<enum>I</enum><header>Borrowers’ Right to Basic Consumer Protections</header><section id="H42BDC9C989F746D1B076EA710CEC5690"><enum>101.</enum><header>Dischargeability of student loans in bankruptcy cases</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/11/523">Section 523(a)</external-xref> of title 11 of the United States Code is amended—</text><paragraph id="HE3CAC839959E46EDB1140D61DAEB53F1"><enum>(1)</enum><text>by striking paragraph (8); and</text></paragraph><paragraph id="HB02377DDFE694473AECC84489CDD2091"><enum>(2) </enum><text display-inline="yes-display-inline">by redesignating paragraphs (9) through (19) as paragraphs (8) through (18).</text></paragraph></section><section id="H68DC01E6C32F45EE9DC42F31ACB59B4C"><enum>102.</enum><header>Reinstatement of the 6-year Statute of Limitations for student loans</header><text display-inline="no-display-inline">Subsection (a) of section 484A of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091a">20 U.S.C. 1091a(a)</external-xref>) is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H31EC793BAC714AB4AC60FC42F4134A7B" style="OLC"><subsection id="HC14CAA0C3D3C46AD86CCAB00C445B720"><enum>(a)</enum><header>Statute of limitations</header><text display-inline="yes-display-inline">Notwithstanding any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced—</text><paragraph id="HE7F589AC99914157AE27CDC24FE8346C"><enum>(1)</enum><text>an institution that receives funds under this title may file a suit or initiate or take another action for collection of a refund due from a student on a grant made, or work assistance awarded, under this title, during the 6-year period beginning on the day after the refund first became due (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law);</text></paragraph><paragraph id="H55C847B9922041F3A967A24842A2FB1D"><enum>(2)</enum><text display-inline="yes-display-inline">a guaranty agency that has an agreement with the Secretary under section 428(c) may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part B during the 6-year period beginning on the day after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law);</text></paragraph><paragraph id="H2907370A49E74C838639E957F8255B71"><enum>(3)</enum><text display-inline="yes-display-inline">an institution that has an agreement with the Secretary pursuant to section 487 may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part D or E after the default of the borrower on such loan during the 6-year period beginning on the day after the date of the default of the borrower with respect to such amount (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law); or</text></paragraph><paragraph id="H80DAD6F7FAC1475187C4C994F386A173"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, may file a suit or initiate or take another action for collection of a refund due from a student on a grant made under this title, or for the repayment of the amount due from a borrower on a loan made under this title that has been assigned to the Secretary under this title, during the 6-year period beginning on the day after the refund or the amount first became due.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HF45A9EB22DF84D748BD6A75E32F796CA" section-type="subsequent-section"><enum>103.</enum><header>Prohibition of collection of student loans through certain offsets or through wage garnishment</header><subsection id="H4322B6CCC0984DA390F2007085992B3E"><enum>(a)</enum><header>Prohibition on offset of social security benefits</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/3716">Section 3716(c)(3)(A)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="HF05F6A66679641E799045C73A724F911"><enum>(1)</enum><text>in clause (i), by striking <quote>except as provided in clause (ii)</quote> and inserting <quote>except as provided in clauses (ii) and (iii)</quote>; and</text></paragraph><paragraph id="H3E0DBB2E45074B42BECB5C77A3735570"><enum>(2)</enum><text>by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="HCBC6B6502E9D442ABB1CD0994BC68AC9" style="USC"><clause id="H32758292F27C4FBDABB9446C3C000E6A" indent="up3"><enum>(iii)</enum><text display-inline="yes-display-inline">Notwithstanding clause (i), any payments due to an individual under Federal benefits programs cited under clause (i) shall not be subject to offset under this subsection if the offset is for payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HCE8E843F88D34A47A06717B4E1BB1637"><enum>(b)</enum><header>Prohibition on offset of tax refund</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/3720A">Section 3720A(a)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="H5AFCA50F001F44379F0F46EC9EE8EAC4"><enum>(1)</enum><text>by striking <quote>Any Federal agency</quote> and inserting <quote>(1) Except as provided in paragraph (2), any Federal agency</quote>; and</text></paragraph><paragraph id="H84A9AE8E729640CD831414F50893C42C"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HC863664B83AF4D23BEA83566752D0AD8" style="USC"><paragraph id="H6D7552C6F2ED469C9CD492CD8C7C9F59" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Any past-due legally enforceable debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) shall not be subject to notification under paragraph (1), and any refund of Federal taxes paid by the individual shall not be subject to reduction under subsection (c) for such debt.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H167968F1A1F94DD9B2DF0BE3DC00A43A"><enum>(c)</enum><header>Prohibition on wage garnishment</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/3720D">Section 3720D(a)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="HD6DCAF31912345AFAA6BA04564BB0198"><enum>(1)</enum><text>by striking <quote>Notwithstanding</quote> and inserting: <quote>(1) Except as provided in paragraph (2) and notwithstanding</quote>; and</text></paragraph><paragraph id="H7C975BD1533745D683FCC2E33514C156"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H4AEBF54006F24C2CB4AC6423DEE5E308" style="USC"><paragraph id="HCA51AE77A05540ABA69954A81F34B83A" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Any delinquent nontax debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) shall not be subject to collection under this section through garnishment of disposable pay of the individual.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>

113 HR 3892 IH: Student Loan Borrowers’ Bill of Rights Act of 2013 U.S. House of Representatives 2014-01-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title

This Act may be cited as the

Student Loan Borrowers’ Bill of Rights Act of 2013

<enum>I</enum><header>Borrowers’ Right to Basic Consumer Protections</header><section id="H42BDC9C989F746D1B076EA710CEC5690"><enum>101.</enum><header>Dischargeability of student loans in bankruptcy cases</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/11/523">Section 523(a)</external-xref> of title 11 of the United States Code is amended—</text><paragraph id="HE3CAC839959E46EDB1140D61DAEB53F1"><enum>(1)</enum><text>by striking paragraph (8); and</text></paragraph><paragraph id="HB02377DDFE694473AECC84489CDD2091"><enum>(2) </enum><text display-inline="yes-display-inline">by redesignating paragraphs (9) through (19) as paragraphs (8) through (18).</text></paragraph></section><section id="H68DC01E6C32F45EE9DC42F31ACB59B4C"><enum>102.</enum><header>Reinstatement of the 6-year Statute of Limitations for student loans</header><text display-inline="no-display-inline">Subsection (a) of section 484A of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091a">20 U.S.C. 1091a(a)</external-xref>) is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H31EC793BAC714AB4AC60FC42F4134A7B" style="OLC"><subsection id="HC14CAA0C3D3C46AD86CCAB00C445B720"><enum>(a)</enum><header>Statute of limitations</header><text display-inline="yes-display-inline">Notwithstanding any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced—</text><paragraph id="HE7F589AC99914157AE27CDC24FE8346C"><enum>(1)</enum><text>an institution that receives funds under this title may file a suit or initiate or take another action for collection of a refund due from a student on a grant made, or work assistance awarded, under this title, during the 6-year period beginning on the day after the refund first became due (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law);</text></paragraph><paragraph id="H55C847B9922041F3A967A24842A2FB1D"><enum>(2)</enum><text display-inline="yes-display-inline">a guaranty agency that has an agreement with the Secretary under section 428(c) may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part B during the 6-year period beginning on the day after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law);</text></paragraph><paragraph id="H2907370A49E74C838639E957F8255B71"><enum>(3)</enum><text display-inline="yes-display-inline">an institution that has an agreement with the Secretary pursuant to section 487 may file a suit or initiate or take another action for collection of the amount due from a borrower on a loan made under part D or E after the default of the borrower on such loan during the 6-year period beginning on the day after the date of the default of the borrower with respect to such amount (exclusive of period during which the State statute of limitations otherwise applicable to a suit under this paragraph would be tolled under State law); or</text></paragraph><paragraph id="H80DAD6F7FAC1475187C4C994F386A173"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, may file a suit or initiate or take another action for collection of a refund due from a student on a grant made under this title, or for the repayment of the amount due from a borrower on a loan made under this title that has been assigned to the Secretary under this title, during the 6-year period beginning on the day after the refund or the amount first became due.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HF45A9EB22DF84D748BD6A75E32F796CA" section-type="subsequent-section"><enum>103.</enum><header>Prohibition of collection of student loans through certain offsets or through wage garnishment</header><subsection id="H4322B6CCC0984DA390F2007085992B3E"><enum>(a)</enum><header>Prohibition on offset of social security benefits</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/3716">Section 3716(c)(3)(A)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="HF05F6A66679641E799045C73A724F911"><enum>(1)</enum><text>in clause (i), by striking <quote>except as provided in clause (ii)</quote> and inserting <quote>except as provided in clauses (ii) and (iii)</quote>; and</text></paragraph><paragraph id="H3E0DBB2E45074B42BECB5C77A3735570"><enum>(2)</enum><text>by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="HCBC6B6502E9D442ABB1CD0994BC68AC9" style="USC"><clause id="H32758292F27C4FBDABB9446C3C000E6A" indent="up3"><enum>(iii)</enum><text display-inline="yes-display-inline">Notwithstanding clause (i), any payments due to an individual under Federal benefits programs cited under clause (i) shall not be subject to offset under this subsection if the offset is for payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HCE8E843F88D34A47A06717B4E1BB1637"><enum>(b)</enum><header>Prohibition on offset of tax refund</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/3720A">Section 3720A(a)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="H5AFCA50F001F44379F0F46EC9EE8EAC4"><enum>(1)</enum><text>by striking <quote>Any Federal agency</quote> and inserting <quote>(1) Except as provided in paragraph (2), any Federal agency</quote>; and</text></paragraph><paragraph id="H84A9AE8E729640CD831414F50893C42C"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HC863664B83AF4D23BEA83566752D0AD8" style="USC"><paragraph id="H6D7552C6F2ED469C9CD492CD8C7C9F59" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Any past-due legally enforceable debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) shall not be subject to notification under paragraph (1), and any refund of Federal taxes paid by the individual shall not be subject to reduction under subsection (c) for such debt.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H167968F1A1F94DD9B2DF0BE3DC00A43A"><enum>(c)</enum><header>Prohibition on wage garnishment</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/3720D">Section 3720D(a)</external-xref> of title 31, United States Code, is amended—</text><paragraph id="HD6DCAF31912345AFAA6BA04564BB0198"><enum>(1)</enum><text>by striking <quote>Notwithstanding</quote> and inserting: <quote>(1) Except as provided in paragraph (2) and notwithstanding</quote>; and</text></paragraph><paragraph id="H7C975BD1533745D683FCC2E33514C156"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H4AEBF54006F24C2CB4AC6423DEE5E308" style="USC"><paragraph id="HCA51AE77A05540ABA69954A81F34B83A" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Any delinquent nontax debt owed by an individual to the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) shall not be subject to collection under this section through garnishment of disposable pay of the individual.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><enum>II</enum><header>Borrower’s Right to Reasonable and Flexible Repayment Options</header><section id="HF992F2BC7BF74C12AD0C244B78D67426"><enum>201.</enum><header>Exclusion from gross income for discharge of student loan indebtedness</header><subsection id="HC51CF93D356446ADABEC62E710EA862C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/108">section 108(f)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>if such discharge</quote> and all that follows and inserting a period.</text></subsection><subsection id="H24F8710B69D34E4D86E4116A41BCB257"><enum>(b)</enum><header>Student loans</header><text>Paragraph (2) of section 108(f) of such Code is amended by striking <quote>made by—</quote> and all that follows and inserting the following: <quote>. Such term includes indebtedness used to refinance indebtedness which qualifies as a student loan under the preceding sentence.</quote>.</text></subsection><subsection id="H4CB8CF34EA484328B927DD7FE08D1820"><enum>(c)</enum><header>Conforming amendments</header><text>Section 108(f) of such Code is amended by striking paragraphs (3) and (4).</text></subsection><subsection id="HB657826660E04AC6AD1257D9B0627DB5"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act.</text></subsection></section><section id="H7745C92678E24BACA3BD356D04719E0C"><enum>202.</enum><header>529 plan distribution for student loan payments</header><subsection id="H4268D24482D946F89330203ABDDEC7B2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of section 529(e)(3) is amended by striking clause (iii) and inserting the following new clause:</text><quoted-block display-inline="no-display-inline" id="H22AC1C98DC6148DC85B107240E07DBBF" style="OLC"><clause id="HFC79658A32C341D78D6F1416CCA5EAB9"><enum>(iii)</enum><text display-inline="yes-display-inline">interest or principal paid with respect to a qualified education loan (as defined in section 221) with respect to a designated beneficiary.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HBF5D56C5FFFB43A09BDD02419B1FA59A"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HFAB783C1C3594E219952E8E1FCE00291"><enum>(1)</enum><text display-inline="yes-display-inline">Section 529(e)(3)(A) of such Code is amended by striking the second sentence.</text></paragraph><paragraph id="HF1C78B62BDCF493F8281DC7F580C48A1"><enum>(2)</enum><text>Section 72(t)(7)(A) of such Code is amended by inserting <quote>determined without regard to subparagraph (A)(iii) thereof</quote> after <quote>section 529(e)(3)</quote>.</text></paragraph><paragraph id="H5DAF19996EE749C39AA7325955C526C2"><enum>(3)</enum><text>Section 530(b)(2)(A)(i) of such Code is amended by inserting <quote>determined without regard to subparagraph (A)(iii) thereof</quote> after <quote>section 529(e)(3)</quote>.</text></paragraph></subsection><subsection id="HA3774851B4D748C1B175239B7B89325A"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.</text></subsection></section><section id="H4BA2AA36909447838783BDEEDBFC48BA"><enum>203.</enum><header>Inclusion of Parent PLUS Loans in Repayment Programs</header><subsection id="H1E032F8572E54C3CA4D8E68223E1376A"><enum>(a)</enum><header>Income contingent repayment plan</header><text>Section 455(d)(1)(D) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)(1)(D)</external-xref>) is amended by striking <quote>, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS loan made on behalf of a dependent student;</quote>.</text></subsection><subsection id="H0482D7B91B9348269B682AC38B729176"><enum>(b)</enum><header>Income-Based repayment</header><paragraph id="HC581025614834D608C5FD40DA601A786"><enum>(1)</enum><header>Section 493C</header><text>Section 493C of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e</external-xref>) is amended—</text><subparagraph id="HAC8DEA993EB84DB0B983A99FBC4EAFD8"><enum>(A)</enum><text>in subsection (a)—</text><clause id="HE954CFB6894E46698EBA911A1F389AC8"><enum>(i)</enum><text>by striking <quote>this section</quote> and all that follows through <quote>hardship</quote> and inserting <quote>In this section, the term <quote>partial financial hardship</quote></quote>; and</text></clause><clause id="H81FDEA2BF70E4A448E8A6AD49AC5FC36"><enum>(ii)</enum><text>by striking, <quote>(other than an excepted PLUS loan or excepted consolidation loan)</quote>;</text></clause></subparagraph><subparagraph id="H47FFE583834E4599888B54040CE76583"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (b)—</text><clause id="H97BFDDE8B80D43F582B6CEF9B17F53D4"><enum>(i)</enum><text>in paragraph (1), by striking <quote>(other than an excepted PLUS loan or excepted consolidation loan)</quote>; and</text></clause><clause id="HA5AB95C18B4444F69BA88AED243FF33F"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (6)(A), by striking <quote>(other than an excepted PLUS loan or excepted consolidation loan)</quote>; and</text></clause></subparagraph><subparagraph id="H0A4B7197BD6F4C5096209209126124E8"><enum>(C)</enum><text>in subsection (c), by striking <quote>(other than an excepted PLUS loan or excepted consolidation loan),</quote>.</text></subparagraph></paragraph><paragraph id="H7B03A3C9AFB4441EA230DE117990CC69"><enum>(2)</enum><header>Section <enum-in-header>455(d)(1)(E)</enum-in-header></header><text display-inline="yes-display-inline">Section 455(d)(1)(E) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)(1)(D)</external-xref>) is amended by striking <quote>, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student</quote>.</text></paragraph></subsection><subsection commented="no" id="H92F218BFA8A54C1DA78CC38E8BCF186D"><enum>(c)</enum><header>Pay As You Earn</header><text display-inline="yes-display-inline">The income-contingent repayment plan (based on the President's <quote>Pay As You Earn</quote> repayment initiative) implemented in parts 674, 682, and 685 of title 34, Code of Federal Regulations, as amended by the final regulations published by the Department of Education in the Federal Register on November 1, 2012 (77 Fed. Reg. 66088 et seq.), shall be available to borrowers of—</text><paragraph id="HA33B27D181134D6DA3E4200EB11420DE"><enum>(1)</enum><text>a Federal Direct PLUS loan made on behalf of a dependent student; and</text></paragraph><paragraph id="HEAAB270C0C844C3295A9AE52B0C407B8"><enum>(2)</enum><text>a Federal Direct Consolidation Loan, the proceeds of which were used to discharge the liability on a Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student.</text></paragraph></subsection><subsection id="H40AA604159E4478F9CF1AB63D66D7923"><enum>(d)</enum><header>Loan forgiveness for service in areas of national need</header><text>Section 428K(a)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-11">20 U.S.C. 1078–11(a)(2)</external-xref>) is amended—</text><paragraph id="HD0855A28E79D4DCB87C4B5BF0F8B96F8"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>(other than an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 493C(a)))</quote>; and</text></paragraph><paragraph id="HDC3007AA85B645759892FCBE0AE25EB2"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>(other than an excepted PLUS loan or an excepted consolidation loan)</quote>.</text></paragraph></subsection></section><section id="HBC56121E8AA74DFCB672B34CF09D7469"><enum>204.</enum><header>Determination of adverse credit history</header><text display-inline="no-display-inline">Section 428B(a)(1)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-2">20 U.S.C. 1078–2(a)(1)(A)</external-xref>) is amended by striking <quote>regulations promulgated by the Secretary</quote> and inserting <quote>section 685.200(c) of title 34, Code of Federal Regulations (as in effect on September 30, 2011)</quote>.</text></section><enum>III</enum><header>Borrowers’ right to a meaningful degree</header><section id="HAD245516EDD34C6B9CC1A4FBADE2DB4A"><enum>301.</enum><header>Prohibition on suspensions of professional licenses for loan default</header><text display-inline="no-display-inline">No evidence of an individual’s default on the repayment of a loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) may be admitted into evidence in a Federal or State proceeding involving the individual’s professional or vocational license.</text></section><section id="HCBC787937DA748CBA863D66F6648E147"><enum>302.</enum><header>Prohibition on loss of access to transcripts for loan default</header><text display-inline="no-display-inline">Section 487(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(a)</external-xref>) (as amended by section 301) is further amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H277915B1E99844B4BB4A994EBAA48980" style="OLC"><paragraph id="HC6180551BB1541339428BD6B6BB81CC2"><enum>(31)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1F0BBAE69F97437C90A8782845CAE9CD"><enum>(A)</enum><text>The institution will not prohibit a student from accessing the student’s transcripts, degree scrolls, or other certifications of coursework or educational attainments at the institution because the student is in default on the repayment of a loan made, insured, or guaranteed under this title.</text></subparagraph><subparagraph id="HCF8E39A6055B4D44B13C76DC841F6613" indent="up1"><enum>(B)</enum><text>For purposes of this paragraph, the term <quote>student</quote> includes former students.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>IV</enum><header>Right to effective loan cancellation for borrowers engaged in public service careers</header><section id="H4C4DF11B921243EC86B357870B39C721"><enum>401.</enum><header>Extension of loan cancellation for borrowers employed in public service jobs for 5 years</header><text display-inline="no-display-inline">Section 455(m) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HBC8FD84E490445F28FF8644E6B56E07C" style="OLC"><paragraph id="H59C0871903E5443C8229A3BA17928E91"><enum>(5)</enum><header>Loan cancellation after 5 years</header><text display-inline="yes-display-inline">Beginning fiscal year 2014, the Secretary shall also cancel 50 percent of the balance of interest and principal due on any eligible Federal Direct Loan not in default for borrowers employed in a public service job for 5 years during the repayment of such loans—</text><subparagraph id="H3458F29F2E2D41A0B9C05C15AC6FA2D9"><enum>(A)</enum><text>by applying paragraph (1)(A)—</text><clause id="H9AD8A38702284E15847D9BA8BD32629A"><enum>(i)</enum><text>by substituting <quote>60</quote> for <quote>120</quote> each place it appears; and</text></clause><clause id="H8C8060F326D249D6B006078F489B39FE"><enum>(ii)</enum><text>by substituting <quote>October 1, 2007</quote> for <quote>October 1, 2013</quote>; and</text></clause></subparagraph><subparagraph id="H1F48683ABFF04EC79040E5E4B3261B7C"><enum>(B)</enum><text>by applying paragraph (2), by substituting <quote>50 percent of the balance</quote> with <quote>the balance</quote>.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section>