[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6239 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 6239

   To amend the Higher Education Act of 1965 to improve Federal Pell 
               Grants and loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2016

 Mr. DeFazio introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Higher Education Act of 1965 to improve Federal Pell 
               Grants and loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Helping Improve 
Grants for Higher Education & Repayment of Expensive Debt Act'' or the 
``HIGHER ED Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Federal Pell Grants.
Sec. 3. Reinstatement of authority to make Federal Direct Stafford 
                            Loans to graduate and professional 
                            students.
Sec. 4. Discharge student loans in bankruptcy.
Sec. 5. Refinancing programs.
Sec. 6. Loan forgiveness for adjunct faculty.
Sec. 7. Revised income-driven repayment plans for new borrowers on or 
                            after July 1, 2017.

SEC. 2. FEDERAL PELL GRANTS.

    (a) Increase in the Maximum Amount of a Federal Pell Grant.--
Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(7)(C)) is amended by striking clauses (ii) and (iii) and 
inserting the following:
                            ``(ii) Award year 2017-2018.--For award 
                        year 2017-2018, the amount determined under 
                        this subparagraph for purposes of subparagraph 
                        (B)(iii) shall be increased to $9,410.
                            ``(iii) Subsequent award years.--For award 
                        year 2018-2019 and each subsequent award year, 
                        the amount determined under this subparagraph 
                        for purposes of subparagraph (B)(iii) shall be 
                        equal to--
                                    ``(I) the amount determined under 
                                this subparagraph for the preceding 
                                award year; increased by
                                    ``(II) a percentage equal to the 
                                annual adjustment percentage for the 
                                award year for which the amount under 
                                this subparagraph is being determined; 
                                and
                                    ``(III) rounded to the nearest 
                                $5.''.
    (b) Year-Round Federal Pell Grant Students.--
            (1) In general.--Section 401(b) of the Higher Education Act 
        of 1965 (20 U.S.C. 1070a(b)) is amended by adding at the end 
        the following:
            ``(8) Year-round federal pell grant students.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, the Secretary shall 
                award, to an eligible student who meets the 
                requirements in subparagraph (B) who has received a 
                Federal Pell Grant for an award year and is enrolled in 
                a program of study for one or more additional payment 
                periods during the same award year that are not 
                otherwise covered by the student's Federal Pell Grant, 
                an additional Federal Pell Grant for the additional 
                payment periods.
                    ``(B) Eligibility.--In order to be eligible to 
                receive the additional Federal Pell Grant for an award 
                year that is described in subparagraph (A), a student 
                shall, in addition to meeting all eligibility 
                requirements for the receipt of a Federal Pell Grant--
                            ``(i) be enrolled at least on a part-time 
                        basis in an institution of higher education; 
                        and
                            ``(ii) have successfully completed at least 
                        a full-time course load (as determined by the 
                        institution) prior to receiving an additional 
                        Federal Pell Grant award as described in 
                        subparagraph (A).
                    ``(C) Amounts.--In the case of a student receiving 
                more than one Federal Pell Grant in a single award year 
                under subparagraph (A), the total amount of the Federal 
                Pell Grants awarded to such student for the award year 
                shall not exceed an amount equal to 150 percent of the 
                total maximum Federal Pell Grant for such award year 
                calculated in accordance with paragraph (7)(C)(iv)(II).
                    ``(D) Inclusion in duration limit.--Any period of 
                study covered by a Federal Pell Grant awarded under 
                subparagraph (A) shall be included in determining a 
                student's duration limit under subsection (c)(5).
            ``(9) Crossover period.--In any case where an eligible 
        student is receiving a Federal Pell Grant for a payment period 
        that spans 2 award years, the Secretary shall allow the 
        eligible institution in which the student is enrolled to 
        determine the award year to which the additional period shall 
        be assigned.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on July 1, 2017.

SEC. 3. REINSTATEMENT OF AUTHORITY TO MAKE FEDERAL DIRECT STAFFORD 
              LOANS TO GRADUATE AND PROFESSIONAL STUDENTS.

    (a) Amendments.--Section 455(a)(3) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(a)(3)) is amended--
            (1) in the paragraph heading, by inserting ``Temporary'' 
        before ``Termination''; and
            (2) in subparagraph (A), in the matter preceding clause 
        (i), by inserting ``, and ending on or before June 30, 2016'' 
        after ``2012''.
    (b) Inapplicability of Rulemaking Requirements.--Sections 482(c) 
and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c); 1098a) 
shall not apply to the regulations under this section.

SEC. 4. DISCHARGE STUDENT LOANS IN BANKRUPTCY.

    (a) Exception to Discharge.--Section 523(a) of title 11, United 
States Code, is amended--
            (1) by striking paragraph (8), and
            (2) by redesignating paragraphs (9) through (14B) as 
        paragraphs (8) through (14A), respectively.
    (b) Conforming Amendments.--Title 11, United States Code, is 
amended--
            (1) in section 704(c)(1)(C)(iv)(I) by striking ``(14A)'' 
        and inserting ``(14)'',
            (2) in section 1106(c)(1)(C)(iv)(I) by striking ``(14A)'' 
        and inserting ``(14)'',
            (3) in section 1202(c)(1)(C)(iv)(I) by striking ``(14A)'' 
        and inserting ``(14)'', and
            (4) in section 1328(a)(2) by striking ``(8), or (9)'' and 
        inserting ``or (8)''.
    (c) Effective Date; Application of Amendments.--
            (1) Effective date.--Except as provided in subsection (b), 
        this section and the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Application of amendments.--The amendments made by this 
        section shall apply only with respect to cases commenced under 
        title 11 of the United States Code on or after the date of the 
        enactment of this Act.

SEC. 5. REFINANCING PROGRAMS.

    (a) Program Authority.--Section 451(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1087a(a)) is amended--
            (1) by striking ``and (2)'' and inserting ``(2)''; and
            (2) by inserting ``; and (3) to make loans under section 
        460A and section 460B'' after ``section 459A''.
    (b) Refinancing Program.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following:

``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.

    ``(a) In General.--Beginning not later than 180 days after the date 
of enactment of the Helping Improve Grants for Higher Education & 
Repayment of Expensive Debt Act, 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).
    ``(b) Refinancing Direct Loans.--
            ``(1) Federal direct loans.--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, 2016, 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.
            ``(2) Refinancing ffel program loans as refinanced federal 
        direct loans.--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:
                    ``(A) 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.
                    ``(B) A loan made under this section that was 
                originally--
                            ``(i) a loan originally made, insured, or 
                        guaranteed under section 428 shall be a Federal 
                        Direct Stafford Loan;
                            ``(ii) a loan originally made, insured, or 
                        guaranteed under section 428B shall be a 
                        Federal Direct PLUS Loan;
                            ``(iii) a loan originally made, insured, or 
                        guaranteed under section 428H shall be a 
                        Federal Direct Unsubsidized Stafford Loan; and
                            ``(iv) a loan originally made, insured, or 
                        guaranteed under section 428C shall be a 
                        Federal Direct Consolidation Loan.
                    ``(C) The interest rate for each loan made by the 
                Secretary under this paragraph shall be the rate 
                provided under subsection (c).
    ``(c) Interest Rates.--
            ``(1) In general.--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--
                    ``(A) in any case where the original loan was a 
                loan under section 428 or 428H, a Federal Direct 
                Stafford loan, or a Federal Direct Unsubsidized 
                Stafford Loan, that was issued to an undergraduate 
                student, a rate equal to the rate for Federal Direct 
                Stafford Loans and Federal Direct Unsubsidized Stafford 
                Loans issued to undergraduate students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017;
                    ``(B) in any case where the original loan was a 
                loan under section 428 or 428H, a Federal Direct 
                Stafford Loan, or a Federal Direct Unsubsidized 
                Stafford Loan, that was issued to a graduate or 
                professional student, a rate equal to the rate for 
                Federal Direct Unsubsidized Stafford Loans issued to 
                graduate or professional students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017;
                    ``(C) in any case where the original loan was a 
                loan under section 428B or a Federal Direct PLUS Loan, 
                a rate equal to the rate for Federal Direct PLUS Loans 
                for the 12-month period beginning on July 1, 2016, and 
                ending on June 30, 2017; and
                    ``(D) 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 paragraph (2).
            ``(2) Interest rates for consolidation loans.--
                    ``(A) Method of calculation.--In order to determine 
                the interest rate for any refinanced Federal Direct 
                Consolidation Loan under paragraph (1)(D), the 
                Secretary shall--
                            ``(i) 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;
                            ``(ii) use the proportions determined in 
                        accordance with clause (i) 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
                            ``(iii) apply the weighted average 
                        calculated under clause (ii) as the interest 
                        rate for the refinanced Federal Direct 
                        Consolidation Loan.
                    ``(B) Interest rates for component loans.--The 
                interest rates for the component loans of a loan made 
                under section 428C or a Federal Direct Consolidation 
                Loan shall be the following:
                            ``(i) The interest rate for any loan under 
                        section 428 or 428H, Federal Direct Stafford 
                        Loan, or Federal Direct Unsubsidized Stafford 
                        Loan issued to an undergraduate student shall 
                        be a rate equal to the lesser of--
                                    ``(I) the rate for Federal Direct 
                                Stafford Loans and Federal Direct 
                                Unsubsidized Stafford Loans issued to 
                                undergraduate students for the 12-month 
                                period beginning on July 1, 2016, and 
                                ending on June 30, 2017; or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(ii) The interest rate for any loan under 
                        section 428 or 428H, Federal Direct Stafford 
                        Loan, or Federal Direct Unsubsidized Stafford 
                        Loan issued to a graduate or professional 
                        student shall be a rate equal to the lesser 
                        of--
                                    ``(I) the rate for Federal Direct 
                                Unsubsidized Stafford Loans issued to 
                                graduate or professional students for 
                                the 12-month period beginning on July 
                                1, 2016, and ending on June 30, 2017; 
                                or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(iii) The interest rate for any loan 
                        under section 428B or Federal Direct PLUS Loan 
                        shall be a rate equal to the lesser of--
                                    ``(I) the rate for Federal Direct 
                                PLUS Loans for the 12-month period 
                                beginning on July 1, 2016, and ending 
                                on June 30, 2017; or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(iv) The interest rate for any component 
                        loan that is a loan under section 428C or a 
                        Federal Direct Consolidation Loan shall be the 
                        weighted average of the interest rates that 
                        would apply under this subparagraph for each 
                        loan comprising the component consolidation 
                        loan.
                            ``(v) 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) 
                        through (iv) shall be the interest rate on the 
                        original component loan.
            ``(3) Fixed rate.--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.
    ``(d) Terms and Conditions of Loans.--
            ``(1) In general.--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.
            ``(2) No automatic extension of repayment period.--
        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 
        455(d)(3).
    ``(e) Definition of Qualified Borrower.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified borrower' means a borrower--
                    ``(A) 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, 2016; 
                and
                    ``(B) who meets the eligibility requirements based 
                on income or debt-to-income ratio established by the 
                Secretary.
            ``(2) Income requirements.--Not later than 180 days after 
        the date of enactment of the Helping Improve Grants for Higher 
        Education & Repayment of Expensive Debt Act, the Secretary 
        shall establish eligibility requirements based on income or 
        debt-to-income ratio that take into consideration providing 
        access to refinancing under this section for borrowers with the 
        greatest financial need.
    ``(f) Notification to Borrowers.--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:
            ``(1) Developing consumer information materials about the 
        availability of Federal student loan refinancing.
            ``(2) 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.

``SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible private education loan.--The term `eligible 
        private education loan' means a private education loan, as 
        defined in section 140(a) of the Truth in Lending Act (15 
        U.S.C. 1650(a)), that--
                    ``(A) was disbursed to the borrower before July 1, 
                2016; and
                    ``(B) 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.
            ``(2) Federal direct refinanced private loan.--The term 
        `Federal Direct Refinanced Private Loan' means a loan issued 
        under subsection (b)(1).
            ``(3) Private educational lender.--The term `private 
        educational lender' has the meaning given the term in section 
        140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
            ``(4) Qualified borrower.--The term `qualified borrower' 
        means an individual who--
                    ``(A) has an eligible private education loan;
                    ``(B) 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;
                    ``(C) 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
                    ``(D) meets the eligibility requirements described 
                in subsection (b)(2).
    ``(b) Program Authorized.--
            ``(1) In general.--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:
                    ``(A) 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.
                    ``(B) 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.
                    ``(C) The Secretary shall require that the 
                qualified borrower undergo loan counseling that 
                provides all of the information and counseling required 
                under clauses (i) through (viii) of section 
                485(b)(1)(A) before the loan is refinanced in 
                accordance with this section, and before the proceeds 
                of such loan are paid to the private educational 
                lender.
                    ``(D) 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.
            ``(2) Borrower eligibility.--Not later than 180 days after 
        the date of enactment of the Helping Improve Grants for Higher 
        Education & Repayment of Expensive Debt Act, the Secretary, in 
        consultation with the Secretary of the Treasury and the 
        Director of the Bureau of Consumer Financial Protection, shall 
        establish eligibility requirements--
                    ``(A) based on income or debt-to-income ratio that 
                take into consideration providing access to refinancing 
                under this section for borrowers with the greatest 
                financial need;
                    ``(B) to ensure eligibility only for borrowers in 
                good standing;
                    ``(C) to minimize inequities between Federal Direct 
                Refinanced Private Loans and other Federal student 
                loans;
                    ``(D) to preclude windfall profits for private 
                educational lenders; and
                    ``(E) 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 subparagraphs (A) and 
                (B).
    ``(c) Interest Rate.--
            ``(1) In general.--The interest rate for a Federal Direct 
        Refinanced Private Loan is--
                    ``(A) in the case of a Federal Direct Refinanced 
                Private Loan for a private education loan originally 
                issued for undergraduate postsecondary educational 
                expenses, a rate equal to the rate for Federal Direct 
                Stafford Loans and Federal Direct Unsubsidized Stafford 
                Loans issued to undergraduate students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017; and
                    ``(B) in the case of a Federal Direct Refinanced 
                Private Loan for a private education loan originally 
                issued for graduate or professional degree 
                postsecondary educational expenses, a rate equal to the 
                rate for Federal Direct Unsubsidized Stafford Loans 
                issued to graduate or professional students for the 12-
                month period beginning on July 1, 2016, and ending on 
                June 30, 2017.
            ``(2) Combined undergraduate and graduate study loans.--If 
        a Federal Direct Refinanced Private Loan is for a private 
        education loan originally issued for both undergraduate and 
        graduate or professional postsecondary educational expenses, 
        the interest rate shall be a rate equal to the rate for Federal 
        Direct PLUS Loans for the 12-month period beginning on July 1, 
        2016, and ending on June 30, 2017.
            ``(3) Fixed rate.--The applicable rate of interest 
        determined under this subsection for a Federal Direct 
        Refinanced Private Loan shall be fixed for the period of the 
        loan.
    ``(d) No Inclusion in Aggregate Limits.--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.
    ``(e) No Eligibility for Service-Related Repayment.--
Notwithstanding sections 428K(a)(2)(A), 428L(b)(2), 455(m)(3)(A), and 
460(b), 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 repayment plan for public service employees under section 
455(m).
    ``(f) Private Educational Lender Reporting Requirement.--
            ``(1) Reporting required.--Not later than 180 days after 
        the date of enactment of the Helping Improve Grants for Higher 
        Education & Repayment of Expensive Debt Act, 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 private educational lenders report 
        the data described in paragraph (2) to the Secretary, to 
        Congress, to the Secretary of the Treasury, and to the Director 
        of the Bureau of Consumer Financial Protection, in order to 
        allow for an assessment of the private education loan market.
            ``(2) Contents of reporting.--The data that private 
        educational lenders shall report in accordance with paragraph 
        (1) shall include each of the following about private education 
        loans (as defined in section 140(a) of the Truth in Lending Act 
        (15 U.S.C. 1650(a))):
                    ``(A) The total amount of private education loan 
                debt the lender holds.
                    ``(B) The total number of private education loan 
                borrowers the lender serves.
                    ``(C) The average interest rate on the outstanding 
                private education loan debt held by the lender.
                    ``(D) The proportion of private education loan 
                borrowers who are in default on a loan held by the 
                lender.
                    ``(E) The proportion of the outstanding private 
                education loan volume held by the lender that is in 
                default.
                    ``(F) The proportions of outstanding private 
                education loan borrowers who are 30, 60, and 90 days 
                delinquent.
                    ``(G) The proportions of outstanding private 
                education loan volume that is 30, 60, and 90 days 
                delinquent.
    ``(g) Notification to Borrowers.--The Secretary, in coordination 
with the Secretary of the Treasury and the Director of the Bureau of 
Consumer Financial Protection, shall undertake a campaign to alert 
borrowers about the availability of private student loan refinancing 
under this section.''.
    (c) Amendments to Public Service Repayment Plan Provisions.--
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) 
is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting after paragraph (2) the following:
            ``(3) Special rules for section 460a loans.--
                    ``(A) Refinanced federal direct loans.--
                Notwithstanding paragraph (1), in determining the 
                number of monthly payments that meet the requirements 
                of such paragraph for an eligible Federal Direct Loan 
                refinanced under section 460A that was originally a 
                loan under this part, the Secretary shall include all 
                monthly payments made on the original loan that meet 
                the requirements of such paragraph.
                    ``(B) Refinanced ffel loans.--In the case of an 
                eligible Federal Direct Loan refinanced under section 
                460A that was originally a loan under part B, only 
                monthly payments made after the date on which the loan 
                was refinanced may be included for purposes of 
                paragraph (1).''; and
            (3) in paragraph (4)(A) (as redesignated by paragraph (1)), 
        by inserting ``(including any Federal Direct Stafford Loan, 
        Federal Direct PLUS Loan, Federal Direct Unsubsidized Stafford 
        Loan, or Federal Direct Consolidation Loan refinanced under 
        section 460A)'' before the period at the end.
    (d) Income-Based Repayment.--Section 493C of the Higher Education 
Act of 1965 (20 U.S.C. 1098e) is amended by adding at the end the 
following:
    ``(f)  Special Rule for Refinanced Loans.--
            ``(1) Refinanced federal direct and ffel loans.--In 
        calculating the period of time during which a borrower of a 
        loan that is refinanced under section 460A has made monthly 
        payments for purposes of subsection (b)(7), the Secretary shall 
        deem the period to include all monthly payments made for the 
        original loan, and all monthly payments made for the refinanced 
        loan, that otherwise meet the requirements of this section.
            ``(2) Federal direct refinanced private loans.--In 
        calculating the period of time during which a borrower of a 
        Federal Direct Refinanced Private Loan under section 460B has 
        made monthly payments for purposes of subsection (b)(7), the 
        Secretary shall include only payments--
                    ``(A) that are made after the date of the issuance 
                of the Federal Direct Refinanced Private Loan; and
                    ``(B) that otherwise meet the requirements of this 
                section.''.

SEC. 6. LOAN FORGIVENESS FOR ADJUNCT FACULTY.

    Section 455(m)(3)(B)(ii) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(m)(3)(B)(ii)) is amended--
            (1) by striking ``teaching as'' and inserting the 
        following: ``teaching--
                                    ``(I) as'';
            (2) by striking ``, foreign language faculty, and part-time 
        faculty at community colleges), as determined by the 
        Secretary.'' and inserting ``and foreign language faculty), as 
        determined by the Secretary; or''; and
            (3) by adding at the end the following:
                                    ``(II) as a part-time faculty 
                                member or instructor who--
                                            ``(aa) teaches not less 
                                        than 1 course at an institution 
                                        of higher education (as defined 
                                        in section 101(a)), a 
                                        postsecondary vocational 
                                        institution (as defined in 
                                        section 102(c)), or a Tribal 
                                        College or University (as 
                                        defined in section 316(b)); and
                                            ``(bb) is not employed on a 
                                        full-time basis by any other 
                                        employer.''.

SEC. 7. REVISED INCOME-DRIVEN REPAYMENT PLANS FOR NEW BORROWERS ON OR 
              AFTER JULY 1, 2017.

    (a) Income-Contingent Repayment.--Section 455 of the Higher 
Education Act of 1965 (20 U.S.C. 1087e) is amended--
            (1) in subsection (d)(1)(D), by adding at the end before 
        the semicolon the following: ``, and such plan shall meet the 
        requirements of subsection (e)(8) with respect to any loan made 
        under this part to a new borrower on or after July 1, 2017''; 
        and
            (2) in subsection (e), by adding at the end the following:
            ``(8) Special terms for new borrowers on or after july 1, 
        2017.--With respect to any loan made under this part to a new 
        borrower on or after July 1, 2017, and eligible to be repaid 
        pursuant to income contingent repayment, such borrower may 
        repay such loan pursuant to an income contingent repayment plan 
        under the following conditions:
                    ``(A) Notwithstanding any partial hardship 
                requirement for the income contingent repayment plan--
                            ``(i) during any period during which the 
                        borrower's (and the borrower's spouse, if 
                        applicable) adjusted gross income is equal to 
                        or less 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 (42 U.S.C. 
                        9902(2)), the borrower's aggregate monthly 
                        payment for all such loans shall be equal to 
                        $0; and
                            ``(ii) during any period during which the 
                        borrower's (and the borrower's spouse, if 
                        applicable) adjusted gross income exceeds 225 
                        percent of such poverty line, the borrower's 
                        aggregate monthly payment for all such loans 
                        shall be determined in accordance with the 
                        terms and conditions, and borrower benefits, of 
                        such plan.
                    ``(B) The interest on any such loan shall not 
                accrue, or if accrued, shall be paid by the Secretary 
                for the following periods:
                            ``(i) The period described in subparagraph 
                        (A)(i).
                            ``(ii) The 6-month period after the date 
                        the borrower ceases to carry at least one-half 
                        the normal full-time academic workload at an 
                        institution of higher education, as determined 
                        by the institution, and during which the 
                        borrower is not earning any income.''.
    (b) Income-Based Repayment.--Section 493C(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1098e(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) a borrower'' and inserting 
                the following:
            ``(1)(A) a borrower'';
                    (B) by adding ``or'' at the end of subparagraph 
                (A); and
                    (C) by adding at the end the following:
                    ``(B) with respect to any loan made under part D 
                (other than an excepted PLUS loan or excepted 
                consolidation loan) to a new borrower on or after July 
                1, 2017, such borrower may elect--
                            ``(i) during any period during which the 
                        borrower's (and the borrower's spouse, if 
                        applicable) adjusted gross income is equal to 
                        or less 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 (42 U.S.C. 
                        9902(2)), to have the borrower's aggregate 
                        monthly payment for all such loans equal to $0; 
                        and
                            ``(ii) during any period during which the 
                        borrower's (and the borrower's spouse, if 
                        applicable) adjusted gross income exceeds 225 
                        percent of such poverty line, to have the 
                        borrower's aggregate monthly payment for all 
                        such loans not exceed, the lesser of--
                                    ``(I) the result described in 
                                subsection (a)(3)(B) divided by 12; or
                                    ``(II) the monthly amount 
                                calculated under section 455(d)(1)(A), 
                                based on a 10-year repayment period, 
                                when the borrower first made the 
                                election described in this 
                                subsection;''; and
            (2) in paragraph (3)--
                    (A) at the end of subparagraph (A), by striking 
                ``and'';
                    (B) by adding ``and'' at the end of subparagraph 
                (B); and
                    (C) by adding at the end the following:
                    ``(C) shall, on any loan for which payments may be 
                made under paragraph (1)(B), be paid, or be treated as 
                if no interest has accrued, by the Secretary--
                            ``(i) for any period described in paragraph 
                        (1)(B)(i); and
                            ``(ii) for the 6-month period after the 
                        date the borrower ceases to carry at least one-
                        half the normal full-time academic workload at 
                        an institution of higher education, as 
                        determined by the institution, and during which 
                        the borrower is not earning any income;''.
                                 <all>