbearance that ended within #c years of the date of such additional payment and occurred on or after the date that is #ahj days after the date of enactment of the ,savings ,opportunity and ,affordable ,repayment ,act4 7,d7 ,a month in which the borrower-- 7i7 makes a payment pursuant to a repayment plan under section #dic;,c or section #dee7;d77#a77;,e71 or another income continent repayment plan under section #dee7;d77#a77;,d71 or had a monthly payment obligation under such a plan of #j2 7ii7 makes a payment under the standard repayment plan1 as described in section #dbh7;b77#i77;,a77i72 or 7iii7 makes a payment under a repayment plan with payments that are as least as much as they would have been under the standard repayment plan1 as described in section #dbh7;b77#i77;,a77i74 7#g7 ,a borrower who is repaying an eligible loan pursuant to this section may elect1 at any time1 to terminate repayment pursuant to this section and repay such loan under any other repayment plan for which the borrower is eligible4 7#h7 ,a borrower who is repaying an eligible loan pursuant to this section may-- 7,a7 pay in multiple installments that equal the full scheduled monthly payment obligation of such borrower2 or 7,b7 pay a lump sum or monthly payment amount that is equal to or greater than the full scheduled monthly payment obligation of such borrower in advance of the borrower's scheduled payment due date for a period of months not to exceed the period from the ,secretary's receipt of the payment until the borrower's next annual repayment plan recertification date4 7c7 ,eligibility determinations 7#a7 ,in general ,the ,secretary shall establish procedures for annually determining the borrower's eligibility for repayment under this section1 including verification of a borrower's annual income and the annual amount due on the total amount of eligible loans1 and such other procedures as are necessary to effectively implement repayment under this section4 7#b7 ,procedures for eligibility ,the ,secretary shall-- 7,a7 consider1 but is not limited to1 the procedures established in accordance with section #dee7;e77#a72 and 7,b7 carry out1 with respect to borrowers of any eligible loan1 procedures for repayment plans that are equivalent to the procedures carried out under section #dee7;e77#h7 with respect to other income contingent repayment plans4 7#c7 ,failure to timely certify information ,if the ,secretary requires information from the borrower to recalculate the borrower's monthly payment obligation under this section1 and the borrower does not provide the necessary documentation to the ,secretary by the time the ,secretary requires such documentation1 the ,secretary shall remove the borrower from the ,savings ,opportunity and ,affordable ,repayment plan under this section and place the borrower on an alternative repayment plan under which the borrower's required monthly payment is the amount the borrower would have paid on a #aj-year standard repayment plan based on the current eligible loan balances and interest rates on the eligible loans at the time the borrower is removed from the plan under this section4 7#d7 ,procedures 7,a7 ,approval for the disclosure of tax information ,a borrower shall provide approval for the disclosure of applicable tax information to the ,secretary to initially enter repayment1 or recertify the borrower's intent to repay1 under this section either as part of the process of completing a ,direct ,loan ,master ,promissory ,note or a ,direct ,consolidation ,loan ,application and ,promissory ,note in accordance with sections #dee7;e77#h7 and #dic;,c7c77#b7 or on an application form approved by the ,secretary4 7,b7 ,failure to provide approval ,if a borrower does not provide approval for the disclosure of applicable tax information pursuant to subparagraph 7,a71 the borrower shall provide documentation of the borrower's income and family size to the ,secretary4 7,c7 ,inability to obtain information from the ,,irs ,if the ,secretary has received approval for disclosure of applicable tax information pursuant to subparagraph 7,a71 but cannot obtain the borrower's income and family size from the ,internal ,revenue ,service1 the borrower and1 if applicable1 the borrower's spouse1 shall provide documentation of income and family size to the ,secretary4 7,d7 ,calculation of payment amount ,after the ,secretary obtains sufficient information to calculate the borrower's monthly payment obligation1 the ,secretary shall-- 7i7 calculate the borrower's monthly payment obligation2 and 7ii7 establish the #ab-month period during which the borrower will be obligated to make payments in the amount of the monthly payment obligation4 7,e7 ,repayment disclosure ,the ,secretary shall send to each borrower a repayment disclosure that-- 7i7 specifies the borrower's calculated monthly payment obligation2 7ii7 explains how the payment was calculated2 7iii7 informs the borrower of the terms and conditions of repayment under this section2 and 7iv7 informs the borrower of how to contact the ,secretary if the calculated monthly payment obligation amount is not reflective of the borrower's current income or family size4 7,f7 ,request for recalculation 7i7 ,in general ,if a borrower believes that the calculated monthly payment obligation amount is not reflective of the borrower's current income or family size1 the borrower may request that the ,secretary recalculate the monthly payment obligation amount4 7ii7 ,alternative documentation ,to support a request under clause 7i71 the borrower shall submit alternative documentation of income or family size not based on tax information to account for circumstances such as a decrease in income since the borrower last filed a tax return1 the borrower's separation from a spouse with whom the borrower had previously filed a joint tax return1 the birth or impending birth of a child1 or other comparable circumstances4 7,g7 ,forbearance ,if a borrower provides alternative documentation under subparagraph 7,f7 or if the ,secretary receives documentation from the borrower or the borrower's spouse under subparagraph 7,c71 the ,secretary shall grant forbearance to provide time for the ,secretary to recalculate the borrower's monthly payment obligation based on the documentation4 7,h7 #c monthly payments remaining ,once a borrower has #c monthly payments remaining under a #ab-month period specified under subparagraph 7,d71 the ,secretary shall follow the procedures described in subparagraphs 7,c7 through 7,g74 7,i7 ,resetting of #ab-month period ,at any point during a #ab-month period specified under subparagraph 7,d71 a borrower may request that the ,secretary recalculate the borrower's monthly payment obligation earlier than would have otherwise been the case to account for a change in the borrower's circumstances1 such as a loss of income or employment or divorce4 ,in such a case1 the #ab-month period specified under subparagraph 7,d7 shall be reset based on the borrower's new information4 7,j7 ,tracking forgiveness ,the ,secretary shall track a borrower's progress toward eligibility for loan cancellation under subsection 7b77#e7 and cancel loans that meet the criteria under such subsection without the need for an application or documentation from the borrower4 7d7 ,married borrowers 7#a7 ,calculation based solely on borrower's information ,in the case of a married borrower1 the ,secretary shall calculate the amount of the borrower's monthly payment obligation under this section solely on the basis of the borrower's eligible loan debt and adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 if-- 7,a7 the borrower files a separate ,federal income tax return2 or 7,b7 the borrower files a joint ,federal income tax return and certifies that the borrower is currently separated from the borrower's spouse or is currently unable to reasonably access the spouse's income4 7#b7 ,calculation including spouse's information ,in the case of a married borrower not described in subparagraph 7,a7 or 7,b71 the ,secretary shall-- 7,a7 include the spouse's income in the calculation of the borrower's monthly payment obligation under this section2 and 7,b7 if the spouse has eligible loan debt1 adjust the borrower's monthly payment obligation under this section by-- 7i7 dividing the outstanding principal and interest balance of the borrower's eligible loans by the couple's combined outstanding principal and interest balance on eligible loans2 and 7ii7 multiplying the borrower's payment amount as calculated under subsection 7a77#e7 by the percentage determined under clause 7i74 2 and 7#e7 in section #did7;a77#b77;,a7-- 7,a7 in the matter preceding clause 7i71 by inserting or a ,savings ,opportunity and ,affordable ,repayment plan for a loan under part ,b after part ,d2 and 7,b7 in clause 7ii77,i71 by inserting or section #dic;,e7c77#b77;,b7 after section #dic;,c7c77#b77;,b74