[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4747 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4747
To carry out an income-contingent repayment program for Federal
Interest Free Education Loans for undergraduate students, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 18, 2019
Mr. Cicilline (for himself, Ms. Schakowsky, Mr. Serrano, and Ms.
Jackson Lee) introduced the following bill; which was referred to the
Committee on Education and Labor
_______________________________________________________________________
A BILL
To carry out an income-contingent repayment program for Federal
Interest Free Education Loans for undergraduate students, 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.
This Act may be cited as the ``Making College More Affordable
Act''.
SEC. 2. DIRECT FEDERAL UNDERGRADUATE LOANS AND REPAYMENT PLAN.
(a) Interest Rates.--Section 455(a) of the Higher Education Act of
1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the
following:
``(4) Undergraduate loans on or after the date of enactment
of the making college more affordable act.--
``(A) In general.--Notwithstanding any other
provision of this Act, a new borrower on or after the
date of enactment of the Making College More Affordable
Act may only borrow a Federal Interest Free Education
Loan for the undergraduate course work being pursued by
such borrower.
``(B) Terms, conditions, and benefits.--A Federal
Interest Free Education Loan shall have the same terms
and conditions, and benefits to borrowers as Federal
Direct Stafford Loans with respect to undergraduate
borrowers, except that--
``(i) a Federal Interest Free Education
Loan shall have an applicable rate of interest
of 3.76 percent for the term of the loan;
``(ii) the aggregate maximum amount of
Federal Interest Free Education Loan that may
be awarded to a borrower shall be $90,000, for
not more than a 4-year academic period;
``(iii) interest on a Federal Interest Free
Education Loan shall only accrue during periods
when a borrower is not earning taxable income
due to professional negligence, professional
incompetence, or malicious action on the part
of the borrower;
``(iv) a borrower may consolidate any loan
under section 428B, or a Federal Direct PLUS
Loan, that is made, insured, or guaranteed on
behalf of such borrower with the Federal
Interest Free Education Loan of such borrower;
``(v) a Federal Interest Free Education
Loan may only be repaid under the income-
contingent repayment plan under subsection (r);
and
``(vi) the Secretary may determine other
terms and conditions, and benefits to borrowers
of Federal Interest Free Education Loan.''.
(b) Income-Contingent Repayment Plan for Undergraduate Loans.--
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is
further amended by adding at the end the following:
``(r) Income-Contingent Repayment Plan for Undergraduate Loans.--
Notwithstanding any other provision of this Act, the Secretary shall
carry out a program under which--
``(1) a borrower of a Federal Interest Free Education
Loan--
``(A) shall have an aggregate monthly payment for
the outstanding balance of principal and interest due
on all such loans automatically withheld from the pre-
tax income of the borrower by the employer of the
borrower in a manner which--
``(i) prohibits employers from using any
information about an employee's outstanding
balance or principal and interest due on such
loans for any purpose of use as an advantage
against the employee;
``(ii) is determined by the Secretary, in
coordination with the heads of other
appropriate Federal agencies (including the
Secretary of the Treasury and the Commissioner
of the Social Security Administration); and
``(iii) is an amount equal to--
``(I) if the borrower's gross
income is less than 337 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)), $0;
``(II) if the borrower's gross
income is equal to or greater than 337
percent, but not more than 841 percent
of such poverty line, 4 percent of the
borrower's gross income;
``(III) if the borrower's gross
income is equal to or greater than 842
percent, but not more than 925 percent
of such poverty line, 5 percent of the
borrower's gross income;
``(IV) if the borrower's gross
income is equal to or greater than 926
percent, but not more than 1,010
percent of such poverty line, 6 percent
of the borrower's gross income;
``(V) if the borrower's gross
income is equal to or greater than
1,011 percent, but not more than 1,094
percent of such poverty line, 7 percent
of the borrower's gross income;
``(VI) if the borrower's gross
income is equal to or greater than
1,095 percent, but not more than 1,178
percent of such poverty line, 8 percent
of the borrower's gross income;
``(VII) if the borrower's gross
income is equal to or greater than
1,179 percent, and 1,262 percent of
such poverty line, 9 percent of the
borrower's gross income; and
``(VIII) if the borrower's gross
income is equal to or greater than
1,263 percent of such poverty line, 10
percent of the borrower's gross income;
and
``(B) may elect to have any payments made under
subparagraph (A) that exceed the amount owed by the
borrower on such loans for a calendar year be refunded
to the borrower or applied to the amount owed by the
borrower on such loans for the succeeding calendar
year;
``(2) the Secretary will cancel any outstanding balance of
principal or interest due on all Federal Interest Free
Education Loans made to a borrower who has made 300 monthly
payments under this subsection; and
``(3) a borrower will be taxed on the amount cancelled
under paragraph (2), which taxes shall be applied to carry out
the Federal Direct Loan program under this part.''.
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