,,ii #aai? ,,congress #b;d ,session ,s4 #didc ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #bd1 #bjbf,mr4 ,"y 7= himself1 ,mr4 ,w>n]1 & ,mr4 ,coons7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide a consum] protection framework necess>y to support ! gr[? ( outcomes-bas$ /ud5t f9anc+ tools to support work=ce tra9+1 po/second>y education1 & economic developm5t1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,outcomes-,bas$ ,f9anc+ 7,,obf7 = ,/ud5ts ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,,title ,i--,tax treatm5t ( ,,obf products,sec4 #aja4 ,exclusion ( income f dis*>ge ( indebt$ness4,sec4 #ajb4 ,treatm5t z int]e/ on education loan4,sec4 #ajc4 ,am\nts treat$ z educational assi/ance4,sec4 #ajd4 ,treatm5t ( am\nts receiv$ by ,,obf provid]4,,title ,,ii--,disclosures applicable to ,,obf products,sec4 #bja4 ,disclosures4,sec4 #bjb4 ,adv]tis+ ( ,,obf products4,,title ,,iii--,consum] protections = ,,obf products,sec4 #cja4 ,consum] protections4,sec4 #cjb4 ,treatm5t "u bankruptcy laws4,,title ,,iv--,o!r cl>ifications to support ,,obf products,sec4 #dja4 ,cons5t to cont9u+ release ( taxpay] in=mation "u ,,obf products4,sec4 #djb4 ,am5dm5ts to ! ,high] ,education ,act ( #aife4,sec4 #djc4 ,support+ outcomes-bas$ und]writ+4,sec4 #djd4 ,treatm5t "u ! ,fair ,cr$it ,report+ ,act4 ,i ,tax treatm5t ( ,,obf products #aja4 ,exclusion ( income f dis*>ge ( indebt$ness 7a7 ,9 g5]al ,section #ajh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7j7 ,outcomes-,bas$ f9anc+ products ,9 ! case ( an individual1 gross income does n include any am\nt :i* 7b = ?is subsection7 w\ld be includible 9 gross income by reason (-- 7#a7 ! dis*>ge 79 :ole or 9 "p7 ( any outcomes-bas$ loan 7z def9$ 9 section #adj7;h7 ( ! ,tru? 9 ,l5d+ ,act71 or 7#b7 ! t]m9ation or alt]ation 79 :ole or 9 "p7 ( ! individual's paym5t obligation "u an outcomes-bas$ paym5t agreem5t 7z s def9$74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajb4 ,treatm5t z int]e/ on education loan 7a7 ,9 g5]al ,section #bba ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7g7 ,outcomes-,bas$ paym5t agreem5ts ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,9 ! case ( an individual :o ent]s into an outcomes-bas$ paym5t agreem5t = purposes ( f9anc+ ! qualifi$ high] education exp5ses ( ! individual1 ! am\nt describ$ 9 p>agraph 7#b7 %all be treat$ 9 ! same mann] z int]e/ paid on a qualifi$ education loan4 7#b7 ,am\nt describ$ ,! am\nt describ$ 9 ?is p>agraph is an am\nt equal to ! excess (-- 7,a7 am\nts paid by ! taxpay] dur+ ! taxable ye> "u ! t]ms ( an outcomes-bas$ paym5t agreem5t describ$ 9 p>agraph 7#a71 ov] 7,b7 ! excess (-- 7i7 ! am\nt ( ! f9anc+ provid$ to ! taxpay] "u ! t]ms ( su* agreem5t1 ov] 7ii7 ! aggregate am\nts paid by ! taxpay] "u ! t]ms ( su* agreem5t 9 all prec$+ taxable ye>s4 7#c7 ,rules to apply ,rules simil> to ! rules ( subp>agraphs 7,a71 7,b71 & 7,c7 ( subsection 7c77#a7 %all apply = purposes ( det]m9+ :e!r an agreem5t 0 ent]$ into = purposes ( f9anc+ ! qualifi$ high] education exp5ses ( an individual4 7#d7 ,outcomes-bas$ paym5t agreem5t ,! t]m outcomes-bas$ paym5t agreem5t has ! mean+ giv5 su* t]m by section #adj7;h7 ( ! ,tru? 9 ,l5d+ ,act4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajc4 ,am\nts treat$ z educational assi/ance 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #abg7;c77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 & & ins]t+ or ( any obligation ( ! employee pursuant to an ,,obf product 7z def9$ 9 section #adj7;h7 ( ! ,tru? 9 ,l5d+ ,act7 us$ to f9ance education ( ! employee1 &4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajd4 ,treatm5t ( am\nts receiv$ by ,,obf provid] 7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aab ! foll[+ new section3 #aac4 ,am\nts receiv$ by outcomes-bas$ f9anc+ provid] 7a7 ,g5]al rule ,gross income ( an ,,obf provid] does n include s mu* ( am\nts receiv$ by su* provid] f an ,,obf recipi5t dur+ ! taxable ye> z does n exce$ an am\nt equal to ! excess (-- 7#a7 ! am\nt ( ! f9anc+ provid$ to ! ,,obf recipi5t "u ! t]ms ( an ,,obf product1 ov] 7#b7 ! aggregate am\nts receiv$ by ! ,,obf provid] "u ! t]ms ( ! product 9 all prec$+ taxable ye>s4 7b7 ,t]ms ,= purposes ( ?is section1 ! t]ms ,,obf provid]1 ,,obf recipi5t1 & ,,obf product h ! respective mean+s giv5 su* t]ms by section #adj7;h7 ( ! ,tru? 9 ,l5d+ ,act4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,iii ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #aab ! foll[+ new item3 ,sec4 #aac4 ,am\nts receiv$ by outcomes-bas$ f9anc+ provid]4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,ii ,disclosures applicable to ,,obf products #bja4 ,disclosures 7a7 ,disclosure guidel9es ,section #aje ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afjd7 is am5d$ by add+ at ! end ! foll[+3 7j7 ,regulations relat$ to ,,obf products ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ! ,outcomes-,bas$ ,f9anc+ 7,,obf7 = ,/ud5ts ,act1 ! ,bureau %all prescribe regulations to c>ry out ! purposes ( ?is title1 :i* may conta9 su* additional requirem5ts1 classifications1 diff]5tiations1 or o!r provisions1 & may provide = su* adju/m5ts & exceptions = all or any class ( transactions1 z 9 ! judgm5t ( ! ,bureau are necess>y or prop] to effectuate ! purposes ( ?is title1 to prev5t circumv5tion or evasion !re(1 or to facilitate compliance !re)4 7k7 ,model disclosure =ms & clauses = ,,obf products ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ! ,outcomes-,bas$ ,f9anc+ 7,,obf7 = ,/ud5ts ,act1 ! ,bureau %all publi% a model integrat$ disclosure = ,,obf products 9 ord] to facilitate compliance ) ! disclosure requirem5ts ( ?is title & aid ,,obf recipi5ts 9 und]/&+ ! transaction by utiliz+ readily und]/&able language to simplify ! te*nical nature ( ! disclosures4 4 7b7 ,=m ( disclosure2 additional in=mation ,section #abb7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afcb7;a77 is am5d$-- 7#a7 9 ! second s5t5ce1 by /rik+ ,! t]ms & ins]t+ ,= a product t is n an ,,obf product1 ! t]ms2 & 7#b7 by ins]t+ aft] ! second s5t5ce ,= an ,,obf product1 ! t]ms paym5t calculation me?od1 income ?re%old1 & completion me*anisms %all be disclos$ m conspicu\sly ?an o!r t]ms1 data1 or in=mation provid$ 9 connection ) a transaction1 except = in=mation relat+ to ! id5tity ( ! cr$itor1 & in=mation 9 ! table ref]5c$ 9 section #abh7;e77#ab77;,b77v74 ,! t]ms annual p]c5tage rate & f9ance *>ge %all be disclos$ m conspicu\sly ?an o!r t]ms1 data1 or in=mation provid$ 9 su* table44 7c7 ,transactions o!r ?an "u an op5 end cr$it plan ,section #abh7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e77 is am5d$ by add+ at ! end ! foll[+3 7#ab7 ,disclosure requirem5ts = outcomes-bas$ f9anc+ products 7,a7 ,9 g5]al ,9 addition to ! disclosures requir$ "u ?is *apt]1 & 9 lieu ( ! disclosure requirem5ts 9 p>agraphs 7#c71 7#d71 7#e7 & 7#f7 ( subsection 7a71 subp>agraph 7,c7 ( p>agraph 7#b71 & p>agraphs 7#a71 7#b71 & 7#d7 ( ?is subsection1 an ,,obf provid] %all disclose ! foll[+3 7i7 ,disclosures requir$ 9 private education loan applications & solicitations ,9 any application = an ,,obf product1 or a solicitation = an ,,obf product )\t requir+ an application1 ! ,,obf provid] %all disclose to ! ,,obf recipi5t1 cle>ly & conspicu\sly-- 7,i7 ! disclosures requir$ "u subclauses 7,i7 & 7,,ii7 ( clause 7ii71 includ+ ! pot5tial range ( t]ms applicable to ! ,,obf product = ea* disclosure item2 7,,ii7 ! disclosures requir$ "u subclauses 7,,iii7 & 7,,iv7 ( clause 7ii72 7,,iii7 ! comp>ison table describ$ 9 clause 7ii77,v71 us+ ! highe/ doll> am\nt or p]c5tage t ! ,,obf provid] c\ld set "u ! ,,obf paym5t calculation me?od describ$ 9 clause 7ii77,i7 bas$ on an am\nt f9anc$ ( #aj1jjj1 or #e1jjj if ! ,,obf provid] only (f]s ,,obf products ( ?is type = less ?an #e1jjj2 & 7,,iv7 ! disclosures requir$ "u-- 7aa7 p>agraph 7#a77;,j7 7relat+ to eligibility requirem5ts72 7bb7 subp>agraphs 7,l7 ?r\gh 7,n7 & 7,q7 ( p>agraph 7#a7 7relat+ to ! availability ( o!r pot5tial s\rces ( in=mation & aid72 7cc7 p>agraph 7#a77,o7 7relat+ to ! #cj-;day approval p]iod72 & 7dd7 p>agraph 7#a77,p7 7relat+ to self-c]tification74 7ii7 ,disclosures at ! "t ( private education loan approval ,contemporane\sly ) ! approval ( an ,,obf product application1 & be=e ! loan transaction is consummat$1 ! ,,obf provid] %all disclose to ! borr[]1 cle>ly & conspicu\sly1 ! foll[+3 7,i7 ,z relates to ! p]iodic paym5t obligation3 7aa7 ,! t]m ,paym5t ,calculation ,me?od & a description ( ! me?od ?r\gh :i* p]iodic paym5ts w be calculat$4 7bb7 ,! t]m income ?re%old & ! income ?re%old = ! ,,obf product1 foll[$ by a description t /ates1 ,! m9imum income y mu/ make to trigg] a paym5t obligation4 ,if y\r income is less ?an ?is income ?re%old1 y w n owe any am\nt = t p]iod44 7cc7 ,a /atem5t t dur+ p]iods 9 :i* ! ,,obf recipi5t's income is bel[ ! income ?re%old-- 7,,aa7 ! ,,obf recipi5t w n owe an ,,obf paym5t = t p]iod ( "t2 & 7,,bb7 any su* p]iod ( non-paym5t w n c\nt t[>d ! ,,obf maximum numb] ( paym5ts b w c\nt t[>d ! ,,obf duration4 7,,ii7 ,z relates to v>i\s ways ! ,,obf recipi5t c complete ! obligation1 :i* %all include 7:]e applicable73 7aa7 ,! t]m ,maximum ,numb] ( ,requir$ ,paym5ts & ! ,,obf maximum numb] ( paym5ts1 foll[$ by a description t /ates1 ,! maximum numb] ( paym5ts y w be requir$ to make :5 y\r income is equal to or great] ?an ! income ?re%old44 7bb7 ,! t]m ,maximum ,duration & ! ,,obf duration1 foll[$ by a description t /ates1 ,! maximum am\nt ( "t t y are requir$ to make income-det]m9$ paym5ts1 exclud+ any ext5sions t y reque/44 7cc7 ,9 ! case ( an outcomes-bas$ loan1 a disclosure (-- 7,,aa7 ! applicable rate ( int]e/ 9 effect on ! date ( approval2 7,,bb7 :e!r ! rate ( int]e/ applicable to ! private education loan is fix$ or v>iable2 7,,cc7 any limitations on int]e/ rate adju/m5ts1 bo? 9 t]ms ( frequ5cy & am\nt1 or ! lack !re(1 if applicable2 & 7,,dd7 if ! rate ( int]e/ is v>iable1 a /atem5t t ! v>y+ rate ( int]e/ w affect h[ mu* ! ,,obf recipi5t mu/ pay to complete ! outcomes-bas$ loan e>ly4 7dd7 ,9 ! case ( an outcomes-bas$ paym5t agreem5t1 any paym5t cap1 :i* may be a fix$ numb]1 fix$ multiple1 effective annual p]c5tage rate1 or o!r me*anism4 7,,iii7 ,! ,annual ,p]c5tage ,rate1 ) a description /at+ t ! ,annual ,p]c5tage ,rate w v>y bas$ on ! consum]'s income aft] complet+ s*ool & t ! consum] %\ld ref] to ! table describ$ 9 subclause 7,v7 to see ! range ( ,annual ,p]c5tage ,rates bas$ on diff]5t aft]-s*ool income sc5>ios4 7,,iv7 ,z relates to o!r disclosure items3 7aa7 ,a /atem5t t ! obligations ( ! ,,obf recipi5t "u ! ,,obf product w\ld be dis*>geable 9 a case "u title #aa1 ,unit$ ,/ates ,code1 9 ! same mann] z a loan t is n describ$ 9 section #ebc7;a77#h7 ( title #aa1 ,unit$ ,/ates ,code4 7bb7 ,! disclosure requir$ "u p>agraph 7#b77;,j71 relat+ to available paym5t def]ral options4 7cc7 ,! foll[+ /atem5t3 ,,important ,,notice ,,requir$ ,,by ,,law3 ,/ud5ts are caution$ to consid] c>efully ent]+ into ?is outcomes-bas$ f9anc+ product if _! total future paym5t commitm5t1 includ+ any o!r =ms ( education f9ance1 may exce$ #bj p]c5t ( _! expect$ future income4 ,y\r total future obligation may exce$ ?is p]c5tage if y h receiv$ additional education f9anc+1 includ+ o!r outcomes-bas$ f9anc+ products1 ,dep>tm5t ( ,education ,direct or ,,ffel ,loans1 or private education loans44 7dd7 ,applicable f9ance *>ges1 late fees1 p5alties1 & adju/m5ts to pr9cipal 7z applicable71 bas$ on borr[] defaults or late paym5ts applicable to ! ,,obf product4 7ee7 ,fees1 or ! range ( fees1 applicable to ! ,,obf product4 7ff7 ,! def9ition ( income to be us$ = purposes ( calculat+ ! ,,obf recipi5t's obligation "u ! ,,obf product4 7gg7 ,a /atem5t reg>d+ :e!r ! ,,obf provid] int5ds to engage 9 a process ( reconciliation to det]m9e if ! am\nt paid by ! ,,obf recipi5t = ! prec$+ ye> is m ?an1 equal to1 or less ?an ! ,,obf paym5ts ow$ "u ! ,,obf product1 includ+-- 7,,aa7 a description ( ! process 9 :i* ! ,,obf recipi5t mu/ p>ticipate = ! ,,obf provid] to v]ify ! ,,obf recipi5t's income2 & 7,,bb7 a description ( any tax records or =ms t ! ,,obf recipi5t mu/ execute or t ! ,,obf provid] int5ds to submit to ! ,int]nal ,rev5ue ,s]vice4 7,v7 ,a comp>ison table t-- 7aa7 calculat$ = ! range ( income sc5>ios describ$ 9 item 7bb7 & assum+ ! ,,obf recipi5t e>ns at t income level = ! duration ( ! contract1 discloses-- 7,,aa7 ! total doll> am\nt ( paym5ts2 7,,bb7 ! numb] ( ,,obf paym5ts2 7,,cc7 ! f9ance *>ge2 & 7,,dd7 ! annual p]c5tage rate1 ) ! sc5>io :]e an ,,obf recipi5t nev] makes any paym5ts %[n z -#ajj 7no paym5ts72 7bb7 ) respect to ! disclosures requir$ "u item 7aa71 includes1 at a m9imum1 ! obligations = ! ,,obf recipi5t-- 7,,aa7 ) no income2 7,,bb7 ) income at ! income ?re%old2 & 7,,cc7 = v>i\s income sc5>ios1 includ+1 at a m9imum1 calculations at annual incomes ( #dj1jjj1 #fj1jjj1 #hj1jjj1 #ajj1jjj1 #abe1jjj1 #aej1jjj1 #age1jjj1 & #bjj1jjj 7or 9 lieu ( ^! income sc5>ios1 o!r income sc5>ios t ! ,bureau specifies by rule72 & 7cc7 includes ! foll[+ /atem5t3 ,?is table assumes y h ! same income ov] ! entire duration ( y\r ,,obf product4 ,x does n take into acc\nt *anges 9 income4 ,y\r income w likely *ange ov] "t44 7,,vi7 ,! disclosures requir$ "u p>agraph 7#b77,l7 7relat+ to ! #cj-;day approval p]iod7 & subp>agraphs 7,m7 & 7,n7 ( p>agraph 7#b7 7relat+ to ! availability ( o!r pot5tial s\rces ( aid74 7iii7 ,disclosures at ! "t ( private education loan consummation ,contemporane\sly ) ! consummation ( an ,,obf product1 an ,,obf provid] %all make to ! ,,obf recipi5t ea* ( ! disclosures describ$ 9-- 7,i7 subclauses 7,i7 ?r\gh 7,,iv7 ( clause 7ii7 7& 9 ! case ( an outcomes-bas$ loan ) a v>iable rate ( int]e/1 adju/$1 z necess>y1 = ! rate ( int]e/ 9 effect on ! date ( consummation1 bas$ on ! index us$72 7,,ii7 subp>agraphs 7,m7 & 7,n7 ( p>agraph 7#b7 7relat+ to ! availability ( o!r pot5tial s\rces ( aid72 & 7,,iii7 p>agraph 7#g7 7relat+ to "r to cancel74 7,b7 ,rulemak+ ,! ,bureau may prescribe1 by rule1 su* o!r in=mation z necess>y or appropriate t %all be disclos$ = consum]s to make in=m$ borr[+ decisions relat$ to ,,obf products4 4 #bjb4 ,adv]tis+ ( ,,obf products 7a7 ,adv]tis+ ( d[npaym5ts & in/allm5ts ,section #adb ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #affb7 is am5d$-- 7#a7 9 ! matt] prec$+ p>agraph 7#a71 by /rik+ /ate & ins]t+ /ate--2 7#b7 9 p>agraph 7#a71 by /rik+ ! p]iod & ins]t+ a semicolon2 7#c7 9 p>agraph 7#b71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#d7 by add+ at ! end ! foll[+3 7#c7 ) respect to an ,,obf product1 t a specific ,,obf paym5t calculation me?od1 ,,obf duration1 ,,obf maximum numb] ( paym5ts1 or income ?re%old c be arrang$1 unless ! ,,obf provid] usually & cu/om>ily arranges ,,obf products pursuant to ! t]ms s adv]tis$4 4 7b7 ,adv]tis+ ( a cr$it o!r ?an op5 end plans ,section #add ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #affd7 is am5d$ by add+ at ! end ! foll[+3 7f7 ,outcomes-,bas$ ,f9anc+ ,products 7#a7 ,def9itions ,9 ?is subsection1 ! t]ms ,,obf product1 income ?re%old1 ,,obf duration1 ,,obf maximum numb] ( paym5ts1 & ,,obf paym5t calculation me?od h ! mean+s giv5 ^? t]ms 9 subsection #afej7;h74 7#b7 ,application ,?is subsection %all apply to any adv]tisem5t ( any ,,obf product subject to ! provisions ( ?is *apt]4 7#c7 ,disclosure ( key t]ms ,if any adv]tisem5t to :i* ?is section applies /ates ! ,,obf paym5t calculation me?od1 ,,obf duration1 ,,obf maximum numb] ( paym5ts1 income ?re%old1 or am\nts ( paym5ts "u an ,,obf product1 ! adv]tisem5t %all include ea* ( ! foll[+3 7,a7 ,! ,,obf paym5t calculation me?od4 7,b7 ,! ,,obf duration4 7,c7 ,! ,,obf maximum numb] ( paym5ts4 7,d7 ,! income ?re%old4 4 ,,iii ,consum] protections = ,,obf products #cja4 ,consum] protections 7a7 ,prev5t+ unfair & deceptive private educational l5d+ practices & elim9at+ conflicts ( int]e/ ,section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7 is am5d$-- 7#a7 9 subsection 7a77#h7-- 7,a7 9 subp>agraph 7,a77ii71 by /rik+ & at ! end2 & 7,b7 by add+ at ! end ! foll[+3 7,c7 includes an ,outcomes-,bas$ ,f9anc+ ,product z def9$ 9 subsection 7h72 & 2 & 7#b7 by add+ at ! end ! foll[+3 7h7 ,def9itions relat+ to outcomes-,bas$ f9anc+ products ,9 ?is *apt]3 7#a7 ,am\nt f9anc$ ,! t]m am\nt f9anc$ means1 ) respect to an ,,obf product1 ! am\nt f9anc$ z calculat$ pursuant to section #ajbf4ah7;b7 ( title #ab1 ,code ( ,f$]al ,regulations4 7#b7 ,income ?re%old ,! t]m income ?re%old means a fix$ doll> am\nt t is ! m9imum income t an ,,obf recipi5t is requir$ to e>n 9 a paym5t p]iod be=e ! ,,obf recipi5t is requir$ to make a paym5t on an ,,obf product = su* paym5t p]iod4 7#c7 ,,obf duration 7,a7 ,9 g5]al ,! t]m ,,obf duration-- 7i7 means ! maximum "t dur+ :i* a consum] c\ld rema9 obligat$ on ! ,,obf product1 except = any pa/ due am\nts ow$ to ! ,,obf provid]2 & 7ii7 does n include-- 7,i7 any p]iod ( 9-s*ool def]m5t2 7,,ii7 any grace or transition p]iod2 & 7,,iii7 any p]iod = :i* ! ,,obf recipi5t's income is equal to or above ! income ?re%old b ! obligation is susp5d$ at ! reque/ ( ! consum] 7includ+ a p]iod ( paym5t relief pause1 def]m5t1 or =be>ance74 7,b7 ,reconciliation process ,if an ,,obf product requires a reconciliation process "u section #abh7;e77#ab77;,a77ii77,,iv77gg71 any paym5t p]iod t has n yet be5 reconcil$ %all provisionally be appli$ to ! ,,obf duration until su* "t z ! paym5t p]iod is reconcil$1 provid$ t if ! ,,obf recipi5t has rea*$ ! ,,obf duration1 includ+ any provisional paym5t p]iods1 ! ,,obf recipi5t %all n accrue any additional obligations except ^? t come f any rema9+ reconciliation processes4 7#d7 ,,obf product ,! t]m ,,obf product means a f9ancial product-- 7,a7 "u :i*-- 7i7 ! ,,obf provid] cr$its or advances f9anc+ to ! ,,obf recipi5t or to a ?ird p>ty on behalf ( ! ,,obf recipi5t2 or 7ii7 if ! ,,obf provid] is a m]*ant f9anc+ ! sale ( goods or s]vices to ! ,,obf recipi5t via ! f9ancial product1 ! ,,obf provid] cr$its ! am\nt f9anc$ t[>d ! pur*ase ( su* goods or s]vices2 7,b7 "u :i* ! ,,obf recipi5t is obligat$ to make p]iodic ,,obf paym5ts 7if any become due7 to ! ,,obf provid] 9 ! future1 calculat$ bas$ ^u ! ,,obf recipi5t's future income 7us+ ! ,paym5t ,calculation ,me?od def9$ 9 ?is subsection1 z specifi$ 9 ! contract72 7,c7 "u :i* ! ,,obf recipi5t's obligation to make paym5ts 7if any become due7 to ! ,,obf provid] is conditional on ! ,,obf recipi5t's income exce$+ ! income ?re%old set 9 ! ,,obf product2 7,d7 "u :i* !re is an ,,obf duration aft] :i* ! obligation is complete reg>dless ( h[ mu* has be5 paid1 z long z ! consum] has paid any prior am\nts due2 7,e7 "u :i* ! ,,obf provid] & ! ,,obf recipi5t ent] into an agreem5t t1 z ( ! date ( ! product1 includes ea* elem5t describ$ 9 subp>agraphs 7,a7 ?r\gh 7,d72 7,f7 t is n made1 insur$1 or gu>ante$ "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq472 7,g7 t is n op5 end cr$it or any loan t is secur$ by real prop]ty or a dwell+2 & 7,h7 "u :i* ! am\nts advanc$ "u subp>agraph 7,a7 are =-- 7i7 co/s associat$ ) a po/second>y tra9+ program or any o!r program design$ to increase ! human capital1 employability1 or e>n+ pot5tial ( ! ,,obf recipi5t 7n limit$ to programs eligible to p>ticipate "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq4772 7ii7 any p]sonal exp5ses 7su* z books1 supplies1 transportation1 & liv+ co/s7 incurr$ by ! ,,obf recipi5t :ile enroll$ 9 a program describ$ 9 clause 7i72 7iii7 any o!r co/ or exp5se t is a qualifi$ high] education exp5se1 z def9$ 9 section #ebi7;e77#c77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7iv7 ! ref9anc+ ( loans or ,,obf products us$ = ! purposes describ$ 9 clauses 7i71 7ii71 or 7iii71 & )\t respect to :e!r ! ,,obf product is provid$ by ! educational in/itution t ! ,,obf recipi5t att5ds4 7#e7 ,,obf maximum numb] ( paym5ts ,! t]m ,,obf maximum numb] ( paym5ts-- 7,a7 means ! maximum numb] ( ,,obf paym5ts t an ,,obf recipi5t c\ld be requir$ to make "u ! t]ms ( ! ,,obf product2 & 7,b7 does n include p]iods ( paym5t relief pause4 7#f7 ,,obf paym5t ,! t]m ,,obf paym5t-- 7,a7 means ! am\nt ( an ,,obf recipi5t's p]iodic paym5t obligation1 "u ! t]ms ( ! ,,obf product1 incurr$ dur+ any paym5t p]iod = :i* ! ,,obf recipi5t's income is great] ?an ! income ?re%old2 & 7,b7 is calculat$ us+ ! ,,obf paym5t calculation me?od4 7#g7 ,,obf paym5t calculation me?od ,,obf paym5t calculation me?od means ! me*anism1 =mula1 p]c5tage1 doll> figure1 or o!r means ( calculat+ an ,,obf recipi5t's paym5t obligation1 bas$ on ! ,,obf recipi5t's income1 "u ! t]ms ( ! ,,obf product4 7#h7 ,,obf provid] ,! t]m ,,obf provid] means a p]son t provides f9anc+ to an ,,obf recipi5t pursuant to ! t]ms ( an ,,obf product1 or1 9 ! case ( a p]son :o is a m]*ant f9anc+ ! sale ( goods or s]vices to ! ,,obf recipi5t1 ! m]*ant4 7#i7 ,,obf recipi5t ,! t]m ,,obf recipi5t means a consum] t receives f9anc+ f an ,,obf provid] "u an ,,obf product4 7#aj7 ,outcomes-bas$ loan ,! t]m outcomes-bas$ loan means an ,,obf product t uses promissory notes1 loan agreem5ts1 or an in/allm5t sales contract to effectuate ! loan & provide = ! repaym5t ( a pr9cipal balance ) a fix$ or v>iable int]e/ rate1 ) su* additional t]ms z necess>y 7su* z =giv5ess ( out/&+ balance aft] a def9$ p]iod7 to meet ! requirem5ts ( an ,,obf product4 7#aa7 ,outcomes-bas$ paym5t agreem5t ,an outcomes-bas$ paym5t agreem5t includes all ,,obf products t are n outcomes-bas$ loans4 7#ab7 ,paym5t relief pause ,! t]m paym5t relief pause means a p]iod ( "t t-- 7,a7 is reque/$ by ! ,,obf recipi5t dur+ :i* any paym5t obligation ! ,,obf recipi5t w\ld h is susp5d$2 & 7,b7 does n c\nt t[>d an ,,obf recipi5t's ,,obf duration or maximum numb] ( paym5ts4 7#ac7 ,pov]ty l9e ,! t]m pov]ty l9e has ! mean+ giv5 ! t]m 9 section #fgc ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb74 7#ad7 ,consum] ,! t]m consum] means a natural p]son to :om an ,,obf product is (f]$ or ext5d$ = p]sonal1 family1 or h\sehold purposes4 7i7 ,additional consum] protections relat+ to ,,obf products 7#a7 ,prohibition on accel]ation2 treatm5t ( e>ly completion me*anisms 7,a7 ,limits on accel]ation 7i7 ,outcomes-bas$ paym5t agreem5t products ,an ,,obf provid] %all n include any me*anism 9 an outcomes-bas$ paym5t agreem5t product t accel]ates an am\nt aga9/ an ,,obf recipi5t 7or o!rwise liquidates a future paym5t /ream7 9 ! ev5t ( a del9qu5cy or default "u ! ,,obf product4 7ii7 ,outcomes-bas$ loan products ,an ,,obf provid] %all n accel]ate 7or o!rwise liquidate a future paym5t /ream7 an outcomes-bas$ loan product 9 ! ev5t ( a del9qu5cy or default "u ! outcomes-bas$ loan1 except ! ,,obf provid] may accel]ate an outcomes-bas$ loan 9 cases :]e ! ,,obf recipi5t has fail$ to make a requir$ paym5t = a cont9u\s p]iod ( n less ?an #ahj days4 7,b7 ,no impact on e>ly completion me*anisms ,no?+ 9 ?is subsection %all be int]pret$ to prev5t an ,,obf recipi5t f us+ any available completion me*anisms ( an ,,obf product s long z ! me*anism is optional & )9 ! ,,obf recipi5t's control4 7#b7 ,mon?ly paym5t af=dability = ,,obf products 7,a7 ,maximum mon?ly paym5t obligation ,ea* ,,obf product %all specify ! ,,obf paym5t calculation me?od applicable to ! ,,obf product4 ,an ,,obf provid] %all n ent] into an ,,obf product ) an ,,obf recipi5t if ! ,,obf recipi5t w\ld be committ+ to pay m ?an #bj p]c5t ( ! ,,obf recipi5t's income at any "t dur+ ! ,,obf duration1 bas$ on in=mation available to ! ,,obf provid] at ! "t ( ! projection1 inclusive ( any paym5t obligations t ! ,,obf provid] kn[s w arise 9 ! future = o!r ,,obf products ^u :i* ! consum] is obligat$ at ! "t ( ! projection4 ,! ,,obf provid] %all confirm a recipi5t's ,,obf liabilities ?r\gh a v]ifiable ?ird-p>ty s\rce4 ,at a m9imum1 ! ,,obf provid] %all confirm su* liabilities us+ in=mation ma9ta9$ by a nationwide consum] report+ ag5cy1 z def9$ 9 section #fjc7;f7 ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;a7f774 ,:ile do+ s is suffici5t = meet+ ! requirem5t "u ?is subp>agraph1 no?+ 9 ?is subp>agraph %all prohibit an ,,obf provid] f us+ o!r s\rces to provide additional v]ification4 7,b7 ,calculation me?odology & requirem5ts 7i7 ,9 g5]al ,= ! purposes ( calculat+ ! portion ( an ,,obf recipi5t's future income t w\ld be consum$ by ! ,,obf product = :i* ! ,,obf recipi5t has appli$ & all o!r ,,obf products ( ! ,,obf recipi5t z ( ! date ( ! agreem5t1 ! ,,obf provid] %all calculate ! aggregate future burd5-- 7,i7 9 any case :]e ! income ?re%old ( ! ,,obf product is less ?an ! maximum describ$ 9 clause 7ii71 at hypo!tical future income levels rang+ f su* income ?re%old to su* maximum1 9 increm5ts ( #aj1jjj2 & 7,,ii7 9 any case :]e ! income ?re%old ( ! ,,obf product is equal to or great] ?an su* maximum1 at su* income ?re%old4 7ii7 ,maximum ,! maximum describ$ 9 ?is clause %all be ! great] (-- 7,i7 7aa7 = fiscal ye> #bjbe1 #gj1jjj2 or 7bb7 = fiscal ye> #bjbf & ea* subsequ5t fiscal ye>1 ! maximum = ! prec$+ fiscal ye>-- 7,,aa7 increas$ by ! p]c5tage increase 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,dep>tm5t ( ,labor2 & 7,,bb7 r\nd$ to ! ne>e/ #a1jjj2 or 7,,ii7 9 ! case ( an ,,obf recipi5t :o has 7z ( ! date ( ! outcomes-bas$ paym5t agreem5t71 or has appli$ =1 an ,,obf product t uses a s*$ule ( income p]c5tages or a s*$ule ( fix$ am\nts z ! ,,obf paym5t calculation me?od1 ! highe/ income level ref]5c$ by a s*$ule = any su* ,,obf product4 7iii7 ,calculation 7,i7 ,9 g5]al ,! t]ms ( an ,,obf product = :i* a consum] has appli$ _c cause ! ,,obf recipi5t's aggregate future burd5 7def9$ z ! total am\nts expect$ to be due "u all ,,obf products ( ! ,,obf recipi5t z ( ! date ( ! agreem5t1 & all ,,obf products = :i* ! consum] is apply+7 to exce$ ! limit describ$ 9 subp>agraph 7,a7 at any ( ! income increm5ts describ$ 9 clause 7ii74 7,,ii7 ,calculation me?od ,= ! purpose ( calculat+ ! p]c5tage burd5 ( an ,,obf product at a giv5 future income level1 ! ,,obf provid] %all calculate ! annual paym5t obligation ! ,,obf recipi5t w\ld incur at t income level 7us+ ! mo/ af=dable option t w\ld yield ! l[e/ mon?ly paym5ts t w\ld be available to ! ,,obf recipi5t at su* income level "u t ,,obf product7 & divide t annual paym5t obligation by t income level4 7,c7 ,protections dur+ p]iods ( l[ e>n+s 7i7 ,9 g5]al ,! ,,obf product %all provide t :5 an ,,obf recipi5t has an income t is bel[ ! income ?re%old ( ! ,,obf product1 ! ,,obf p]iodic paym5t obligation is #j4 7ii7 ,?re%old am\nt ,! income ?re%old = an ,,obf product 7express$ z an annual am\nt7 %all be n less ?an #bej p]c5t ( ! ,f$]al pov]ty guidel9es = a s+le p]son 9 ! cont95tal ,u4,s4 7= ! ye> 9 :i* ! calculation is p]=m$74 7#c7 ,ensur+ appropriate risk %>+ = ,,obf products 7,a7 ,9 g5]al ,an ,,obf provid] may n contract = t]ms ( an ,,obf product t w\ld result 9 ! ,,obf recipi5t hav+ income t is less ?an or equal to #cej p]c5t ( ! ,f$]al pov]ty guidel9es = a s+le p]son 9 ! cont95tal ,unit$ ,/ates = ! ,,obf duration be+ requir$ to make a /ream ( ,,obf paym5ts t w\ld yield an effective annual p]c5tage rate ( m ?an #h p]c5t1 plus ! high yield ( ! #aj-ye> ,unit$ ,/ates ,con/ant ,maturity ,treasury ,notes auction$ at ! f9al auction held be=e ! curr5t cal5d> ye> 9 :i* an ,,obf product (f]+ is made4 7,b7 ,calculation ,an ,,obf provid] %all calculate = an ,,obf recipi5t ! effective annual p]c5tage rate "u subp>agraph 7,a7 by det]m9+ ! pov]ty l9e at ! "t ( orig9ation ( ! ,,obf product & assum+ su* am\nt is fix$ ?r\gh ! ,,obf duration4 7,c7 ,duration ,= ! purposes ( det]m9+ ,,obf duration "u subp>agraph 7,a71 an ,,obf provid] %all assume ! ,,obf duration />t$ aft] a p]iod equal to ! expect$ l5g? ( ! program = :i* a consum] is enroll+4 7#d7 ,limits on duration ( an ,,obf product obligation 7,a7 ,,obf maximum numb] ( paym5ts ,! ,,obf maximum numb] ( paym5ts %all n exce$ #bdj mon?ly paym5ts4 7,b7 ,,obf duration ,! ,,obf duration %all n exce$ #cfj mon?s 7except 9 ! case ( an ext5sion reque/$ by ! ,,obf recipi5t74 7#e7 ,non-int]f]5ce ,an ,,obf product %all n be con/ru$ to give ! contract hold] any rights ov] an individual's actions o!r ?an z provid$ 9 ?is ,act4 7#f7 ,dis*>ge protections = ,,obf recipi5ts 7,a7 ,p]man5t & total disability ,9 any case :]e an ,,obf recipi5t w\ld be deem$ totally & p]man5tly disabl$ = purposes ( b5efits adm9i/]$ by ! ,dep>tm5t ( ,vet]ans ,affairs or ! ,social ,security ,adm9i/ration 7det]m9$ )\t reg>d to :e!r ! recipi5t receives su* b5efits71 all fur!r obligations ( ! ,,obf recipi5t "u ! ,,obf product %all t]m9ate1 except ^? accru+ be=e ! date su* a det]m9ation w\ld apply4 7,b7 ,dea? ,^u ! dea? ( an ,,obf recipi5t1 all fur!r obligations ( ! ,,obf recipi5t "u ! ,,obf product %all t]m9ate1 except ^? obligations accru+ be=e ! ,,obf recipi5t's date ( dea?4 7#g7 ,limitation on am\nts treat$ z income "u ,,obf products 7,a7 ,9 g5]al ,= purposes ( calculat+ ! obligation ( an ,,obf recipi5t to make ,,obf paym5ts "u an ,,obf product1 ! income ( ! ,,obf recipi5t %all n include-- 7i7 ! income ( any *ild or dep5d5t ( ! ,,obf recipi5t2 7ii7 any item ( income :i* is n includ$ 9 ! gross income 7z def9$ 9 section #fa7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 ( ! ,,obf recipi5t2 7iii7 any am\nt receiv$ f an individual retirem5t plan 7z def9$ 9 section #ggja ( ! ,int]nal ,rev5ue ,code ( #aihf71 a p5sion1 or an annuity2 or 7iv7 any ,social ,security b5efit 7z def9$ 9 section #hf ( ! ,int]nal ,rev5ue ,code ( #aihf74 7,b7 ,e/imat+ income 7i7 ,9 g5]al ,an ,,obf provid] may reasonably require t an ,,obf recipi5t provide docum5tation ( income1 includ+ ?r\gh pay /ubs1 tax transcripts1 or ! sign+ ( relevant ,,irs =ms t provide ! ,,obf provid] ) access to ! ,,obf recipi5t's tax transcripts4 ,9 ! ev5t t an ,,obf recipi5t fails to provide income docum5tation z reasonably requir$ by ! ,,obf product1 an ,,obf provid] may assign an am\nt ( income to ! ,,obf recipi5t & compute ! mon?ly paym5t am\nt = ! ,,obf recipi5t by any ( ! foll[+ me?ods1 to ! ext5t disclos$ 9 ! ,,obf product3 7,i7 ,assign+ an income am\nt obta9$ f a reasonably reliable ?ird p>ty or a consum] report+ ag5cy1 z def9$ 9 section #fjc7;f7 ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;a7f774 7,,ii7 ,if ! ,,obf recipi5t previ\sly provid$ income docum5tation or has _h an income assign$ 9 ! prec$+ #a-ye> p]iod1 assum+ t su* income has increas$ by n m ?an #aj p]c5t1 provid$ su* increase is n appli$ m ?an once p] #a-ye> p]iod4 7,,iii7 ,contact+ ! applicable ,/ate rev5ue dep>tm5t or ! ,int]nal ,rev5ue ,s]vice to obta9 ! mo/ rec5t in=mation available ab\t ! income ( ! ,,obf recipi5t4 7,,iv7 ,if ! ,,obf recipi5t has n previ\sly provid$ income docum5tation1 assign+ a reasonable qualifi$ income bas$ on-- 7aa7 ! m$ian income = individuals work+ 9 ! pr(ession = :i* ! educational program ( ! ,,obf recipi5t 0 int5d$ to prep>e ! ,,obf recipi5t1 z det]m9$ by in=mation publi%$ by ! ,bureau ( ,labor ,/ati/ics or o!r reasonably reliable publicly available data s\rces2 or 7bb7 ! m$ian income ( individuals :o att5d$ ! same or a reasonably comp>able cov]$ educational program or c\rse ( /udy1 z det]m9$ by in=mation publi%$ by ! ,bureau ( ,labor ,/ati/ics or o!r reasonably reliable publicly available data s\rces4 7,v7 ,assign+ an income equal to ! income ?re%old ( ! ,,obf product 7& adju/+ z ne$$ if ! ?re%old adju/s ov] "t74 7ii7 ,notification ,if an ,,obf provid] assigns an income to an ,,obf recipi5t1 pursuant to clause 7i71 ! ,,obf provid]-- 7,i7 %all notify ! ,,obf recipi5t 9 ! mon?ly bill+ /atem5t1 & 9 ea* bill+ /atem5t !reaft] :ile ! assign$ income rema9s applicable to ! ,,obf recipi5t-- 7aa7 t income has be5 assign$2 & 7bb7 ( ! rights ( ! ,,obf recipi5t "u ?is section2 7,,ii7 9 any tax ye> = :i* ! ,,obf provid] has made an assumption ab\t an ,,obf recipi5t's income us+ any ( ! me?ods describ$ 9 clause 7i7 & if ! ,,obf recipi5t has au?oriz$ ongo+ access to ! ,,obf recipi5t's return in=mation "u section #dja1 %all reque/ su* in=mation 9 ea* ye> ( ! paym5t t]m2 7,,iii7 if ! ,,obf recipi5t does provide income in=mation z reasonably requir$ by ! ,,obf product )9 #a ye> ( ! date on :i* ! ,,obf provid] notifi$ ! ,,obf recipi5t t assign$ income %all be appli$ to ! ,,obf product or if ! ,,obf provid] receives updat$ income in=mation ?r\gh return in=mation au?oriz$ "u section #dja1 !n1 n lat] ?an ! date t is #ae days aft] ! date on :i* ! ,,obf provid] receives su* in=mation1 %all-- 7aa7 update ea* prior in/ance 9 :i* assign$ income 0 appli$1 us+ su* new income in=mation2 & 7bb7 reconcile any diff]5ce 9 am\nts ow$ by ! ,,obf recipi5t bas$ on ^? updates to prior income2 & 7,,iv7 if ! ,,obf recipi5t provides income in=mation m ?an #a ye> aft] ! ,,obf provid] fir/ assign$ income to ! ,,obf recipi5t1 may1 b %all n be obligat$ to1 update ea* prior in/ance 9 :i* assign$ income 0 appli$ us+ ! income in=mation provid$ by ! ,,obf recipi5t4 7iii7 ,records ret5tion ,an ,,obf provid] t assigns income to an ,,obf recipi5t %all reta9 all applicable records relat+ to ! me?od & data s\rces us$ to make su* e/imation = a p]iod ( #c ye>s aft] ! date by :i* !re no long] exi/s a contractual relation%ip betwe5 ! ,,obf provid] & ! ,,obf recipi5t = t ,,obf product4 7#h7 ,no assignm5t ( wages 7,a7 ,9 g5]al ,an ,,obf provid] may n take an assignm5t ( e>n+s or wages ( ! ,,obf recipi5t z paym5t or z security = paym5t ( a debt aris+ out ( an ,,obf product4 ,an assignm5t ( e>n+s 9 violation ( ?is p>agraph is un5=ceable by ! assignee ( ! e>n+s & revocable by ! consum]4 ,?is p>agraph does n limit ! ability ( ! ,,obf recipi5t to volunt>ily elect to use a revocable payroll d$uction me*anism1 su* z "o (f]$ by an employ] or payroll provid]1 provid$ t ! ,,obf recipi5t is n assign+ ! ,,obf recipi5t's e>n+s or wages4 7,b7 ,deem$ loan ,a sale ( unpaid e>n+s made 9 consid]ation ( ! paym5t ( money to or = ! acc\nt ( ! sell] ( ! e>n+s is deem$ to be a loan to ! sell] secur$ by an assignm5t ( e>n+s4 7j7 ,treatm5t ( ,outcomes-,bas$ ,f9anc+ ,products ,"u ,o!r ,laws 7#a7 ,def9ition ,9 ?is subsection1 ! t]m ,/ate law-- 7,a7 means-- 7i7 any law1 decision1 rule1 regulation1 or o!r action hav+ ! effect ( a law ( any ,/ate or any political subdivision ( a ,/ate1 or any ag5cy or in/rum5tality ( a ,/ate or political subdivision ( a ,/ate2 & 7ii7 any law ( ! ,unit$ ,/ates applicable only to ! ,di/rict ( ,columbia2 & 7,b7 does n impact ! use ( su* t]m 9 section #ajbf4bh ( title #ab1 ,code ( ,f$]al ,regulations4 7#b7 ,insurance & wag]+ ,an ,,obf product %all n be treat$ z a contract = insurance1 or z a bett+ or wag]+ contract1 "u any ,f$]al or ,/ate law or ,/ate con/itutional provision4 7#c7 ,assignm5t ( future wages = ,,obf products ,an ,,obf product %all be a valid1 b9d+1 & en=ceable contract1 not)/&+ any ,/ate law or ,/ate con/itutional provision limit+ or o!rwise regulat+ assignm5ts ( future wages or o!r income4 7#d7 ,preemption ( ,/ate laws ) respect to sub/antially equal paym5ts ,a ,/ate law or ,/ate con/itutional provision requir+ t paym5ts on a debt1 cr$it1 loan1 in/allm5t sale1 or o!r f9ancial in/rum5t be 9 equal or sub/antially equal am\nts %all n apply to an ,,obf product4 7#e7 ,preemption ( ,/ate laws ) respect to ability to repay 7,a7 ,9 g5]al ,a ,/ate law or ,/ate con/itutional provision impos+ requirem5ts relat+ to assess+ :e!r a consum] has ! ability to repay a loan1 cr$it1 debt1 in/allm5t sale1 or o!r f9ancial obligation %all n apply to an ,,obf product4 7,b7 ,exceptions 7i7 ,legislation t ref]5ces ?is section ,= purposes ( ! af=dability protections specifi$ 9 subp>agraph 7,c71 ,/ate legislation t specifically & explicitly addresses ,,obf products by ref]5ce to ?is section & imposes limits t w\ld apply to ,,obf products issu$ 9 ! jurisdiction ( t ,/ate %all n be subject to preemption "u subp>agraph 7,a74 7ii7 ,prior enact$ legislation ,if1 z ( ! date ( enactm5t ( ?is section1 a ,/ate has previ\sly enact$ legislation or issu$ a rule specifically ref]5c+ income %>e agreem5ts & specify+ limits = income %>e agreem5ts consi/5t ) clauses 7i7 & 7ii7 ( subp>agraph 7,c71 su* limits are n subject to preemption "u subp>agraph 7,a74 7,c7 ,af=dability protections ,! af=dability protections subject to ,/ate specification "u subp>agraph 7,a7 include3 7i7 ! p]c5tage specifi$ 9 subsection 7i77#b77;,a7 sett+ ! maximum p]c5tage ( income requir$ = mon?ly paym5ts "u ,,obf products1 includ+ :at types ( obligations are includ$ 9 su* limit 7b n alt]+ ! me?odology us$ to apply su* limit72 7ii7 ! p]c5tage specifi$ 9 subsection 7i77#b77;,c7 provid+ an alt]native m9imum requir$ income ?re%old 7b n alt]+ o!r aspects ( ! calculation us$ to det]m9e ! m9imum income ?re%old74 7#f7 ,preemption ( /ate laws ) respect to am\nt ( f9anc+1 tim+ ( paym5ts1 & l5g? ( t]m 7,a7 ,9 g5]al ,a ,/ate law or ,/ate con/itutional provision impos+ requirem5ts relat+ to limits on am\nt ( f9anc+1 tim+ ( paym5ts1 or :5 paym5ts mu/ />t = a loan1 cr$it1 debt1 in/allm5t sale1 or o!r f9ancial obligation %all n apply to an ,,obf product4 7,b7 ,exceptions 7i7 ,legislation t ref]5ces ?is ,section ,= purposes ( ! paym5t & duration protections specifi$ 9 subp>agraph 7,c71 ,/ate legislation t specifically & explicitly addresses ,,obf products by ref]5ce to ?is section & imposes limits t w\ld apply to ,,obf products issu$ 9 ! jurisdiction ( t ,/ate %all n be subject to preemption "u subp>agraph 7,a74 7ii7 ,prior enact$ legislation ,if1 z ( ! date ( enactm5t ( ?is section1 a ,/ate has previ\sly enact$ legislation or issu$ a rule specifically ref]5c+ income %>e agreem5ts & specify+ limits = income %>e agreem5ts consi/5t ) clauses 7i7 & 7ii7 ( subp>agraph 7,c71 su* limits are n subject to preemption "u subp>agraph 7,a74 7,c7 ,paym5t & duration protections ,! paym5t & duration protections subject to ,/ate specification "u subp>agraph 7,a7 include3 7i7 ! numb] specifi$ 9 subsection 7i77#d77;,a7 sett+ ! maximum numb] ( ,,obf paym5ts = an ,,obf product 7b n alt]+ ! def9itions ( ,,obf paym5t72 7ii7 ! numb] specifi$ 9 subsection 7i77#d77;,b7 sett+ ! maximum ,,obf duration = an ,,obf product 7b n alt]+ ! def9ition ( an ,,obf duration74 7#g7 ,prepaym5t 7,a7 ,9 g5]al ,a ,f$]al law or ,/ate law or ,/ate con/itutional provision impos+ requirem5ts or limitations relat+ to prepaym5t or fees or *>ges relat$ to prepaym5t1 includ+ z describ$ 9 subsection 7e71 %all n apply to an outcomes-bas$ paym5t agreem5t4 7,b7 ,exceptions 7i7 ,legislation t ref]5ces ?is ,section ,/ate legislation %all n be subject to preemption "u subp>agraph 7,a7 if ! legislation-- 7,i7 specifically & explicitly addresses ,,obf products by ref]5ce to ?is section2 & 7,,ii7 requires t outcomes-bas$ paym5t agreem5t products include a means ?r\gh :i* an outcomes-bas$ paym5t agreem5t recipi5t c complete ! outcomes-bas$ paym5t agreem5t obligation by pay+ an am\nt equal to ! am\nt f9anc$ & an e>n$ f9ance *>ge1 ) ! e>n$ f9ance *>ge equal to ! f9ance *>ge t w\ld h be5 e>n$ by ! outcomes-bas$ paym5t agreem5t provid] apply+ a maximum annual p]c5tage rate 7:i* %all be disclos$ by ! outcomes-bas$ paym5t agreem5t provid] pursuant to section #abh7;e77#ab77;,a77ii77,,iii77 to ! am\nt f9anc$1 & calculat$ z ( ! curr5t date4 7ii7 ,prior enact$ legislation ,if1 z ( ! date ( enactm5t ( ?is section1 a ,/ate has previ\sly enact$ legislation or issu$ a rule specifically ref]5c+ income %>e agreem5ts & specify+ limits = income %>e agreem5ts consi/5t ) ^? describ$ 9 ?is p>agraph1 su* limits are n subject to preemption "u subp>agraph 7,a74 7#h7 ,application ( usury limits 7,a7 ,9 g5]al ,a ,/ate law or ,/ate con/itutional provision impos+ requirem5ts or limitations relat+ to ! rate or am\nt ( int]e/1 f9ance *>ges1 or o!r *>ges :i* may be *>g$1 tak51 receiv$1 or res]v$1 %all n apply to an ,,obf product4 7,b7 ,exceptions 7i7 ,legislation t ref]5ces ?is section ,/ate legislation %all n be subject to preemption "u subp>agraph 7,a7 if ! legislation-- 7,i7 specifically & explicitly addresses ,,obf products by ref]5ce to ?is section2 & 7,,ii7 imposes its own limits ) respect to ! rate or am\nt ( int]e/1 f9ance *>ges1 or o!r *>ges t may be *>g$1 tak51 receiv$1 or res]v$ t w\ld apply to ,,obf products issu$ 9 ! jurisdiction ( t ,/ate4 7ii7 ,prior enact$ legislation ,if1 z ( ! date ( enactm5t ( ?is section1 a ,/ate has previ\sly enact$ legislation or issu$ a rule specifically ref]5c+ income %>e agreem5ts & specify+ limits = income %>e agreem5ts consi/5t ) ^? describ$ 9 ?is p>agraph1 su* limits are n subject to preemption "u subp>agraph 7,a74 7#i7 ,/ate specification ( risk %>+ limits ,= ! protections relat+ to risk %>+ specifi$ 9 subp>agraph 7,b71 a ,/ate may enact legislation t specifically & explicitly addresses ,,obf products & imposes its own limits t w\ld apply to ,,obf products issu$ 9 ! jurisdiction ( t ,/ate t include ! income level & associat$ annual p]c5tage rate limit specifi$ 9 p>agraph 7i77#c71 includ+ specify+ additional ti]s ( income levels & limits z desir$ 7b n alt]+ ! me?odology us$ to apply su* limits "u ?is section74 4 #cjb4 ,treatm5t "u bankruptcy laws ,section #ebc7;a77#h7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$1 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ =-- & ins]t+ =1 o!r ?an funds provid$ z "p ( an ,,obf product 7z def9$ 9 section #adj7;h7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h77--4 ,,iv ,o!r cl>ifications to support ,,obf products #dja4 ,cons5t to cont9u+ release ( taxpay] in=mation "u ,,obf products 7a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all modify ,treasury regulations & guidance to provide = cont9u+ cons5t 7via h& signature & electronic signature7 to disclosure ( an individual's tax return in=mation to an ,,obf provid] 7or ! ,,obf provid]'s successor 9 int]e/7 "u an ,,obf product1 b only = p]iods relevant to1 & only to ! ext5t ! ,secret>y det]m9es is necess>y & appropriate 9 c>ry+ out ! t]ms (1 su* ,,obf product4 7b7 ,def9itions ,9 ?is section1 ! t]ms ,,obf product & ,,obf provid] h ! mean+s giv5 su* t]ms 9 subsection 7h7 ( section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h771 z add$ by ?is ,act4 #djb4 ,am5dm5ts to ! ,high] ,education ,act ( #aife ,! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajja et seq47 is am5d$ z foll[s3 7#a7 ,section #dhg7;d77#a77;,d7 7#bj ,u4,s4,c4 #ajid7;d77#a77;,d77 is am5d$-- 7,a7 9 clause 7ii71 by /rik+ & at ! end2 7,b7 9 clause 7iii71 by ins]t+ & aft] ! semicolon2 & 7,c7 by add+ at ! end ! foll[+3 7iv7 9 ! case ( an ,,obf product 7z su* t]m is def9$ 9 subsection 7h7 ( section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h777 made by a propriet>y in/itution ( high] education1 only ! am\nt ( ,,obf paym5ts 7z def9$ 9 su* subsection7 receiv$ dur+ ! applicable in/itutional fiscal ye>1 to ! ext5t ! am\nt ( su* paym5ts on ! ,,obf product does n exce$ ! am\nt f9anc$ "u su* ,,obf product2 4 7#b7 ,section #aec7;a7 7#bj ,u4,s4,c4 #ajai;b7a77 is am5d$-- 7,a7 9 p>agraph 7#a71 by add+ at ! end ! foll[+3 7,c7 ,additional in=mation = ,,obf products 7i7 ,9 g5]al ,by n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,outcomes-,bas$ ,f9anc+ 7,,obf7 = ,/ud5ts ,act1 ! ,secret>y1 9 coord9ation ) ! ,bureau ( ,consum] ,f9ancial ,protection1 %all det]m9e ! m9imum in=mation t ,,obf provid]s1 cov]$ in/itutions1 & in/itution-affiliat$ organizations ( su* cov]$ in/itutions1 p>ticipat+ 9 pref]r$ l5d] arrangem5ts %all make available reg>d+ ,,obf products4 7ii7 ,consultation & cont5t ( m9imum disclosures ,9 c>ry+ out clause 7i71 ! ,secret>y %all-- 7,i7 consult ) /ud5ts1 ! families ( su* /ud5ts1 repres5tatives ( cov]$ in/itutions 7includ+ f9ancial aid adm9i/rators1 admission (fic]s1 & bus9ess (fic]s71 repres5tatives ( in/itution-affiliat$ organizations1 second>y s*ool guidance c\nselors1 & ,,obf provid]s2 7,,ii7 include1 9 ! m9imum in=mation "u clause 7i7 t is requir$ to be made available1 ! in=mation requir$ to be disclos$ "u section #abh7;e77#ab7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afch7;e77#ab772 & 7,,iii7 consid] ! m]its ( requir+ ea* cov]$ in/itution1 & ea* in/itution-affiliat$ organization ( su* cov]$ in/itution1 ) a pref]r$ l5d] arrangem5t to provide prospective ,,obf recipi5ts & ! families ( su* recipi5ts ! foll[+ in=mation = ea* type ( ,,obf product (f]$ pursuant to su* pref]r$ l5d] arrangem5t3 7aa7 ,! t]ms & conditions ( ! ,,obf product = ! next aw>d ye>4 7bb7 ,an itemization ( ! fees or range ( fees requir$ to obta9 ! ,,obf product4 7cc7 ,! annual or aggregate maximum f9anc$ am\nts4 7dd7 ,! av]age f9anc$ am\nts provid$ by ! ,,obf provid] to /ud5ts :o-- 7,,aa7 graduat$ f su* in/itution 9 ! prec$+ ye> ) c]tificates1 und]graduate degrees1 graduate degrees1 & pr(essional degrees1 z applicable2 & 7,,bb7 obta9$ an ,,obf product ( su* type f ! ,,obf provid] = ! prec$+ ye>4 7ee7 ,! consequ5ces = ! ,,obf recipi5t = default+ on an ,,obf product4 7ff7 ,contact in=mation = ! ,,obf provid]4 7gg7 ,o!r in=mation sugge/$ by ! p]sons & entities ) :om ! ,secret>y has consult$ "u subclause 7,i74 7iii7 ,def9itions ,9 ?is subp>agraph ! t]ms ,,obf product & ,,obf provid] h ! mean+s giv5 su* t]ms 9 subsection 7h7 ( section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h774 2 & 7,b7 9 p>agraph 7#b7-- 7i7 9 subp>agraph 7,a77ii71 by /rik+ ! & ins]t+ a be=e model disclosure =m2 7ii7 9 subp>agraph 7,b7-- 7,i7 9 ! matt] prec$+ clause 7i7-- 7aa7 by /rik+ a be=e model disclosure2 & 7bb7 by /rik+ =m t & ins]t+ =ms t2 & 7,,ii7 9 clause 7ii71 by ins]t+ 7or 9 ! case ( an ,,obf product 7z def9$ 9 subsection 7h7 ( section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h771 sections #abh7;e77#ab77;,a7 & #aje7k7 ( su* ,act7 aft] section #abh7;e72 & 7iii7 9 subp>agraph 7,c71 by /rik+ =m & ins]t+ =ms4 7#c7 ,section #aed 7#bj ,u4,s4,c4 #ajai;c7 is am5d$-- 7,a7 9 subsection 7a71 by /rik+ developm5t ( ! & ins]t+ developm5t ( a2 & 7,b7 9 subsection 7b77#b7-- 7i7 by ins]t+ "o ( be=e ! model disclosure2 & 7ii7 by /rik+ =m develop$ & ins]t+ =ms develop$4 #djc4 ,support+ outcomes-bas$ und]writ+ ,section #gja7;b7 ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia7;b77 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#d7 & 7#e7 z p>agraphs 7#e7 & 7#f72 & 7#b7 by ins]t+ aft] p>agraph 7#c7 ! foll[+3 7#d7 to use any empirically d]iv$ cr$it sy/em to det]m9e :e!r to approve an application or e/abli% ! f9ancial or o!r t]ms ( an ,,obf product1 if t empirically d]iv$ sy/em-- 7,a7 consid]s-- 7i7 ! hi/orical graduation rates1 debt-to-income ratios1 income or e>n+s ( consum]s :o 7 previ\sly enroll$ at ! in/itution1 major1 or program ( /udy t ! applicant is att5d+ or w att5d 7or a reasonably comp>able in/itution1 major1 or program ( /udy72 or 7ii7 ! hi/orical income or e>n+s ( work]s 9 ! field or pr(ession = :i* ! program is prep>+ /ud5ts2 & 7,b7 is demon/rably & /ati/ically s\nd 9 accordance ) regulations ( ! ,bureau2 4 #djd4 ,treatm5t "u ! ,fair ,cr$it ,report+ ,act 7a7 ,am5dm5t ,section #fje ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;c7 is am5d$ by add+ at ! end ! foll[+3 7i7 ,,obf product in=mation 7#a7 ,9 g5]al ,) respect to an ,,obf product 7z t t]m is def9$ 9 subsection 7h7 ( section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;h7771 a consum] report made by a consum] report+ ag5cy-- 7,a7 may include a description ( ! contract t]ms ( ! ,,obf product &1 subject to subsection 7a71 in=mation ) respect to am\nts t are ow$ "u ! ,,obf product2 & 7,b7 ) respect to an outcomes-bas$ paym5t agreem5t1 may n include any speculation ab\t future am\nts t may be ow$ "u ! outcomes-bas$ paym5t agreem5t1 includ+ ! report+ ( any paym5t caps or e>ly t]m9ation am\nts4 7#b7 ,regulations ,! ,bureau %all promulgate regulations ) respect to ! mann] 9 :i* ,,obf provid]s may furni%1 & consum] report+ ag5cies may report1 in=mation relat+ to ,,obf products4 4