119 HR 4862 IH: Lowering Obstacles to Achievement Now Act
U.S. House of Representatives
2025-08-01
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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.
1.This Act may be cited as the Lowering Obstacles to Achievement Now Act
or the LOAN Act
.2.Subtitles A through F of title VIII of Public Law 119–21 are repealed. The provisions of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) amended by such subtitles are restored and revived as if such subtitles had not been enacted.3.The table of contents of this Act is as follows:Sec. 1. Short title.Sec. 2. Repeal.Sec. 3. Table of contents.Title I—Federal Pell GrantsSec. 101. Doubling Federal Pell Grants and providing all Federal Pell Grants through mandatory funding.Sec. 102. Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits.Sec. 103. Federal aid eligibility for dreamer students.Sec. 104. Restoring the total semesters of Federal Pell Grant eligibility.Sec. 105. Reducing financial aid penalties from satisfactory academic progress determinations.Sec. 106. Federal Pell Grants for graduate students.Title II—Amendments to terms and conditions of loans and repayment plansPart A—General terms and conditionsSec. 201. Subsidized loans for graduate and professional students.Sec. 202. Repeal of origination fees.Sec. 203. Prepayment amounts.Sec. 204. Default requirements.Part B—One income-Contingent repayment plan and one fixed repayment planSec. 211. Notification to borrowers.Sec. 212. New repayment plans.Sec. 213. Maximum repayment period for income-contingent repayment and income-based repayment.Sec. 214. Borrowers ineligible for loans.Part C—Automatic enrollment in the Income-Driven Repayment Plan for certain borrowersSec. 221. Notification and automatic enrollment procedures for borrowers who are delinquent on loans.Sec. 222. Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans.Sec. 223. Covered loan and non-covered loan defined.Sec. 224. Automatic recertification of income for income-driven repayment plans.Sec. 225. Procedure and requirement for requesting tax return information from the IRS.Part D—Streamlining Public Service Loan ForgivenessSec. 231. Amendments to terms and conditions of public service loan forgiveness.Sec. 232. Terms and conditions of employment.Sec. 233. Online portal and database of public service jobs.Sec. 234. Treatment of consolidated and refinanced loans.Sec. 235. Loan forgiveness for teachers.Sec. 236. GAO study on data matching agreements for public service loan forgiveness.Part E—Support for Borrowers in DefaultSec. 241. Removal of record of default.Sec. 242. Removal of record of default from credit history upon loan consolidation.Sec. 243. Default reduction program.Title III—Interest CapitalizationSec. 301. Elimination of interest capitalization.Sec. 302. Elimination of disclosure requirements relating to capitalization.Title IV—Interest RatesSec. 401. Interest rate provisions for new Federal student loans on or after July 1, 2026.Sec. 402. Refinancing FFEL and Federal Direct Loans.Sec. 403. Refinancing private student loans.<enum>I</enum><header>Federal Pell Grants</header><section id="HE12F3440B989493FA4F16983DA457D17"><enum>101.</enum><header>Doubling Federal Pell Grants and providing all Federal Pell Grants through mandatory funding</header><subsection id="H7424CC4E3FCA4CC48F04631063AA1EF4"><enum>(a)</enum><header>Amount of minimum Federal Pell Grants</header><text display-inline="yes-display-inline">Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) is amended—</text><paragraph id="HDB0715E236ED4C108073DB02DFD6F981"><enum>(1)</enum><text>in subsection (a)(2)(F), by striking <quote>10 percent</quote> and inserting <quote>5 percent</quote>;</text></paragraph><paragraph id="H813FBAF5645C42788468CF7F2B108A16"><enum>(2)</enum><text>in subsection (b)—</text><subparagraph id="H0309EBE5F9274CE29EA8068D1A9B80D4"><enum>(A)</enum><text>in paragraph (1)(B)(i), by striking <quote>paragraph (5)(A)</quote> and inserting <quote>paragraph (5)</quote>;</text></subparagraph><subparagraph id="H05B7314750EE4BC9BAE462E93371B725"><enum>(B)</enum><text>by striking paragraph (5) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H305BEB43FDD34DD581B8257138D245B3"><paragraph id="H7F78C9364A674A0483C01684C0DE8BD0"><enum>(5)</enum><header>Total Maximum Federal Pell Grant</header><subparagraph id="H954F2ED0ED9C47F48AA2FD593A563AFA"><enum>(A)</enum><header>Award year 2026–2027</header><text>For award year 2026–2027, the total maximum Federal Pell Grant award shall be $10,000.</text></subparagraph><subparagraph id="HB7BC1A6889F44F1ABC2D24DC527B0E6F"><enum>(B)</enum><header>Award year 2027–2028</header><text>For award year 2027–2028, the total maximum Federal Pell Grant award shall be $11,000.</text></subparagraph><subparagraph id="H36925F96CEF6417384825177E50F3675"><enum>(C)</enum><header>Award year 2028–2029</header><text>For award year 2028–2029, the total maximum Federal Pell Grant award shall be $12,000.</text></subparagraph><subparagraph id="H1549EB02BFCC4297906CA589556FA35B"><enum>(D)</enum><header>Award year 2029–2030</header><text>For award year 2029–2030, the total maximum Federal Pell Grant award shall be $13,000.</text></subparagraph><subparagraph id="H02C5237C79C1415E876E64A983BFD176"><enum>(E)</enum><header>Award year 2030–2031</header><text>For award year 2030–2031, the total maximum Federal Pell Grant award shall be $14,000. </text></subparagraph><subparagraph id="H1A75ECD54B7E4C63A78EC3A1F6476360"><enum>(F)</enum><header>Award year 2031–2032 and subsequent years</header><text>For award year 2031–2032, and each subsequent award year, the total maximum Federal Pell Grant award shall be $14,000— </text><clause id="HACAB9F8179DD4AF3AD7587B7078E7F02"><enum>(i)</enum><text>increased by the adjustment percentage for the award year for which the amount under this subparagraph is being determined; and</text></clause><clause id="H87ACA0111BC2424D8C0F7D56ED7DC03C"><enum>(ii)</enum><text>rounded to the nearest $50. </text></clause></subparagraph><subparagraph id="H7CCB9C43BA94423CBB71C38799BB4837"><enum>(G)</enum><header>Definition of adjustment percentage</header><text>In this paragraph, the term <term>adjustment percentage,</term> as applied to an award year, is equal to the percentage increase in the Consumer Price Index, as defined in section 478(f), for the most recent calendar year ending prior to the beginning of the award year.</text></subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph><subparagraph id="HC9A6A556ECB240D3AA289B5832D3AC36"><enum>(C)</enum><text>by striking paragraphs (6) and (7) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HADB24B840B7949AAAE59430E4CC6F6AC"><paragraph id="H99AFF7567E6B4C85840C89BA2984253A" commented="no" display-inline="no-display-inline"><enum>(6)</enum><header display-inline="yes-display-inline">Appropriation of funds</header><text display-inline="yes-display-inline">There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for fiscal year 2026 and each subsequent fiscal year to provide the total maximum Federal Pell Grant for which a student shall be eligible under this section during an award year.</text></paragraph><after-quoted-block>; and </after-quoted-block></quoted-block></subparagraph><subparagraph id="H59235B3ACF92406BB7F77B981BDA56D5"><enum>(D)</enum><text>by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively;</text></subparagraph></paragraph><paragraph id="H23143935142743EC943A9E5E6155C4C3"><enum>(3)</enum><text>in subsection (d)(5)(B)(ii)—</text><subparagraph id="H63E880ECE9FA4CB085954851C0A926E5"><enum>(A)</enum><text>in subclause (I)(bb), by striking <quote>or</quote> after the semicolon;</text></subparagraph><subparagraph id="H8B80B2A90D2D4FB09477ACC3018188B7"><enum>(B)</enum><text>in subclause (II)(bb)(CC), by striking the period and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="H1743A470C1C343C6874C91EF484D9546"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA67992AEDED74D7AB91074E7E56EA814"><subclause id="HB2F5FDA9DF034BA8B7976634BD68059A"><enum>(III)</enum><text>during a period for which the student did not receive a loan under this title but for which, if the student had received such a loan, such loan would have been discharged under the circumstances described in subclause (II)(bb)(CC).</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H4691FC857C7440F7A5ABA1BA13DF8690"><enum>(4)</enum><text>by striking subsections (g) and (h); and</text></paragraph><paragraph id="H5FD4058B46694F3D9B45FA62A12F5457"><enum>(5)</enum><text>by redesignating subsections (i) and (j) as subsections (g) and (h), respectively.</text></paragraph></subsection><subsection id="HE5855F283E3E48FDAD05991C96DB1C05"><enum>(b)</enum><header>Repeal of scoring requirement</header><paragraph id="H3C71DB51699144A09DFA5996C8B2F17D"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 406 of H. Con. Res. 95 (109th Congress) is amended—</text><subparagraph id="HE8E5C266090C4EBB85CDE95555FA0CD7"><enum>(A)</enum><text>by striking subsection (b); and</text></subparagraph><subparagraph id="HEBB961035AA24976A807182267DB8BDF"><enum>(B)</enum><text>by striking <quote>(a) <header-in-text level="subsection" style="OLC">In general</header-in-text>.—Upon</quote> and inserting the following: <quote>Upon</quote>.</text></subparagraph></paragraph><paragraph id="HB0200659F0B04B8DBEC83352EE1D4E8F"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect beginning on July 1, 2026.</text></paragraph></subsection><subsection id="H1DA0D7AD16124B1783B45F44DE0A71DF"><enum>(c)</enum><header>Student support services</header><text display-inline="yes-display-inline">Section 402D(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-14">20 U.S.C. 1070a–14(d)(1)</external-xref>) is amended by striking <quote>the minimum</quote> and inserting <quote>10 percent of the maximum</quote>.</text></subsection><subsection id="H8C193814D31F46A98173F2FB9E3CF6A0"><enum>(d)</enum><header>Scholarship component</header><text display-inline="yes-display-inline">Section 404E(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-25">20 U.S.C. 1070a–25(d)</external-xref>) is amended by striking <quote>less than the minimum</quote> and inserting <quote>less than 10 percent of the maximum</quote>.</text></subsection></section><section id="H95A8148575A54813B298A34A4A7585B9"><enum>102.</enum><header>Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits</header><subsection id="H3E139B96A6894B979087B76A9849CCEA"><enum>(a)</enum><header>Increased amount of maximum Federal Pell Grants for students with negative student aid indexes</header><text display-inline="yes-display-inline">Section 401(b)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(1)</external-xref>), as amended by section 101 of this Act, is amended—</text><paragraph id="H7B82C4B38FF54F42A3649CEC2537F291"><enum>(1)</enum><text>in subparagraph (A)—</text><subparagraph id="H6EAC527BEDA14B8983793CB671255155"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>A student</quote> and inserting <quote>Except in the case of a student with a student aid index of less than zero, a student</quote>;</text></subparagraph><subparagraph id="H75B1326D339941B88ADD028D20C86EDE"><enum>(B)</enum><text>by striking clause (i); and</text></subparagraph><subparagraph id="H4A1C9E30673A4962AD261BFD7DDE7D15"><enum>(C)</enum><text>by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively;</text></subparagraph></paragraph><paragraph id="HA8FEC94066624C8CB8A9B374447EA070"><enum>(2)</enum><text>by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively;</text></paragraph><paragraph id="H43DA135AA7684D3297080EDDF7D94D6D" commented="no"><enum>(3)</enum><text>by inserting after subparagraph (A) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE9C9E444A82848DD9F00653D8F9E84B7"><subparagraph id="H015FC97B043345A1AABA3C365E3D7C48"><enum>(B)</enum><text>A student with a student aid index of less than zero shall be eligible for a Federal Pell Grant award that exceeds the total maximum Federal Pell Grant by an amount equal to the amount by which the student’s student aid index is less than zero.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></paragraph><paragraph id="H3B1FF0D043D347DA8D96EA80D3B34C75" commented="no"><enum>(4)</enum><text>in subparagraph (C), as redesignated by paragraph (2)—</text><subparagraph id="HFD26EBD4B23341A1952CBE9F516C4D74" commented="no"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>subparagraph (A) for an academic year,</quote> and inserting <quote>subparagraph (A), or an increased Federal Pell Grant under subparagraph (B), for an academic year,</quote>; and</text></subparagraph><subparagraph id="HC37CB619B2BD4C6598CD14C3133789AE" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in clause (ii), by striking <quote>, except that a student aid index of less than zero shall be considered to be zero for the purposes of this clause</quote>;</text></subparagraph></paragraph><paragraph id="HA2CE8BEACF9748B5A223AB7DC1FA1F18" commented="no" display-inline="no-display-inline"><enum>(5)</enum><text>in subparagraph (D), as redesignated by paragraph (2), by striking <quote>(A) or (B)</quote> and inserting <quote>(A), (B), or (C)</quote>;</text></paragraph><paragraph id="H7D27A00DD6BF421F8E3F6182D25972A1" commented="no" display-inline="no-display-inline"><enum>(6)</enum><text>in subparagraph (E), as redesignated by paragraph (2), by inserting <quote>or an increased Federal Pell Grant under subparagraph (B)</quote> after <quote>subparagraph (A)</quote>; or</text></paragraph><paragraph id="HD35D47CA94D0479CA3097C17B69859C2" commented="no" display-inline="no-display-inline"><enum>(7)</enum><text>in subparagraph (F), as redesignated by paragraph (2), by striking <quote>or a minimum Federal Pell Grant under subparagraph (C)</quote> and inserting <quote>an increased Federal Pell Grant under subparagraph (B), or a minimum Federal Pell Grant under subparagraph (D)</quote>.</text></paragraph></subsection><subsection id="H64CDBE6BF6F544B49FC6E3CDBA605083" commented="no"><enum>(b)</enum><header>Special student aid index rule for recipients of means-Tested benefits</header><text display-inline="yes-display-inline">Section 473 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087mm">20 U.S.C. 1087mm</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H20F410ADA9BD43EBA6C88FF4EAA86786"><subsection id="H2AC25096445B47D392B440E6D6ECD7E2"><enum>(d)</enum><header>Special rule for means-Tested benefit recipients</header><text>Notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant’s parents) who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable), the Secretary shall for the purposes of this title consider the student aid index as equal to –$1,500 for the applicant.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="HEE1F3C1A93DF4B9F8C14E5506C898B2B"><enum>103.</enum><header>Federal aid eligibility for dreamer students</header><text display-inline="no-display-inline">Section 484 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091</external-xref>) is amended—</text><paragraph id="H67A337A5B0F448378307294EBEA25E7A"><enum>(1)</enum><text>in subsection (a)(5), by inserting <quote>, or be a Dreamer student, as defined in subsection (u)</quote> after <quote>becoming a citizen or permanent resident</quote>; and</text></paragraph><paragraph id="HA6F5997132044A8DB4B735684153B698"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H0E9F893B0E6647F0A0B3EE2C776CAAFA"><subsection id="H46E504B47F9E496D8EA7FA0C5807AFEF"><enum>(u)</enum><header>Dreamer students</header><paragraph id="HFF12A7D85C8E428FBECAD71AC3CABEEE" commented="no"><enum>(1)</enum><header>In general</header><text>In this section, the term <term>Dreamer student</term> means an individual who—</text><subparagraph id="H4F6FE3EAE3AC4A3082A3AB9011A5C428" commented="no"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H0DACCA570FCA494892CC95C937ABF32D"><enum>(i)</enum><text>is not a citizen or national of the United States; and</text></clause><clause id="HAFCDD67958F04CA8BEC60F0ACCF1F175" indent="up1" commented="no"><enum>(ii)</enum><text>is inadmissible or deportable under the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1101">8 U.S.C. 1101 et seq.</external-xref>); and</text></clause></subparagraph><subparagraph id="H56DAD7F1A29F4C5FAB56F57F0699252B" commented="no"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H758E8F4BF3E84E8C9A25A2F39F98EC72"><enum>(i)</enum><text>in the case of such an individual who was younger than 18 years of age on the date on which the individual initially entered the United States—</text><subclause id="H95FF63009DD644349E9AE9E9A90B8218" indent="up1" commented="no"><enum>(I)</enum><text>has earned a high school diploma, the recognized equivalent of such diploma from a secondary school, or a high school equivalency diploma recognized by State law, or is scheduled to complete the requirements for such a diploma or equivalent before the next academic year begins;</text></subclause><subclause id="H7173C7FD07474BD5AD684A371A2840FA" indent="up1" commented="no"><enum>(II)</enum><text>is enrolled at an institution of higher education pursuant to subsection (d);</text></subclause><subclause id="HE044D20E07224C189DF668D2986C639B" indent="up1" commented="no"><enum>(III)</enum><text>has served in the uniformed services (as such term is defined in section 101 of title 10, United States Code) for not less than 2 years and, if discharged, received an honorable discharge; </text></subclause><subclause id="HB813AECDC7AB45A696192DAF773C30D2" indent="up1" commented="no"><enum>(IV)</enum><text>has acquired a degree, certificate, or recognized postsecondary credential from an institution of higher education or area career and technical education school (as such term is defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302</external-xref>)); or</text></subclause><subclause id="H79F551E9A9274EE988FC9FC805E3B92C" indent="up1" commented="no"><enum>(V)</enum><text>has completed not less than 2 years in a postsecondary program at an institution of higher education, or area career and technical education school, in the United States and has made satisfactory academic progress, as defined in subsection (c), during such time period; or</text></subclause></clause><clause id="HE7390BAE0911496AAAB3D996DF4633F6" indent="up1" commented="no"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H28692085A89C4E059B2F52D812EACE39"><enum>(I)</enum><text>is, or at any time was, eligible for a grant of deferred action pursuant to—</text><item id="HE66CA7A2DA5E4FBD8DB329C37A58CAF8" indent="up1" commented="no"><enum>(aa)</enum><text>the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children</quote> issued on June 15, 2012; or</text></item><item id="H3AA5A50607B6456781AD0BBAD316D13E" indent="up1" commented="no"><enum>(bb)</enum><text>the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children and with Respect to Certain Individuals Who Are the Parents of U.S. Citizens or Permanent Residents</quote> issued on November 20, 2014; or</text></item></subclause><subclause id="H3DE68EB4968F4EB7AD08D0E5F3AC6612" indent="up1" commented="no"><enum>(II)</enum><text>would have been eligible for such a grant of deferred action if the applicable memorandum described in subclause (I) had been fully in effect since the date on which it was issued.</text></subclause></clause></subparagraph></paragraph><paragraph id="H2B237FB5C0604A93846315F024ED8998"><enum>(2)</enum><header>Hardship exception</header><text>The Secretary shall issue regulations that direct when the Department shall waive the age requirement of paragraph (1)(B)(i) for an individual to qualify as a Dreamer student under such paragraph, if the individual demonstrates compelling circumstances, such as economic hardship (as defined in section 435(o)).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H30FE3A9CFB9044788B6E2DDAE138F34F" commented="no"><enum>104.</enum><header>Restoring the total semesters of Federal Pell Grant eligibility</header><text display-inline="no-display-inline">Section 401(d)(5)(A) of the Higher Education Act of 1965 is amended by striking <quote>12</quote> each place the term appears and inserting <quote>18</quote>.</text></section><section id="HD299749D23134885AC281F9C1E08B956"><enum>105.</enum><header>Reducing financial aid penalties from satisfactory academic progress determinations</header><text display-inline="no-display-inline">Section 484(c) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091(c)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF7E127469167435593662994D25A65A4"><subsection id="HE2150535781149869C35CED33D196920"><enum>(c)</enum><header>Satisfactory progress</header><paragraph id="H949C7D8B3E37403AAC528799ADF95CCC"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="HC4B615BEA6224B3388AAEB47CF81DE48"><enum>(A)</enum><header>Appeal</header><text>The term <term>appeal</term> means a process by which a student who is not meeting the institution’s satisfactory academic progress standards petitions the institution for reconsideration of the student’s eligibility for assistance under this title.</text></subparagraph><subparagraph id="H4DB2FBFBB79A46609EDD9E3591C64648"><enum>(B)</enum><header>Financial aid probation</header><text>The term <term>financial aid probation</term> means a status assigned by an institution to a student who fails to make satisfactory academic progress and who has appealed and has had eligibility for aid reinstated.</text></subparagraph><subparagraph id="HFB4655F5AA2F46B5A05DCAB7549AB61A"><enum>(C)</enum><header>Financial aid warning</header><text>The term <term>financial aid warning</term> means a status assigned to a student who fails to make satisfactory academic progress at the end of the semester or equivalent period in which the student first fails to make such progress.</text></subparagraph><subparagraph id="H86475991FDE94A13905F228C3F5715EA"><enum>(D)</enum><header>Payment period</header><text>The term <term>payment period</term> means the applicable payment period described in section 668.4 of title 34, Code of Federal Regulations, or any successor regulation.</text></subparagraph></paragraph><paragraph id="HA1B1641CBFA7409AB2AD461649CE82CE"><enum>(2)</enum><header>Satisfactory academic progress policy</header><text>An institution shall establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in the student’s educational program and may receive assistance under this title. The Secretary shall consider the institution’s policy to be reasonable if—</text><subparagraph id="HD1052FE7DF0843368DB851F7135B70BB"><enum>(A)</enum><text>the policy is at least as strict as the policy the institution applies to a student who is not receiving assistance under this title;</text></subparagraph><subparagraph id="HCF6EA6F6A62C4974B7D5CE6FE7454E22"><enum>(B)</enum><text>the policy provides for consistent application of standards to all students, including full-time, part-time, undergraduate, and graduate students, and all educational programs established by the institution;</text></subparagraph><subparagraph id="H80BC9BFD0FDA40C8B502E7F140190753"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="HBB4E9E3CC0AF4368AF6D7359F549B14E"><enum>(i)</enum><text>the policy specifies the grade point average that a student must achieve at each evaluation, or if a grade point average is not an appropriate qualitative measure, a comparable assessment measured against a norm; and</text></clause><clause id="H4447B5E7F0CF4DA09DAB12049A6ACFB1" indent="up1"><enum>(ii)</enum><text>if a student is enrolled in an educational program of more than 2 academic years, the policy specifies that at the end of the second academic year, the student must have a grade point average of at least a <quote>C</quote> or its equivalent, or have academic standing consistent with the institution’s requirements for graduation;</text></clause></subparagraph><subparagraph id="H1F9D9BF691374D068359145988694115"><enum>(D)</enum><text>the policy provides for measurement of the student’s progress at each evaluation;</text></subparagraph><subparagraph id="HAD16A08BF94040959C951703798F98F4"><enum>(E)</enum><text>the policy describes—</text><clause id="H116A82CA7F834A7FBE1604327DAD322D"><enum>(i)</enum><text>how a student’s grade point average and the pace at which the student progresses toward completion are affected by course incompletes, withdrawals, or repetitions, or transfers of credit from other institutions, including that credit hours from another institution that are accepted toward the student’s educational program are counted as both attempted and completed hours; and</text></clause><clause id="H7B4C8B82C60E476F8940A618A431B88C"><enum>(ii)</enum><text>how after a student reenrolls after the student’s satisfactory academic progress was reset pursuant to paragraph (3)(B), the student may have any credits that were earned before the student was determined not to be making satisfactory academic progress counted for purposes of determining progress when the student reenrolls, but any attempted hours that were not earned by the student (including incompletes, withdrawn courses, and failed courses) before the student was determined not to be making satisfactory academic progress will not negatively impact the determination of whether the student made satisfactory academic progress after such reset;</text></clause></subparagraph><subparagraph id="H07214183CC4142BEAAD797D6D166719D"><enum>(F)</enum><text>the policy provides that, except as provided in subparagraph (G) with respect to a student placed on financial aid warning or financial aid probation and paragraph (3), a student is no longer eligible to receive assistance under this title if the student has not achieved the required grade point average or who is not making progress toward completion in the student’s educational program—</text><clause id="H23F3EC6EDA044D768AD2270CF96333E1"><enum>(i)</enum><text>at the time of each evaluation with respect to a student who is in an educational program of 2 academic years or less in length; or</text></clause><clause id="H7D435CA5E9E9496695DBFA1A87096B6F"><enum>(ii)</enum><text>at the end of the second academic year with respect to a student who is in an educational program of more than 2 academic years in length;</text></clause></subparagraph><subparagraph id="H1CF14E4EDA9347159D901F1498ED389C"><enum>(G)</enum><text>the policy describes when students will be placed on financial aid warning or financial aid probation, in accordance with paragraph (4), and provides that—</text><clause id="H17DACE8CB26542928D40F9809B261A79"><enum>(i)</enum><text>a student on financial aid warning—</text><subclause id="H9FDA86AD06CD430CA510C00D399357C9"><enum>(I)</enum><text>shall receive assistance under this title for one payment period despite a determination that the student is not making satisfactory academic progress; and</text></subclause><subclause id="HF67319BE4F894463BE44F02BFB134BA1"><enum>(II)</enum><text>may be assigned such status without an appeal or other action by the student; and</text></subclause></clause><clause id="HFBDE32033D5C413E9516A39996F708AD"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H4C6D981BD3F54267BD3D762828AABF7F"><enum>(I)</enum><text>a student on financial aid probation may receive assistance under this title for one payment period and the institution may require the student to fulfill specific terms and conditions, such as taking a reduced course load or enrolling in specific courses; and</text></subclause><subclause id="HF56C56303E2A4EFCB860A8A55390B474" indent="up1"><enum>(II)</enum><text>at the end of such one payment period, the student is required to meet the institution’s satisfactory academic progress standards, or meet the requirements of the academic plan developed by the institution and the student, in order to qualify for continued assistance under this title;</text></subclause></clause></subparagraph><subparagraph id="H7AFAB8DC98A74899B5AD5FEB885D2553"><enum>(H)</enum><text>if the institution permits a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes—</text><clause id="HAE0BD61579CA4D9695192E402ED2399D"><enum>(i)</enum><text>how the student may reestablish the student’s eligibility to receive assistance under this title;</text></clause><clause id="HD9A0DA179A964215B8889D775C44A1BB"><enum>(ii)</enum><text>the basis on which the student may file an appeal, including because of the death of a relative, an injury or illness of the student, or another special circumstance; and</text></clause><clause id="H055FBA41CA8D4F49A12270F1BB0575EB"><enum>(iii)</enum><text>information the student is required to submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student’s situation that will allow the student to demonstrate satisfactory academic progress at the next evaluation;</text></clause></subparagraph><subparagraph id="HFC8C77D572214CBF91268117827434B5"><enum>(I)</enum><text>if the institution does not permit a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes how the student may reestablish the student’s eligibility to receive assistance under this title;</text></subparagraph><subparagraph id="H5DA740868D0246489AADB31999532E4C"><enum>(J)</enum><text>the policy provides for notification to students of the results of an evaluation that impacts the student’s eligibility for assistance under this title; and</text></subparagraph><subparagraph id="H01DB0034FCA54BACB7C4EA0684ED8FCD"><enum>(K)</enum><text>the policy does not impose satisfactory progress limitations on need-based institutional aid that are more stringent than the standard applied under this subsection without demonstrating to the Secretary the effectiveness of such limitations on improving student persistence in, and completion of, postsecondary study.</text></subparagraph></paragraph><paragraph id="H4EB741E0B8AE4B299C3FE70945FE4C61"><enum>(3)</enum><header>Regaining eligibility</header><subparagraph id="H7A2E174361C24FDE9C42DF4C96B8212F"><enum>(A)</enum><header>Students who remain in school</header><text>Whenever a student fails to meet the eligibility requirements of subsection (a)(2) as a result of the application of this subsection and, subsequent to that failure, the student has academic standing for any grading period consistent with the requirements for staying on track to graduate within 150 percent of the published length of the educational program, as determined by the institution, the student shall again be eligible under subsection (a)(2) for a grant, loan, or work assistance under this title, as long as the student maintains satisfactory academic progress under paragraph (2) beginning on and after the date that the student regains eligibility.</text></subparagraph><subparagraph id="HEC4AB157EF1F402AB95801F756301035"><enum>(B)</enum><header>Students who leave school</header><clause id="H4BBECC67D6F940EBA9B233D67B968446"><enum>(i)</enum><header>In general</header><text>If a student has not been enrolled in any institution of higher education for the immediately preceding 2 years, any previous failure to meet the eligibility requirements of subsection (a)(2) shall not be used in any determination of eligibility of such student under such subsection. Such student shall, on the date of enrollment subsequent to such 2-year period, have the student's eligibility for a grant, loan, or work assistance under this title reset and be deemed as meeting the requirements described in paragraph (2). Beginning on and after such date, the student's satisfactory academic progress shall be determined in accordance with paragraph (2)(E)(ii).</text></clause><clause id="H3C909CDFF22E433ABC9C733A97F39439"><enum>(ii)</enum><header>Maximum number of resets</header><text>A student shall be eligible for a reset of eligibility pursuant to this subparagraph not more than 2 times.</text></clause></subparagraph><subparagraph id="HD9C2D5DB78124E1B94D046359A4F0F64"><enum>(C)</enum><header>Duties of the Secretary</header><text>The Secretary shall—</text><clause id="HF79B54CD0E784F13906E604D440C1390"><enum>(i)</enum><text>send, to each student who failed to meet the eligibility requirements of subsection (a)(2) and who has not regained eligibility for a grant, loan, or work assistance under subparagraph (A), a notice, two years after such failure, that includes—</text><subclause id="H09CEC2C4649F4BD1B7232FBEFDA9E63E"><enum>(I)</enum><text>a notification that, if the student has not been enrolled in any institution of higher education for the preceding two years and has not received two resets of eligibility under subparagraph (B), the student may use grant, loan, or work assistance under this title for enrollment at any eligible institution, including an institution other than the institution in which the student was previously enrolled;</text></subclause><subclause id="H2430AE82C9F64E0D97A713AA1AC8083B"><enum>(II)</enum><text>a notification that, if the student has remained enrolled, or resumed enrollment, at an institution of higher education, the student may be eligible for a grant, loan, or work assistance under this title subject to the requirements of subparagraph (A);</text></subclause><subclause id="H7B63861BBD5A40ADA3B1C952A1FC58E0"><enum>(III)</enum><text>information on how many semesters of eligibility for a grant, loan, or work assistance under this title to which the student still has access; and</text></subclause><subclause id="H6643D1E07DF94684ABEE8B81AF7E24C4"><enum>(IV)</enum><text>a notification that the student should ask any prospective eligible institution how many of the student’s previously completed credits the student would be able to transfer; and</text></subclause></clause><clause id="H59F2E44C158141C7BF521AC2E83E055C"><enum>(ii)</enum><text>submit an annual report to Congress on the outcomes of students who have received a reset of eligibility pursuant to this paragraph, including—</text><subclause id="H07B2425D7453409A91A9C7E86467D7BE"><enum>(I)</enum><text>the number of students who reenroll in an eligible institution after such reset, disaggregated by race or ethnicity, sex, age, socioeconomic status, and disability status;</text></subclause><subclause id="H9EEC8F54A0F642C8B1BA2890F7A75D8E"><enum>(II)</enum><text>the 250 eligible institutions with the highest numbers of enrolled students receiving grant, loan, or work assistance under this title after such a reset;</text></subclause><subclause id="H9D223B0FDFD54D60848876FB27D31FF8"><enum>(III)</enum><text>the 250 eligible institutions with the highest share of enrolled students receiving grant, loan, or work assistance under this title after such a reset; and</text></subclause><subclause id="H7E2868A6777C4054814B0C5AA38D1F82"><enum>(IV)</enum><text>the average completion rate and time to completion for students who reenroll in an eligible institution after such reset, disaggregated by institution.</text></subclause></clause></subparagraph></paragraph><paragraph id="H4FFB5BC8A3BC4DBB86E305174D98BC1C"><enum>(4)</enum><header>Evaluation of academic progress</header><subparagraph id="HE8D5010F6F654A9C87E6AAD8C7F699BE"><enum>(A)</enum><header>In general</header><text>An institution that determines that a student is not making satisfactory academic progress under its policy may disburse funds provided through student financial assistance programs under this title (including work-study programs under subtitle C) to the student in accordance with subparagraphs (B), (C), and (D).</text></subparagraph><subparagraph id="H251C8CD866104F4D817C2B42AAB9D2EC"><enum>(B)</enum><header>Payment period following not making satisfactory academic progress</header><text>For the payment period following the payment period in which a student did not make satisfactory academic progress, the institution shall place the student on financial aid warning and disburse funds under this title to the student.</text></subparagraph><subparagraph id="HDDF0013597904013847CE05D94F3C554"><enum>(C)</enum><header>Payment period following financial aid warning</header><text>For the payment period following a payment period during which a student was on financial aid warning, the institution may place the student on financial aid probation, and disburse funds under this title to the student if—</text><clause id="HD4FA0B764F854B11A222C4CFBAE9DA37"><enum>(i)</enum><text>the institution evaluates the student’s progress and determines that student did not make satisfactory academic progress during the payment period the student was on financial aid warning;</text></clause><clause id="HC8D6CD2C0BB54674A201FF9E15593584"><enum>(ii)</enum><text>the student appeals the determination; and</text></clause><clause id="H38BFD66F38F64CDDA94FDBB2D264A676"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H2603E8D3FC484030B35951AE6D9953BD"><enum>(I)</enum><text>the institution determines that the student should be able to meet the institution’s satisfactory academic progress standards by the end of the subsequent payment period; or</text></subclause><subclause id="H119F7D812C744AF5A4D029CA56DC4945" indent="up1"><enum>(II)</enum><text>the institution develops an academic plan for the student that, if followed, will ensure that the student is able to meet the institution’s satisfactory academic progress standards by a specific point in time.</text></subclause></clause></subparagraph><subparagraph id="H1CE741EB298743C4B8999BA4545824E3"><enum>(D)</enum><header>Payment period following financial aid probation</header><text>A student on financial aid probation for a payment period may not receive funds under this title for the subsequent payment period unless the student makes satisfactory academic progress or the institution determines that the student met the requirements specified by the institution in the academic plan for the student developed under subparagraph (C)(iii)(II).</text></subparagraph><subparagraph id="H1BE749885D0B4FA382A2B33FAA31B664"><enum>(E)</enum><header>Frequency of academic progress evaluation and communication</header><clause id="HEED7D96E55634DE58766F2AFB45A8BB0"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), for the purpose of determining whether presently enrolled students are maintaining satisfactory progress, each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall review the progress of such students at the end of each payment period.</text></clause><clause id="HE45E6628E89E42629C05A1220B3E8063"><enum>(ii)</enum><header>Shorter payment periods</header><text>For each institution described in clause (i) that has payment periods that are shorter than on the semester system basis (such as on a quarterly or trimester system basis or by clock hour program or non-term program), such institution shall review the progress of presently enrolled students at the end of each semester or equivalent period of 12 to 18 weeks.</text></clause><clause id="HCF0E83CF04F940B18F6545177B3B1A3B"><enum>(iii)</enum><header>Financial aid warning</header><text>At the end of each payment period (or, in the case of an institution described in clause (ii), at the end of each semester or equivalent period), each institution shall send a financial aid warning to presently enrolled students that do not meet the grade point average requirement described in paragraph (2), or its equivalent or academic standing consistent with the requirements for graduation, as determined by the institution, that informs the students of their risk of being determined to not be maintaining satisfactory progress and therefore losing eligibility for grant, loan, or work assistance under this title and provides information on—</text><subclause id="HE106068D07BA4DB696905E4B9DE36098"><enum>(I)</enum><text>the specific criteria of the institution’s academic requirements that the student is not meeting and the specific improvements needed to meet the requirements; and</text></subclause><subclause id="HE59093E314524948B8168F020B3E641C"><enum>(II)</enum><text>how to meet with the student’s academic advisor to get the academic support the student needs.</text></subclause></clause></subparagraph></paragraph><paragraph id="H50F764D436DA40EEAED01E03F76CB4C5"><enum>(5)</enum><header>Detailing requirements to students</header><text>Each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall detail the institution’s requirements regarding students maintaining satisfactory academic progress—</text><subparagraph id="H871860F50FAF46ACA78F9C2B4834223E"><enum>(A)</enum><text>to such students before the students begin classes at the institution through a detailed communication that may be separate from a financial aid offer; and</text></subparagraph><subparagraph id="H68845C05600D49CC8C8ACCB201DEC1A2"><enum>(B)</enum><text>on the financial aid webpage of the website of the institution.</text></subparagraph></paragraph><paragraph id="H7820332E3B9443CBB9288F929011FF7E"><enum>(6)</enum><header>Consumer testing</header><text>The Secretary—</text><subparagraph id="HB0D90E2AB3F746569CF2345273B18F00"><enum>(A)</enum><text>shall conduct consumer testing to develop exemplary practices and templates—</text><clause id="H6A4E842546614C1C89E8822807705780"><enum>(i)</enum><text>to support institutions of higher education in carrying out paragraph (5); and</text></clause><clause id="HA63A5BB040264693B55C51B4CE995B86"><enum>(ii)</enum><text>which shall be available as resources for institutions of higher education; and</text></clause></subparagraph><subparagraph id="H5D38BF0F91EF4C38AE1584D83389781F"><enum>(B)</enum><text>shall not require the use of such practices and templates by institutions of higher education.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H831FD3C18AE74B7FB690941EB8FAA3F0"><enum>106.</enum><header>Federal Pell Grants for graduate students</header><text display-inline="no-display-inline">Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) is amended—</text><paragraph id="H9F40ECD052064515A1C1723235C6C0CA"><enum>(1)</enum><text>in subsection (b)(8)(A), by inserting <quote>or as a postbaccalaureate student in accordance with subsection (d)(1)</quote> after <quote>as an undergraduate</quote>; and</text></paragraph><paragraph id="HB5E24B5F100147BBA16EE3A77769B4D3" commented="no"><enum>(2)</enum><text>in subsection (d)—</text><subparagraph id="H846E354854FD4F529725D001488DD0EC" commented="no"><enum>(A)</enum><text>by amending paragraph (1) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8A1A9ECFAD624A2F90C36ADC58BD9788"><paragraph id="HCB66F6445B754B14B931E37C233E9EE1" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The period during which a student may receive Federal Pell Grants shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance except that—</text><subparagraph id="H746F19DC3684468BAA920625C893B082" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">any 1-year period during which the student is enrolled in a noncredit or remedial course of study as defined in paragraph (2) shall not be counted for the purpose of this paragraph; and </text></subparagraph><subparagraph id="HF885A22206CD4FD9B904F2A5BB487C29" commented="no"><enum>(B)</enum><text>the period during which a student may receive Federal Pell Grants shall also include the period required for the completion of the first postbaccalaureate course of study in a case in which—</text><clause id="H737AEC014A69468AADA73FAAD3ADD1E6" commented="no"><enum>(i)</enum><text>the student received a Federal Pell Grant during the period required for the completion of the student’s first undergraduate baccalaureate course of study for at least 1 but fewer than 18 semesters, or the equivalent of at least 1 but fewer than 18 semesters, as determined under paragraph (5);</text></clause><clause id="H6DADF6DE3A2A41F8B57DF122D2C089FD" commented="no"><enum>(ii)</enum><text>the student would otherwise be eligible for a Federal Pell Grant, but for the completion of such baccalaureate course of study; and </text></clause><clause id="H608D43AA40EC4F54B66B3D9EEE9C028D" commented="no"><enum>(iii)</enum><text>the period during which the student receives Federal Pell Grants does not exceed the student’s duration limits under paragraph (5).</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="H92645BB8551E48F3992806418E6F5198" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>or certificate</quote> and inserting <quote>, certificate, or first postbaccalaureate degree</quote>.</text></subparagraph></paragraph></section><enum>II</enum><header>Amendments to terms and conditions of loans and repayment plans</header><part id="HD6635C476FD947179A1CAE79141D4FE2"><enum>A</enum><header>General terms and conditions</header><section id="H15E0DC35DD0449D9B2574CA8C715B7A6" section-type="subsequent-section"><enum>201.</enum><header>Subsidized loans for graduate and professional students</header><text display-inline="no-display-inline">Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is amended—</text><paragraph id="HCA5DB1C744E443FFAF7074A35F44891D"><enum>(1)</enum><text>in subparagraph (A), in the matter preceding clause (i), by striking <quote>subparagraph (B)</quote> and inserting <quote>subparagraphs (B) and (C)</quote>; and</text></paragraph><paragraph id="H1DA6F86BD32F495BA319D12D5FE2E5C1"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="HA1A8A9FD96064DA281F4625E61A3757E" display-inline="no-display-inline"><subparagraph id="H006F7E5A2A3C4FDFAC70E54F4E851882"><enum>(C)</enum><header>Authority to make interest subsidized loans to graduate and professional students</header><clause id="HDED488B84D3245CEAD63AB27520DC930"><enum>(i)</enum><header>In general</header><text>Beginning on or after July 1, 2026, a graduate or professional student shall be eligible to receive a Federal Direct Stafford loan under this part for a graduate or professional program at a covered institution of higher education.</text></clause><clause id="H6B7FD1757FC3411F8172042E591B4551"><enum>(ii)</enum><header>Covered institution of higher education</header><text display-inline="yes-display-inline">In this subparagraph, the term <term>covered institution of higher education</term>—</text><subclause id="H72666D05A4C34A8AABCC410D16766083"><enum>(I)</enum><text>means an institution of higher education defined in section 101 or section 102(a)(1)(C); and</text></subclause><subclause id="HE251746B6CB2458F97C957FA085B65EA"><enum>(II)</enum><text>does not include a graduate medical school, nursing school, or a veterinary school, located outside the United States that does not meet the requirements of section 101(a)(4).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H83E396387CA04CBE8FA7DF9231F5CBA3" commented="no"><enum>202.</enum><header>Repeal of origination fees</header><text display-inline="no-display-inline">Section 455(c)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(c)(2)</external-xref>) is amended—</text><paragraph id="HA403203CCD1547F59D67E890E09E29A6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end of subparagraph (D); and</text></paragraph><paragraph id="HA2509EF8999D40F6960FFA89A5A9B865"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="H1C658BED2913437DA7C5A7FFA80C2DC7" display-inline="no-display-inline"><subparagraph id="HFF733F0911524773957E45AAEB3317C9"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>0.0 percent</quote> for <quote>4.0 percent</quote> with respect to loans for which the first disbursement of principal is made on or after July 1, 2026.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="HC6D6AAF734B04A2D8D2ED88115974E42"><enum>203.</enum><header>Prepayment amounts</header><text display-inline="no-display-inline">Part G of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="HECECD0E4B3BD4C0989FF03ACE6ED6AB4" display-inline="no-display-inline"><section id="HFBCB765955714D9BB139D0C41D8EB83E"><enum>494A.</enum><header>Prepayment amounts</header><subsection id="H4B600730770A4D99A24BA295FCA336DF" commented="no"><enum>(a)</enum><header>Prepayments authorized</header><text display-inline="yes-display-inline">A borrower may pay, without penalty, an amount in excess of the amount due on an outstanding loan made under part B or D, and such excess amount shall be referred to as a <quote>prepayment amount</quote> for purposes of this subsection. Except as provided in subsection (b) a prepayment amount shall be applied first toward the fees (including any collection costs and authorized late charges) owed by the borrower on such loan, next on outstanding principal, and then on outstanding interest. If the prepayment amount exceeds the monthly payment amount owed on such loan, the due date of the next payment shall be advanced, unless the borrower requests otherwise, and the Secretary shall notify the borrower of such revised due date for the next payment.</text></subsection><subsection id="HCABB29264788452CBC471749D4BD48CA" commented="no"><enum>(b)</enum><header>Application of prepayment amounts</header><paragraph id="H415D34426AFB4E989C7A0E961B4AE44B" commented="no"><enum>(1)</enum><header>Borrowers without fee balances</header><subparagraph id="H3D5EEA377D914185A0CB9833A43660F5" commented="no"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), with respect to a borrower who does not owe an outstanding balance of fees (including collection costs and authorized late charges) on any loan made under part B or D, and who makes a prepayment on 2 or more loans made under this part—</text><clause id="H83972DC15AB7469AA4C26DEB49FC4FC4" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">if such loans have different applicable rates of interest, the holder of such loans shall apply the borrower’s prepayment amount, first toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans, next on any fees owed on such loan, and then on outstanding interest owed on such loan; or</text></clause><clause id="H1BB5CFEAF5444F5E909531A78923BFDC" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">if such loans have the same applicable rates of interest, the holder of such loans shall apply the borrower’s prepayment amount, first toward the outstanding balance of principal due on the loan with the highest principal balance among such loans, next on any fees on such loan, and then on outstanding interest owed on such loan.</text></clause></subparagraph><subparagraph id="H444E0747FA2E4EDD86D9B42171F2DF84" commented="no"><enum>(B)</enum><header>Written exception</header><text>A borrower described in subparagraph (A) who does not want prepayment amounts applied in the manner described in clause (i) or (ii) of such subparagraph shall provide to the Secretary, a written request for a different application of prepayment amounts.</text></subparagraph></paragraph><paragraph id="HA44C00F36FA6474DB3E1CDA17604815B" commented="no"><enum>(2)</enum><header>Borrowers with fee balances</header><text display-inline="yes-display-inline">With respect to a borrower who owes fees (which may include collection costs and authorized late charges) on a loan made under part B or part D, a prepayment amount made by the borrower shall be applied first toward the fees (including any collection costs and authorized late charges) owed by the borrower on such loan, next on outstanding principal, and then on outstanding interest.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HB3644575E9F546CBB7478800B47A6EF9"><enum>204.</enum><header>Default requirements</header><text display-inline="no-display-inline">Part G of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088</external-xref>), as amended by the preceding section, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H9B421F5076C04A51B78BF221645DBB00" display-inline="no-display-inline"><section id="HE2C7DFE936274FEA97048B0448753275"><enum>494B.</enum><header>Default requirements</header><subsection id="HAEE1D09B11394F7382362907026278E2" commented="no"><enum>(a)</enum><header>In general</header><text>If a borrower defaults on a loan made under part B or D—</text><paragraph id="H260F8835315848B8A927D6DA153371D8" commented="no"><enum>(1)</enum><text>the entire unpaid balance and accrued interest shall be immediately due and payable; and</text></paragraph><paragraph id="HDF625766F3F748AA9D7A1130A184DAE7" commented="no"><enum>(2)</enum><text>the Secretary shall assess collection charges.</text></paragraph></subsection><subsection id="H1DD2E6E821664EF2A532A5CFEC815BE9" commented="no"><enum>(b)</enum><header>Collection of a defaulted loan</header><text>The Secretary may, with respect to a borrower who defaults on a loan made under part B or D—</text><paragraph id="H00C27E2435E540E5A823708381AEC79C" commented="no"><enum>(1)</enum><text>take any action authorized by law to collect such loan, including filing a lawsuit against the borrower, reporting the default to nationwide consumer reporting agencies, requesting the Internal Revenue Service to offset the borrower’s Federal income tax refund, and garnishing the borrower’s wages; and</text></paragraph><paragraph id="H711E9F8DBDAD4494829C99496AFA6ABE" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">may designate the Income-Driven Repayment Plan under section 455A(c) for the borrower.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section></part><part id="H024C09A7D6D84D52B4BAE6FC123FF4B1"><enum>B</enum><header>One income-contingent repayment plan and one fixed repayment plan</header><section id="H8E492F82A5E34E3BA755CDBE8ED69009" commented="no"><enum>211.</enum><header>Notification to borrowers</header><subsection id="H1B4FAEF47A4740FD9BEC7F5EBF0CFC04" commented="no"><enum>(a)</enum><header>In general</header><text>Beginning on the date of enactment of this Act, the Secretary of Education, in coordination with the Director of the Consumer Financial Protection Bureau, shall undertake a campaign to alert all borrowers of loans made under part D of title IV of the Higher Education Act of 1965 that they are eligible to change repayment plans and to enroll in one of the following repayment plans:</text><paragraph id="H5C4D31A3DDD34C4D8EE7735C1CBA7629" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">The fixed repayment plan under section 455A(b) of the Higher Education Act of 1965, as added by section 212.</text></paragraph><paragraph id="HF1470C94D60C4606851A87C3C878506B" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">The Income-Driven Repayment plan under section 455A(c) of the Higher Education Act of 1965, as added by section 212.</text></paragraph></subsection><subsection id="HEFFC455649FD449D81F3FDE0DF8C6375" commented="no"><enum>(b)</enum><header>Campaign activities</header><text>The campaign shall include the following activities:</text><paragraph id="H2D9748E0B491478BB0CC7E1EC6F1FB5C" commented="no"><enum>(1)</enum><text>Developing consumer information materials about the opportunity to change repayment plans and to enroll in one of the repayment plans described in paragraphs (1) and (2) of subsection (a).</text></paragraph><paragraph id="H61AE939DE8934A3ABCFE500D45E4CE2C" commented="no"><enum>(2)</enum><text>Requiring servicers of loans made under part D of title IV of the Higher Education Act of 1965 to provide such consumer information to borrowers in a manner determined appropriate by the Secretary.</text></paragraph></subsection></section><section id="H1954FB476E4A47828D53733204315CEF" section-type="subsequent-section" commented="no"><enum>212.</enum><header>New repayment plans</header><subsection id="H6C3BF812D1F44763AEE3CBC120ECB79F" commented="no"><enum>(a)</enum><header>Sunset of repayment plans available before July 1, 2026</header><text>Section 455(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)(1)</external-xref>) is amended, in the matter preceding subparagraph (A), by inserting <quote>, before July 1, 2026</quote> after <quote>may choose</quote>.</text></subsection><subsection id="HE9375456ADCD47C6AF3C3DBEA4F86C75" commented="no"><enum>(b)</enum><header>Repayment plans available on and after July 1, 2026</header><text display-inline="yes-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by inserting after section 455 the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HEFF3CB02743E4D6A83C67403DF12CAA5"><section id="H4C9F4B90E5EC45DEB76BA978061386C5" commented="no"><enum>455A.</enum><header>Repayment plans available on and after July 1, 2026</header><subsection id="HCEDD0ED8556F4A6AAD6DFCE1EFB75C85" commented="no" display-inline="no-display-inline"><enum>(a)</enum><header>Repayment plans for loans made on or after July 1, 2026</header><paragraph id="H51D09D4944D44F78BC7A8F71C1C4B59B" commented="no"><enum>(1)</enum><header>Sunset of repayment plans available before July 1, 2026</header><text display-inline="yes-display-inline">Paragraphs (1) through (5) of section 455(d) shall only apply to loans made under this part before July 1, 2026.</text></paragraph><paragraph id="H9DCE8E8678C245748AD5FFBC3F181D19" commented="no"><enum>(2)</enum><header>Prohibitions</header><text>The Secretary may not, for any loan made under this part on or after July 1, 2026—</text><subparagraph id="H055C57EB982141709348C4E4855A19AD" commented="no"><enum>(A)</enum><text>authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (3); or</text></subparagraph><subparagraph id="H9BEE1226C2F64006BCC4C98E5A3804CE" commented="no"><enum>(B)</enum><text>carry out or modify a repayment plan that is not described in such paragraph.</text></subparagraph></paragraph><paragraph id="H3D2387EE7DFF45688D04F758BF8FD45B" commented="no"><enum>(3)</enum><header>Design and selection</header><text display-inline="yes-display-inline">Notwithstanding section 455(d), beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including a Federal Direct Stafford Loan, a Federal Direct PLUS Loan (including such a loan made on behalf of a dependent student), a Federal Direct Consolidation Loan (including such a loan that discharged the liability on a Federal Direct PLUS Loan made on behalf of a dependent student), and a Federal Direct Unsubsidized Stafford Loan) two plans for repayment of such loan in accordance with subsection (d), including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on the borrower’s loan under this part. The borrower may choose—</text><subparagraph id="H4D37EBBDDB804072AE0E4DE6D2B66ADC" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">a fixed repayment plan under subsection (b); or</text></subparagraph><subparagraph id="H3E28B3CDC05E4D7B8DF3B179689F6979" commented="no"><enum>(B)</enum><text>the Income-Driven Repayment Plan under subsection (c).</text></subparagraph></paragraph><paragraph id="H9FD1D37A291E455EBCD0F97E74488836" commented="no"><enum>(4)</enum><header>Selection by Secretary</header><text>If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in paragraph (3), the Secretary shall provide the borrower with the fixed repayment plan described in subsection (b).</text></paragraph><paragraph id="HD13A036DA215429097724B522B681D43" commented="no"><enum>(5)</enum><header>Selection available for each new loan</header><text>Each time a borrower receives a new loan made under this part on or after July 1, 2026, the borrower may select either the fixed repayment plan under subsection (b) or the Income-Driven Repayment Plan under subsection (c), which shall apply to all such loans of the borrower in accordance with paragraph (6).</text></paragraph><paragraph id="HA9DEC3A0A59148579DA8F66919E5BE73" commented="no"><enum>(6)</enum><header>Same repayment plan required</header><subparagraph id="H8967A8A2C9064F259E7BBAB25DA2D6A2" commented="no"><enum>(A)</enum><header>Loans made on or after July 1, 2026</header><text>All loans made to a borrower under this part on or after July 1, 2026, must be repaid together under the same repayment plan.</text></subparagraph><subparagraph id="H861D6474D75F440382D7A8B98566861C" commented="no"><enum>(B)</enum><header>Loans made before and on or after July 1, 2026</header><text display-inline="yes-display-inline">A borrower with a loan made under this part before July 1, 2026, and with a loan made on or after July 1, 2026, (including a Federal Direct PLUS loan made on behalf of a dependent student made before, on, or after such date) may repay such loans on different repayment plans, provided that—</text><clause id="H722F901857F14D2ABB6290AAEB44D789" commented="no"><enum>(i)</enum><text>all such loans made on or after July 1, 2026, are repaid under the same repayment plan in accordance with subparagraph (A); and</text></clause><clause id="HAE503966A3744CE584C069C848E61F3B" commented="no"><enum>(ii)</enum><text>all such loans made before July 1, 2026, are repaid under the repayment plan that the borrower was enrolled in with respect to each such loan on June 30, 2026.</text></clause></subparagraph></paragraph><paragraph id="H4781D5A4A0704C42B86D7C24B951A8E2" commented="no"><enum>(7)</enum><header>Permissible changes of repayment plan</header><subparagraph id="H9D21DBCD4C4541A596850C9F307F73F0" commented="no"><enum>(A)</enum><header>Change from fixed repayment plan</header><text display-inline="yes-display-inline">A borrower may change the borrower’s selection of a fixed repayment plan under subsection (b), or the Secretary’s selection of such plan for the borrower under paragraph (4), as applicable, to the Income-Driven Repayment Plan under subsection (c) at any time.</text></subparagraph><subparagraph id="H2ED9FE1D23B746E0B20CB07C375900CA" commented="no"><enum>(B)</enum><header>Change from the Income-Driven Repayment Plan</header><text>A borrower may change the borrower’s selection of the Income-Driven Repayment Plan under subsection (c) to a fixed repayment plan under subsection (b), provided that the required fixed monthly payment amount of the borrower under such plan is determined based on—</text><clause id="H55E22077832F4C04AA6FB7485C7DF188" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the total amount of the outstanding principal and interest and fees on the loans of the borrower to be repaid under such fixed plan, as of the date on which the borrower’s change in selection takes effect;</text></clause><clause id="H94D29DCAA85D40338E2B765562392E43" commented="no"><enum>(ii)</enum><text>the interest rates on such loans; and</text></clause><clause id="HB75628A21E524676A40912F1DFF07275" commented="no"><enum>(iii)</enum><text>the applicable repayment period determined under <internal-xref idref="HB7C8E56DA2CE40649B1D1E241C28A3AF" legis-path="455A.(b)(2)">subsection (b)(2)</internal-xref>.</text></clause></subparagraph></paragraph><paragraph id="HF6B87997F72044BDB79203C2A6160018" commented="no"><enum>(8)</enum><header>Treatment of borrowers with loans made before July 1, 2026</header><text>With respect to an outstanding loan made under this part (including a Federal Direct PLUS loan made on behalf of a dependent student) before July 1, 2026, a borrower with such a loan—</text><subparagraph id="H30D45C368DB6409DA485E42BC75BEFF4" commented="no"><enum>(A)</enum><text>shall not be eligible to change the borrower’s selection of a repayment plan under paragraph (1) of section 455(d), or the Secretary’s selection of a plan for the borrower under paragraph (2) of such section, as applicable, to another repayment plan under such paragraph (1) on or after July 1, 2026;</text></subparagraph><subparagraph id="H1A86799823F0499C9FAABA6964A2EB7D" commented="no"><enum>(B)</enum><text>may, at any time, change the borrower’s selection of a repayment plan to a repayment plan described in paragraph (3); and</text></subparagraph><subparagraph id="H8C820A15A7354C6382C850F083410D2C" commented="no"><enum>(C)</enum><text>upon changing the borrower’s selection of a repayment plan in accordance with subparagraph (B), shall make any such subsequent change in selection in accordance with paragraphs (6) and (7).</text></subparagraph></paragraph></subsection><subsection id="HC14BCA0297C64CD7B209A7B138B7F271" display-inline="no-display-inline" commented="no"><enum>(b)</enum><header>Fixed repayment plan</header><paragraph id="H7994291E5EA04975927F3412E0828436" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The fixed repayment plan made available to borrowers in accordance with this section shall be a repayment plan consistent with subsection (a)(1) of section 455 and section 428(b)(9)(A)(i), except as expressly provided in this subsection, with a fixed annual repayment amount paid over a fixed period of time. Except as provided in <internal-xref idref="HD0AF57D4664C4ED990C953B69E7F8955" legis-path="455A.(b)(3)">paragraph (3)</internal-xref>, the required fixed monthly payment amount of a borrower shall be determined based on the total amount of the outstanding principal and interest of the Federal Direct Loans of the borrower to be repaid pursuant to such plan, the interest rates on such loans, and the applicable repayment period determined under this subsection.</text></paragraph><paragraph id="HB7C8E56DA2CE40649B1D1E241C28A3AF" commented="no"><enum>(2)</enum><header>Applicable repayment period</header><subparagraph id="HD049F2686D124D6C8B89B477BA16B106" commented="no"><enum>(A)</enum><header>Direct loans other than consolidation loans</header><text>The applicable repayment period of a Federal Direct loan under this part, other than a Federal Direct Consolidation Loan, shall be 10 years.</text></subparagraph><subparagraph id="HBCF75D88448F46CA947B853973C6C67B" commented="no"><enum>(B)</enum><header>Direct consolidation loans</header><text display-inline="yes-display-inline">The applicable repayment period for a Federal Direct Consolidation loan made on or after July 1, 2026, repaid pursuant to a fixed repayment plan with a total outstanding amount of principal and interest on all of the borrower’s Federal Direct Loans, including such Consolidation loan (as of the day before entering repayment on such Consolidation loan) is—</text><clause id="H4BC136D06DDA4316ADF184DCE333D946" display-inline="no-display-inline" commented="no"><enum>(i)</enum><text>less than $7,500, shall be 10 years;</text></clause><clause id="H89EEEFFDF6C945D0B6D36742B1D33950" commented="no"><enum>(ii)</enum><text>equal to or greater than $7,500 but less than $10,000, shall be 12 years;</text></clause><clause id="H4D311C8F85574BE28CE2D4B4E66B730C" commented="no"><enum>(iii)</enum><text>equal to or greater than $10,000 but less than $20,000, shall be 15 years;</text></clause><clause id="H16FE21CF11FF45369D98AC6C179EFDD8" commented="no"><enum>(iv)</enum><text>equal to or greater than $20,000 but less than $40,000, shall be 20 years;</text></clause><clause id="HC9178663D59F43E0A738281641DA9322" commented="no"><enum>(v)</enum><text>equal to or greater than $40,000 but less than $60,000, shall be 25 years; and</text></clause><clause id="H2FCB8DDAC82A4C7FAED766116456EDC4" commented="no"><enum>(vi)</enum><text>equal to or greater than $60,000, shall be 30 years.</text></clause></subparagraph><subparagraph id="H66B580F343C446C6AA0F8B183A491F2B" commented="no"><enum>(C)</enum><header>Minimum period</header><text>No fixed repayment plan may require a borrower to repay a loan in less than 10 years unless the borrower, during the 6 months immediately preceding the start of the repayment period, specifically requests that repayment be made over a shorter period.</text></subparagraph></paragraph><paragraph id="HD0AF57D4664C4ED990C953B69E7F8955" commented="no"><enum>(3)</enum><header>Minimum monthly payment</header><text>The minimum monthly payment amount of a borrower under a fixed repayment plan shall be $50 per month, except that the final payment of the borrower pursuant to such plan may be less than $50.</text></paragraph><paragraph id="H63099F952372483C93BC209313C3716A" display-inline="no-display-inline" commented="no"><enum>(4)</enum><header>Periods of deferment and forbearance</header><text>The fixed repayment plan period applicable to a borrower shall not include periods when the borrower is in authorized deferment or forbearance.</text></paragraph><paragraph id="HB8F17C3542674EEDB2C3B813F09F0CBE" commented="no"><enum>(5)</enum><header>Adjustments for variable interest rates</header><text>The number of payments or the fixed monthly repayment amount may be adjusted to reflect changes in the variable interest rate identified in section 685.202(a) of title 34, Code of Federal Regulations (as in effect on July 1, 2026).</text></paragraph></subsection><subsection id="H94129F7AC00D494A8BC06440E401B688" commented="no"><enum>(c)</enum><header>Income-Driven Repayment Plan</header><paragraph id="HD388BF3F9CC542FEA775A4DCC8194A01" display-inline="no-display-inline" commented="no"><enum>(1)</enum><header>Terms and conditions</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-contingent repayment plan, to be known as the <quote>Income-Driven Repayment Plan</quote>, that shall have the following terms and conditions:</text><subparagraph id="HA5DFA270787B48F88CBC450CAAFB1FE9" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">A borrower of any loan made under this part may elect to have the borrower’s total monthly payment amount owed for all of the loans of the borrower made under this part that are repaid under the Income-Driven Repayment Plan not exceed the applicable monthly payment of the borrower.</text></subparagraph><subparagraph id="H7347A347AC5C40549C42674D84024FA1" commented="no"><enum>(B)</enum><text>The Secretary shall apply the borrower’s applicable monthly payment first towards principal due, next toward any fees due on the loan, and then toward the interest due on the loan.</text></subparagraph><subparagraph id="HAE6A8494A1744032B03D530D390BCDEB" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">In the case of an applicable monthly payment that does not fully cover the amount of interest that has accrued on the borrower’s loans for the month to which such applicable monthly payment applies, the Secretary shall not charge such remaining interest to the borrower and such remaining interest shall not be capitalized.</text></subparagraph><subparagraph id="H3F36ADC43EF8421490861238EE1DB34C" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">The Secretary shall have the discretion to determine—</text><clause id="H1E3265DB8D194E6A8C2B62EB62AC09FB" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">how a borrower’s applicable monthly payment is applied to each outstanding loan of the borrower repayed under the Income-Driven Repayment Plan; and</text></clause><clause id="H423450BDF6FC4F52BE7072C007839776" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of principal, fees, and interest due on each outstanding loan of the borrower repayed under the Income-Driven Repayment Plan.</text></clause></subparagraph><subparagraph id="H724666DB2ABF432CBB847852CF486E05" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">The Secretary shall cancel any outstanding balance of principal and interest due on all loans of the borrower repaid under the Income-Driven Repayment Plan by a borrower, without the need for an application or other documentation from the borrower, on the earlier of—</text><clause id="H287DBF4BBCF74C83ACCFA84FA8914567" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a borrower who does not have at least one outstanding loan under this part attributable to a graduate or professional course of study, the date that the borrower has made 240 qualifying payments over a period of at least 20 years;</text></clause><clause id="H41AFA9E57F634944BA7E3DD9402F6C41" commented="no"><enum>(ii)</enum><text>in the case of a borrower who has at least one outstanding loan under this part attributable to a graduate or professional course of study, the date that the borrower has made 300 qualifying payments over a period of at least 25 years; or</text></clause><clause id="H596292D3ACCE42ED8C11D9277271ACD3" commented="no" display-inline="no-display-inline"><enum>(iii)</enum><text display-inline="yes-display-inline">the date that the borrower has made—</text><subclause id="HCB6AD3895C7246578D35504D3D561ECA" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a borrower with a total original balance of principal due on all such loans that is equal to or less than $12,000, 120 qualifying payments over a period of at least 10 years; or</text></subclause><subclause id="H1CFC2EAF56984A1ABA2780ADA09EBD72" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a borrower with a total original balance of principal due on all such loans that is greater than $12,000—</text><item id="H09706525B8B8427B88E2846F252729A2" commented="no"><enum>(aa)</enum><text>120 qualifying payments over a period of at least 10 years; plus</text></item><item id="H550850C45A7F4D80948A3FF8EDC2A2ED" commented="no"><enum>(bb)</enum><text>for each increment of $1 to $1,000 above $12,499 of such total original principal balance, 12 additional qualifying payments over a period of at least 1 year.</text></item></subclause></clause></subparagraph></paragraph><paragraph id="H17DF4639D77D4BF2A358EE9939C0D8FF" display-inline="no-display-inline" commented="no"><enum>(2)</enum><header>Annual income verification</header><subparagraph id="H868BF2A7154348B4B0807DBF2F5FF86A" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The procedures established by the Secretary under section 455(e)(8) shall apply for annually determining the borrower’s eligibility for the Income-Driven Repayment Plan, including verification of a borrower’s annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement the Income-Driven Repayment Plan. With respect to carrying out section 494(a)(2) for the Income-Driven Repayment Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under 455(e)(8).</text></subparagraph><subparagraph id="HBFE33367928A4FB68B90931D903BF4AD" commented="no"><enum>(B)</enum><header>Additional procedures</header><text display-inline="yes-display-inline">In addition to carrying out the procedures described in subparagraph (A), the Secretary shall establish and implement—</text><clause id="HEB0E6CF189E5437D9AB6DAD0BCD068A2" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">in the case that the Secretary receives the return information disclosed under <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(13)</external-xref> of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the repayment obligation of the borrower but is unable to determine the repayment obligation of the borrower, procedures to require the borrower to provide such information as the Secretary may require to determine such repayment obligation under the Income-Driven Repayment Plan; and</text></clause><clause id="HF887B76AA32749D2B0650207AD5C0150" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">such other procedures as are necessary to implement effectively the Income- Driven Repayment Plan.</text></clause></subparagraph><subparagraph id="HAD49C4C2D9F34011BAD0345584A30F24" commented="no"><enum>(C)</enum><header>Reconsideration</header><clause id="HCCF963F785D3480F81EE24006AE847D6" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case that a borrower believes that the annual repayment obligation of the borrower determined pursuant to this paragraph is not reflective of the borrower’s income or family size, the borrower may request that the Secretary recalculate such annual repayment obligation. Such request shall include documentation of income or family size not based on tax information to account for a decrease in income since the borrower last filed a tax return, the borrower’s separation from a spouse with whom the borrower had previously filed a joint tax return, the birth or impending birth of a child, or other comparable circumstances.</text></clause><clause id="H5DE4D26B58FD493FBA1CD34BEC538FD7" commented="no"><enum>(ii)</enum><header>Adjustment to repayment obligation</header><text display-inline="yes-display-inline">If the Secretary determines that the annual repayment obligation of the borrower determined pursuant to this paragraph is not reflective of the borrower’s income or family size based on a request described in clause (i), the Secretary shall adjust the annual repayment obligation of the borrower as determined appropriate by the Secretary and in a manner consistent with this subsection.</text></clause></subparagraph><subparagraph id="H80E662B3BB5E427694B0B815384E6CBD" commented="no"><enum>(D)</enum><header>Forbearance</header><text display-inline="yes-display-inline">In the case that a borrower provides information or documentation pursuant to subparagraph (B)(i) or subparagraph (C)(i), the Secretary shall grant the borrower administrative forbearance for a period of up to 60 days in order for the Secretary to collect and process such information or documentation.</text></subparagraph></paragraph><paragraph id="H0FD80B450FEE431D9384910078F4DF71" commented="no"><enum>(3)</enum><header>Repayment disclosure</header><text display-inline="yes-display-inline">After the Secretary obtains sufficient information to calculate a borrower’s annual repayment obligation under the Income-Driven Repayment Plan pursuant to paragraph (2) and not later than 3 months before any payments in accordance with such annual repayment obligation are due, the Secretary shall provide to the borrower a repayment disclosure that—</text><subparagraph id="H2DEA8A69303F4BFB827A5B1051E6B662" commented="no"><enum>(A)</enum><text>specifies the borrower’s applicable monthly payment amount;</text></subparagraph><subparagraph id="H80ED051E98994784AB6DD1AE35471E44" commented="no"><enum>(B)</enum><text>explains how such applicable monthly payment amount was calculated;</text></subparagraph><subparagraph id="H21AEBD8854FE4DA0B2C5584CE97F9709" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">informs the borrower of the terms and conditions of the Income-Driven Repayment Plan; and</text></subparagraph><subparagraph id="HE069BB12174F42E58EAB8B9EC251BC9F" commented="no"><enum>(D)</enum><text>informs the borrower of how to contact the Secretary if the calculated applicable monthly payment amount is not reflective of the borrower’s current income or family size.</text></subparagraph></paragraph><paragraph id="H02CF285238B54FBB896C9DC62E983552" commented="no"><enum>(4)</enum><header>Failure to provide information</header><text display-inline="yes-display-inline">In the case that the Secretary requires information from the borrower to determine the annual repayment obligation of the borrower and the borrower does not provide the necessary information to the Secretary in accordance with the procedures described in paragraph (2), the Secretary shall remove the borrower from the Income-Driven Repayment Plan and provide the borrower with the fixed repayment plan described in subsection (b).</text></paragraph><paragraph id="HC8B9D11205274F989D2DD4EA5CBED79F" commented="no"><enum>(5)</enum><header>Treatment of consolidation loans</header><text display-inline="yes-display-inline">With respect to cancelling any outstanding balance of principal and interest due on all loans of the borrower repaid under the Income-Driven Repayment Plan pursuant to paragraph (1)(E), the Secretary shall—</text><subparagraph id="HF55C8A48F97848A5985E8B737E7F9720" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">for a borrower with an outstanding Federal Direct Consolidation Loan that discharges the liability on loans with more than one period of qualifying payments, determine the number of qualifying payments made towards such Direct Consolidation Loan based on the weighted average of the number of qualifying payments made on each such discharged loan.</text></subparagraph><subparagraph id="HB59B87E9A4DE4B9FAF7AAA683D19D09B" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for a borrower with an outstanding joint consolidation loan that is separated into individual Federal Direct Consolidation Loans, determine the number of qualifying payments made towards each such separated loan based on the number of qualifying payments that the borrower made prior to the separation.</text></subparagraph></paragraph><paragraph id="H18E08D7292BE487DA3EB8187CA2C9FB4" commented="no"><enum>(6)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="HC98E4B88CC0840ED8260E29CE44539B1" commented="no"><enum>(A)</enum><header>Applicable monthly payment</header><clause id="HB4E94CFB9A8F49D9A3C4D0B948654F26" commented="no"><enum>(i)</enum><header>In general</header><text>The term <term>applicable monthly payment</term> means, when used with respect to a borrower and except as provided in clause (ii), the amount equal to—</text><subclause id="HE582D67D69E54DD3ABE4422588FF46CA" display-inline="no-display-inline" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">$0 for the portion of the borrower’s income (and the borrower’s spouse’s income, if applicable) that is less than or equal to 225 percent of the poverty line applicable to the borrower’s family size (as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>)); plus</text></subclause><subclause id="H99C2DBB99B064DF0BFF317282C920C45" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a borrower with an outstanding loan made under this part for an undergraduate program of study, 5 percent of the portion of the borrower’s income (and the borrower’s spouse’s income, if applicable) that is greater than 225 percent of the poverty line applicable to the borrower’s family size (as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>)), prorated by the percentage that is the result of dividing—</text><item id="HA3E86174812D4B3CB423AEF0E1B294B6" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">the borrower’s total outstanding balance of loans that is attributable to loans made under this part for an undergraduate program of study, determined at the time the borrower enters into repayment for such loans; by</text></item><item id="H81861F6CE85044AEA1AFA112A6EB06A2" commented="no"><enum>(bb)</enum><text>the result of dividing—</text><subitem id="H06F5BE69CD8A4ECE9C61F22CA928F22C" commented="no"><enum>(AA)</enum><text display-inline="yes-display-inline">the borrower’s total outstanding balance of loans made under this part, determined at the time the borrower enters into repayment for such loans; by</text></subitem><subitem id="H2222D60C81754D198C3F52189AD79CE3" commented="no"><enum>(BB)</enum><text>12; plus</text></subitem></item></subclause><subclause id="H9FF20788B0064DFF829D0440B617976D" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of a borrower with an outstanding loan made under this part not described in subclause (II), 10 percent of the portion of the borrower’s income (and the borrower’s spouse’s income, if applicable) that is greater than 225 percent of the poverty line applicable to the borrower’s family size (as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>)), prorated by the percentage that is the result of dividing—</text><item id="H9EFD171F76FB410CA607550D5CF9785E" commented="no"><enum>(aa)</enum><text>the difference between—</text><subitem id="H0BE5AF90092641B79791CEBD2E23D3D6" commented="no"><enum>(AA)</enum><text display-inline="yes-display-inline">the borrower’s total outstanding balance of loans made under this part, determined at the time the borrower enters into repayment for such loans; and</text></subitem><subitem id="HF5AB20F9FF304CBAA523E558B70A3F78" commented="no"><enum>(BB)</enum><text>the balance of loans subject to subclause (II); by</text></subitem></item><item id="HEDD6AC13DF214FE3A70FF9BA2C4916B2" commented="no"><enum>(bb)</enum><text>the result of dividing—</text><subitem id="H7B280C5F5D494697BDEFA86661B3C582" commented="no"><enum>(AA)</enum><text display-inline="yes-display-inline">the borrower’s total outstanding balance of loans made under this part, determined at the time the borrower enters into repayment for such loans; by</text></subitem><subitem id="H6F5A4EB0B379421BA8CA4EA43A1FB90C" commented="no"><enum>(BB)</enum><text>12.</text></subitem></item></subclause></clause><clause id="H8C79CC0169044F14AC1B97961CA911E2" commented="no"><enum>(ii)</enum><header>Adjustments to applicable monthly payment</header><text>Notwithstanding clause (i), the applicable monthly payment of a borrower shall be—</text><subclause id="H4E68738A54F04A919F8B80C4EDBA8771" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">in the case that the amount calculated for such borrower pursuant to clause (i) is less than $5, $0;</text></subclause><subclause id="H350FFF3863554D689A169BAD56ABC3CD" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case that the amount calculated for such borrower pursuant to clause (i) is greater than $5 but less than $10, $10; or</text></subclause><subclause id="H6F152ED67F044C7EB09089BDF5BCF6E9" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of a married borrower who is not an exempted borrower, the amount resulting by multiplying—</text><item id="HA039BEA00D5A4CCD82E8B8A7D5FCA5C4" commented="no"><enum>(aa)</enum><text>the amount calculated for such borrower pursuant to clause (i); by</text></item><item id="H63336D2D8C1E468F8451D44705BEF5FE" commented="no"><enum>(bb)</enum><text>the result of dividing—</text><subitem id="HA5DA21E769CE4FE9A687541DBDE9E840" commented="no"><enum>(AA)</enum><text display-inline="yes-display-inline">the outstanding balance of principal and interest due on all loans of the borrower made under this part; by</text></subitem><subitem id="H3CF28DFD568F495B8EEECE88E79715D4" commented="no"><enum>(BB)</enum><text display-inline="yes-display-inline">the sum of the amount described in subitem (AA) plus the outstanding balance of principal and interest due on all loans of the borrower’s spouse made under this part.</text></subitem></item></subclause></clause></subparagraph><subparagraph id="H8E3D473B5275443D82B18A11D3BB3459" commented="no"><enum>(B)</enum><header>Income</header><text display-inline="yes-display-inline">The term <term>income</term>, when used with respect to a borrower, means—</text><clause id="H22524B866B4C413C8534A706B4FA653C" display-inline="no-display-inline" commented="no"><enum>(i)</enum><text>the borrower’s (and the borrower’s spouse, if applicable) adjusted gross income as reported to the Internal Revenue Service; or</text></clause><clause id="H0183FBD4B7D84ACD9836DE36FF9E9282" commented="no"><enum>(ii)</enum><text>the amount calculated based on alternative documentation of all forms of taxable income received by the borrower (and the borrower’s spouse, if applicable) and provided to the Secretary.</text></clause></subparagraph><subparagraph id="H5460FFF86B8E4BEFA49D679C6BF3A2E9" commented="no"><enum>(C)</enum><header>Adjusted gross income</header><text>The term <term>adjusted gross income</term>, when used with respect to a borrower, means—</text><clause id="H619D3FA51CB341708CD9DC207E5FD9E4" commented="no"><enum>(i)</enum><text>in the case of an exempted borrower, the borrower’s adjusted gross income (as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986) of such borrower for the most recent taxable year; and</text></clause><clause id="H499D6CA8F5C646ECBF936B8B1893CB4A" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a married borrower who is not an exempted borrower, the sum of the adjusted gross income (as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986) of the borrower and of the borrower’s spouse for the most recent taxable year.</text></clause></subparagraph><subparagraph id="H2B0DFB72D7244098B84CEEFD82A60779" commented="no"><enum>(D)</enum><header>Exempted borrower</header><text>The term <term>exempted borrower</term> means a borrower—</text><clause id="H1B0C7BAEE8354600B41599828C0D34E0" commented="no"><enum>(i)</enum><text>who is unmarried;</text></clause><clause id="HC10AD113F50943B59D415C6188BEA77A" commented="no"><enum>(ii)</enum><text>who is married and files a Federal income tax return separately from the borrower’s spouse; or</text></clause><clause id="HE282F6402F0545F88DFA20461BFFFDB7" commented="no"><enum>(iii)</enum><text>who is married, files a Federal income tax return jointly with the borrower’s spouse, and certifies at the time the borrower applies for a repayment plan or submits information for annual income verification that—</text><subclause id="H0B07C2F4F07E40C2AD5CCFAAD9C7F2F5" commented="no"><enum>(I)</enum><text>the borrower is separated from the borrower’s spouse; or</text></subclause><subclause id="HF0357B44D8A5481CB0195E5A153EA202" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the borrower is unable to reasonably assess the income of the borrower’s spouse.</text></subclause></clause></subparagraph><subparagraph id="H1CB34EC62B9A4916BD2CEF9351B78963" commented="no"><enum>(E)</enum><header>Qualifying payment</header><text>The term <term>qualifying payment</term>, when used with respect to a borrower, means any of the following:</text><clause id="HE24EAC6E7B6044BD8838FFA49768C299" commented="no"><enum>(i)</enum><text>An applicable monthly payment.</text></clause><clause id="HE93C4CE75E5B4F69B7814D64E359A99C" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">A monthly payment made under the fixed repayment plan described in subsection (b).</text></clause><clause id="HD96CB717E9D443FA9DF979A33A6E281D" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">A monthly payment made under a repayment plan described in paragraph (1) of section 455(d).</text></clause><clause id="H016BD094C93347A4A1EF4107D96D7DD6" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">A payment under a repayment plan with payments that are as least as much as they would have been under a standard repayment plan for a term of 10 years consistent with subsection (a)(1) of section 455 and section 428(b)(9)(A)(i), except that, in the case of a borrower who was moved by the Secretary to such a repayment plan due to the borrower’s failure to submit information for annual income verification or their failure to provide other necessary information, no more than 12 payments made under such a repayment plan may be counted as qualifying payments.</text></clause><clause id="H94EB32D1DD9E47F0BECE1CDB25D02D6B" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">A forbearance or deferment of an applicable monthly payment otherwise due under the Income-Driven Repayment Plan pursuant to any of the following:</text><subclause id="H709C942A0921436E80E44246590DA7F7" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">Cancer treatment deferment under section 455(f)(3), section 428(b)(1)(M)(v), or section 427(a)(2)(C)(iv).</text></subclause><subclause id="H641DA2686853413C9C92D995E44C5AAA" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">Rehabilitation training program deferment under section 455(f)(2)(A)(ii), section 428(b)(1)(M)(i)(II), or section 427(a)(2)(C)(i)(II).</text></subclause><subclause id="H0B93A54C07C048198A5CBEEB61AD9C2F" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">Deferment relating to a period of unemployment under section 455(f)(2)(B) or section 428(b)(1)(M)(ii).</text></subclause><subclause id="H745B671B38094420A4DBDE8F6A4D8002" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">Deferment due to an economic hardship described in section 435(o), section 428(b)(1)(M)(iv), or section 427(a)(2)(C)(iii).</text></subclause><subclause id="H9993FB08213D4FE7AB5F819EFA47234E" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">Deferment provided in connection with services in the Peace Corps.</text></subclause><subclause id="HE6B26A6790304E9B91DE5AD37C269050" commented="no"><enum>(VI)</enum><text display-inline="yes-display-inline">Military service deferment under section 455(f)(2)(C) or section 428(b)(1)(M)(iii).</text></subclause><subclause id="H2FAE77CD739A4FAAA77DCCD9E100BC22" commented="no"><enum>(VII)</enum><text display-inline="yes-display-inline">Post-active-duty student deferment under section 493D.</text></subclause><subclause id="H5D85C04805244DB9B95A6E100F2D0245" commented="no"><enum>(VIII)</enum><text display-inline="yes-display-inline">Forbearance provided under section 428(c)(3)(A)(i)(III) on or after July 1, 2024, because the borrower is serving in a national service position for which the borrower receives a national service educational award under the National and Community Service Trust Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/42/12501">42 U.S.C. 12501 et seq.</external-xref>).</text></subclause><subclause id="HA5E14A163A6D466AB1A73896278303DF" commented="no"><enum>(IX)</enum><text display-inline="yes-display-inline">National Guard Duty forbearance under section 682.211(h)(2)(iii) or section 685.205(a)(7) of title 34, Code of Federal Regulations (or successor regulations), on or after July 1, 2024.</text></subclause><subclause id="HD4ABF8E9CF3941E68EB00191A6FE68AD" commented="no"><enum>(X)</enum><text display-inline="yes-display-inline">Department of Defense student loan repayment program forbearance under section 428(c)(3)(A)(i)(IV) on or after July 1, 2024.</text></subclause><subclause id="HD0B46EDD594B4AA39DFB5F3945828388" commented="no"><enum>(XI)</enum><text display-inline="yes-display-inline">Administrative forbearance or mandatory administrative forbearance under section 428(c)(3)(D) or section 428H(e)(7) on or after July 1, 2024.</text></subclause><subclause id="H9C2017FE555A4CCC8E864C214AA5299F" commented="no"><enum>(XII)</enum><text display-inline="yes-display-inline">Forbearance granted by the Secretary while the Secretary determines whether the borrower is eligible for the Secretary to discharge the borrower’s liability on a loan due to the borrower’s bankruptcy.</text></subclause></clause><clause id="H1099F49CF2CB4AD0B15401ECAAFBA891" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">A payment for any month in which the borrower was in a period of deferment or forbearance not described in clause (iv) (other than an in-school deferment) if such payment—</text><subclause id="HE44273FE2D7F4F1B98ADE16D70D0B7E9" commented="no"><enum>(I)</enum><text>is made not later than 3 years after such period of deferment or forbearance ended; and</text></subclause><subclause id="HA87B75FE1E194BEB87D2BF9096B21CE3" commented="no"><enum>(II)</enum><text>is equal to or greater than the applicable monthly payment of the borrower.</text></subclause></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H24C47E1472DF4DC69C448986A4032C92" commented="no"><enum>213.</enum><header>Maximum repayment period for income-contingent repayment and income-based repayment</header><subsection id="H55F6408E51EF4D2D8EF14596A634C121"><enum>(a)</enum><header>ICR</header><text display-inline="yes-display-inline">Section 455(e)(7)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)(7)(B)</external-xref>) is further amended—</text><paragraph id="H0B87D806261342C5875F03E92B15425A" commented="no"><enum>(1)</enum><text>by striking <quote>or</quote> at the end of clause (iv);</text></paragraph><paragraph id="H2DF31415A6D1440BA9F81AC60EA9CA92" commented="no"><enum>(2)</enum><text>by striking the period at the end of clause (v) and inserting a semicolon; and</text></paragraph><paragraph id="H3F64DCE33D6440A3B624D5ED427E46A3" commented="no"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block id="HBD16CA7053184E22B61E3019D3D8D73E" style="OLC"><clause id="H4A1D867E41CD476AB1CA9268124D96FA" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">makes payments under the Income-Driven Repayment Plan under section 455A(c); or</text></clause><clause id="HFFE9B27B284C4BB4994F501E63ED96AB" commented="no"><enum>(vii)</enum><text display-inline="yes-display-inline">makes payments under the fixed repayment plan under section 455A(b); </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9BDF23B2BEE84A2EA07DCB34A2C5B4DD" commented="no"><enum>(b)</enum><header>IBR</header><text>Section 493C(b)(7)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)(7)(B)</external-xref>) is amended—</text><paragraph id="H68A2117A857F44E695A641F77593AE21"><enum>(1)</enum><text>in clause (iv), by striking <quote>or</quote>;</text></paragraph><paragraph id="H802FDDDA5E37446EBEA459C3A3444CA2"><enum>(2)</enum><text>in clause (v), by adding <quote>or</quote> at the end; and</text></paragraph><paragraph id="HDBDA9659C78046B7BD2DA5C56F9DFD88"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block id="H4DBADF03A52D4213BE0D72FC1ED62BD7" style="OLC"><clause id="H2B89503C061E462980B656C5004AF7A0" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">makes payments under the Income-Driven Repayment Plan under section 455A(c); or</text></clause><clause id="H382671D021E64144B15192C8A746F828" commented="no"><enum>(vii)</enum><text display-inline="yes-display-inline">makes payments under the fixed repayment plan under 455A(b); </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section id="HFDBA4D2DB132441DB210DE05B303FB6C" commented="no"><enum>214.</enum><header>Borrowers ineligible for loans</header><subsection id="HB59D664281C54EB3AE22BD74466C20BC" commented="no"><enum>(a)</enum><header>Ineligible borrowers</header><text display-inline="yes-display-inline">Section 484 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091</external-xref>) is amended—</text><paragraph id="HA12CE3A83F9D43E185270EBD533E714E" commented="no"><enum>(1)</enum><text>in subsection (a)(6), by striking <quote>if the</quote> and inserting <quote>if, in accordance with subsection (u), the</quote>; and</text></paragraph><paragraph id="H692B5CD3F0EE4D08BF803701E6C01244" commented="no"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="HC1C2F13C0B4345BA87FBA4336D45FBFF" display-inline="no-display-inline"><subsection id="HD6617EAA465D476D85B1AB0CDFA57B1B" commented="no"><enum>(u)</enum><header>Ineligible borrowers</header><paragraph id="H0D2B443024C941349D8F753E25D99B4F" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary determines that a borrower is ineligible pursuant to subsection (a)(6) if, at the time the loan was made and without the knowledge of the institution of higher education or the Secretary, the borrower (or the student on whose behalf a parent borrowed) provided false or erroneous information, has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, or took actions that caused the borrower or student—</text><subparagraph id="HB1B6C624D027440BA302D283BC1AD843" commented="no"><enum>(A)</enum><text>to receive a loan for which the borrower is wholly or partially ineligible;</text></subparagraph><subparagraph id="H583995D98D6C4315AA62EB198AD1D8A8" commented="no"><enum>(B)</enum><text>to receive interest benefits for which the borrower was ineligible; or</text></subparagraph><subparagraph id="H0D065262FBE144DAA921ECC4CD4BEB25" commented="no"><enum>(C)</enum><text>to receive loan proceeds for a period of enrollment for which the borrower was not eligible.</text></subparagraph></paragraph><paragraph id="HAAD3D4D6584C40979F468AFA6BC4AA1E" commented="no"><enum>(2)</enum><header>Demand letter</header><subparagraph id="H6379746E05374DE19F59E8BED2B431E2" commented="no"><enum>(A)</enum><header>In general</header><text>If the Secretary makes the determination described in paragraph (1), the Secretary shall send an ineligible borrower a demand letter that requires that, within 30 days from the date the letter is mailed, the borrower repay any principal amount for which the borrower is ineligible and any accrued interest, including interest subsidized by the Secretary, through the previous quarter.</text></subparagraph><subparagraph id="H6631D1EE42EB4E88AC93DC8A8E68FC12" commented="no"><enum>(B)</enum><header>Default</header><text>If a borrower fails to comply with the demand letter described in paragraph (2), the borrower shall be in default on the entire loan.</text></subparagraph></paragraph><paragraph id="H4BC3F60F54AB4F2F8FB7324E5A4ACCFC" commented="no"><enum>(3)</enum><header>Prohibition on consolidation</header><text>A borrower may not consolidate a loan under this part for which the borrower is wholly or partially ineligible.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></part><part id="HF14AE7A8BFAF4B8CA69D83B08EF02BAD"><enum>C</enum><header>Automatic enrollment in the Income-Driven Repayment Plan for certain borrowers</header><section id="H6161D840463D4169A994B66A8B5E6E0F"><enum>221.</enum><header>Notification and automatic enrollment procedures for borrowers who are delinquent on loans</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="HCD68A2CD2D79403E8CF7B520E9775B58" display-inline="no-display-inline"><paragraph id="HB546AE84A87742E8AC4AF9957EA5FF68" commented="no"><enum>(6)</enum><header>Notification and automatic enrollment procedures for borrowers who are delinquent on loans</header><subparagraph id="H8A36F39A61B64AE4872943A24E1E7036" commented="no"><enum>(A)</enum><header>Authority to obtain income information</header><text display-inline="yes-display-inline">The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to—</text><clause id="H800DFAB60A2F453E9E5046FC275FE243" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">use return information of the borrower (and the borrower's spouse, if applicable) disclosed under <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(13)</external-xref> of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the income and family size of the borrower (and the borrower's spouse, if applicable) without further action by the borrower;</text></clause><clause id="HCB71EAA8713F44F4821504FA712DD6FD"><enum>(ii)</enum><text display-inline="yes-display-inline">allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the income and family size of the borrower (and the borrower's spouse, if applicable); and</text></clause><clause id="HEF97E2A65B634F8E814CF7E5896A2321"><enum>(iii)</enum><text display-inline="yes-display-inline">provide the borrower with an opportunity to update the return information so disclosed before the determination of the income and family size of the borrower for purposes of this paragraph.</text></clause></subparagraph><subparagraph id="H3F5CC8941E2E42BCAD975B977C910DE8" commented="no"><enum>(B)</enum><header>Borrower notification</header><text>With respect to each borrower of a loan made under this part who is not repaying such loan pursuant to the Income-Driven Repayment Plan under section 455A(c), who is at least 31 days delinquent on such loan, and who has not been subject to the procedures under this paragraph for such loan in the preceding 62 days, the Secretary shall, as soon as practicable after such 31-day delinquency, provide to the borrower the following:</text><clause id="H1383E318E87642BBB01F972A6CBF1CD4" commented="no"><enum>(i)</enum><text>Notification that the borrower is at least 31 days delinquent on at least 1 loan made under this part, and a description of all delinquent covered loans, nondelinquent covered loans, and noncovered loans of the borrower.</text></clause><clause id="H16D09149986549B8B20D9C36B07B47E7" commented="no"><enum>(ii)</enum><text>A brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans, based on information available to the Secretary.</text></clause><clause id="HBB7E9179896948DE844CD31BE5E3793B" commented="no"><enum>(iii)</enum><text>The amount of monthly payments for the covered and noncovered loans under each repayment plan identified under clause (ii), based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A), the income, family size, tax filing status, and tax year information on which each such monthly payment is based.</text></clause><clause id="H1C9C84336AAB4569A9269C3FB2CC1E93" commented="no"><enum>(iv)</enum><text>Clear and simple instructions on how to select the repayment plans.</text></clause><clause id="H00C1805DFA634673A5D6AB16367DE449" commented="no"><enum>(v)</enum><text>An explanation that the Secretary shall take the actions under subparagraph (C) with respect to such borrower, if—</text><subclause id="HCD6A44F5CAF1443F8281B58634F2BF67" commented="no"><enum>(I)</enum><text>the borrower is 80 days delinquent on 1 or more loans made under this part and has not selected the Income-Driven Repayment Plan under section 455A(c) for borrower’s loans made under this part; and</text></subclause><subclause id="H5B48E9E4489042B8A2AAE4284A44A870" commented="no"><enum>(II)</enum><text>in the case of such a borrower whose existing repayment plan for the borrower’s loans made under this part is not such Income-Driven Repayment Plan, the monthly payments under such existing repayment plan are higher than such monthly payments would be under such Income-Driven Repayment Plan.</text></subclause></clause><clause id="HE15FA7113A0A4DDA8746FFF8C120DB5B" commented="no"><enum>(vi)</enum><text>Instructions on updating the information of the borrower obtained under subparagraph (A).</text></clause></subparagraph><subparagraph id="HDCD0F6A716CE4C58AC3DAC6DAD89845C" commented="no"><enum>(C)</enum><header>Secretary’s selection of a plan</header><text display-inline="yes-display-inline">With respect to each borrower described in subparagraph (B)(v) who has not selected the Income-Driven Repayment Plan under section 455A(c) for the borrower’s loans made under this part that are delinquent and who is at least 80 days delinquent on such a loan, the Secretary shall, as soon as practicable—</text><clause id="HB8577749E41C4BFDADEEB1A449DC98F7" commented="no"><enum>(i)</enum><text>enroll the borrower in such Income-Driven Repayment Plan; and</text></clause><clause id="H645C472B1A724801920E92B77E3483F9" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">authorize the borrower to change the Secretary’s selection of the Income-Driven Repayment Plan to the fixed-repayment plan under section 455A(b), as long as such selection is made in accordance with paragraphs (6) and (7) of section 455A(a).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H7459FD9778EC49A2806EF594787CE299" display-inline="no-display-inline"><enum>222.</enum><header>Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="HAEE5F0CB8EB847759624AD319EBE3431" display-inline="no-display-inline"><paragraph id="H1DA831FB775D4D6296C4F5538E348931" commented="no"><enum>(7)</enum><header>Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans</header><subparagraph id="HB3C6F8D596BA4F638CDD4627141C2751" commented="no"><enum>(A)</enum><header>Authority to obtain income information</header><text display-inline="yes-display-inline">The Secretary shall establish and implement, with respect to any borrower who is rehabilitating a loan made under this part pursuant to section 428F(d), procedures to—</text><clause id="H274938F5DF644614AACF49ABAD2EB121"><enum>(i)</enum><text display-inline="yes-display-inline">use return information of the borrower (and the borrower's spouse, if applicable) disclosed <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(13)</external-xref> of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower's spouse, if applicable);</text></clause><clause id="H6D3C6693C0FC4BA3A7BA25C8F763C1A2"><enum>(ii)</enum><text>allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to obtain such information; and</text></clause><clause id="HD406AF6CEAC44DEFA3F6DE5B39C4CE02"><enum>(iii)</enum><text display-inline="yes-display-inline">provide the borrower with an opportunity to update the return information so disclosed before the determination of income and family size of the borrower (and the borrower's spouse, if applicable) for purposes of this paragraph.</text></clause></subparagraph><subparagraph id="HCC0C55FC527D4FD1A88F15D6B34AED3F" commented="no"><enum>(B)</enum><header>Borrower notification</header><text>Not later than 30 days after a borrower makes the 6th payment required on such loan pursuant to section 428F(d), the Secretary shall notify the borrower of the process under subparagraph (C) with respect to such loan.</text></subparagraph><subparagraph id="H1AFD4EA8454B45A9953277CB02303382" commented="no"><enum>(C)</enum><header>Secretary’s selection of plan</header><text display-inline="yes-display-inline">With respect to each borrower who has made the 9th payment required on such loan pursuant to section 428F(d), the Secretary shall, as soon as practicable after such payment, carry out the procedures described in paragraph (6)(C) with respect to such loan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H9FCC88DA3A594D1B9CBF0E187631883D" commented="no"><enum>223.</enum><header>Covered loan and non-covered loan defined</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H0492B579D537492AAD824D00D07D000E" display-inline="no-display-inline"><paragraph id="H7574EA4E235F49999EFED02B928BE750" commented="no"><enum>(8)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="HDA0DB5F14FFE4ACB81D1E383BD81F5EF" commented="no"><enum>(A)</enum><header>Covered loan</header><text>The term <term>covered loan</term> means—</text><clause id="HEAC6C030521B4A23B48EAD77E553EDBB" commented="no"><enum>(i)</enum><text>a loan made under this part;</text></clause><clause id="H4F556A59D40C4A29851CE0C763DC3287" commented="no"><enum>(ii)</enum><text>a loan purchased under section 459A; or</text></clause><clause id="HA8474062BAF14CAD82AAC10F1FAE4ACB" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">a loan that has been assigned to the Secretary under subsection (c)(8) or (j)(3)(B) of section 428, or subsection (a)(1)(A)(ii) or (a)(1)(G) of section 428F.</text></clause></subparagraph><subparagraph id="HB07E80C342114845B3C6A3244B2F6A19" commented="no"><enum>(B)</enum><header>Noncovered loan</header><text>The term <term>noncovered loan</term> means a loan made, insured, or guaranteed under this title that is not a covered loan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H50389FE9D1154DA699B63011D65A0429" commented="no"><enum>224.</enum><header>Automatic recertification of income for income-driven repayment plans</header><subsection id="HC01D76A5368B4524A62181572F379B8C" commented="no"><enum>(a)</enum><header>Income-Contingent repayment plans</header><text display-inline="yes-display-inline">Section 455(e)(8)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)(8)(A)</external-xref>) is amended—</text><paragraph id="H91432C96B2AC4C71B623A1A8A50E42C4" commented="no"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of clause (ii);</text></paragraph><paragraph id="H23CE3CC14BBA47E9B90338147D30A347" commented="no"><enum>(2)</enum><text>by redesignating clause (iii) as clause (iv);</text></paragraph><paragraph id="H30EB8A90176C4658AE7AAAA1C2C68AA7" commented="no"><enum>(3)</enum><text>in clause (iv) (as so redesignated), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="H18BDBAE097ED4B33B38ED31EF9D37DE3" commented="no"><enum>(4)</enum><text>by inserting after clause (ii), the following:</text><quoted-block style="OLC" id="HF1D10F0B1A0541E0B94F04454AF4E0A4" display-inline="no-display-inline"><clause id="H1B0AB70D86F54E28AD448559B8475B82" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a borrower who has selected to repay a loan made under this part pursuant to an income contingent repayment plan that defines discretionary income in such a manner that the borrower would have a calculated monthly payment equal to $0, not require the borrower to provide the Secretary the information described in clause (i) or (ii), and ensure that the borrower will have a calculated monthly payment of $0; and </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H71D629727D5B4F638DE7E018E143D483" commented="no"><enum>(b)</enum><header>Income-Based repayment plans</header><text>Section 493C(c)(2)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(c)(2)(B)</external-xref>) is amended by striking <quote>any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan)</quote> and inserting <quote>any covered loan (as defined in section 455(d)(8))</quote>.</text></subsection></section><section id="HA8EAD1DD768940A6A2EB8862B70EF9AD" commented="no"><enum>225.</enum><header>Procedure and requirement for requesting tax return information from the IRS</header><text display-inline="no-display-inline">Section 494(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098h">20 U.S.C. 1098h(a)</external-xref>) is amended—</text><paragraph id="H7181A250B6F449B0A4CDE53AC022EDB9" commented="no"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H78AC46814F8F4AD78DC6DB7614047712" commented="no"><enum>(A)</enum><text>in subparagraph (A), in the matter preceding clause (i), by striking <quote>a loan under part D</quote> and inserting <quote>a covered loan (as defined in section 455(d)(8)</quote>; and</text></subparagraph><subparagraph id="H2BEA3998DEEB4353BA36772C0089C0C8" commented="no"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>a loan under part D</quote> and inserting <quote>a covered loan (as defined in section 455(d)(8))</quote>; and</text></subparagraph></paragraph><paragraph id="HD0A9CBF0A8B64F88A7B04B9184C1B144" commented="no"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="HE8CCB95E51D3456DAB6CD5F6793E3C0B" display-inline="no-display-inline"><paragraph id="HE907628DC82E47E7BC6E6A56DFD1DE49" commented="no"><enum>(4)</enum><header>Loan delinquency and rehabilitation</header><subparagraph id="H69CF628E4B86464098C9660D49B6E376" commented="no"><enum>(A)</enum><header>Borrowers delinquent on loans</header><text>In the case of an individual who is a borrower of a loan made under this part and who is at least 31 days delinquent on such loan, the Secretary, with respect to such individual and any spouse of such individual, shall—</text><clause id="H582BDEB037DA42B3A33848229B7D1936" commented="no"><enum>(i)</enum><text>provide to such individuals the notification described in paragraph (1)(A)(i); and</text></clause><clause id="H22B2958937D640F1B6BBCAC657FF19C3" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">require, as a condition of eligibility for the notification and automatic enrollment procedures under section 455(d)(6), that such individuals—</text><subclause id="HBB2085D7E0CD459C8F16DFDA0D4441CF" commented="no"><enum>(I)</enum><text>affirmatively approve the disclosure described in paragraph (1)(A)(i) and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section 455(d)(6)(A)(ii); or </text></subclause><subclause id="HD78A7E2CDBBD4854A04A9D4EABE8845A" commented="no"><enum>(II)</enum><text>provide such information as the Secretary may require to carry out the procedures under section 455(d)(6) with respect to such individual.</text></subclause></clause></subparagraph><subparagraph id="H9C781E7C5BA740A3995438252F4EA05B" commented="no"><enum>(B)</enum><header>Loan rehabilitation</header><text display-inline="yes-display-inline">In the case of any written or electronic application by an individual for the rehabilitation of a loan made under this part pursuant to section 428F(d), the Secretary, with respect to such individual and any spouse of such individual, shall—</text><clause id="HE832B9D7CA8C45AEB71A61E3AF73FB9D" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">provide to such individuals the notification described in paragraph (1)(A)(i); and</text></clause><clause id="H43F36211945545ABBB9EAFF85FEAA311" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">require, as a condition of eligibility for loan rehabilitation pursuant to section 428F(a), that such individuals—</text><subclause id="HE57EEEB88A2747E7B4CDD4BE7EFF6729" commented="no"><enum>(I)</enum><text>affirmatively approve the disclosure described in paragraph (1)(A)(i) and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section 455(d)(7)(A)(ii); or </text></subclause><subclause id="H89171585F4C44C888BE104EAAFE6631F" commented="no"><enum>(II)</enum><text>provide such information as the Secretary may require to carry out the procedures under section 455(d)(7) with respect to such individual.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></part><part id="HC6D3FBACF44247D4ABD5BBB5E944E004"><enum>D</enum><header>Streamlining Public Service Loan Forgiveness</header><section id="HC4750C37A74C4273BDBE107FD67B1B31"><enum>231.</enum><header>Amendments to terms and conditions of public service loan forgiveness</header><subsection id="H1415E4A92ABD44D8A4733D9E9E3995AD" display-inline="no-display-inline" commented="no"><enum>(a)</enum><header>Number of monthly payments</header><text display-inline="yes-display-inline">Paragraph (1) of 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(m)</external-xref>) is amended—</text><paragraph id="HC1F840D244A84651B99F5783E92BC0A4" commented="no"><enum>(1)</enum><text>in the matter preceding subparagraph (A), by striking <quote>a borrower who</quote> and inserting <quote>a borrower</quote>;</text></paragraph><paragraph id="H19BE27CB2BD241B18B84048F9105C154" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">by amending subparagraph (A) to read as follows:</text><quoted-block style="OLC" id="H0A486909FBD2412E8877E2CD7B28ACF9" display-inline="no-display-inline"><subparagraph id="H412457465E93436880C37B036B50F1B1"><enum>(A)</enum><text display-inline="yes-display-inline">who—</text><clause id="H53F3A5E5FC364C55B305C124321C7099"><enum>(i)</enum><text display-inline="yes-display-inline">has made 96 qualifying monthly payments on the eligible Federal Direct Loan after October 1, 2007; and</text></clause><clause id="HAF34F92E723A410C8336678FD8F867F9"><enum>(ii)</enum><text display-inline="yes-display-inline">has been employed in a public service job during the period in which the borrower makes each of the 96 qualifying monthly payments; and</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HE7CE8C339FA14E459F91AF9EE209466E"><enum>(3)</enum><text>by amending subparagraph (B) to read as follows:</text><quoted-block style="OLC" id="HF772581DA9E344829F5D6D012813DA00" display-inline="no-display-inline"><subparagraph id="HCAD562953B474B2385C2D5A2A5FE10AF"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to the employment status of the borrower at the time of such cancellation.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HE06F01BB94FB43318E4983691ADC50D0" commented="no"><enum>(b)</enum><header>Redesignations</header><text display-inline="yes-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(m)</external-xref>) is further amended by redesignating paragraphs (2), (3), and (4), as paragraphs (3), (6), and (7), respectively.</text></subsection><subsection id="H64E2D8E6E22940DE8690D5308E43DEA6" commented="no"><enum>(c)</enum><header>Monthly payments</header><text display-inline="yes-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(m)</external-xref>) is further amended—</text><paragraph id="H705F68963B1747B89132528B8BA33E65"><enum>(1)</enum><text>by inserting after paragraph (1), as so amended, the following:</text><quoted-block style="OLC" id="HA252A312AB0A4965BDA3F01CEEC3D8A8" display-inline="no-display-inline"><paragraph id="H9F521CFFB94A4A33A7120100CBBDA998" commented="no"><enum>(2)</enum><header>Monthly payments</header><subparagraph id="H7069A0B498064C7BBDF9E3D15F379465" commented="no"><enum>(A)</enum><header>Qualifying monthly payments</header><text display-inline="yes-display-inline">For the purpose of determining under paragraph (1) the number of qualifying monthly payments made by a borrower on an eligible Federal Direct Loan, the Secretary shall consider the borrower to have made a qualifying monthly payment for each month that—</text><clause id="HC9546A712F5045F7B371924EC6457E31"><enum>(i)</enum><text display-inline="yes-display-inline">the borrower pays (as a lump sum or in multiple installments) an amount that is not less than the monthly payment amount due on the eligible Federal Direct Loan pursuant to any one or a combination of the following—</text><subclause id="HCC663AB25B224AFBA699C9B8296206BD" display-inline="no-display-inline"><enum>(I)</enum><text>payments under an income-based repayment plan under section 493C;</text></subclause><subclause id="H7C7F6E656BA744898896563E93E235E9"><enum>(II)</enum><text>payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period;</text></subclause><subclause id="H2C195D25E4B34A20A4DB7CA7F7579F76"><enum>(III)</enum><text>monthly payments under a repayment plan under subsection (d)(1) or (g) of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period;</text></subclause><subclause id="H315A547A448C44D0AA7DF2CB3573F1BB"><enum>(IV)</enum><text>payments under an income contingent repayment plan under subsection (d)(1)(D);</text></subclause><subclause id="H3DC04EB938A44A72AE97A4818342FBA0"><enum>(V)</enum><text>payments under the Income-Driven Repayment Plan under section 455A(c); or</text></subclause><subclause id="HA8747F9EF9C74774B0A5A4876BC29ED7"><enum>(VI)</enum><text>payments under the fixed repayment plan under section 455A(b); or</text></subclause></clause><clause id="H28036AD7111D47DAB0CC9ED2F6951E79"><enum>(ii)</enum><text display-inline="yes-display-inline">in lieu of a payment described in clause (i), the borrower is in one of the following periods of deferment or forbearance—</text><subclause id="H96A97772D0554D89A1102597241B65E2"><enum>(I)</enum><text>cancer treatment deferment under section 427(a)(2)(C)(iv), 428(b)(1)(M)(v), or 455(f)(3);</text></subclause><subclause id="HFDA3F41B4F9547079F0BDE63B583BC9C"><enum>(II)</enum><text>rehabilitation training program deferment under section 427(a)(2)(C)(i)(II), 428(b)(1)(M)(i)(II), or 455(f)(2)(A)(ii);</text></subclause><subclause id="H6289BCA2F4C342A9B7770D3FA5F64AEE"><enum>(III)</enum><text>military service deferment under section 428(b)(1)(M)(iii) or 455(f)(2)(C);</text></subclause><subclause id="H3163EB82D4444125A3D4A93216C62250"><enum>(IV)</enum><text>unemployment deferment under section 427(a)(2)(C)(ii), 428(b)(1)(M)(ii), 428B(d)(1)(A)(i), or 455(f)(2)(B);</text></subclause><subclause id="H50D94BEE9FB9422D887C2F32E8E98EBC"><enum>(V)</enum><text>deferment due to an economic hardship described in section 427(a)(2)(C)(iii), section 428(b)(1)(M)(iv), section 428B(d)(1)(A)(i), section 435(o), or section 455(f)(2)(D);</text></subclause><subclause id="HD6CC365FE0AA4A89B96D72244CAE6CD9"><enum>(VI)</enum><text>Peace Corps service deferment under section 682.210(b)(2)(ii) or 682.210(k) of title 34, Code of Federal Regulations (or successor regulations), as made applicable to Direct Loan borrowers under section 685.204(j) of such title 34;</text></subclause><subclause id="HAFBCCF6FBF874117A24D8AD6F7B13906"><enum>(VII)</enum><text>post-active-duty student deferment under section 493D;</text></subclause><subclause id="H72C633CA16F54E978AD6B155C9BF75AC"><enum>(VIII)</enum><text>AmeriCorps forbearance under section 428(c)(3)(A)(i)(III);</text></subclause><subclause id="H855917190F394AED887FB10DA3C706B5"><enum>(IX)</enum><text>National Guard Duty forbearance under section 682.211(h)(2)(iii) or 685.205(a)(7) of title 34, Code of Federal Regulations (or successor regulations);</text></subclause><subclause id="H42B74176508C4FC8A8CC99F327351E06"><enum>(X)</enum><text>Department of Defense student loan repayment program forbearance under section 428(c)(3)(A)(i)(IV);</text></subclause><subclause id="H0DCB1B7B728F4F1280B4E3ABB5547E9B"><enum>(XI)</enum><text>administrative forbearance or mandatory administrative forbearance under section 428(c)(3)(D) or 428H(e)(7); or</text></subclause><subclause id="H614B222909FF46DE9E9027082398B18B"><enum>(XII)</enum><text>student loan debt burden forbearance under section 428(c)(3)(A)(i)(II).</text></subclause></clause></subparagraph><subparagraph id="HC9D4382A11C84F36A6648BC3D9C77833" commented="no"><enum>(B)</enum><header>Prepayments</header><clause id="H31063D94600548F8974A9440A97F3E18" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to clause (ii), if, for any month, a borrower makes a qualifying monthly payment on an eligible Federal Direct Loan in an amount that exceeds the monthly payment amount due on such loan for such month, the Secretary shall—</text><subclause id="HA79CFBD9DBE54F5BA72DCE8FE5CF188A" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">if the excess amount is less than the monthly payment amount due for the subsequent month on such loan, apply the excess amount toward the monthly payment amount due for such subsequent month;</text></subclause><subclause id="HACE3F4D16A704525A70DE6056AD2C34B" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">if the excess amount is equal to the monthly payment amount due for the subsequent month on such loan, treat the excess amount as the monthly payment for such subsequent month;</text></subclause><subclause id="H8A9A0EC47B5B4349A5076A1B49B63A66" commented="no"><enum>(III)</enum><text>if the excess amount is greater than the monthly payment amount due for the subsequent month on such loan, but less than the total monthly payment amounts due for the 2 subsequent months on such loan—</text><item id="H8F7B9A6B646340BB9220159A0E19FC24" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">treat the portion of the excess amount that covers the monthly payment amount due for the subsequent month as the monthly payment for such subsequent month; and</text></item><item id="HCCDECD44C69C45E1B0027A4BA850DA31" commented="no"><enum>(bb)</enum><text>apply the remainder of the excess amount toward the monthly payment amount due for the second subsequent month;</text></item></subclause><subclause id="H5F7401B298DC4FE79072966ED092FB58" commented="no"><enum>(IV)</enum><text>if the excess amount is equal to or greater than the monthly payment amount due for the 2 subsequent months on such loan, but less than the total monthly payment amounts due for the 3 subsequent months on such loan—</text><item id="HF8F6B54B162248EB8AE0CF3B0493907D" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">treat the portion of the excess amount that covers the monthly payment amounts due for the subsequent month and the second subsequent month as the monthly payments for such months; and</text></item><item id="HBDB0FC6DB7994F0883081F6B33AA03CF" commented="no"><enum>(bb)</enum><text>apply any remainder of such excess amount toward the monthly payment amount due for the third subsequent month;</text></item></subclause><subclause id="H7C85DC58658E463DAA87AC63E3D1D4D8" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">if the excess amount is equal to the monthly payment amounts due for the 3 subsequent months on such loan, treat the excess amount as the monthly payments for such months;</text></subclause><subclause id="HD744B96EC6F644C08AD0F61A5052FD34" commented="no"><enum>(VI)</enum><text>if the excess amount is greater than the monthly payment amounts due for the 3 subsequent months on such loan—</text><item id="H2E6D1706D3014AE1BBEB73BBFEBD7890" commented="no"><enum>(aa)</enum><text>treat the portion of the excess amount that covers the monthly payment amounts due for the 3 subsequent months as the monthly payments for such months; and</text></item><item id="H7E649B6CD3DF48F59AA353156C4D7CE2"><enum>(bb)</enum><text>apply any remainder of such excess amount to the principal balance of the eligible Federal Direct loan; and</text></item></subclause><subclause id="HBE8762E333304717BEA2C994B3CAFA91" commented="no"><enum>(VII)</enum><text display-inline="yes-display-inline">notwithstanding subclauses (I) through (VI), if the borrower has a monthly payment amount due on such loan for such month that is equal to $0, apply any excess amount for such month to the principal balance of the eligible Federal Direct loan.</text></subclause></clause><clause id="H97CBC0809C2B4213B85270E3400D5975" commented="no"><enum>(ii)</enum><header>Alternative application</header><text display-inline="yes-display-inline">Prior to or at the time of making a payment that exceeds the monthly payment amount due on an eligible Federal Direct Loan for such month, a borrower may request that any excess amount for such month be applied to the principal balance of an eligible Federal Direct loan in lieu of such excess amount being applied in accordance with clause (i).</text></clause></subparagraph><subparagraph id="H9FAAEA5A8DAE4706BB3ECF0767691243" commented="no"><enum>(C)</enum><header>Buyback payment process</header><clause id="HCE5AD79EBCBC4A5AA0585785E86529AB" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish a buyback payment process under which a qualified borrower of an eligible Federal Direct Loan may make a buyback payment in order to have eligible months of the borrower’s public service employment period during which the borrower did not make a qualifying monthly payment on such loan be treated as if the borrower had made a qualifying monthly payment on such loan.</text></clause><clause id="H50004BBAA00D42F2A91A1958DD9B8582"><enum>(ii)</enum><header>Qualified borrower</header><text display-inline="yes-display-inline">A borrower is a qualified borrower for the purposes of making a buyback payment in accordance with this subparagraph if the borrower—</text><subclause id="H2351C624387C4AAE86EE50143B76BC2A"><enum>(I)</enum><text>has an eligible Federal Direct Loan that is not in default;</text></subclause><subclause id="HDABB1F5869BA4843906049293E1A24F5"><enum>(II)</enum><text>has been employed in a public service job for not less than a 96 month employment period, but during such employment period has made fewer than 96 qualifying monthly payments on an eligible Federal Direct Loan; and</text></subclause><subclause id="H99E7C0B93D094998B7B83E3B2E7A3CD1"><enum>(III)</enum><text>requests to make a buyback payment in accordance with this subparagraph.</text></subclause></clause><clause id="H7702C5608D524A6A967867D55B2BC0E3" commented="no"><enum>(iii)</enum><header>Eligible month</header><text display-inline="yes-display-inline">For the purposes of this subparagraph, an eligible month means a month during which a qualified borrower was employed in a public service job, was not in an in-school deferment or grace period, and did not make a qualifying monthly payment on an eligible Federal Direct Loan for such month—</text><subclause id="H610F8959218346749339B9F5EE49A136" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">because the borrower made a monthly payment on such eligible Federal Direct Loan pursuant to a repayment plan that is not a qualifying repayment plan;</text></subclause><subclause id="H72EC715AC20C486F883D70220461EE4B"><enum>(II)</enum><text display-inline="yes-display-inline">because the borrower was in a period of deferment or forbearance other than a period described in clause (ii) of subparagraph (A); or</text></subclause><subclause id="HA5C9063E5E764ABD88D5F428101018AC"><enum>(III)</enum><text>for another reason determined appropriate by the Secretary.</text></subclause></clause><clause id="H7AD2E3D800604AB595CB49FBBDD70306"><enum>(iv)</enum><header>Buyback payment requirements</header><text display-inline="yes-display-inline">A buyback payment made in accordance with this subparagraph—</text><subclause id="H784097B1E9E1473CAA2E382EAF2FCF71"><enum>(I)</enum><text display-inline="yes-display-inline">shall be made by a qualified borrower as a lump sum payment amount, and in an amount that equals the total amount the borrower would have paid in qualifying monthly payments on the eligible Federal Direct Loan for all eligible months the borrower is requesting to buyback, pursuant to a qualifying repayment plan applicable to the borrower, in accordance with section 685.219(g)(6) of title 34, Code of Federal Regulations (as such section is in effect on the date of enactment of this paragraph) or any other relevant regulations in effect on such date;</text></subclause><subclause id="H61CD0F0F3DF94E60BF64E8DAC7AA5014"><enum>(II)</enum><text display-inline="yes-display-inline">may not be made with respect to an eligible Federal Direct Loan that has been paid off, discharged, or cancelled; and</text></subclause><subclause id="H96828363FC264419B7E263598AAD6162"><enum>(III)</enum><text>with respect to an eligible Federal Direct Loan that is a consolidation loan, may not be used to buyback eligible months that occurred before the date of the consolidation of such loan.</text></subclause></clause></subparagraph><subparagraph id="HA1EFA792C1F7446784E7B4A29C4EB204"><enum>(D)</enum><header>Hold harmless against retroactive determinations</header><text>For purposes of determining under paragraph (1) the number of qualifying monthly payments made by a borrower, any payment or period of deferment or forbearance that is determined to be a qualifying monthly payment may not, at a later time, be determined not to be a qualifying monthly payment.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HBDC9517DDB914B1999802352B3D403A7"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (6), as redesignated by subsection (b), by adding at the end the following:</text><quoted-block style="OLC" id="HA81D4E39544842E5AFDCD577DF7E031A" display-inline="no-display-inline"><subparagraph id="HE40EF6446D3948EA90C211132CF04712"><enum>(C)</enum><header>Qualifying repayment plan</header><text display-inline="yes-display-inline">The term <term>qualifying repayment plan</term> means any of the repayment plans listed in clause (i) of paragraph (2)(A). </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H946FF3DE24094C58BA38D3F50485FCCD"><enum>(d)</enum><header>Loan cancellation</header><text>Paragraph (3) of 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(m)</external-xref>), as redesignated by subsection (b), is amended to read as follows:</text><quoted-block style="OLC" id="HFD6C28F4662E47CBBBEA6F6A30547447" display-inline="no-display-inline"><paragraph id="H4064413D5016420F869118CE858C3526"><enum>(3)</enum><header>Loan cancellation amount</header><text display-inline="yes-display-inline">Upon certification by a borrower of completion of 96 qualifying monthly payments by the borrower, the Secretary shall determine whether the borrower meets each of the requirements of paragraph (1), and—</text><subparagraph id="HF16041199CCE4DC8AF2D8FC1556D3D3D"><enum>(A)</enum><text>if the Secretary determines that the borrower does meet such requirements, cancel the obligation to repay the balance of principal and interest due as of the time of such cancellation on the eligible Federal Direct Loans made to the borrower under this part, without further action by the borrower; or</text></subparagraph><subparagraph id="H7F721A24D3F34CC0B67AFE94ACE8A2FA"><enum>(B)</enum><text>if the Secretary determines that the borrower does not meet such requirements, notify the borrower of such determination in accordance with paragraph (4).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HC7B10AF2B6A14B86AD24FFBD7411F0C9"><enum>(e)</enum><header>Reconsideration process</header><text display-inline="yes-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(m)</external-xref>), as redesignated by subsection (b), is further amended by inserting after paragraph (3), as so amended, the following:</text><quoted-block style="OLC" id="H7272404260AE42DFB159EA9AF30EB236" display-inline="no-display-inline"><paragraph id="H80871FB42BF74649B701962C599B28B4" commented="no"><enum>(4)</enum><header>Initial determination of ineligibility for loan cancellation</header><text display-inline="yes-display-inline">In a case in which the Secretary determines that a borrower has not met the requirements of paragraph (1), the Secretary shall—</text><subparagraph id="H8605A97B4E984F83B715B89E210872AA"><enum>(A)</enum><text>notify the borrower that—</text><clause id="H66A8C73CC06B495A93269CAF760B3283" commented="no"><enum>(i)</enum><text>the borrower’s application has been denied, including the basis for such denial;</text></clause><clause id="H1E8133B593F7451B8E81E0D0F1628272" commented="no"><enum>(ii)</enum><text>the borrower is in a 90-day forbearance period described in subparagraph (B); and</text></clause><clause id="H05B078E57FE949C7945EC5DEA8D7B381" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">the Secretary will resume collection of the eligible Federal Direct Loans for which the borrower was seeking loan cancellation under this subsection after such 90-day forbearance period, unless the borrower opts to extend such forbearance period under paragraph (5)(A)(ii); and</text></clause></subparagraph><subparagraph id="HDDA51F7329A5416490C784BCC9259854"><enum>(B)</enum><text>grant the borrower a 90-day forbearance period, beginning on the date of the notice described in subparagraph (A) provided to the borrower, and during which—</text><clause id="H99564012E5304106AA4E4BBDA70651A3"><enum>(i)</enum><text>payments of principal and interest need not be made on the eligible Federal Direct Loans for which the borrower was seeking loan cancellation under this subsection; and</text></clause><clause id="H4B08603053E34A4F9C0183AEA5D6D98A"><enum>(ii)</enum><text display-inline="yes-display-inline">any interest accrued and not paid may not be capitalized.</text></clause></subparagraph></paragraph><paragraph id="H958E71448CC84A1F9074765AAE23D332"><enum>(5)</enum><header>Reconsideration process</header><subparagraph id="H873C9AF8D3FF476EACDF0D8C853CA04F"><enum>(A)</enum><header>Request for reconsideration</header><text>Not later than 90 days after the date of the notice described in paragraph (4)(A) provided to the borrower—</text><clause id="H0CCAAAE8EDEF4F838BE18A08D40DCCAB"><enum>(i)</enum><text>the borrower may request, on a form approved by the Secretary, that the Secretary reconsider the basis for the Secretary’s denial under paragraph (4)(A)(i); and</text></clause><clause id="HFFC3CA703C144A7487176B85BBDCC2E7"><enum>(ii)</enum><text>if the Secretary grants the borrower’s reconsideration request, offer the borrower an extension of the 90-day forbearance period described in paragraph (4)(B), which shall—</text><subclause id="HF2EF6D27BF4C4C31A7681C7A424D4350"><enum>(I)</enum><text>begin on the date of the borrower’s reconsideration request under this subparagraph; and</text></subclause><subclause id="H910FCF9D919D45BB986FE69A2ABED155"><enum>(II)</enum><text>end on the date of the notice provided to the borrower under subparagraph (C)(i)(I) of the Secretary’s reconsideration decision.</text></subclause></clause></subparagraph><subparagraph id="HDFCCACFA827940A29FD285C869FAEF10"><enum>(B)</enum><header>Consideration of reconsideration request</header><text>In evaluating a reconsideration request from a borrower, the Secretary shall consider any relevant evidence or supporting documentation that may assist the Secretary in determining whether the borrower meets each of the requirements of paragraph (1) to qualify for loan cancellation under this subsection.</text></subparagraph><subparagraph id="H9B87CD32A3E84B53A7B6FBC6D2A27750"><enum>(C)</enum><header>Decision by the Secretary</header><clause id="HD0B1261D4B8E451B8D270448230A2DCF" commented="no"><enum>(i)</enum><header>In general</header><text>Not later than 6 months after receipt of a borrower’s reconsideration request, the Secretary shall—</text><subclause id="H3DF2437627F54A2DB1B4FEA9D05790BF" commented="no"><enum>(I)</enum><text>notify the borrower of the reconsideration decision and the reason for the Secretary’s determination;</text></subclause><subclause id="H5840BCF711384EE49F743D0BFDAE7CF8" commented="no"><enum>(II)</enum><text>in a case in which the reconsideration request is granted, adjust the borrower’s number of qualifying monthly payments under paragraph (1) or cancel the loan under paragraph (3); and</text></subclause><subclause id="H320C480D02C841AEA376FD060A0B907B" commented="no"><enum>(III)</enum><text>in a case in which the Secretary denies the reconsideration request, with respect to a borrower who agrees to the forbearance extension described in subparagraph (A)(ii), include in the notice provided to the borrower under subclause (I), a reminder that the Secretary will resume collection of the eligible Federal Direct Loans for which the borrower was seeking loan cancellation under this subsection as of the date of such notice.</text></subclause></clause><clause id="H2B03DF5925B84391B6AC277B314D3431"><enum>(ii)</enum><header>Final decision</header><text>After the Secretary makes a decision on the borrower’s reconsideration request, the Secretary’s decision is final, and the borrower will not receive additional reconsideration.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="HC6187B72DDF046B0A629D103FCCE3DD9"><enum>232.</enum><header>Terms and conditions of employment</header><subsection id="HEAC5B587CAF94BB0A6F5BB8502430F66"><enum>(a)</enum><header>Independent contractors</header><text>Section 455(m) is further amended by adding at the end the following:</text><quoted-block style="OLC" id="HA7A3C1C81AD24339B29598711A8D2E6E" display-inline="no-display-inline"><paragraph id="H2607CFB8B9BE48128B7FD14576E7D53E"><enum>(8)</enum><header>Treatment of independent contractors</header><text display-inline="yes-display-inline">For purposes of this subsection, each reference to <quote>employment</quote> and <quote>employed</quote> shall be treated as including work as an independent contractor.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H84F33516010B4FF79D43F155D6058DE9"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">Paragraph (6) of 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(m)</external-xref>), as redesignated by section 231(b), is further amended by adding at the end the following:</text><quoted-block id="HC55D2D34A80249839D9286375B7615FE"><subparagraph id="H4AC7FA112C29416D9EDFF187844806BC"><enum>(D)</enum><header>Full-time</header><text>The term <term>full-time</term> means, with respect to a public service job, working 1 or more such jobs—</text><clause id="H2CC930C90C0A41D0B741E466965933D8"><enum>(i)</enum><text>a minimum average of 30 hours per week during the period being certified;</text></clause><clause id="H3B6AC54B8D6D47C0B6E9F223DAE05AB0"><enum>(ii)</enum><text>a minimum of 30 hours per week throughout a contractual or employment period of at least 8 months in a 12-month period; and</text></clause><clause id="H72E24F03F7BE4E97A5073B1A5706202B"><enum>(iii)</enum><text>with respect to an individual who is in nontenure track employment at an institution of higher education, the equivalent of 30 hours per week as determined by multiplying each credit or contact hour taught by such individual per week by a number to be determined by the Secretary.</text></clause></subparagraph><subparagraph id="H4DE13329D7BC4D759E5B35E10CB99F7F"><enum>(E)</enum><header>Independent contractor</header><text display-inline="yes-display-inline">The term <term>independent contractor</term> means an individual who is not an employee and who is working in a public service job in a position or providing services which, under applicable State law, cannot be filled or provided by an employee of the public service job.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H56CCFFE9B0BF43D2BFC5F91404B29B67" commented="no"><enum>233.</enum><header>Online portal and database of public service jobs</header><text display-inline="no-display-inline">Section 455(m) of the Higher Education Act of 1965 is further amended by adding at the end the following:</text><quoted-block id="H974D61293CF14726BFF66E5BDDBD9B07"><paragraph id="HC102E20207034441851C4F17405B9A29" commented="no"><enum>(9)</enum><header>Online portal and database of public service jobs</header><subparagraph id="HF6580E6FD91F4EB0A5CE4CC74912B3B7" commented="no"><enum>(A)</enum><header>Online portal</header><clause id="HCD60E6867F9C4555B37AAF663897996A" commented="no"><enum>(i)</enum><header>Borrowers</header><text display-inline="yes-display-inline">The Secretary shall establish an online portal that provides to borrowers of eligible Federal Direct Loans the following information:</text><subclause id="H66FE7A60D9294F27BA0167B95F8BBC45" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">Instructions on how to access the database established under subparagraph (B) so that the borrower can determine whether the borrower is employed in a public service job.</text></subclause><subclause id="HCA61D9EF7B1741819B30010BBA83A5E6" commented="no"><enum>(II)</enum><text>An identification of the loans of the borrower that are eligible Federal Direct Loans, and an identification of the qualifying repayment plans for which such eligible Federal Direct Loans qualify.</text></subclause><subclause id="H885F1282D4A74AFD8D1B239D90DA81F6" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">With respect to each such eligible Federal Direct Loan—</text><item id="H5B18C2636DC24BA88E3E2407017D932A"><enum>(aa)</enum><text>the number of qualifying monthly payments the borrower has made in accordance with paragraph (1); and</text></item><item id="HE39E40B4AB7344AB9385D1A1CB447ED6"><enum>(bb)</enum><text>the estimated number of qualifying monthly payments under such paragraph remaining on such loan before the borrower may be eligible for loan cancellation under this subsection.</text></item></subclause><subclause id="HDFEB583A01B74E92A19BCB3D1DEB799C" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">With respect to each loan of the borrower that is not eligible for loan cancellation under paragraph (3) of this subsection, an explanation of why the loan is not so eligible and instructions on how what, if anything, the borrower may do to make the loan so eligible.</text></subclause><subclause id="HB90D23CE4731441E9BDE012E44FBF6D1" commented="no"><enum>(V)</enum><text>Instructions for the submission of any forms associated with such loan cancellation, and an ability for the borrower to use the portal to electronically sign and submit such forms.</text></subclause><subclause id="H2D239C14094E4FEC9828A87A95D21F31" commented="no"><enum>(VI)</enum><text display-inline="yes-display-inline">In a case in which a borrower submits to the Secretary an application for loan cancellation under this subsection that is denied by the Secretary—</text><item id="H32BA714053B94B739E466470636F880D" commented="no"><enum>(aa)</enum><text display-inline="yes-display-inline">a notice of such denial that meets each of the requirements of paragraph (4)(A), including an explanation of the 90-day forbearance period;</text></item><item id="H6B322F8C54844B4CADBC4BE60C13C526" commented="no"><enum>(bb)</enum><text>a form that meets each of the requirements of paragraph (5)(A), which the borrower may use to request reconsideration of such denial, including accepting an extension of the 90-day forbearance period; and</text></item><item id="HCE18DEE53CB44A549BC1F2C8A112437A" commented="no"><enum>(cc)</enum><text>a notice of the Secretary’s reconsideration decision, which meets each of the requirements of paragraph (5)(C).</text></item></subclause><subclause id="H9FC47501867C47668C1825A1FFBABEAD"><enum>(VII)</enum><text display-inline="yes-display-inline">An explanation of the buyback payment process described in paragraph (2)(C), and a form to request such a buyback, including the eligible months for which the borrower may request a buyback, and the amount that the borrower would be required to pay for such buyback.</text></subclause><subclause id="H0FEB1397737E4126AA3E10D5D350EC7B"><enum>(VIII)</enum><text display-inline="yes-display-inline">An explanation of how consolidating one or more Direct Loans into a Direct Consolidation Loan, including a Direct PLUS Loan made to a parent borrower, will affect the number of qualifying monthly payments attributed to the borrower.</text></subclause></clause><clause id="H3E36C02AB8B349FBAE876DD4B9EDED59" commented="no"><enum>(ii)</enum><header>Appropriate contacts</header><text display-inline="yes-display-inline">The Secretary shall ensure that an appropriate contact for a public service job of a borrower has the option to electronically sign and submit any forms associated with loan cancellation under paragraph (3) of this subsection.</text></clause><clause id="HA368C306A8AA46FD978441C5895D52D1" commented="no"><enum>(iii)</enum><header>Information</header><text>The Secretary shall ensure that any information provided through the online portal described in this subparagraph contains up-to-date information.</text></clause></subparagraph><subparagraph id="H2DA81258DB0D47F5B13C68F1E15E3D67" commented="no"><enum>(B)</enum><header>Database of public service jobs</header><clause id="HDF394696D7924E288A058CEAC2581DC7" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of Labor, shall establish and regularly update a database that lists public service jobs.</text></clause><clause id="H433B2351DEBB4169BEB1BDCCD24DEE3A" commented="no"><enum>(ii)</enum><header>Public availability</header><text>The database established under clause (i) shall be made available on a publicly accessible website of the Department of Education in an easily searchable format.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H5D158304E5EE4F96904A9E62EFB4BF3B"><enum>234.</enum><header>Treatment of consolidated and refinanced loans</header><text display-inline="no-display-inline">Section 455(m)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)(2)</external-xref>), as amended by the preceding provisions of this Act, is further amended by inserting after subparagraph (D) the following:</text><quoted-block style="OLC" id="H6A4CE8452F6248A19C585DFC3CAB32AD" display-inline="no-display-inline"><subparagraph id="HB3E8642F526E475F8FB6FD0CAA20E070"><enum>(E)</enum><header>Determination of number of qualifying monthly payments for consolidation loans</header><text display-inline="yes-display-inline">With respect to determining the number of qualifying monthly payments for a borrower seeking loan forgiveness under this subsection who consolidates one or more Direct Loans into a Direct Consolidation Loan, including a Direct PLUS Loan made to a parent borrower, the Secretary shall use the weighted average of the payments the borrower made on the Direct Loans prior to consolidating that met the criteria under this subsection.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H823DAC4AF19D4F828CC86DD19A6F6F40"><enum>235.</enum><header>Loan forgiveness for teachers</header><subsection id="H8D43C68118D54957AD39BDA055524907"><enum>(a)</enum><header>In general</header><text>The Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>) is further amended—</text><paragraph id="H87FCAD75F8504CA3AD3D1799570FFB4C"><enum>(1)</enum><text>in section 428J(g)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-10">20 U.S.C. 1078–10(g)(2)</external-xref>)—</text><subparagraph id="H63F43273B6B94A13AC1E38D5497237A4"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph><subparagraph id="HB844047DC1C04B92AAC29A8B9ECACF5F"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph><subparagraph id="H95ECE4EECC5D45F2B4AA7E206EFF43E0"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B); and</text></subparagraph></paragraph><paragraph id="H511899010E164BE0B51E7B051883304A"><enum>(2)</enum><text>in section 460(g)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087j">20 U.S.C. 1087j(g)(2)</external-xref>)—</text><subparagraph id="H566C4CE12A3841A8A842F924748C450F"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph><subparagraph id="HF3EE9ED4CB8B4FEEB860013E444642F1"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph><subparagraph id="H46FEEA62D0BC45D5B712561DAC3ABDEE"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></subparagraph></paragraph></subsection><subsection id="HB0D702AC084948538AC6F94294361141"><enum>(b)</enum><header>Conforming amendment</header><text>Section 455(m)(7) of the Higher Education Act of 1965, as redesignated by section 231(b) of this Act, is amended by striking <quote>section 428J, 428K, 428L, or 460</quote> and inserting <quote>section 428K or 428L</quote>.</text></subsection></section><section id="H5F557456941E4BA7839B7583B3CC0B0C" section-type="subsequent-section"><enum>236.</enum><header>GAO study on data matching agreements for public service loan forgiveness</header><subsection id="H4345B90AA7B241A69B5798C7ED907DF1" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Comptroller General of the United States shall conduct a study on the feasibility of establishing data matching agreements for public service loan forgiveness under 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(m)</external-xref>) that would allow a borrower to forego requesting certification of employment from the appropriate contact for the public service job of the borrower. The study shall include an examination of the Department of Education and the Department of Defense’s progress towards automatic data matching for military and veteran borrowers.</text></subsection><subsection id="H43266A5C7D744ECA8D66441F238397E4"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit a report to the Committee on Education and Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate containing the findings and recommendations resulting from the study required under subsection (a).</text></subsection><subsection id="H8EDAAE89006D4FAE9743651436FE0D51" commented="no"><enum>(c)</enum><header>Cooperation</header><text display-inline="yes-display-inline">The head of each relevant Federal agency, including the Secretary of Education, Secretary of Defense, and Commissioner of Internal Revenue, shall cooperate with the Comptroller General to facilitate the completion of the study required under subsection (a).</text></subsection></section></part><part id="H3A7313BAE8E54E9086789C4D0934C385"><enum>E</enum><header>Support for Borrowers in Default</header><section id="H553C8E95D4FE455EBA7E210B63AD23F8" section-type="subsequent-section"><enum>241.</enum><header>Removal of record of default</header><text display-inline="no-display-inline">Part G of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H33123E59BA1B4D5699A36EE38E449BE1" style="OLC"><section id="H4C872C0267504F2C831609D90BE00981"><enum>494C.</enum><header>Removal of record of default</header><text display-inline="no-display-inline">Upon repaying in full the amount due on a defaulted loan made, insured, or guaranteed under this title, the Secretary, guaranty agency, or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency, or holder, as applicable, reported the default of the loan, to remove any adverse item of information relating to such loan from the borrower's credit history.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HA83C56AFADAD46F4A68322FEF8D7037D"><enum>242.</enum><header>Removal of record of default from credit history upon loan consolidation</header><text display-inline="no-display-inline">Section 455(g) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(g)</external-xref>) is amended by adding at the end the following:</text><quoted-block id="H141E38C1E798425085E6D8988D83E76D" style="OLC"><paragraph id="HEAA492EDB7C74E278B824ACA2D11A066"><enum>(3)</enum><header>Consumer reporting agencies</header><text display-inline="yes-display-inline">Upon obtaining a Federal Direct Consolidation Loan that discharges the liability on a defaulted loan made, insured, or guaranteed under this title, the Secretary, guaranty agency, or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove any adverse item of information relating to such loan from the borrower’s credit history.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HB08C7C195A3F4BA9A8786509C3C207F5"><enum>243.</enum><header>Default reduction program</header><text display-inline="no-display-inline">Section 428F of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="HB91090B352194E56B89495D7914B78F7" display-inline="no-display-inline"><subsection id="HDDBA198C4E4D4E4286FF392E98954632"><enum>(d)</enum><header>Default reduction program</header><text display-inline="yes-display-inline">Notwithstanding subsection (a), beginning on July 1, 2026, with respect to a defaulted loan made, insured, or guaranteed under this part or part D, the following shall apply:</text><paragraph id="HFAF4EA6F7411443FBAD7607441086655"><enum>(1)</enum><header>Rehabilitation authorized</header><subparagraph id="HE7D409C042ED44DF95374C6B50318D8B"><enum>(A)</enum><header>In general</header><text>Such a defaulted loan (other than a loan described in subparagraph (B)) shall be rehabilitated if the borrower makes 9 voluntary, reasonable and affordable monthly payments within 20 days of the due date during 10 consecutive months. The Secretary determines the amount of a borrower’s reasonable and affordable payment on the basis of a borrower’s total financial circumstances.</text></subparagraph><subparagraph id="HE97E5023645045919BA7CFF9F4D6DAC4"><enum>(B)</enum><header>Ineligible loans</header><text>A defaulted loan may not be eligible for rehabilitation under this subsection if—</text><clause id="H076DCFA241DF4280BFFB8A11522D42F6" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>a judgment has been obtained on such loan; or</text></clause><clause id="H39E1727360D04FBB9706893F8365F0D1" commented="no"><enum>(ii)</enum><text>such loan has been obtained by fraud for which the borrower has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining financial assistance under this title.</text></clause></subparagraph><subparagraph id="H6C8E444D328A4084BE91EEB9CAB1BDAA"><enum>(C)</enum><header>Limitation on borrower</header><text>A borrower may obtain the benefits available under this subsection with respect to rehabilitating a loan not more than two times per loan.</text></subparagraph><subparagraph id="H76F83AF9531B4818B601DDBC5028593A"><enum>(D)</enum><header>Limitation on the Secretary</header><text>During the rehabilitation period described in this paragraph, the Secretary shall limit contact with the borrower on the loan being rehabilitated to collection activities that are required by law or regulation and to communications that support the rehabilitation.</text></subparagraph></paragraph><paragraph id="H33C35867EBD345308428B237CF8B98A0"><enum>(2)</enum><header>Determination of reasonable and affordable payment</header><subparagraph id="H1090DB2EBCFC483EB5FD8EC0063933D3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraphs (A) through (H), the Secretary shall consider the borrower’s reasonable and affordable payment amount to be an amount equal to the minimum payment required under the Income-Driven Repayment Plan, except that if such amount is less than $5, the borrower’s monthly payment shall be $5.</text></subparagraph><subparagraph id="HCECCE87379E6407795D890691F986042"><enum>(B)</enum><header>Documentation requirement</header><text>The Secretary may calculate the payment amount based on information provided orally by the borrower or the borrower’s representative and provide the borrower with a rehabilitation agreement using that amount. The Secretary requires the borrower to provide documentation to confirm the borrower’s adjusted gross income and family size. If the borrower does not provide the Secretary with any documentation requested by the Secretary to calculate or confirm the reasonable and affordable payment amount within a reasonable time deadline set by the Secretary, the rehabilitation agreement provided is null and void. A borrower may request that the monthly payment amount be adjusted due to a change in the borrower’s total financial circumstances only upon providing the documentation specified in paragraph (3).</text></subparagraph><subparagraph id="H033D8D30952A4328BAB5E7ABA0296FD3"><enum>(C)</enum><header>Prohibitions</header><text>For purposes of subparagraph (A), a reasonable and affordable payment amount shall not—</text><clause id="H59872CC099FF410BBC4EEFCCFC07297C" commented="no"><enum>(i)</enum><text>be a required minimum loan payment amount if the Secretary determines that a smaller amount is reasonable and affordable;</text></clause><clause id="HCE864AC2375C439BA602CEBEE1C37339" commented="no"><enum>(ii)</enum><text>a percentage of the borrower’s total loan balance; or</text></clause><clause id="HCD338590B2FA46588F379F5616BFD3E2" commented="no"><enum>(iii)</enum><text>based on other criteria unrelated to the borrower’s total financial circumstances.</text></clause></subparagraph><subparagraph id="HB8EFA67BA4DD4010B2C972FFAC239ED3"><enum>(D)</enum><header>Rehabilitation payment agreement</header><clause id="H986552BC8AEA44408804C52F1B525E99"><enum>(i)</enum><header>In general</header><text>Not later than 15 business days of the Secretary’s determination of the borrower’s loan rehabilitation payment amount, the Secretary shall provide the borrower with a written rehabilitation agreement which shall include—</text><subclause id="H0DE092BD436C48FDAA9E1ACF87157E04"><enum>(I)</enum><text>the borrower’s reasonable and affordable payment amount, a prominent statement that the borrower may object orally or in writing to the reasonable and affordable payment amount with the method and timeframe for raising such an objection;</text></subclause><subclause id="HCE0BE1D0622B4C98BE58226A004C0031"><enum>(II)</enum><text>a statement that the rehabilitation is null and void if the borrower does not provide the documentation required to calculate the reasonable and affordable payment amount;</text></subclause><subclause id="HC7DC05D7646B4A7BA0C146E6CE2A7FEA"><enum>(III)</enum><text>an explanation of any other terms and conditions applicable to the required series of payments that must be made; and</text></subclause><subclause id="H495DA0C0C7E8466385DDF1F5363B7439"><enum>(IV)</enum><text display-inline="yes-display-inline">information on the effects of having the loans rehabilitated.</text></subclause></clause><clause id="H3EE0D46597314B0BA5BE4AF75C48CCFC"><enum>(ii)</enum><header>Acceptance by the borrower</header><text>To accept the agreement, the borrower shall sign and return the agreement or accept the agreement electronically under a process provided by the Secretary.</text></clause><clause id="HEE88302049B346A2A4B7CB59A6A8CBC2"><enum>(iii)</enum><header>Prohibition</header><text>The Secretary may not impose any other conditions unrelated to the amount or timing of the rehabilitation payments in the rehabilitation agreement.</text></clause></subparagraph><subparagraph id="H056EC0496F3640C682C1F3F11E8DDADE"><enum>(E)</enum><header>Statement confirming reasonable and affordable payment amount</header><text>The Secretary shall provide the borrower with a written statement that—</text><clause id="HBFD784A1905F48F6B4AFD76BA1960B34"><enum>(i)</enum><text>confirms the borrower’s reasonable and affordable payment amount, as determined by the Secretary;</text></clause><clause id="H46CF94F6D5914FAABAC44CE698EC0F97"><enum>(ii)</enum><text>explains any other terms and conditions applicable to the required series of payments that shall be made before the borrower’s account can be rehabilitated;</text></clause><clause id="HF9FF2A8937A44BF9A22C2C69EDAAAA4B"><enum>(iii)</enum><text>informs the borrower that the borrower may object to the terms and conditions of the rehabilitation agreement; and</text></clause><clause id="H5C3B101D547847169F045F90C8050EDC"><enum>(iv)</enum><text>explains the method and timeframe for objecting to the terms and conditions of the rehabilitation agreement.</text></clause></subparagraph><subparagraph id="HA008CBF30ACC453BAA3D6B7A87346621"><enum>(F)</enum><header>Objection by borrower</header><text>If the borrower objects to the monthly payment amount described in the statement under subparagraph (E), the Secretary shall recalculate the payment based solely on information provided on a form approved by the Secretary and, if requested, supporting documentation from the borrower and other sources, and shall consider each of the following:</text><clause id="HF65F59E7F03B473EA84362677B1384B3" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>The borrower’s, and if applicable, the spouse’s current disposable income, including public assistance payments, and other income received by the borrower and the spouse, such as welfare benefits, Social Security benefits, Supplemental Security Income, and workers’ compensation. Spousal income is not considered if the spouse does not contribute to the borrower’s household income.</text></clause><clause id="H644FE1D54518491D966BA398C397C018" commented="no"><enum>(ii)</enum><text>Family size.</text></clause><clause id="H07EAE2BAB12B444DBA6B2AE3D155D17D" commented="no"><enum>(iii)</enum><text>Reasonable and necessary expenses, which shall include—</text><subclause id="HD4701ABE5C0C4E9AB6BED82B7B6FDD99" commented="no"><enum>(I)</enum><text>Food.</text></subclause><subclause id="H8255C56D06D74F39B9EADFFD2009E76B" commented="no"><enum>(II)</enum><text>Housing.</text></subclause><subclause id="HDF998511560348618B75832459F53C28" commented="no"><enum>(III)</enum><text>Utilities.</text></subclause><subclause id="HDA149F8147AF4EFAB857F7893F38F961" commented="no"><enum>(IV)</enum><text>Basic communication expenses.</text></subclause><subclause id="H1591DB30A09E4EB38D6E1483F3153EDE" commented="no"><enum>(V)</enum><text>Necessary medical and dental costs.</text></subclause><subclause id="H684852777DB8493781F05FC9F2C32508" commented="no"><enum>(VI)</enum><text>Necessary insurance costs.</text></subclause><subclause id="HE43ED79BBE194213B28E483C5437F11F" commented="no"><enum>(VII)</enum><text>Transportation costs.</text></subclause><subclause id="H07F8D73F34ED46C08B16E7DB612CAC31" commented="no"><enum>(VIII)</enum><text>Dependent care and other work-related expenses.</text></subclause><subclause id="H4C64BEEF152B4F1DB656D3D62EA1C4CA" commented="no"><enum>(IX)</enum><text>Legally required child and spousal support.</text></subclause><subclause id="HA78C3A911A3B41958FCB5680CA169B74" commented="no"><enum>(X)</enum><text>Other student loan payments for loans made, insured, or guaranteed under this title, or any other Federal law.</text></subclause><subclause id="H34E0070092DF4A17BFEA856DD0C49DC7" commented="no"><enum>(XI)</enum><text>Other expenses approved by the Secretary.</text></subclause></clause></subparagraph><subparagraph id="HC44B0FAA0A9344C386C7F68AED65C747"><enum>(G)</enum><header>New rehabilitation agreement</header><text>The Secretary shall provide the borrower with a new written rehabilitation agreement confirming the borrower’s recalculated reasonable and affordable payment amount. To accept the agreement, the borrower must sign and return the agreement or accept the agreement electronically under a process provided by the Secretary.</text></subparagraph><subparagraph id="H9315468A2CB4479BA2D3F797F07BDA30"><enum>(H)</enum><header>Change in circumstances</header><text display-inline="yes-display-inline">A borrower may request that the monthly payment amount be adjusted due to a change in the borrower’s total financial circumstances only upon providing the documentation specified in subparagraph (F).</text></subparagraph></paragraph><paragraph id="HAF797984CE2B4AC2A002AA4BAED2DEF4"><enum>(3)</enum><header>Administrative wage garnishment</header><subparagraph id="H577948505D8F495AA574CC6F08FC1B4C"><enum>(A)</enum><header>In general</header><text>If a borrower’s loan is being collected by administrative wage garnishment while the borrower is also making monthly payments on the same loan under a loan rehabilitation agreement, the Secretary shall continue collecting the loan by administrative wage garnishment until the borrower makes five qualifying monthly payments under the rehabilitation agreement, unless the Secretary is otherwise precluded from doing so.</text></subparagraph><subparagraph id="H6B06F6EB832B4A6ABAEEA6FA8E02C665"><enum>(B)</enum><header>Suspension</header><text>After the borrower makes the fifth qualifying monthly payment, the Secretary, unless otherwise directed by the borrower, suspends the garnishment order issued to the borrower’s employer.</text></subparagraph><subparagraph id="HB5D1DC18504F45A2B476563C58735AA2"><enum>(C)</enum><header>Limitation</header><text>A borrower may only obtain the benefit of a suspension of administrative wage garnishment while also attempting to rehabilitate a defaulted loan once.</text></subparagraph></paragraph><paragraph id="HCE8D7297E1B744C196FC6B6DAF9529EB"><enum>(4)</enum><header>Instruction to consumer reporting agency</header><text display-inline="yes-display-inline">If a defaulted loan is rehabilitated, the Secretary shall instruct any consumer reporting agency to which the default was reported to remove the default, and any adverse item of information relating to such loan, from the borrower’s credit history.</text></paragraph></subsection><subsection id="HA598E2204F974AF4BF811C5658F10C55"><enum>(e)</enum><header>Removal from default</header><text display-inline="yes-display-inline">Beginning on July 1, 2026, the Secretary shall not consider a borrower in default on a loan if—</text><paragraph id="H73174DB13B3F4CDE85D29CD568FD5225"><enum>(1)</enum><text>the borrower provides information necessary to calculate a payment under an income-contingent or income-based repayment plan under this part or;</text></paragraph><paragraph id="H906C7388D2D746858BAEE5798CF68808"><enum>(2)</enum><text>the payment calculated pursuant to such a repayment plan is $0; and</text></paragraph><paragraph id="HE9BB984232234C5FBD37A6C30A4DB90F"><enum>(3)</enum><text>the income information used to calculate such payment covers the date on which the loan defaulted.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></part><enum>III</enum><header>Interest Capitalization</header><section id="H508A9D6ADD364898B71FD1909F9346D8"><enum>301.</enum><header>Elimination of interest capitalization</header><subsection id="HC75E10A3D5B34650A97DADB0BF986DBD" display-inline="no-display-inline"><enum>(a)</enum><header>Federal PLUS loans</header><text display-inline="yes-display-inline">Section 428B(d)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-2">20 U.S.C. 1078–2(d)(2)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC927AA35BE3F4D8EA15729880BB0DE20"><paragraph id="H2E0F6794750C45A782B80DFA3BA157EC"><enum>(2)</enum><header>No capitalization of interest</header><text display-inline="yes-display-inline">Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall be paid by the borrower and shall not be capitalized.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6FBF0EA13AD44550965C246855EF8BDF" commented="no"><enum>(b)</enum><header>Federal consolidation loans deferrals</header><text display-inline="yes-display-inline">Section 428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3(b)(4)(C)(III)</external-xref>) is amended by striking <quote>or capitalized,</quote>.</text></subsection><subsection id="HD420A0E464094DAEBECEFFC3D4BA140B" commented="no"><enum>(c)</enum><header>Default reduction program</header><text display-inline="yes-display-inline">Section 428F(a)(1)(E) of such Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)(1)(E)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H68375AC36B5348E99A616AF92BD50FED"><subparagraph id="H06E3E9FBF658402AAE0124BF84FF614B" commented="no"><enum>(E)</enum><header>Duties upon assignment</header><text display-inline="yes-display-inline">With respect to a loan assigned under subparagraph (A)(ii)—</text><clause id="HE78551E02EE3461FB72385311BDAE190" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>the guaranty agency shall add to the principal and interest outstanding at the time of the assignment of such loan an amount equal to the amount described in subparagraph (D)(i)(II)(aa);</text></clause><clause id="H34C052D9B3CA429D8F10FEA5116760DA" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the Secretary shall pay the guaranty agency, for deposit in the agency’s Operating Fund established pursuant to section 422B, an amount equal to the amount added to the principal and interest outstanding at the time of the assignment in accordance with <internal-xref idref="HE78551E02EE3461FB72385311BDAE190" legis-path="(E)(i)">clause (i)</internal-xref>;</text></clause><clause id="H19968D78B0B3440090DF750EAF6BA9E0" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">for a loan assigned on or after the date of enactment of the LOAN Act, the interest outstanding at the time of the assignment of such loan, and any interest accruing after such time, shall not be capitalized; and</text></clause><clause id="HC8A69BE8FC6840F28A11E71B21E7BDEC" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">beginning on the date of enactment of LOAN Act, interest shall only accrue on the percentage of such a loan that is equal to—</text><subclause id="H1BA3E14808C242DF8A8FE4C938457CB9" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text>the amount of the outstanding principal on the original loan on the date it was assigned; divided by</text></subclause><subclause id="HB20F7FC776F146B2840371DF6BD4C1F7" commented="no"><enum>(II)</enum><text>the total amount of such assigned loan, including interest outstanding at the time of the assignment of such loan and the amount added by the guaranty agency in accordance with <internal-xref idref="HE78551E02EE3461FB72385311BDAE190" legis-path="(E)(i)">clause (i)</internal-xref>, on the date such loan was assigned.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H1D5F9D3FA6EF461FAE415B4D0D23C193" display-inline="no-display-inline"><enum>(d)</enum><header>Loan limits for Unsubsidized Stafford Loans</header><text display-inline="yes-display-inline">Section 428H(d)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-8">20 U.S.C. 1078–8(d)(5)</external-xref>) is amended by inserting <quote>before the date of enactment of the LOAN Act</quote> after <quote>Interest capitalized</quote>.</text></subsection><subsection id="HC6D2BD964A744801B0F4D1924E226A0A" commented="no"><enum>(e)</enum><header>Unsubsidized Stafford loans for middle income borrowers</header><text display-inline="yes-display-inline">Section 428H(e)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-8">20 U.S.C. 1078–8(e)(2)</external-xref>) is amended—</text><paragraph id="HDDDBA524A92145109E510048E9712EC1" commented="no"><enum>(1)</enum><text>in the header, by striking <quote><header-in-text level="paragraph" style="OLC">Capitalization</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">No capitalization</header-in-text></quote>;</text></paragraph><paragraph id="H483A568C13904EC6B9140341C59114C2"><enum>(2)</enum><text>in subparagraph (A), in the matter before clause (i), by striking <quote>, if agreed upon by the borrower and the lender</quote> and all that follows through clause (ii)(IV) and inserting <quote>be paid by the borrower and shall not be capitalized.</quote>;</text></paragraph><paragraph id="H52A58821A933416DA45CE3FD0395A328" commented="no"><enum>(3)</enum><text>by striking subparagraph (B); and</text></paragraph><paragraph id="HEDA913444842407C83C07AB333DF6D48" commented="no"><enum>(4)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></paragraph></subsection><subsection id="H7C35DB6A8248420591409C6343562D7C"><enum>(f)</enum><header>Income contingent repayment</header><text display-inline="yes-display-inline">Section 455(e)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)(5)</external-xref>) is amended by striking the last sentence and inserting <quote>No interest may be capitalized on such loan on or after the date of the enactment of the LOAN Act, and the Secretary shall promulgate regulations with respect to the treatment of accrued interest that is not capitalized</quote>.</text></subsection><subsection id="H8C1A2A2105C949CDB1C6A1AF993649F3" commented="no" display-inline="no-display-inline"><enum>(g)</enum><header>Deferment and forbearance</header><paragraph id="H712BCC7B2F6F4483B0CE4F4DEFF012A9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 455(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(f)</external-xref>) is amended—</text><subparagraph id="H7FB835FC425D4EB7B684B6209B95C566" commented="no"><enum>(A)</enum><text>in the subsection heading, by inserting at the end the following: <quote><header-in-text level="subsection" style="OLC">and forbearance</header-in-text></quote>;</text></subparagraph><subparagraph id="H8895F927582F496B96E8757061F4393B" commented="no"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>capitalized or</quote>; and</text></subparagraph><subparagraph id="HF06B80788F1641D9A6FFAE93A50F47EC" commented="no"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HFBFEA74C7599451390EBDA8C7F5FB406"><paragraph id="H0E81E224040E47D4A7ADA27D50924462" commented="no"><enum>(6)</enum><header>Forbearance</header><text display-inline="yes-display-inline">At the expiration of a period of forbearance, interest shall not be capitalized on any loans made under this part. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HB0E2C246D2DC475892CC136CDB6C38A1"><enum>(2)</enum><header>Application of amendment</header><text>The amendments made by paragraph (1) shall apply to any deferment or forbearance period in effect on the date of enactment of this Act, or any deferment or forbearance period beginning on or after such date of enactment.</text></paragraph></subsection><subsection id="H280B8C9F98824C9DBA7EF3F58D3B0EB9"><enum>(h)</enum><header>Income-Based Repayment program</header><text display-inline="yes-display-inline">Section 493C(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)(3)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H261B3CCF63DB4033B787428EBB1CE27F"><paragraph id="HA55EE5B6E28E409A9A8C08751600AF3B"><enum>(3)</enum><text display-inline="yes-display-inline">on subsidized loans, any interest due and not paid under paragraph (2) shall be paid by the Secretary for a period of not more than 3 years after the date of the borrower’s election under paragraph (1), except that such period shall not include any period during which the borrower is in deferment due to an economic hardship described in section 435(o);</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HB635664A5960465A8F36A65CE7BCED92" commented="no"><enum>(i)</enum><header>Notes and insurance certificates in Combined Payment plans</header><text display-inline="yes-display-inline">Section 485A(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092a">20 U.S.C. 1092a(f)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H98FD694815D74B0DAB4C85AB29BFB925"><paragraph id="H06C0A3F4360C48B8A3BEBE93A3385740" commented="no"><enum>(3)</enum><header>Treatment of interest</header><text display-inline="yes-display-inline">Not withstanding paragraphs (1) and (2), beginning on the date of enactment of the <short-title></short-title>LOAN Act, interest on a loan reissued under subsection (e) shall not be capitalized, and interest shall only accrue on the percentage of such reissued loan that is equal to—</text><subparagraph id="H8F70A3DC83C44E5692F952CA8E89D535" commented="no"><enum>(A)</enum><text>the amount of the outstanding principal on the original loan on the date it was reissued; divided by</text></subparagraph><subparagraph id="H392047ABA7864480BE041602E91DD2C9" commented="no"><enum>(B)</enum><text>the total amount of such reissued loan on the date such loan was reissued.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H8A10DDE177FB413EA23747F1529A54E7"><enum>302.</enum><header>Elimination of disclosure requirements relating to capitalization</header><subsection id="HDAE44397E9B0441983A57F07A0EADA5C"><enum>(a)</enum><header>Insurance Program Agreements To Qualify Loans for Interest Subsidies</header><text display-inline="yes-display-inline">Section 428(b)(1)(Y) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)(1)(Y)</external-xref>) is amended—</text><paragraph id="H00424BCB02F742E3BC9415AB3AEEF748"><enum>(1)</enum><text>in clause (i)(IV), by inserting <quote>and</quote> after the semicolon;</text></paragraph><paragraph id="HED9253EAC2004987BA567D83649C0D6A"><enum>(2)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a period; and</text></paragraph><paragraph id="HD487E925F4374B299C5A0D2BFB7A7474"><enum>(3)</enum><text>by striking clause (iii).</text></paragraph></subsection><subsection id="H6FE7FD634D7A456B918BDBA124ADD1FA"><enum>(b)</enum><header>Forbearance</header><text display-inline="yes-display-inline">Section 428(c)(3)(C) of such Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(c)(3)(C)</external-xref>) is amended—</text><paragraph id="HC0140E4369AE488A8E2EFCD64807A0CF"><enum>(1)</enum><text>in clause (ii), by inserting <quote>and</quote> after the semicolon; and</text></paragraph><paragraph id="H6FB11EBD8A44439FB4564FD47EFC9D49"><enum>(2)</enum><text>by striking clauses (iii) and (iv) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H50814EF10F5143DF83DF01EDB1EF7AA1"><clause id="H94CD3EC5D28C4B288D57560588683CA4" commented="no"><enum>(iii)</enum><text>the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of—</text><subclause id="H685F6B91EF1C4CA6A208577F9CB0297B" commented="no"><enum>(I)</enum><text>the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower by the lender;</text></subclause><subclause id="H816C179D52C6459D80F2D6D29790475C" commented="no"><enum>(II)</enum><text>the fact that interest will accrue on the loan for the period of forbearance;</text></subclause><subclause id="H11356976AF1C44D180EF21035FE22E26" commented="no"><enum>(III)</enum><text>the responsibility of the borrower to pay the interest that has accrued; and</text></subclause><subclause id="H584E14E65E404A32B6342A23AA1F6710" commented="no"><enum>(IV)</enum><text>the borrower’s option to discontinue the forbearance at any time; and</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H57B643A3E0184FB588838DB361882D25"><enum>(c)</enum><header>Required Disclosure Before Disbursement</header><text display-inline="yes-display-inline">Section 433(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(a)</external-xref>) is amended—</text><paragraph id="HC7D711BB0EE343C58348B1354B7084BE"><enum>(1)</enum><text>by amending paragraph (6) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H99DCBDD9CCEC45A1A534376F3810DF7D"><paragraph id="HEFD6476D8CB243F1A5B22B23CFF87255" commented="no"><enum>(6)</enum><text display-inline="yes-display-inline">for loans made under section 428H or to a student borrower under section 428B, an explanation that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education;</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HF4917EFD39AA478DA1FBE767D1CBB34B"><enum>(2)</enum><text>in paragraph (7)—</text><subparagraph id="HD2A3E5DF4D1E423FA90E540B5E4BB2BE"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon;</text></subparagraph><subparagraph id="HF04FBBC78DC64AD89C70161F9DD06861"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph><subparagraph id="HCC402BE7C99D4B13BF13844EF3D6E864"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></subparagraph></paragraph></subsection><subsection id="HC39292B4BC7143AD877F7E13F7FB8F21" display-inline="no-display-inline"><enum>(d)</enum><header>Required disclosure before repayment</header><text display-inline="yes-display-inline">Section 433(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(b)(3)</external-xref>) is amended by striking <quote>(including, if applicable, the estimated amount of interest to be capitalized)</quote>.</text></subsection><subsection id="H155391021A3D4DAD904A5E05545241DA"><enum>(e)</enum><header>Special Disclosure Rules on PLUS Loans and Unsubsidized Loans</header><text display-inline="yes-display-inline">Section 433(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(d)</external-xref>) is amended—</text><paragraph id="H1B106481AE6A46E1A09283ED3059AA10"><enum>(1)</enum><text>in the matter preceding paragraph (1)—</text><subparagraph id="H8FE27824FAC84F999C4A7943A33BD02B"><enum>(A)</enum><text>by striking <quote>resulting from capitalization of interest</quote>; and</text></subparagraph><subparagraph id="HA2C89CD174E04E26A1AD4477D23C7BF6"><enum>(B)</enum><text>by striking <quote>borrower of—</quote> and inserting <quote>borrower of paying the interest as the interest accrues.</quote>; and</text></subparagraph></paragraph><paragraph id="H05865502C6F641AA9C48F58565565C37"><enum>(2)</enum><text>by striking paragraphs (1) and (2).</text></paragraph></subsection><subsection id="H907BA062C46942A7983D2A5ED675E66F" display-inline="no-display-inline"><enum>(f)</enum><header>Disclosure Required prior to Perkins repayment</header><text>Section 463A(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087cc-1">20 U.S.C. 1087cc–1(b)(3)</external-xref>) is amended by striking <quote>(including, if applicable, the estimated amount of interest to be capitalized)</quote>.</text></subsection><subsection id="H56BCB8EB17044997AEE10B7915172FBD"><enum>(g)</enum><header>Departmental Publication of Descriptions of Assistance Programs</header><text display-inline="yes-display-inline">Section 485(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(d)(1)</external-xref>) is amended by striking <quote>, including the increase in debt that results from capitalization of interest</quote>.</text></subsection><subsection id="HBE7A994DC960434BAAF912BA84EA79B2"><enum>(h)</enum><header>Information To be provided during Entrance Counseling for Borrowers</header><text display-inline="yes-display-inline">Section 485(l)(2)(C) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(l)(2)</external-xref>) is amended by striking <quote>and is capitalized</quote>.</text></subsection></section><enum>IV</enum><header>Interest Rates</header><section id="H23D1AB11CDC348FDA564D62E58C44669" section-type="subsequent-section" commented="no"><enum>401.</enum><header>Interest rate provisions for new Federal student loans on or after July 1, 2026</header><text display-inline="no-display-inline">Section 455(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(b)</external-xref>) is amended—</text><paragraph id="H4C7B5B7336E94604AC97473991B42B6A" commented="no"><enum>(1)</enum><text>in paragraph (8)—</text><subparagraph id="H70B89ECD900643B88D2F891061C4E822" commented="no"><enum>(A)</enum><text>in the paragraph heading, by inserting <quote><header-in-text level="paragraph" style="OLC">, and before July 1, 2026</header-in-text></quote> before the period; and</text></subparagraph><subparagraph id="HE79EFB33CDE04221828F4BE6301ECB20" commented="no"><enum>(B)</enum><text>by inserting <quote>and before July 1, 2026,</quote> after <quote>July 1, 2013,</quote> each place it appears;</text></subparagraph></paragraph><paragraph id="H6D139BB2CDE746868A2D2EAF5BB24028" commented="no"><enum>(2)</enum><text>by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively; and</text></paragraph><paragraph id="H37DE07C250C643F0A3A674A67051FB75" commented="no"><enum>(3)</enum><text>by inserting after paragraph (8) the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H483EF99413434B4A8C0B044FA7363F66"><paragraph id="H90A3E7336FD44A0480A38268B1014EA8" commented="no"><enum>(9)</enum><header>Interest rate provisions for new loans on or after July 1, 2026</header><subparagraph id="H6C86AE1EE3A94C2686A63CC99D388457" commented="no"><enum>(A)</enum><header>Rate for FDSL, FDUSL, and PLUS loans</header><text>Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2026, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text><clause id="H7BAA6EAF571E49DCB2693A66EE439B0E" commented="no"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1; or</text></clause><clause id="H95A8B7A497AF4525906C47F6C8BA2C3A" commented="no"><enum>(ii)</enum><text>5.0 percent.</text></clause></subparagraph><subparagraph id="H4DACD5305845450A85908A1E4477DFDB" commented="no"><enum>(B)</enum><header>Consolidation loans</header><text display-inline="yes-display-inline">Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation Loan for which the application is received on or after July 1, 2026, shall—</text><clause id="H18C382D7085C46759F6520325734CF23" commented="no"><enum>(i)</enum><text>bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of—</text><subclause id="HAF5FB12E4C734BE98D6AD44E652DCE6C" commented="no"><enum>(I)</enum><text>the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or</text></subclause><subclause id="H144D5BF3BAFE4B6C80ED869312172B67" commented="no"><enum>(II)</enum><text>5.0 percent; and</text></subclause></clause><clause id="H2F90C940233E49F8A110B0BCF5F0DF87" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">only accrue interest on the percentage of such Federal Direct Consolidation Loan that is equal to—</text><subclause id="H1D4BE219B8FB468BAE34B48CA9948A20" commented="no"><enum>(I)</enum><text>the amount of the sum of the unpaid principal on the loans consolidated; divided by</text></subclause><subclause id="HD2392DE5762342E79385E2BADE4E7CE0" commented="no"><enum>(II)</enum><text>the total amount of such Federal Direct Consolidation Loan.</text></subclause></clause></subparagraph><subparagraph id="H7A2EE731D7F0404295319382EDCD09BE" commented="no"><enum>(C)</enum><header>Consultation</header><text>The Secretary shall determine the applicable rate of interest under this paragraph after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.</text></subparagraph><subparagraph id="HFB3E2541F0EE4D0891841A114CE983FF" commented="no"><enum>(D)</enum><header>Fixed rate</header><text>The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan shall be fixed for the period of the loan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H59FC306FAF4F40FC822AEB825E6BC068"><enum>402.</enum><header>Refinancing FFEL and Federal Direct Loans</header><text display-inline="no-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="H3A4818C088974F96B89115E99B0CA3B7"><section id="HDD68EF1EF02446F9BD6B606058590586"><enum>460A.</enum><header>Refinancing FFEL and Federal Direct Loans</header><subsection id="HB7FFB8CF4F84496B8FF0D42B63756037"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish a program under which the Secretary, upon the receipt of an application from a qualified borrower, makes a loan under this part, in accordance with the provisions of this section, in order to permit the borrower to obtain the interest rate provided under subsection (c).</text></subsection><subsection id="H2B840E985EBB4F53A8C9F88714879D25"><enum>(b)</enum><header>Refinancing Direct loans</header><paragraph id="H477E646DF177413AAC6109D4EB6D218E"><enum>(1)</enum><header>Federal direct loans</header><text>Upon application of a qualified borrower, the Secretary shall repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan of the qualified borrower, for which the first disbursement was made, or the application for the consolidation loan was received, before July 1, 2026, with the proceeds of a refinanced Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan, respectively, issued to the borrower in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the original loan.</text></paragraph><paragraph id="H3B30B50808804519949372130B2459C6"><enum>(2)</enum><header>Refinancing FFEL program loans as refinanced Federal Direct Loans</header><text>Upon application of a qualified borrower for any loan that was made, insured, or guaranteed under part B and for which the first disbursement was made, or the application for the consolidation loan was received, before July 1, 2010, the Secretary shall make a loan under this part, in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the original loan to the borrower in accordance with the following:</text><subparagraph id="H62B6C5701AEF4A0F865C3F22F2484618"><enum>(A)</enum><text>The Secretary shall pay the proceeds of such loan to the eligible lender of the loan made, insured, or guaranteed under part B, in order to discharge the borrower from any remaining obligation to the lender with respect to the original loan.</text></subparagraph><subparagraph id="H0DAA586DDBCF4506B1B2094749D61CD8"><enum>(B)</enum><text>A loan made under this section that was originally—</text><clause id="HB73F95CC0DA8452D9EB9FEBC38A01542"><enum>(i)</enum><text>a loan originally made, insured, or guaranteed under section 428 shall be a Federal Direct Stafford Loan;</text></clause><clause id="H660CA0A5754A4F9C85ED56EFA2F6C63F"><enum>(ii)</enum><text>a loan originally made, insured, or guaranteed under section 428B shall be a Federal Direct PLUS Loan;</text></clause><clause id="H5A84DF1502114AB1A97801469E87408C"><enum>(iii)</enum><text>a loan originally made, insured, or guaranteed under section 428H shall be a Federal Direct Unsubsidized Stafford Loan; and</text></clause><clause id="H38DD21498E5744DD8ED77AE21C395608"><enum>(iv)</enum><text>a loan originally made, insured, or guaranteed under section 428C shall be a Federal Direct Consolidation Loan.</text></clause></subparagraph><subparagraph id="H2761A0DC76AB4859ABDCE6F95295B474"><enum>(C)</enum><text>The interest rate for each loan made by the Secretary under this paragraph shall be the rate provided under subsection (c).</text></subparagraph></paragraph></subsection><subsection id="H163ECB8867C14784A5EA105712B20FE9" commented="no"><enum>(c)</enum><header>Interest rates</header><paragraph id="H1F4DD113B10C4DB2B59BD0F996F346C5" commented="no"><enum>(1)</enum><header>In general</header><text>The interest rate for the refinanced Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans, shall be a rate equal to—</text><subparagraph id="H9D71DCCADE874387B1110F7DD78EA31E" commented="no"><enum>(A)</enum><text>in any case where the original loan was a loan under section 428, 428B, 428H, a Federal Direct Stafford loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan, a rate equal to the interest rate determined under section 455(b)(9)(A) for the date on which the refinanced loan is made; and</text></subparagraph><subparagraph id="HFFA4CEA1B8C24FCBA3A7A4C4B94CB828" commented="no"><enum>(B)</enum><text>in any case where the original loan was a loan under section 428C or a Federal Direct Consolidation Loan, a rate calculated in accordance with <internal-xref idref="H31A09F4BF84B4732A28186E741A253D0" legis-path="460A.(c)(2)">paragraph (2)</internal-xref>.</text></subparagraph></paragraph><paragraph id="H31A09F4BF84B4732A28186E741A253D0" commented="no"><enum>(2)</enum><header>Interest rates for consolidation loans</header><subparagraph id="H1CE8873034B84E24A02762F1B7414E34" commented="no"><enum>(A)</enum><header>Method of calculation</header><text>In order to determine the interest rate for any refinanced Federal Direct Consolidation Loan under <internal-xref idref="HFFA4CEA1B8C24FCBA3A7A4C4B94CB828" legis-path="460A.(c)(1)(B)">paragraph (1)(B)</internal-xref>, the Secretary shall—</text><clause id="HA64DE4314BAA445AA4153D0929718331" commented="no"><enum>(i)</enum><text>determine each of the component loans that were originally consolidated in the loan under section 428C or the Federal Direct Consolidation Loan, and calculate the proportion of the unpaid principal balance of the loan under section 428C or the Federal Direct Consolidation Loan that each component loan represents;</text></clause><clause id="HE7DE06EAEA6C4467833F9C1F2B6A20E0" commented="no"><enum>(ii)</enum><text>use the proportions determined in accordance with <internal-xref idref="HA64DE4314BAA445AA4153D0929718331" legis-path="460A.(c)(2)(A)(i)">clause (i)</internal-xref> and the interest rate applicable for each component loan, as determined under subparagraph (B), to calculate the weighted average of the interest rates on the loans consolidated into the loan under section 428C or the Federal Direct Consolidation Loan; and</text></clause><clause id="HD42F9883F247422AB13A4DADE0CEC8B7" commented="no"><enum>(iii)</enum><text>make the applicable interest rate for the refinanced Federal Direct Consolidation Loan the lesser of—</text><subclause id="H5FC0B6562723432C93C9D9D117743A65"><enum>(I)</enum><text>the weighted average calculated under <internal-xref idref="HE7DE06EAEA6C4467833F9C1F2B6A20E0" legis-path="460A.(c)(2)(A)(ii)">clause (ii)</internal-xref>; or</text></subclause><subclause id="HAE0FF8D603A142639889401E6A477F0E"><enum>(II)</enum><text>5.0 percent.</text></subclause></clause></subparagraph><subparagraph id="HD52D13DD220746C9A1E4B8EA1E069321" commented="no"><enum>(B)</enum><header>Interest rates for component loans</header><text>The interest rates for the component loans of a loan made under section 428C or a Federal Direct Consolidation Loan shall be the following:</text><clause id="H394FA346045A4DD48BF28528F2197689" commented="no"><enum>(i)</enum><text>The interest rate for any loan under section 428, 428B, 428H, Federal Direct Stafford Loan, Federal Direct Unsubsidized Stafford Loan, or Federal Direct PLUS Loan shall be a rate equal to the lesser of—</text><subclause id="H16A00C2624D94694AF6FFAB7EACFCFAC" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the interest rate determined under section 455(b)(9)(A) for the date on which the component loan is made; or</text></subclause><subclause id="HCE0AFB75789D4A2F9B16B148EDAA031F" commented="no"><enum>(II)</enum><text>the original interest rate of the component loan.</text></subclause></clause><clause id="HB0E799FCB0284BEABD556DA0F044B819" commented="no"><enum>(ii)</enum><text>The interest rate for any component loan that is a loan under section 428C or a Federal Direct Consolidation Loan shall be the lesser of—</text><subclause id="HA7F78ED94DE6448F9289CB8F18D8C76F"><enum>(I)</enum><text>the weighted average of the interest rates that would apply under this subparagraph for each loan comprising the component consolidation loan; or</text></subclause><subclause id="H0B1CFB12FD3346A1BF9C0EC08DB30C3F"><enum>(II)</enum><text>5 percent.</text></subclause></clause><clause id="H7D7924FB374449C8B048B9B9BE3CEE54" commented="no"><enum>(iii)</enum><text>The interest rate for any eligible loan that is a component of a loan made under section 428C or a Federal Direct Consolidation Loan and is not described in clauses (i) or (ii) shall be the lesser of—</text><subclause id="H2976356D94A34C208A87D7CD650E51FD"><enum>(I)</enum><text>the interest rate on the original component loan; or</text></subclause><subclause id="H7D79A741C6314CA98F11D35995F78868"><enum>(II)</enum><text>5 percent.</text></subclause></clause></subparagraph></paragraph><paragraph id="HEF7DCE0D06484F23BCF758C0948B070D" commented="no"><enum>(3)</enum><header>Fixed rate</header><text>The applicable rate of interest determined under paragraph (1) for a refinanced loan under this section shall be fixed for the period of the loan.</text></paragraph><paragraph id="H300297B48DEC42EAA8D3DB38DAFDA669"><enum>(4)</enum><header>Capitalized interest and fees excluded</header><text display-inline="yes-display-inline">With respect to a refinanced loan under this section, interest shall only accrue on the percentage of such refinanced loan that is equal to—</text><subparagraph id="H558D45EE78D14C1A9322266021EDB025"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of the unpaid principal of the original loan, or in the case of a refinanced Federal Direct Consolidation Loan, the sum of the unpaid principal of all the component loans, comprising the refinanced loan; divided by</text></subparagraph><subparagraph id="H99FD2C7922DE4C4F820933066C7B022D"><enum>(B)</enum><text>the total amount of such refinanced loan.</text></subparagraph></paragraph></subsection><subsection id="H3FC71A7BB24D45CAA4DEA87AEEF99570"><enum>(d)</enum><header>Terms and conditions of loans</header><paragraph id="HA016B737CAB540AA9AA4E910E61AC633"><enum>(1)</enum><header>In general</header><text>A loan that is refinanced under this section shall have the same terms and conditions as the original loan, except as otherwise provided in this section.</text></paragraph><paragraph id="HF24805016E4A47E29E0204C70AE0A4CE"><enum>(2)</enum><header>No automatic extension of repayment period</header><text>Refinancing a loan under this section shall not result in the extension of the duration of the repayment period of the loan, and the borrower shall retain the same repayment term that was in effect on the original loan. Nothing in this paragraph shall be construed to prevent a borrower from electing a different repayment plan at any time in accordance with section 455A(a).</text></paragraph></subsection><subsection id="HC92A023A98C34DB3A0839386F33EC134"><enum>(e)</enum><header>Definition of qualified borrower</header><text>For purposes of this section, the term <term>qualified borrower</term> means a borrower—</text><paragraph id="H28E645C68CFA4413968DFE68FE5E6C61"><enum>(1)</enum><text>of a loan under this part or part B for which the first disbursement was made, or the application for a consolidation loan was received, before July 1, 2026; and</text></paragraph><paragraph id="HA5696C4EA4BE4D7F95D1B81131F2327C" commented="no"><enum>(2)</enum><text>who has one or more loans described in paragraph (1) or (2) of subsection (b) with an interest rate that exceeds 5 percent.</text></paragraph></subsection><subsection id="HF585795F17464A6DBCC1E910B6C935EF"><enum>(f)</enum><header>Notification to borrowers</header><text>The Secretary, in coordination with the Director of the Bureau of Consumer Financial Protection, shall undertake a campaign to alert borrowers of loans that are eligible for refinancing under this section that the borrowers are eligible to apply for such refinancing. The campaign shall include the following activities:</text><paragraph id="H4B314E6298C74C588315869D6B653BF2"><enum>(1)</enum><text>Developing consumer information materials about the availability of Federal student loan refinancing.</text></paragraph><paragraph id="HC9A72FE5F6B849CEAAA26E6F78AB6BEA"><enum>(2)</enum><text>Requiring servicers of loans under this part or part B to provide such consumer information to borrowers in a manner determined appropriate by the Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H8FA948086A6641B9B9495F42C9FF5F4A"><enum>403.</enum><header>Refinancing private student loans</header><text display-inline="no-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>), as amended by <internal-xref idref="H59FC306FAF4F40FC822AEB825E6BC068" legis-path="402.">section 402</internal-xref>, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H9816C8F99EF646C690F6232C9AEE2CB2"><section id="HE1665E48A7CE4607924E8575A07C73A3"><enum>460B.</enum><header>Federal Direct Refinanced Private Loan program</header><subsection id="H613787FFA67C4A899D3EB00B1F06AA9D"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="HC1007DBF2A8643FAA6686FF6E448B50F"><enum>(1)</enum><header>Eligible private education loan</header><text>The term <term>eligible private education loan</term> means a private education loan, as defined in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>), that—</text><subparagraph id="H0FC715CBB84B4D2F95A2647F959914C4"><enum>(A)</enum><text>was disbursed to the borrower before July 1, 2026; and</text></subparagraph><subparagraph id="HF97527EEBD014DF9A07562732C9B1827"><enum>(B)</enum><text>was for the borrower’s own postsecondary educational expenses for an eligible program at an institution of higher education participating in the loan program under this part, as of the date that the loan was disbursed.</text></subparagraph></paragraph><paragraph id="H5744CAA831B742458D61B0EF3D7F5602"><enum>(2)</enum><header>Federal direct refinanced private loan</header><text>The term <term>Federal Direct Refinanced Private Loan</term> means a loan issued under <internal-xref idref="HF62F85656BE84144836F0B3527DD4FE5" legis-path="460B.(b)(1)">subsection (b)(1)</internal-xref>.</text></paragraph><paragraph id="H7DBA5000A415460181823E0916C04C69"><enum>(3)</enum><header>Private educational lender</header><text>The term <term>private educational lender</term> has the meaning given the term in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>).</text></paragraph><paragraph id="H511670435E104794A845709966D6A8BC"><enum>(4)</enum><header>Qualified borrower</header><text>The term <term>qualified borrower</term> means an individual who—</text><subparagraph id="H906B921D574F440BAD2B1417F7191EC2"><enum>(A)</enum><text>has an eligible private education loan;</text></subparagraph><subparagraph id="HE54ACE8033F34E1EAF07029FF8B414AE"><enum>(B)</enum><text>has been current on payments on the eligible private education loan for the 6 months prior to the date of the qualified borrower’s application for refinancing under this section, and is in good standing on the loan at the time of such application;</text></subparagraph><subparagraph id="H079B9ACC999D413F8820C016496046CA"><enum>(C)</enum><text>is not in default on the eligible private education loan or on any loan made, insured, or guaranteed under this part or part B or E; and</text></subparagraph><subparagraph id="H72462EE60E2D441B99CC44F97C19B489"><enum>(D)</enum><text>meets the eligibility requirements described in <internal-xref idref="H9001FD123F1849A1A86EF6D9673A53CA" legis-path="460B.(b)(2)">subsection (b)(2)</internal-xref>.</text></subparagraph></paragraph></subsection><subsection id="HBDFDA708D6814A79A0B64AC4A0E25680"><enum>(b)</enum><header>Program authorized</header><paragraph id="HF62F85656BE84144836F0B3527DD4FE5"><enum>(1)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of the Treasury, shall carry out a program under which the Secretary, upon application by a qualified borrower who has an eligible private education loan, shall issue such borrower a loan under this part in accordance with the following:</text><subparagraph id="H554340C5F77A458C90D37E7D30BD7662"><enum>(A)</enum><text>The loan issued under this program shall be in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the private education loan.</text></subparagraph><subparagraph id="H491E706D244D4ED1989134C7554B7D82"><enum>(B)</enum><text>The Secretary shall pay the proceeds of the loan issued under this program to the private educational lender of the private education loan, in order to discharge the qualified borrower from any remaining obligation to the lender with respect to the original loan.</text></subparagraph><subparagraph id="HB71F94E5256944D3AD4883BAB6CB9D7E"><enum>(C)</enum><text>The Secretary shall require that the qualified borrower undergo loan counseling that provides all of the relevant information and counseling required under section 485(l)(2) before the loan is refinanced in accordance with this section, and before the proceeds of such loan are paid to the private educational lender.</text></subparagraph><subparagraph id="HB26A1BA81AE3499AA2EF762448E40D3C"><enum>(D)</enum><text>The Secretary shall issue the loan as a Federal Direct Refinanced Private Loan, which shall have the same terms, conditions, and benefits as a Federal Direct Unsubsidized Stafford Loan, except as otherwise provided in this section.</text></subparagraph><subparagraph id="H678B7B150A9645CB87AF83F437CEA14F" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">The interest rate for each loan made by the Secretary under this section shall be the rate provided under subsection (c).</text></subparagraph></paragraph><paragraph id="H9001FD123F1849A1A86EF6D9673A53CA" commented="no"><enum>(2)</enum><header>Borrower eligibility</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of the Treasury and the Director of the Consumer Financial Protection Bureau, shall establish eligibility requirements—</text><subparagraph id="HA486B11547CF4FE39FE3352214CB5BBE" commented="no"><enum>(A)</enum><text>to ensure eligibility only for borrowers in good standing;</text></subparagraph><subparagraph id="H621AD3F86520449EBCEC778E162363C9" commented="no"><enum>(B)</enum><text>to minimize inequities between Federal Direct Refinanced Private Loans and other Federal student loans;</text></subparagraph><subparagraph id="H9427F6BDDF944B16B4E67D3C31415567" commented="no"><enum>(C)</enum><text>to preclude windfall profits for private educational lenders; and</text></subparagraph><subparagraph id="H115D86E911D440CE8D681A15A6EF71E9" commented="no"><enum>(D)</enum><text>to ensure full access to the program authorized in this subsection for borrowers with private loans who otherwise meet the criteria established in accordance with <internal-xref idref="HA486B11547CF4FE39FE3352214CB5BBE" legis-path="460B.(b)(2)(A)">subparagraph (A)</internal-xref>.</text></subparagraph></paragraph></subsection><subsection id="HCE0A018534044D44ADB128C3C39F8D3E" commented="no"><enum>(c)</enum><header>Interest rate</header><paragraph id="HB08EA14C380E4309B718F844434EC4E5" commented="no"><enum>(1)</enum><header>In general</header><text>The interest rate for a Federal Direct Refinanced Private Loan is a rate equal to the interest rate determined under section 455(b)(9)(A) for the date on which the refinanced private loan is made.</text></paragraph><paragraph id="HFB1C4EF7D9A743D8B6C33768D596B18C" commented="no"><enum>(2)</enum><header>Fixed rate</header><text>The interest rate determined under this subsection for a Federal Direct Refinanced Private Loan shall be fixed for the period of the loan.</text></paragraph><paragraph id="HFC0D06F015AE4B56B0B69404714D698F"><enum>(3)</enum><header>Capitalized interest and fees excluded</header><text display-inline="yes-display-inline">With respect to a Federal Direct Refinanced Private Loan under this section, interest shall only accrue on the percentage of such Refinanced Private Loan that is equal to—</text><subparagraph id="HD68F356A3D2744E7A5B851E878D369CC"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of the unpaid principal of the original loan comprising the Refinanced Private Loan on the date such original loan was refinanced; divided by</text></subparagraph><subparagraph id="HF77E253898B445BFB011F499B632D59D"><enum>(B)</enum><text>the total amount of such Refinanced Private Loan.</text></subparagraph></paragraph></subsection><subsection id="H3DF45A249324430DA1319B1A5E3818BF"><enum>(d)</enum><header>No inclusion in aggregate limits</header><text>The amount of a Federal Direct Refinanced Private Loan, or a Federal Direct Consolidated Loan to the extent such loan was used to repay a Federal Direct Refinanced Private Loan, shall not be included in calculating a borrower’s annual or aggregate loan limits under section 428 or 428H.</text></subsection><subsection id="H13D32DE2F78B416DB977592F77EEA7F9"><enum>(e)</enum><header>No eligibility for service-Related repayment</header><text display-inline="yes-display-inline">A Federal Direct Refinanced Private Loan, or any Federal Direct Consolidation Loan to the extent such loan was used to repay a Federal Direct Refinanced Private Loan, shall not be eligible for any loan repayment or loan forgiveness program under section 428K, 428L, or 460 or for the loan cancellation repayment plan for public service employees under section 455(m).</text></subsection><subsection id="H0910500D29174CBDB7E1DE12EA2D5C13"><enum>(f)</enum><header>Private educational lender reporting requirement</header><paragraph id="HC3889526798146F88475CF1A68D902F2"><enum>(1)</enum><header>Reporting required</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of the Treasury and the Director of the Bureau of Consumer Financial Protection, shall establish a requirement that, in order to allow for an assessment of the private education loan market, private educational lenders report the data described in <internal-xref idref="H8B63B4BE39404629BD73BEF038563411" legis-path="460B.(f)(2)">paragraph (2)</internal-xref> to—</text><subparagraph id="H4A51BFF1B371494C8753501734FD161E"><enum>(A)</enum><text>the Secretary;</text></subparagraph><subparagraph id="HF0B60DEB1C944145A06715EA72AC0FA4"><enum>(B)</enum><text>the Secretary of the Treasury;</text></subparagraph><subparagraph id="HBB52D722B25C44689A8C2860931BF0D4"><enum>(C)</enum><text>the Director of the Consumer Financial Protection Bureau;</text></subparagraph><subparagraph id="HD697879CFB934B9E9557642CE220182E"><enum>(D)</enum><text>the Committee on Education and Workforce of the House of Representatives;</text></subparagraph><subparagraph id="HF90EFE97CD49490E97CF4545F49F5CA2"><enum>(E)</enum><text>the Committee on Financial Services of the House of Representatives;</text></subparagraph><subparagraph id="HD901C80DABF644F0B3D59C0538DB60CD"><enum>(F)</enum><text>the Senate Committee on Health, Education, Labor, and Pensions; and</text></subparagraph><subparagraph id="H4CCD533CDAC14BB286A5A139E625E6FC"><enum>(G)</enum><text>the Senate Committee on Banking, Housing, and Urban Affairs.</text></subparagraph></paragraph><paragraph id="H8B63B4BE39404629BD73BEF038563411"><enum>(2)</enum><header>Contents of reporting</header><text>The data that private educational lenders shall report in accordance with <internal-xref idref="HC3889526798146F88475CF1A68D902F2" legis-path="460B.(f)(1)">paragraph (1)</internal-xref> shall include each of the following about private education loans (as defined in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>)):</text><subparagraph id="H27F9921237A547E88A394D46AE7FCBBB"><enum>(A)</enum><text>The total amount of private education loan debt the lender holds.</text></subparagraph><subparagraph id="H4D9D6B68CE4649CBBF42A71166FF986B"><enum>(B)</enum><text>The total number of private education loan borrowers the lender serves.</text></subparagraph><subparagraph id="H4881629ED0A14B08890DF9177C8DFE90"><enum>(C)</enum><text>The average interest rate on the outstanding private education loan debt held by the lender.</text></subparagraph><subparagraph id="HB6790065600140B4BAECF391AC31A304"><enum>(D)</enum><text>The proportion of private education loan borrowers who are in default on a loan held by the lender.</text></subparagraph><subparagraph id="H15964D99A8784B3B9D14604C692B42BB"><enum>(E)</enum><text>The proportion of the outstanding private education loan volume held by the lender that is in default.</text></subparagraph><subparagraph id="H63553A76E7A1407E99FB46296CDC9150"><enum>(F)</enum><text>The proportions of outstanding private education loan borrowers who are 30, 60, and 90 days delinquent.</text></subparagraph><subparagraph id="H0E0F036595C240C798BF66137B356D91"><enum>(G)</enum><text>The proportions of outstanding private education loan volume that is 30, 60, and 90 days delinquent.</text></subparagraph></paragraph></subsection><subsection id="H9CF727E25CF54BD689BA07A13077A434"><enum>(g)</enum><header>Notification to borrowers</header><text display-inline="yes-display-inline">The Secretary, in coordination with the Secretary of the Treasury and the Director of the Consumer Financial Protection Bureau, shall undertake a campaign to alert borrowers about the availability of private student loan refinancing under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>