117 HR 8655 IH: Responsible Education Assistance through Loan Reforms Act
U.S. House of Representatives
2022-08-05
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Responsible Education Assistance through Loan Reforms Act
or the Responsible Education Assistance through Loan Reforms Act
. (b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Title I—Limits on secretarial authority
Sec. 101. Limitation on authority of Secretary to propose or issue regulations and executive actions.
Title II—Loan reforms
Part A—Current borrowers
Sec. 201. Income-contingent and income-based repayment plans.
Part B—Loan rehabilitation and loan limits
Sec. 211. Loan rehabilitation.
Sec. 212. Loan limits.
Part C—Repayment terms and conditions for loans made on or after July 1, 2023
Sec. 221. Repayment terms for Federal Direct Consolidation Loans.
Sec. 222. Repayment incentives.
Sec. 223. Repayment plans.
Sec. 224. Public service loan forgiveness.
Sec. 225. Income-based repayment plan.
Sec. 226. Deferment on loans made on or after July 1, 2023.
Part D—Elimination of interest capitalization
Sec. 231. Elimination of interest capitalization.
Title III—Workforce Pell Grants
Sec. 301. Data collection and dissemination related to Workforce Pell.
Sec. 302. Program eligibility for Workforce Pell grants.
Sec. 304. Workforce Pell Grants.
Sec. 305. Accrediting agency determination of eligibility requirements for the Workforce Pell Grants program.
2.Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). <enum>I</enum><header>Limits on secretarial authority</header> <section id="HE12DEE75A3094358ABA94A9B72A96FB4" section-type="subsequent-section"><enum>101.</enum><header>Limitation on authority of Secretary to propose or issue regulations and executive actions</header><text display-inline="no-display-inline">Part G of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>) is amended by inserting after section 492 the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HBE8802E2D1564F55B6F738500B5F145E">
<section id="HFC0C4FBE8750436387FBBC546B43D53A"><enum>492A.</enum><header>Limitation on authority of the Secretary to propose or issue regulations and executive actions</header>
<subsection id="HEE56AE69459E45ED854E1C1D5D57E149"><enum>(a)</enum><header>Draft regulations</header><text display-inline="yes-display-inline">Beginning after the date of enactment of this section, a draft regulation implementing this title (as described in section 492(b)(1)) that is determined by the Secretary to be economically significant shall be subject to the following requirements (regardless of whether negotiated rulemaking occurs):</text> <paragraph id="HCF51B76CE81C4791ACB494C782B0C080"><enum>(1)</enum><text>The Secretary shall determine whether the draft regulation, if implemented, would result in an increase in a subsidy cost resulting from a loan modification.</text></paragraph>
<paragraph id="H5D5D9611426E4540B12DC87B3FCD0146"><enum>(2)</enum><text display-inline="yes-display-inline">If the Secretary determines under paragraph (1) that the draft regulation would result in an increase in a subsidy cost resulting from a loan modification, then the Secretary may take no further action with respect to such regulation. </text></paragraph></subsection> <subsection id="H1B574CC4E56B4582AE310A68C141874E"><enum>(b)</enum><header>Proposed or final regulations and executive actions</header><text display-inline="yes-display-inline">Beginning after the date of enactment of this section, the Secretary may not issue a proposed rule, final regulation, or executive action implementing this title if the Secretary determines that the rule, regulation, or executive action—</text>
<paragraph id="HC47A37097BEA4338A2ED37C5BD608CC6"><enum>(1)</enum><text>is economically significant; and</text></paragraph> <paragraph id="H99CDD59456A34CAC87A5602D1E6018AD"><enum>(2)</enum><text>would result in an increase in a subsidy cost resulting from a loan modification.</text></paragraph></subsection>
<subsection id="H98D6FF60A2314FDBAFB9A423399D1214"><enum>(c)</enum><header>Relationship to other requirements</header><text display-inline="yes-display-inline">The analyses required under subsections (a) and (b) shall be in addition to any other cost analysis required under law for a regulation implementing this title, including any cost analysis that may be required pursuant to Executive Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and review), Executive Order 13563 (76 Fed. Reg. 3821; relating to improving regulation and regulatory review), or any related or successor orders.</text></subsection> <subsection id="H15C483E1530943268FD83D30A923B284"><enum>(d)</enum><header>Definition</header><text display-inline="yes-display-inline">In this section, the term <term>economically significant</term>, when used with respect to a draft, proposed, or final regulation or executive action, means that the regulation or executive action is likely, as determined by the Secretary—</text>
<paragraph id="H767985008B554AA5BD72B6F54CE1F1B7"><enum>(1)</enum><text>to have an annual effect on the economy of $100,000,000 or more; or</text></paragraph> <paragraph id="HBF244275700443B6B7E5598DE5E952F2"><enum>(2)</enum><text>adversely to affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities.<italic></italic></text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<enum>II</enum><header>Loan reforms</header>
<part id="H231575CB4A7F4767999DD564369B64B5"><enum>A</enum><header>Current borrowers</header>
<section id="HDF3FB27B847A4FA0AF46F897A8E694A6" commented="no"><enum>201.</enum><header>Income-contingent and income-based repayment plans</header>
<subsection id="H4B261D3B9CD749C7A3AFB87CEB76BB15" commented="no"><enum>(a)</enum><header>Income-Contingent repayment</header>
<paragraph id="H49C4E1B50E104725BA66F40AF61F2533"><enum>(1)</enum><header>Excessive interest cap</header><text>Section 455(e) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="H8BA3D044FF8F476789789B4032B1878E" display-inline="no-display-inline"> <paragraph id="H1FA1211C09344F1C83245F2EA8331CE1" commented="no"><enum>(9)</enum><header>Excessive interest cap</header><text display-inline="yes-display-inline">The Secretary shall cancel any outstanding balance due on all loans made under this part (other than an excepted PLUS Loan or an excepted Consolidation Loan as such terms are defined in section 493C) to a borrower—</text>
<subparagraph id="HCEFFF194EC234541B9053F2CFC9ED165" commented="no"><enum>(A)</enum><text>for whom an income contingent repayment plan under this subsection is in effect, without regard to the period of time for which such plan has been so in effect for such borrower;</text></subparagraph> <subparagraph id="H1972D6914DD84161A37FC88C017581D3"><enum>(B)</enum><text display-inline="yes-display-inline">who, in the absence of this paragraph, would not yet be eligible for loan cancellation under such plan; and</text></subparagraph>
<subparagraph id="H50C5D5F43DA5479B8DB12DF24E08B85E" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">who has repaid, pursuant to paragraph (7)—</text> <clause id="H14FD5E7CB57C4044AEA6D0C0111884E5" commented="no"><enum>(i)</enum> <subclause commented="no" display-inline="yes-display-inline" id="HE72CE60653604512813B36FF844D0BF6"><enum>(I)</enum><text>subject to subclause (II), an amount on such loans that is equal to the total amount of principal and interest that the borrower would have repaid under a standard repayment plan under section 455(d)(1)(A), based on a 10-year repayment period, when the borrower entered repayment on such loans; or</text></subclause>
<subclause id="H6F99CE5D51704A1CA15F0091628D176C" indent="up1" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a Federal Direct Consolidation Loan, an amount on such loan that is equal to the total amount of principal and interest that the borrower would have repaid under the repayment schedule established for such loan under section 428C(c)(2) on the date on which such loan was made; and </text></subclause></clause> <clause id="HD4AAE0FE0F9E41FA98C8ED73EBE2E2B6" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">an amount equal to the amount of any unpaid interest that has accrued, but was not included in the calculation of the total amount principal and interest that would have been repaid under the standard repayment plan or schedule described in clause (i)—</text>
<subclause id="HD2FA9129B3024E159F3AFF5015C93B35" commented="no"><enum>(I)</enum><text>during any deferment period described in clause (i) or (ii) of section 455(f)(2)(A); and</text></subclause> <subclause id="HC813927105364BF2B4C8D249A93B22B3" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">during any forbearance period while serving in a medical or dental internship or residency program as described in section 428(c)(3)(A)(i)(I); and</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H988AC402185F4B2A842B6847D9A48FD1"><enum>(2)</enum><header>Excessive interest cap for distressed borrowers</header><text>Section 455(e) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)</external-xref>) is further amended by adding at the end the following: </text> <quoted-block style="OLC" id="H6E6CFF3779D54FE89157EA0997D86D3D" display-inline="no-display-inline"> <paragraph id="HDC7CC20D3B7740C6809CCFE5BCAC6571"><enum>(10)</enum><header>Excessive interest cap for distressed borrowers</header> <subparagraph id="HDC2D00E1BBA845C78C26F2370DF3F3BB"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall cancel the balance of interest due (in accordance with subparagraph (B)) on any loan made under this part (other than an excepted PLUS or excepted consolidation loan (as defined in section 493C)) to a borrower—</text>
<clause id="H9D8A618D40FE4B45826B0AA8A777C00C"><enum>(i)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="HED426DE7AFD4499D94B5E52A63AE6485"><enum>(I)</enum><text>who has been in repayment for not less than a 10-year period on such loan; or</text></subclause> <subclause id="H3E5014FD89094E3D8E025430BD570CEE" indent="up1"><enum>(II)</enum><text>in the case of a Federal Direct Consolidation Loan, who has been in repayment on such loan for not less than the repayment period under the repayment schedule established for such loan under section 428C(c)(2) on the date on which such loan was made; and</text></subclause></clause>
<clause id="H9FE2E397E69749E99A429B31D72CB01C"><enum>(ii)</enum><text display-inline="yes-display-inline">whose first monthly payment on such loan pursuant to paragraph (7) that is not less than the full amount due on such loan for such month, after the date of enactment of the REAL Reforms Act, is insufficient to cover the interest that has accrued on such loan for such month, and results in higher balance of principal and interest on such loan.</text></clause></subparagraph> <subparagraph id="H32E93C8AAC43461298173954B7CD5998"><enum>(B)</enum><header>Amount of interest cancellation</header><text display-inline="yes-display-inline">The Secretary shall cancel the obligation to repay the balance of interest due on such loan as of the time of the payment described in subparagraph (A)(ii) on such loan.</text></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HEA3D774547654086866459A7D0249923" commented="no"><enum>(b)</enum><header>Income-Based repayment</header>
<paragraph id="H188137676B4946848C8EB672E3A4E6A1"><enum>(1)</enum><header>Excessive interest cap</header><text>Section 493C(b)(7)(B) (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)(7)(B)</external-xref>) is amended—</text> <subparagraph id="H625DA204DE3A416F962BC2CF097E1EF6" commented="no"><enum>(A)</enum><text>by redesignating clauses (i) through (v) as subclauses (I) through (V), respectively, and moving the margins accordingly;</text></subparagraph>
<subparagraph id="HFD6365B13A3A4646BB7356EAF9979CF8" commented="no"><enum>(B)</enum><text>by striking the following: </text> <quoted-block style="OLC" id="H6B6D57E9F93C4E05852A08290F0D9757" display-inline="no-display-inline"> <subparagraph id="H7695CB28A03B42B188ECBD2695C80D80" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for a period </text></subparagraph><after-quoted-block>; and inserting the following: </after-quoted-block></quoted-block>
<quoted-block style="OLC" id="HA393EED4444A4FECA4CC9E8FE28B72DC" display-inline="no-display-inline">
<subparagraph id="H31612815255748DC9E475E80AEAC9C2C" commented="no"><enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H70DDE763DC3E4AA597CABF79DAAC6918"><enum>(i)</enum><text display-inline="yes-display-inline">for a period</text></clause></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph> <subparagraph id="HEF929D9475F240B8AF73DD9D2823E62E" commented="no"><enum>(C)</enum><text>by inserting <quote>or</quote> at the end of clause (i)(V), as so redesignated; and</text></subparagraph>
<subparagraph id="HD640579D7F4A46FFA1BABC1D55D24462" commented="no"><enum>(D)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H850AF039B10944F39BF58B8D0FD331E8" display-inline="no-display-inline"> <clause id="HD81F0ECDCFDA4ED0B354423400BEE534" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">in the absence of this clause, would not yet be eligible for loan cancellation or repayment under this paragraph, and has repaid, pursuant to clause (i)—</text>
<subclause id="H699DA2D937B9449091A703846BB623AD" commented="no"><enum>(I)</enum>
<item commented="no" display-inline="yes-display-inline" id="HE19C7CEA9D8D4CBB89C104A639763AAB"><enum>(aa)</enum><text>subject to item (bb), an amount on such loans that is equal to the total amount of principal and interest that the borrower would have repaid under a standard repayment plan under section 428(b)(9)(A)(i) or section 455(d)(1)(A), based on a 10-year repayment period, when the borrower entered repayment on such loans; or</text></item> <item id="H337EF76A37474680B4A186AC310DFF18" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">in the case of a Federal Direct Consolidation Loan or a loan made under section 428C, an amount on such loan that is equal to the total amount of principal and interest that the borrower would have repaid under the repayment schedule established for such loan under section 428C(c)(2) on the date on which such loan was made; and</text></item></subclause>
<subclause id="H6AA68CABB42F4D5091C0BAB398EA2799" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text display-inline="yes-display-inline">an amount equal to the amount of any unpaid interest that has accrued, but was not included in the calculation of the total amount principal and interest that would have been repaid under the standard repayment plan or schedule described in subclause (I)—</text> <item id="HC704691E4C03453FA3C77B8BF294F09B" commented="no"><enum>(aa)</enum><text>during any deferment period described in section 427(a)(2)(C)(i) or 428(b)(1)(M)(i), or clause (i) or (ii) of section 455(f)(2)(A); and </text></item>
<item id="H53354B7ED82447E688619410477E4E9B" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">during any forbearance period while serving in a medical or dental internship or residency program as described in section 428(c)(3)(A)(i)(I);</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H81B3146C7DA84871ACC5F32D927759ED"><enum>(2)</enum><header>Clarification of repayment of part B loans</header><text display-inline="yes-display-inline">Section 493C(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)</external-xref>) is further amended—</text>
<subparagraph id="HB8A171C04630432D9BEFFEC94FF3CBC4"><enum>(A)</enum><text>by striking <quote>and</quote> at end of paragraph (8);</text></subparagraph> <subparagraph id="H28822C19004541669053B22C8F34A8DB"><enum>(B)</enum><text>by striking the period at the end of paragraph (9); and</text></subparagraph>
<subparagraph id="HDDB32F7C41A440D087A7E63D0C99D917"><enum>(C)</enum><text>by adding the end the following: </text> <quoted-block style="OLC" id="H4066EB03B863479099133A0F91F4721A" display-inline="no-display-inline"> <paragraph id="H82F42563A5BA4303B69DB022709EDE59"><enum>(10)</enum><text display-inline="yes-display-inline">in repaying under clause (ii) of paragraph (7)(B) the outstanding balance of principal and interest due on a loan made under part B to a borrower who meets the requirements of such clause (ii), or in repaying under subsection (g) the balance of interest due on a loan made under part B to a borrower who meets the requirements of such subsection (g), the Secretary shall—</text>
<subparagraph id="HFDFF046175C840D684DBC632FF45FB58"><enum>(A)</enum><text display-inline="yes-display-inline">enter into an agreement with the holder of such loan (or, if the holder acts as an eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan) for the purpose of assuming the repayment obligations of the borrower in accordance with subparagraph (B), except that the Secretary shall not assign to the United States the right to such loan;</text></subparagraph> <subparagraph id="H37D9094F546047EB9B29F46B3F5BC08B"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="H1D27026A9B8E46EAABE3C1773D3A72F9"><enum>(i)</enum><text>in the case of a repayment under paragraph (7)(B)(ii), assume the obligation of the borrower to repay the holder of such loan (or, if the holder acts as an eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan) the total amount of principal and interest remaining to be repaid on such loan (after taking into account the amounts repaid by the borrower under paragraph (7)(B)(ii) and the Secretary under subsection (g), if applicable) according to the terms and conditions, including the repayment schedule, that were in effect with respect to such loan on the day before the Secretary assumes such obligation; or</text></clause>
<clause id="HE71396DBFCE441E29A15225F66FC7C7D" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a repayment under subsection (g), assume the obligation of the borrower to repay the holder of such loan (or, if the holder acts as an eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan) the balance of interest due on such loan as of the time of the payment described in subsection (g)(1)(B) on such loan according to the terms and conditions, including the repayment schedule, that were in effect with respect to such loan on the day before the Secretary assumes such obligation; and</text></clause></subparagraph> <subparagraph id="H383F7ECB80E740D9A1D0FC9E4DA715D1"><enum>(C)</enum><text display-inline="yes-display-inline">ensure that the holder of such loan (or, if the holder acts as an eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan) shall, upon entering into an agreement described in subparagraph (A) with respect to a loan of a borrower, reports to consumer reporting agencies that—</text>
<clause id="H71D32997D50B43219D79FA539DC3598E"><enum>(i)</enum><text>in the case of a repayment under paragraph (7)(B)(ii), the borrower’s liability on such loan has been discharged; and</text></clause> <clause id="HABFB79EDA18E4693B44B2E64DB3A24C6"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a repayment under subsection (g), the borrower’s liability has been discharged with respect to the balance of the interest due on such loan as of the time of the payment described in subsection (g)(1)(B) on such loan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H932E4F7A66CE45638C7C90E1EF069B75"><enum>(3)</enum><header>Rules of construction</header><text display-inline="yes-display-inline">Section 493C (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="HB5267B7448174027AA5ADF88B56CC920" display-inline="no-display-inline"> <subsection id="HC0D96595C7EB453AB2AB3735222D2FAD"><enum>(f)</enum><header>Rules of construction</header><text display-inline="yes-display-inline">Nothing in subsection (b)(10) shall be construed to authorize the Secretary to—</text>
<paragraph id="H035F7B14F60748D98F25931CA7F752A3"><enum>(1)</enum><text>revoke the rights to a special allowance under section 438 of the holder (or, if the holder acts as an eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan) of the loans being repaid by the Secretary under subsection (b)(10); </text></paragraph> <paragraph id="H0397243FBD504978BE3941059666FF65"><enum>(2)</enum><text>prepay such loan ahead of repayment schedule with respect to such loans described in subparagraph (B) of subsection (b)(10); or</text></paragraph>
<paragraph id="H08FBCB4B9CA0405ABBB2EFA99562560F"><enum>(3)</enum><text>use any authority or take any actions beyond what is authorized explicitly in subsection (b)(10).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HD18DF2B95B1447C08C5C1A6734BD0A76"><enum>(4)</enum><header>Excessive interest cap for distressed borrowers</header><text>Section 493C (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e</external-xref>) is further amended by adding at the end the following: </text>
<quoted-block style="OLC" id="H38CF8ECB786C45C5962AB30264186231" display-inline="no-display-inline">
<subsection id="H97357F019B2747488059E90AE151BDB2"><enum>(g)</enum><header>Excessive interest cap for distressed borrowers</header>
<paragraph id="H81C340EE8EE04E7A86E3BCDC5EC0DC65"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall repay or cancel the balance of interest due (in accordance with paragraph (2)) on any loan made under part B or D (other than an excepted PLUS or excepted consolidation loan) to a borrower—</text> <subparagraph id="H70F5E455B80D493B846C869075EA9861"><enum>(A)</enum> <clause commented="no" display-inline="yes-display-inline" id="H95010D911E934F4D8A0EB4EEE418E92B"><enum>(i)</enum><text>who has been in repayment for not less than a 10-year period on such loan; or</text></clause>
<clause id="H1E6B68BAC24C47A79DB07F5307F66D56" indent="up1"><enum>(ii)</enum><text>in the case of a Federal Direct Consolidation Loan or a consolidation loan under section 428C, who has been in repayment on such loan for not less than the repayment period under the repayment schedule established for such loan under section 428C(c)(2) on the date on which such loan was made; and</text></clause></subparagraph> <subparagraph id="H7A98B1B7079042B5A8FE78F06D631B58"><enum>(B)</enum><text display-inline="yes-display-inline">whose first monthly payment on such loan pursuant to subsection (b)(7) that is not less than the full amount due on such loan for such month, after the date of enactment of the REAL Reforms Act, is insufficient to cover the interest that has accrued on such loan for such month, and results in higher balance of principal and interest on such loan.</text></subparagraph></paragraph>
<paragraph id="HCA0C7066F59248918FD8267244C2130A"><enum>(2)</enum><header>Amount of interest repayment or cancellation</header><text display-inline="yes-display-inline">The Secretary shall repay or cancel the obligation to repay the balance of interest due on such loan as of the time of the payment described in paragraph (1)(B) on such loan.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></part> <part id="H10838CAF955244B5968EA3235E263743"><enum>B</enum><header>Loan rehabilitation and loan limits</header> <section id="H1152766E3AFF47589D16347D49D3E7A6"><enum>211.</enum><header>Loan rehabilitation</header> <subsection id="H788FDDCE81384A119A8BD08D4D48B6D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 428F(a)(5) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6</external-xref>) is amended by striking <quote>one time</quote> and inserting <quote>two times</quote>.</text></subsection>
<subsection id="H10336AA02B954B4DB2E2ED8078A43B86"><enum>(b)</enum><header>Application of amendment</header><text>The amendment made by this section shall apply to any borrower of a loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 before, on, or after the date of enactment of this Act.</text></subsection></section> <section id="H52AC6E01A0CE4152BF82ACAAAE905362"><enum>212.</enum><header>Loan limits</header> <subsection id="HBA9E3F0BA47444819691D6A95A38E2E6"><enum>(a)</enum><header>Graduate and professional students</header> <paragraph id="HDA573B1DE53B42748167230B31B1E5F6"><enum>(1)</enum><header>Aggregate and annual limits</header><text>Section 455(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is amended—</text>
<subparagraph id="H31991A6CE5C94423AC33446540C275CB"><enum>(A)</enum><text>in paragraph (3)—</text> <clause id="H77C2B263D8944D4A9C2A5C8358EEDACC"><enum>(i)</enum><text>in subparagraph (A)(ii), by inserting before the period at the end the following: <quote>, except that for any period of instruction beginning on or after July 1, 2023, and subject to subparagraph (D), such maximum annual amount may not exceed $25,000</quote>; and</text></clause>
<clause id="HA60639296E234677A81B801E33A94787"><enum>(ii)</enum><text>by adding at the end the following: </text> <quoted-block style="OLC" id="H38B1C4FF8B344F7FAAED66ABBE466E3C" display-inline="no-display-inline"> <subparagraph id="H879558421F6E48AA9E863B0522268F04" commented="no"><enum>(C)</enum><header>Aggregate limits</header><text display-inline="yes-display-inline">Subject to subparagraph (D), for any period of instruction beginning on or after July 1, 2023, the maximum aggregate amount of loans under this part that a graduate or professional student may borrow for enrollment in a program of graduate or professional education shall be $100,000.</text></subparagraph>
<subparagraph id="HA94471794CB241E1B79F9DBB88D71488" commented="no"><enum>(D)</enum><header>Exception for certain students</header><text display-inline="yes-display-inline">The annual and aggregate limits described in subparagraphs (A)(ii) and (C) for any period of instruction beginning on or after July 1, 2023, shall not apply to any student enrolled in a program of study as of June 30, 2023, or any loans made under this part to (or on behalf of) such student, during the period required for the completion of such program.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H104083EE7BFE4C0BBE04A4A3A1D742E1" commented="no"><enum>(2)</enum><header>Termination of authority to make Federal Direct PLUS Loans to graduate and professional students</header><text>Section 455(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following: </text>
<quoted-block style="OLC" id="HBFA1B3248F9C45A3B9E92DE113F73825" display-inline="no-display-inline">
<paragraph id="H3FF9C79ACBEC435DA3DC1F55A0F0321D" commented="no"><enum>(4)</enum><header>Termination of authority to make Federal Direct PLUS Loans to graduate and professional students</header>
<subparagraph id="H238DE920FA174C83AB1DCC7F1334CCEA"><enum>(A)</enum><header>In general</header><text>Notwithstanding any provision of this part or part B, and except as otherwise provided in subparagraph (B), for any period of instruction beginning on or after July 1, 2023, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part for enrollment in a program of graduate or professional education.</text></subparagraph> <subparagraph id="H69E4A92888C847E5BF108A4C735CEA8B"><enum>(B)</enum><header>Exception for certain students</header><text>This paragraph shall not apply to any student enrolled in a program of study at an eligible institution as of June 30, 2023, or any loans made under this part to (or on behalf of) such student, during the period required for the completion of such program. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HAC1C40FBEA0C4E46979A74A8DF05238A"><enum>(b)</enum><header>Institutionally determined limits</header><text display-inline="yes-display-inline">Section 455(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)</external-xref>) is further amended by adding at the end the following: </text> <quoted-block style="OLC" id="H0CCDD43D5FBC463A988DC3FA2DBA0057" display-inline="no-display-inline"> <paragraph id="H2D77C5EA8E03481886AEE967F4F3DE8D" commented="no"><enum>(5)</enum><header>Institutionally determined limits</header> <subparagraph id="H774CA56B5EE44163BF29D5801C2D7FA0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this subsection, an eligible institution (at the discretion of a financial aid administrator at the institution) may prorate or limit the amount of a loan any student (other than a student described in subparagraph (D)) who is enrolled in a program of study for a period of instruction beginning on or after July 1, 2023, at that institution, may borrow under this part for an academic year—</text>
<clause id="H3CBBB4262EA644EFBEE4844F4ADCF5D3" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">if the institution can reasonably demonstrate that student debt levels are or would be excessive for such program, based on—</text> <subclause id="HADB3CCEBAC5642A99DDE3979289CE728"><enum>(I)</enum><text>the most recently available data from the Bureau of Labor Statistics for the average starting salary in the region in which the institution is located for typical occupations pursued by graduates of such program; or</text></subclause>
<subclause id="H2550B40917A749DEA3BF9A9DE4563643"><enum>(II)</enum><text display-inline="yes-display-inline">the most recently available data from the College Scorecard (or successor website) on—</text> <item id="H5235C38290E24B91B2422E49CD8D3CED"><enum>(aa)</enum><text>the median earnings of students who complete such program; and</text></item>
<item id="HB8DA4611D272469FA31735CCB73A15D9"><enum>(bb)</enum><text>the median debt owed, and the repayment rate, on loans made under this part, of such students;</text></item></subclause></clause> <clause id="H40288B24B6A44EA08AC2A48FF1A4A988"><enum>(ii)</enum><text display-inline="yes-display-inline">in a case in which the student is enrolled on a less than full-time basis or the student is enrolled for less than the period of enrollment to which the annual loan limit applies under this subsection, based on the student’s enrollment status;</text></clause>
<clause id="H264250E942B2498F8EBD84259A4FC69B"><enum>(iii)</enum><text>based on the credential level (such as a degree, certificate, or other recognized educational credential) that the student would attain upon completion of such program; or</text></clause> <clause id="HF35CE2D48EBA4E33BD1865D83EB57A17"><enum>(iv)</enum><text>based on the year of the program for which the student is seeking such loan.</text></clause></subparagraph>
<subparagraph id="H302877C9D89C4A6091CADA953D0CA8DA"><enum>(B)</enum><header>Application to all students</header><text>Any proration or limiting of loan amounts under subparagraph (A) shall be applied in the same manner to all students enrolled in the institution or program of study.</text></subparagraph> <subparagraph id="HB17FFD80A31F45D999CFEA383BC74763" commented="no"><enum>(C)</enum><header>Increases for Individual Students</header><text display-inline="yes-display-inline">Upon the request of a student whose loan amount for an academic year has been prorated or limited under subparagraph (A), an eligible institution (at the discretion of the financial aid administrator at the institution) may increase such loan amount to an amount not exceeding the annual loan amount applicable to such student under this paragraph for such academic year if such student demonstrates special circumstances or exceptional need.</text></subparagraph>
<subparagraph id="HF0E5F7BDA4734236908DA1279D007579"><enum>(D)</enum><header>Exception for certain students</header><text>This paragraph shall not apply to any student enrolled in a program of study at an eligible institution as of June 30, 2023, or any loans made under this part to (or on behalf of) such student, during the period required for the completion of such program. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></part> <part id="H60CE6A15E5834F97832DAC4B4504438C"><enum>C</enum><header>Repayment terms and conditions for loans made on or after July 1, 2023 </header> <section id="H81B8171EE31A4F3AB7DB8934F6AC49B7"><enum>221.</enum><header>Repayment terms for Federal Direct Consolidation Loans</header><text display-inline="no-display-inline">Section 428C(c) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3(c)</external-xref>) is amended—</text>
<paragraph id="HAB24BACD6B63436CA2B6EAB643F7005A"><enum>(1)</enum><text>in paragraph (2)(A), in the first sentence of subparagraph (A), by inserting <quote>, including income-based repayment schedules under section 460A, in the case of Federal Direct Consolidation Loans made on or after July 1, 2023</quote> after <quote>income-based repayment schedules</quote>; and</text></paragraph> <paragraph id="HF007DDADCAFF429A8DD1B2D0151E5DED"><enum>(2)</enum><text>in paragraph (3)—</text>
<subparagraph id="HAFF957C705204048BBE5B89BEE8762DD"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or an income-based repayment schedule under section 460A</quote> after <quote>section 493C</quote>; and </text></subparagraph> <subparagraph id="H1D12B3A585C945B78847B89C389922AD"><enum>(B)</enum><text>in subparagraph (C), by inserting <quote>or an income-based repayment schedule under section 460A</quote> after <quote>section 493C</quote>. </text></subparagraph></paragraph></section>
<section id="H0A1FF951B7874185967AE762B178325A" commented="no"><enum>222.</enum><header>Repayment incentives</header>
<subsection id="HB49A721BFBF34FAC92C343D5BD200613"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 455(b)(9)(C) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(b)(9)(C)</external-xref>) is amended by inserting <quote>(which in the case of a loan for which the first disbursement of principal is made on or after July 1, 2023, may not exceed than 0.25 percentage points)</quote> after <quote>interest rate reduction</quote>.</text></subsection> <subsection id="H65B7B98BAA504793A9FEB3B64642365F"><enum>(b)</enum><header>Application of amendment</header><text>The amendment made by this section shall not apply to any borrower who is a student enrolled in a program of study at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>)) as of June 30, 2023, or any loans made under 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>) to (or on behalf of) such student, during the period required for the completion of such program. </text></subsection></section>
<section id="HCBA2D65E36254FC3997C30E55BD83172"><enum>223.</enum><header>Repayment plans</header><text display-inline="no-display-inline">Section 455(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="HDB872B2194944963A3D664FA727A4102" display-inline="no-display-inline"> <paragraph id="HBFC2D0707DD04FD8994BBC2C0A2CE9BE"><enum>(6)</enum><header>Repayment plans for loans made on or after July 1, 2023</header> <subparagraph id="H28BCDE39A87D443AB6397243FC9B0BFA"><enum>(A)</enum><header>Design and selection</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1) and except as provided in subparagraph (E), the Secretary shall offer a borrower of a loan made under this part on or after July 1, 2023, two plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose—</text>
<clause id="H097AE5081B0E489BB5B1F707B77AFF23"><enum>(i)</enum><text>a standard repayment plan with a fixed monthly repayment amount paid over a fixed period of time, not to exceed 10 years; or</text></clause> <clause id="H145DF596325646F2B7C4E6D212417A12"><enum>(ii)</enum><text>an income-based repayment plan under section 460A.</text></clause></subparagraph>
<subparagraph id="HBB51DF99A6CF4D57BC8E2127A2CA9842"><enum>(B)</enum><header>Selection by Secretary</header><text display-inline="yes-display-inline">If such borrower does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the repayment plan described in subparagraph (A)(i).</text></subparagraph> <subparagraph id="HEF81AA72DA094A6897CD8E6F49C59D1F"><enum>(C)</enum><header>Changes in selection</header> <clause id="H88824263E50148FF9E4B27CEC61A4CC4"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to clause (ii), a borrower may change the borrower’s selection of a repayment plan under subparagraph (A), or the Secretary’s selection of a plan for the borrower under subparagraph (B), as the case may be, under such terms and conditions as may be established by the Secretary, except that the Secretary may not establish any terms or conditions with respect to whether a borrower may change the borrower’s repayment plan. Nothing in this subsection shall prohibit the Secretary from encouraging struggling borrowers from enrolling in the income-based repayment plan under section 460A. </text></clause>
<clause id="H8D2B98F1D579495C8D54D87506E248B2"><enum>(ii)</enum><header>Same repayment plan required</header><text display-inline="yes-display-inline">All loans made under this part on or after July 1, 2023, to a borrower shall be repaid under the same repayment plan under subparagraph (A), except that the borrower may repay an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 493C(a)) separately from other loans made under this part to the borrower. </text></clause></subparagraph> <subparagraph id="H713EA3EE7C0B4A0BA5516D37AA1F96D7"><enum>(D)</enum><header>Repayment after default</header><text display-inline="yes-display-inline">The Secretary may require a borrower who has defaulted on a loan made under this part on or after July 1, 2023, to—</text>
<clause id="H06EDAB14446A4D6F93F571A2BE5E19AF"><enum>(i)</enum><text>pay all reasonable collection costs associated with such loan; and</text></clause> <clause id="H5DACA875DDDA402F9AF5670383041D99"><enum>(ii)</enum><text>repay the loan pursuant to the income-based repayment plan under section 460A.</text></clause></subparagraph>
<subparagraph id="H0E6BD7790A974C05BA37C231E28C9CE0"><enum>(E)</enum><header>Exception for certain borrowers</header><text display-inline="yes-display-inline">This paragraph shall not apply to any borrower who is student who is enrolled in a program of study at an institution of higher education as of June 30, 2023, or any loans made to (or on behalf of) such borrower, during the period required for the completion of such program. </text></subparagraph> <subparagraph id="H6030ED439B214571AA42FD434E35E8EA" commented="no"><enum>(F)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this paragraph shall be construed to authorize, with respect to a borrower of loans made under this part on or after July 1, 2023—</text>
<clause id="H847DF15028684EE2B97BFC195861E24B" commented="no"><enum>(i)</enum><text>eligibility for a repayment plan that is not described in clause (i) or (ii) of subparagraph (A); or</text></clause> <clause id="H434B011A522940E2A6CEFB8BB1BA781E" commented="no"><enum>(ii)</enum><text>the Secretary to—</text>
<subclause id="H494913D33CE445B19BF057A1DD32DC3A" commented="no"><enum>(I)</enum><text>carry out a repayment plan that is not described in such clause (i) or (ii); or</text></subclause> <subclause id="HB24CC735107C41FDB477745949261CF8" commented="no"><enum>(II)</enum><text>modify a repayment plan that is described in such clause (i) or (ii).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></section>
<section id="HC1A16C8A13464091B9A11776BC55A7AE" commented="no"><enum>224.</enum><header>Public service loan forgiveness</header>
<subsection id="HCB01867209DD4579AE6992FC14DE4C1D" commented="no"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 455(m)(3)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)(3)(A)</external-xref>) is amended by inserting before the period at the end the following: <quote>that was made before July 1, 2023</quote>.</text></subsection> <subsection id="HF1957518637042E89F37EA3AD4CD84A3" commented="no"><enum>(b)</enum><header>Application of amendment</header><text>The amendment made by this section shall not apply to any borrower who is a student enrolled in a program of study at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>)) as of June 30, 2023, or any loans made under 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>) to (or on behalf of) such student, during the period required for the completion of such program. </text></subsection></section>
<section id="H1093ABC2E77C458BB06EC5160D83B8A0"><enum>225.</enum><header>Income-based repayment plan</header>
<subsection id="HEB23AE2D54A44D78A4CC3FEEB9C7C0CC"><enum>(a)</enum><header>Establishment of new IBR</header><text display-inline="yes-display-inline">Part D of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e et seq.</external-xref>) is further amended by adding at the end the following: </text> <quoted-block style="OLC" id="HFBC8CB8ED1534BDC920EBFC87B6B721F" display-inline="no-display-inline"> <section id="H9FFE5F69810044029ACAE7FA7354466E"><enum>460A.</enum><header>Income-based repayment program</header> <subsection id="H08023F521E8E44B5816A380AB81D07B5"><enum>(a)</enum><header>In general</header><text>Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—</text>
<paragraph id="H198B2B3A6A0F4CF0B1FB0F1077E7768B"><enum>(1)</enum><text display-inline="yes-display-inline">a borrower (other than a borrower described in section 455(d)(6)(E)) of a loan made under this part on or after July 1, 2023, may elect to have the borrower’s aggregate monthly payment for all such loans (other than an excepted PLUS Loan or excepted Consolidation Loan) made to the borrower—</text> <subparagraph id="H7D0B0DC5FA08456DAF09A7A1257606FD"><enum>(A)</enum><text>not to exceed the result obtained by dividing by 12, 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—</text>
<clause id="H191C8E460BD64A05B737F68EECBA3160"><enum>(i)</enum><text>the adjusted gross income of the borrower or, if the borrower is married and files a Federal income tax return jointly with or separately from the borrower’s spouse, the adjusted gross income of the borrower and the borrower’s spouse; exceeds</text></clause> <clause id="HE020EF0080914244B96A90C8F7C4CAFA"><enum>(ii)</enum><text>150 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>); and</text></clause></subparagraph>
<subparagraph id="H5E27BF5DDE8D481891F4EEF278A6D479"><enum>(B)</enum><text>not to be less than $25;</text></subparagraph></paragraph> <paragraph id="HE26D6505289849A5A97D342C1F8DF6CE"><enum>(2)</enum><text>the Secretary shall apply the borrower’s monthly payment under this section first toward interest due on such a loan, next toward any fees due on the loan, and then toward the principal of the loan;</text></paragraph>
<paragraph id="HC804A7C41EB643249A45527C56454E55"><enum>(3)</enum><text>any principal due and not paid under paragraph (2) shall be deferred;</text></paragraph> <paragraph id="H3106FDEF4B7E45CD88797360F4362662"><enum>(4)</enum><text>the amount of time the borrower makes monthly payments under paragraph (1) may exceed 10 years;</text></paragraph>
<paragraph id="HA1F998AC3B6A4C549AB26861A5ACCE4A"><enum>(5)</enum><text display-inline="yes-display-inline">the Secretary shall cancel any outstanding balance due on all loans made on or after July 1, 2023, under this part (other than an excepted PLUS Loan or an excepted Consolidation Loan) to the borrower— </text> <subparagraph id="HC284B11C7E76400F89F6681725378EFC"><enum>(A)</enum><text>who, at any time, elected to participate in income-based repayment under paragraph (1);</text></subparagraph>
<subparagraph id="H02D636022A274CCA88CC94F8DC614A90"><enum>(B)</enum><text>whose final monthly payment for such loans prior to the loan cancellation under this paragraph was made under such income-based repayment; and</text></subparagraph> <subparagraph id="H9A4408D133ED4643A32D866FDAF76561" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">who has repaid, pursuant to income-based repayment under paragraph (1), a standard repayment plan under section 455(d)(6)(A)(i), or a combination, or in the case of consolidation loans, a repayment schedule described in clause (i)(II)—</text>
<clause id="HC92B2BC6B195420E8F17A368E888C626" commented="no"><enum>(i)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="H2FDB981A30BB4D0982405285B56C2676"><enum>(I)</enum><text>except as otherwise provided in subclause (II), an amount on such loans that is equal to the total amount of principal and interest that the borrower would have repaid under a standard repayment plan under section 455(d)(6)(A)(i), based on a 10-year repayment period, when the borrower entered repayment on such loans; or</text></subclause> <subclause id="HD7713E0B61114441AEBF06E42A3CB17B" indent="up1" commented="no"><enum>(II)</enum><text>in the case of a Federal Direct Consolidation Loan, an amount on such loan that is equal to the total amount of principal and interest that the borrower would have repaid under the repayment schedule established for such loan under section 428C(c)(2) on the date on which such loan was made; and </text></subclause></clause>
<clause id="H74449FFB9FB349D2B73475E2794728B5" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">an amount equal to the amount of any unpaid interest that has accrued, but was not included in the calculation of the total amount principal and interest that would have been repaid under the standard repayment plan or schedule described in clause (i), during any period of deferment under subparagraph (A), (B), or (F) of section 460B(b)(1); and</text></clause></subparagraph></paragraph> <paragraph id="H3783014847974F21810EFD6862E978C7"><enum>(6)</enum><text display-inline="yes-display-inline">a borrower who is repaying a loan made under this part pursuant to income-based repayment under paragraph (1) may elect, at any time, to terminate repayment pursuant to such income-based repayment and repay such loan under the standard repayment plan.</text></paragraph></subsection>
<subsection id="H15D45DD9B06A44BEBC855E330485A6B6"><enum>(b)</enum><header>Eligibility determinations</header><text display-inline="yes-display-inline">The Secretary shall establish and implement with respect to any borrower who chooses to repay a loan made under this part pursuant to income-based repayment under this section procedures to—</text> <paragraph id="H724EBB89E9ED4C728CD56D88F6DC84DA"><enum>(1)</enum><text>use 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 without further action by the borrower; </text></paragraph>
<paragraph id="HB8904F69C8144F0F8BA5F9A37E42CBA9"><enum>(2)</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 determine the repayment obligation of the borrower (or withdraw from the repayment plan under this subsection); and </text></paragraph> <paragraph id="HDDEFCD7089734730AE7C1C1F6C2A3817"><enum>(3)</enum><text>provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower.</text></paragraph></subsection>
<subsection id="H03CC0297FCA74D549015506D83C367D6"><enum>(c)</enum><header>Notification to borrowers</header><text>The Secretary shall establish procedures under which a borrower of a loan made under this part who chooses to repay such loan pursuant to income-based repayment under this section is notified of the terms and conditions of such plan, including notification that if a borrower considers that special circumstances, such as a loss of employment by the borrower or the borrower’s spouse, warrant an adjustment in the borrower’s loan repayment as determined using the borrower’s Federal tax return information, or the alternative documentation described in subsection (b)(2), the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in accordance with criteria established by the Secretary.</text></subsection> <subsection id="H665C7C0378B64744BB9473EE4B9B9A06"><enum>(d)</enum><header>Reduced payment periods</header> <paragraph id="H6480B2D4B5EE4FC79B2A6C39F34673B1"><enum>(1)</enum><header>In general</header><text>The Secretary shall authorize borrowers meeting the criteria under paragraph (2) to make monthly payments of $5 for a period not in excess of 3 years, except that—</text>
<subparagraph id="HEC41EFCAA39242DF9D9BE529A05B031A"><enum>(A)</enum><text>for purposes of paragraph (2)(A), the Secretary may authorize reduced payments in 6-month increments, beginning on the date the borrower provides to the Secretary the evidence described in paragraph (2)(A)(i); and</text></subparagraph> <subparagraph id="HFD2CBC3BAF7C4C3C8CBF1781BF589774"><enum>(B)</enum><text>for purposes of paragraph (2)(B), the Secretary may authorize reduced payments in 3-month increments, beginning on the date the borrower provides to the Secretary the evidence described in paragraph (2)(B)(i).</text></subparagraph></paragraph>
<paragraph id="H8CB4F50A8CE240B7A3B158F931BD4466"><enum>(2)</enum><header>Eligibility determinations</header><text>The Secretary shall authorize borrowers to make reduced payments under this subsection in the following circumstances:</text> <subparagraph id="H577A4DEED03541188B37AED2DB4BD0FE"><enum>(A)</enum><text>In a case of borrower who is seeking and unable to find full-time employment, as demonstrated by providing to the Secretary—</text>
<clause id="HE8283385FE2440BAB8A0ADC76C05FA2D"><enum>(i)</enum><text>evidence of the borrower’s eligibility for unemployment benefits to the Secretary; or</text></clause> <clause id="HE37E0F8765B141C8BBF9B6353EB06F58"><enum>(ii)</enum><text display-inline="yes-display-inline">the borrower recertifies the reason for the $5 monthly payment under this subparagraph.</text></clause></subparagraph>
<subparagraph id="H32558ECD4C3D43E28B9E76B52BB2F8BB"><enum>(B)</enum><text>The Secretary determines that, due to high medical expenses, the $25 monthly payment the borrower would otherwise make would be an extreme economic hardship to the borrower, if—</text> <clause id="H4C03362C6FF648B4B93245D79A8279AE"><enum>(i)</enum><text>the borrower documents the reason why the $25 minimum payment is an extreme economic hardship; and</text></clause>
<clause id="H70623C4800D0442A886C6B3D7DCC7D03"><enum>(ii)</enum><text>the borrower recertifies the reason for the $5 minimum payment on a three-month basis.</text></clause></subparagraph></paragraph> <paragraph id="H772E20FDB5A24042B11DBA3DF432CE66"><enum>(3)</enum><header>Definition</header><text>For purpose of this subsection, the term <term>full-time employment</term> means employment that will provide not less than 30 hours of work a week and is expected to continue for a period of not less than 3 months.</text></paragraph></subsection>
<subsection id="HC7696C4E4031447BBCA0869ECA3FC00F"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HE1BD3AE5EF774B5096E5CDE22820F192"><enum>(1)</enum><header>Adjusted gross income</header><text>The term <term>adjusted gross income</term> has the meaning given the term in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986.</text></paragraph>
<paragraph id="HD01ADF9CE6364D09A5ADF7DDAA4447A0"><enum>(2)</enum><header>Excepted Consolidation Loan</header><text>The term <term>excepted Consolidation Loan</term> means a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on—</text> <subparagraph id="H38F0F7AC82694DDCBF69AF2E4BFF2DBE"><enum>(A)</enum><text display-inline="yes-display-inline">an excepted PLUS loan; or</text></subparagraph>
<subparagraph id="H573CF75769CA4F9A859C0E35FB5A4627"><enum>(B)</enum><text display-inline="yes-display-inline">a Federal Direct Consolidation loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan.</text></subparagraph></paragraph> <paragraph id="HE457765286CE4C1AA5663498E50C6F23"><enum>(3)</enum><header>Excepted PLUS Loan</header><text>The term <term>excepted PLUS Loan</term> has the meaning given the term in section 493C. </text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA04F25CAC2E147688E97DDC067BE5356"><enum>(b)</enum><header>Procedure and requirements for requesting tax return information from the IRS</header><text>Section 494(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1098h">20 U.S.C. 1098h(a)</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="H1647E996DB814EC29667B7163998AF38" display-inline="no-display-inline"> <paragraph id="H3E92FAB83865428FA7980D647BD4C199"><enum>(4)</enum><header>Income-based repayment for loans made on or after July 1, 2023</header> <subparagraph id="HBA4CBA2AAE0F48C396921B8BE797A86E"><enum>(A)</enum><header>New applicants</header><text display-inline="yes-display-inline">In the case of any written or electronic application by an individual for an income-based repayment plan under section 460A for a loan made under part D on after July 1, 2023, the Secretary, with respect to such individual and any spouse of such individual, shall—</text>
<clause id="H6953CC07A63B4B2D96E3225CB2FEDE61"><enum>(i)</enum><text>provide to such individuals the notification described in paragraph (1)(A)(i); and </text></clause> <clause id="HEFAC002560CA479DA13273294B3094DB"><enum>(ii)</enum><text>require, as a condition of eligibility for such repayment plan, that such individuals—</text>
<subclause id="HAA07234360D14C6D96C844D4691E6DD4"><enum>(I)</enum><text>affirmatively approve the disclosures described in subclauses (I) and (II) of paragraph (1)(A)(i), to the extent applicable, and agree that such approval shall serve as an ongoing approval of such disclosures until the date on which the individual elects to opt out of such disclosures under section 465(b)(2); or </text></subclause> <subclause id="H374A42E823D540F0972BE19E69D5A266"><enum>(II)</enum><text>provide such information as the Secretary may require to confirm the eligibility of such individual for such repayment plan.</text></subclause></clause></subparagraph>
<subparagraph id="HCCD1E425108A443F8378CEC229E6E57F"><enum>(B)</enum><header>Recertifications</header><text display-inline="yes-display-inline">With respect to the first written or electronic recertification (after the date of the enactment of the REAL Reforms Act) of an individual’s income or family size for purposes of an income-based repayment plan under section 460A (entered into before the date of the enactment of the REAL Reforms Act) for a loan under part D, the Secretary, with respect to such individual and any spouse of such individual, shall meet the requirements of clauses (i) and (ii) of subparagraph (A) with respect to such recertification.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H8C3966575F67460891CA2C84D4B9B73C"><enum>226.</enum><header>Deferment on loans made on or after July 1, 2023</header> <subsection id="H499AF84839BB4BF6868E4992225E7DD8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part D of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e et seq.</external-xref>) is further amended by adding at the end the following: </text>
<quoted-block style="OLC" id="H3C4150450CB44F7EA76C5398CC6C77E3" display-inline="no-display-inline">
<section id="H7FE3470E0C54436DB3150C9192BF320C"><enum>460B.</enum><header>Deferment on loans made on or after July 1, 2023</header>
<subsection id="H177AB199811147DEBC1AC15BFCA40205"><enum>(a)</enum><header>Effect on principal and interest</header>
<paragraph id="HB8A58484C7494E10A830BE5A49ECFF8D"><enum>(1)</enum><header>In general</header><text>A borrower (other than a borrower described in section 455(d)(6)(E)) of a loan made under this part on or after July 1, 2023—</text> <subparagraph id="HDDC0F2BB672F4E2398BC40E90C8B95E8" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">who meets the requirements described in subsection (b) shall be eligible for a deferment on such loan during which installments of principal need not be paid and, as specified in paragraph (2), interest shall not accrue, or shall accrue and be paid by the borrower; and </text></subparagraph>
<subparagraph id="HBA3C7AB73491449B8A76562C5EFFAC5E" commented="no"><enum>(B)</enum><text>may not be eligible for a deferment or forbearance under section 455(f) or any other provision of this Act (other than forbearance under section 455(l), forbearance under section 685.205(a) of title 34, Code of Federal Regulations (or successor regulations), or deferment under section 493D).</text></subparagraph></paragraph> <paragraph id="HACB5B4D2E3C143F1B15DA7B030EAE9CC" commented="no"><enum>(2)</enum><header> Effect on interest</header> <subparagraph id="H1FA2899CB2244C2DA339920E1729EF67" commented="no"><enum>(A)</enum><header>No accrual of interest on subsidized loans</header><text>With respect to a deferment period described in subparagraphs (A) through (D) of subsection (b)(1), interest—</text>
<clause id="H7B8DDC1A61B04434A70085909887AC40" commented="no"><enum>(i)</enum><text>shall not accrue, in the case of a—</text> <subclause id="HD39C00E99EB4450DA95B888199435243" commented="no"><enum>(I)</enum><text>Federal Direct Stafford Loan; or </text></subclause>
<subclause id="H76F9DC605F6C470EAF2F06830D49A493" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">a Federal Direct Consolidation Loan that consolidated only Federal Direct Stafford Loans, or a combination of such loans and Federal Stafford Loans for which the student borrower received an interest subsidy under section 428; or</text></subclause></clause> <clause id="HC9940CE5F15C4741BD8A7F0F4E8CBB84" commented="no"><enum>(ii)</enum><text>shall accrue or be paid by the borrower, in the case of a Federal Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in clause (i)(II).</text></clause></subparagraph>
<subparagraph id="H0B493B5EE0B54D86BB53BA452FC274E0" commented="no"><enum>(B)</enum><header>Interest accrual on all loans</header><text>With respect to a deferment period described in subparagraph (E) or (F) of subsection (b)(1), or paragraph (2), (3)(A), or (4), interest shall accrue or be paid by the borrower, in the case of any loan made under this part.</text></subparagraph> <subparagraph id="H38F88E9B5FDB4AA181C9F3E3516DD7BA" commented="no"><enum>(C)</enum><header>No accrual of interest on any loan</header><text>With respect to a deferment period described in paragraph (3)(B) or paragraph (5), interest shall not accrue, in the case of any loan made under this part.</text></subparagraph></paragraph></subsection>
<subsection id="H6D3D743A53C4497C89E92D6A6B68D759"><enum>(b)</enum><header>Eligibility</header><text display-inline="yes-display-inline">Any borrower described in subsection (a) shall be eligible for a deferment on a loan made under this part on or after July 1, 2023—</text> <paragraph id="HC1C7964232C44AF7B17348B0D8170B7D"><enum>(1)</enum><text display-inline="yes-display-inline">during any period during which the borrower—</text>
<subparagraph id="H089DEA77FC5E4C5C8DBC9ACA8523EB02"><enum>(A)</enum><text>is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined by the eligible institution the borrower is attending; </text></subparagraph> <subparagraph id="HF656722F033145A7BCF1765C788B4124"><enum>(B)</enum><text>is pursuing a course of study pursuant to—</text>
<clause id="H7C46A403A4834AA3955DBF3232CDD7C7"><enum>(i)</enum><text>an eligible graduate fellowship program in accordance with subsection (g); or</text></clause> <clause id="H9EFC458EBBF64A38BDD38F5586F78BD2"><enum>(ii)</enum><text>an eligible rehabilitation training program for individuals with disabilities in accordance with subsection (i);</text></clause></subparagraph>
<subparagraph id="HF50AA8266BFB4B339C183AC28F66CF46"><enum>(C)</enum><text>is serving on active duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service; </text></subparagraph> <subparagraph id="HF0786C65020443108DC8DE0338E0D060"><enum>(D)</enum><text>is performing qualifying National Guard duty during a war or other military operation or national emergency, and for the 180-day period following the demobilization date for such service; </text></subparagraph>
<subparagraph id="HF197C68C8BB64086A6A89388869A604C" commented="no"><enum>(E)</enum><text>is a member of the National Guard who is not eligible for a post-active duty deferment under section 493D and is engaged in active State duty for a period of more than 30 consecutive days beginning—</text> <clause id="H24C29974F61B4B518E4D0E7C1DA7498B" commented="no"><enum>(i)</enum><text>the day after 6 months after the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution); or </text></clause>
<clause id="H8423749BF0364CD09F5F91522738BDA5" commented="no"><enum>(ii)</enum><text>the day after the borrower ceases enrollment on at least a half-time basis, for a loan in repayment; or</text></clause></subparagraph> <subparagraph id="HF4D71BA0DC3A470EB8342F503AA0C4CA"><enum>(F)</enum><text>is serving in a medical or dental internship or residency program, the successful completion of which is required to begin professional practice or service, or is serving in a medical or dental internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training; </text></subparagraph></paragraph>
<paragraph id="H98DC468236C04B53A50726E3DCFB547A" commented="no"><enum>(2)</enum><text>during a period sufficient to enable the borrower to resume honoring the agreement to repay the outstanding balance of principal and interest on the loan after default, if— </text> <subparagraph id="HE7D491DED6C549509CD590F008751787" commented="no"><enum>(A)</enum><text>the borrower signs a new agreement to repay such outstanding balance;</text></subparagraph>
<subparagraph id="H4F1640AE7CDF484A8058BC5782BF5C5C" commented="no"><enum>(B)</enum><text>the deferment period is limited to 120 days; and</text></subparagraph> <subparagraph id="H4A05D1D343584443BF9ED01C5B2C7F01" commented="no"><enum>(C)</enum><text>such deferment is not granted for consecutive periods;</text></subparagraph></paragraph>
<paragraph id="HB78894E9ED96467E91B4A0B0D8779EA4" commented="no"><enum>(3)</enum><text>during a period of administrative deferment—</text> <subparagraph id="H79833ECBAF474363972E244CD0053C3F" commented="no"><enum>(A)</enum><text>described in paragraphs (1) through (4) of subsection (j); or</text></subparagraph>
<subparagraph id="HD2FFEE31882145C687DCFB9BFF91990C" commented="no"><enum>(B)</enum><text>described in subsection (j)(5); </text></subparagraph></paragraph> <paragraph id="HD9215CF2D91843D7A38A7E70F22D2C53" commented="no"><enum>(4)</enum><text display-inline="yes-display-inline">in the case of a borrower of an excepted PLUS Loan or an excepted Consolidation Loan, during a period described in subsection (k); or </text></paragraph>
<paragraph id="H8DBFC835E10C4A2C96A12321FC7954BC" commented="no"><enum>(5)</enum><text display-inline="yes-display-inline">during a period in which such borrower is receiving treatment for cancer (in this paragraph referred to as the <quote>treatment period</quote>), and the 6-month period after such treatment period (in this paragraph referred to as the <quote>post-treatment period</quote>), except that, notwithstanding subsection (a), interest shall not accrue during any such treatment period or post-treatment period. </text></paragraph></subsection> <subsection id="H022ABF94515A4D69BF3CA13A824EC860"><enum>(c)</enum><header>Length of deferment</header><text display-inline="yes-display-inline">A deferment granted by the Secretary—</text>
<paragraph id="H46AB07947F744635933AE6278AC184F5"><enum>(1)</enum><text display-inline="yes-display-inline">under subparagraph (F) of subsection (b)(1) shall be renewable at 12 month intervals; and</text></paragraph> <paragraph id="H07778069F71B4B3589F19895AFE67CDA"><enum>(2)</enum><text display-inline="yes-display-inline">under subparagraph (F) of subsection (b)(1) shall equal the length of time remaining in the borrower’s medical or dental internship or residency program.</text></paragraph></subsection>
<subsection id="H783C644E6D4644CE91DF3B975A297A11" commented="no"><enum>(d)</enum><header>Request and documentation</header><text>The Secretary shall determine the eligibility of a borrower for a deferment under paragraph (1), (2), or (4) of subsection (b), based on—</text> <paragraph id="H9115F442D9D04C58B3AA126EED9BEFC5" commented="no"><enum>(1)</enum><text>the receipt of a request for a deferment from the borrower, and documentation of the borrower’s eligibility for the deferment;</text></paragraph>
<paragraph id="H662E8B09B45F46F988F1E9C3FA1E570E" commented="no"><enum>(2)</enum><text>receipt of a completed loan application that documents the borrower’s eligibility for a deferment;</text></paragraph> <paragraph id="H7CC45849E92B43F38650CFED9D987F9B" commented="no"><enum>(3)</enum><text>receipt of a student status information documenting that the borrower is enrolled on at least a half-time basis; or</text></paragraph>
<paragraph id="H0FEBD6CCF1AC43CA9FDA5A480D07DE04" commented="no"><enum>(4)</enum><text>the Secretary’s confirmation of the borrower’s half-time enrollment status, if the confirmation is requested by the institution of higher education.</text></paragraph></subsection> <subsection id="H8F42A0D7789D4C6891D5E72B305A465A"><enum>(e)</enum><header>Notification</header><text>The Secretary shall—</text>
<paragraph id="HF6F4B92339A74BA8A7BB07216A90E552"><enum>(1)</enum><text>notify a borrower of a loan made under this part—</text> <subparagraph id="HB927CC9116D643D2BCD43388FA5ABAF1"><enum>(A)</enum><text>the granting of a deferment under this subsection on such loan; and</text></subparagraph>
<subparagraph id="HF95D6E01707C4C359550B15056E1EDA7"><enum>(B)</enum><text>the option of the borrower to continue making payments on the outstanding balance of principal and interest on such loan in accordance with subsection (f);</text></subparagraph></paragraph> <paragraph id="H1504638430364FC688FF6DA296FC7C1E"><enum>(2)</enum><text display-inline="yes-display-inline">at the time the Secretary grants a deferment to a borrower of a loan made under this part, and not less frequently than once every 180 days during the period of such deferment, provide information to the borrower to assist the borrower in understanding—</text>
<subparagraph id="HF0213A1BB95D4F40A0D849E6833F648E"><enum>(A)</enum><text>the effect of granting a deferment on the total amount to be paid under the income-based repayment plan under 460A;</text></subparagraph> <subparagraph id="H84C1B7137D84465E9A6806FB5ACCDBE6" commented="no"><enum>(B)</enum><text>interest shall not accrue, or shall accrue or be paid by the borrower, as specified in subsection (a)(2);</text></subparagraph>
<subparagraph id="H394AEA02C6824998B45494BEB6D1C65E"><enum>(C)</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; and</text></subparagraph> <subparagraph id="H36DCE28B884A417CBCB6454EB4540278"><enum>(D)</enum><text>the borrower’s option to discontinue the deferment at any time.</text></subparagraph></paragraph></subsection>
<subsection id="HB0058D6D569342308C81A53917C27C23" commented="no"><enum>(f)</enum><header>Payments by borrowers authorized</header><text display-inline="yes-display-inline">A borrower may make payments on the outstanding balance of principal and interest on a loan made under this part during any period of deferment granted under this subsection.</text></subsection> <subsection id="H3D93BC3726D64D23A04C5769DC37147A"><enum>(g)</enum><header>Graduate fellowship deferment</header> <paragraph id="H598D0EC73F614347A76242B81DDAFFD1"><enum>(1)</enum><header>In general</header><text>A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(i) during any period for which an authorized official of the borrower’s graduate fellowship program certifies that the borrower meets the requirements of paragraph (2) and is pursuing a course of study pursuant to an eligible graduate fellowship program.</text></paragraph>
<paragraph id="HD75CF824C12D4FAE80DB6129BDA20564"><enum>(2)</enum><header>Borrower requirements</header><text>A borrower meets the requirements of this subparagraph if the borrower—</text> <subparagraph id="H33DF3FAFD1AC474F83D06D3E0899408B"><enum>(A)</enum><text>holds at least a baccalaureate degree conferred by an institution of higher education;</text></subparagraph>
<subparagraph id="H9848D197B83C41CABFFE4B3EC4C29451"><enum>(B)</enum><text>has been accepted or recommended by an institution of higher education for acceptance on a full-time basis into an eligible graduate fellowship program; and</text></subparagraph> <subparagraph id="H4334FACDA94640AFA4444CD8ECFF21FE"><enum>(C)</enum><text>is not serving in a medical internship or residency program, except for a residency program in dentistry.</text></subparagraph></paragraph></subsection>
<subsection id="HFE27265901684154B23FCEA5B1E84190"><enum>(h)</enum><header>Treatment of study outside the United States</header>
<paragraph id="HF4EAF39A200943C490C963F0CE98D713"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall treat, in the same manner as required under section 428(b)(4), any course of study at a foreign university that is accepted for the completion of a recognized international fellowship program by the administrator of such a program as an eligible graduate fellowship program.</text></paragraph> <paragraph id="H7C65D5C6ABD049F6AC92D17FB944EF9A"><enum>(2)</enum><header>Requests for deferment</header><text>Requests for deferment of repayment of loans under this subsection by students engaged in graduate or postgraduate fellowship-supported study (such as pursuant to a Fulbright grant) outside the United States shall be approved until completion of the period of the fellowship, in the same manner as required under section 428(b)(4).</text></paragraph></subsection>
<subsection id="H8C78DBF2F1BA4A40BC7D32B138F5691A"><enum>(i)</enum><header>Rehabilitation training program deferment</header><text display-inline="yes-display-inline">A borrower of a loan under this part is eligible for a deferment under subsection (b)(1)(B)(ii) during any period for which an authorized official of the borrower’s rehabilitation training program certifies that the borrower is pursuing an eligible rehabilitation training program for individuals with disabilities.</text></subsection> <subsection id="HC7CD3E3B89A94B3CAD6F6F54AA2BBD10"><enum>(j)</enum><header>Administrative deferments</header><text display-inline="yes-display-inline">The Secretary may grant a deferment to a borrower without requiring a request and documentation from the borrower under subsection (d) for—</text>
<paragraph id="H0591C406244D4A3C8248E456E5D8FB6A"><enum>(1)</enum><text display-inline="yes-display-inline">a period during which the borrower was delinquent at the time a deferment is granted, including a period for which scheduled payments of principal and interest were overdue at the time such deferment is granted;</text></paragraph> <paragraph id="HC2808D7AC67A4F6E997CF13045B3FBBE" commented="no"><enum>(2)</enum><text>a period during which the borrower was granted a deferment under this subsection but for which the Secretary determines the borrower should not have qualified;</text></paragraph>
<paragraph id="H692E36FD1BFC476280FE88DD16A5DA9B"><enum>(3)</enum><text>a period necessary for the Secretary to determine the borrower’s eligibility for the cancellation of the obligation of the borrower to repay the loan under section 437;</text></paragraph> <paragraph id="HA1D5EDC19EE84C2D8211F20016D2FE25" commented="no"><enum>(4)</enum><text>a period during which the Secretary has authorized deferment due to a national military mobilization or other local or national emergency; or</text></paragraph>
<paragraph id="H1964BF241CF34E6F8CE922E73026D8D4" commented="no"><enum>(5)</enum><text display-inline="yes-display-inline">a period not to exceed 60 days, during which interest shall accrue but not be capitalized, if the Secretary reasonably determines that a suspension of collection activity is warranted to enable the Secretary to process supporting documentation relating to a borrower’s request— </text> <subparagraph id="H6705EB276B7F4CDFAFBCFFE44A294C7C" commented="no"><enum>(A)</enum><text>for a deferment under this subsection;</text></subparagraph>
<subparagraph id="H5BCF24B98EF34A90898F51DED9745D3D" commented="no"><enum>(B)</enum><text>for a change in repayment plan under section 455(d)(6); or</text></subparagraph> <subparagraph id="HD41614BEA44C4D8A8C1061CEBD3338FE" commented="no"><enum>(C)</enum><text>to consolidate loans under this part.</text></subparagraph></paragraph></subsection>
<subsection id="HCCD9E695335D47BB9755889C91771250"><enum>(k)</enum><header>Deferments for excepted PLUS Loans or excepted consolidation loans</header>
<paragraph id="H5880305EB5A14417916B1128476F3E25"><enum>(1)</enum><header>In general</header><text>A qualified borrower shall be eligible for deferments under paragraphs (3) through (5).</text></paragraph> <paragraph id="H3EA85A0DA21D4D2E8F967E7BA36E6F08"><enum>(2)</enum><header>Qualified borrower defined</header><text>In this subsection, the term <term>qualified borrower</term> means a borrower of an excepted PLUS Loan or an excepted consolidation loan.</text></paragraph>
<paragraph id="H8AE41930B9334895B638EBD0F40AF23C"><enum>(3)</enum><header>Economic hardship deferment</header>
<subparagraph id="HEBD107F35A124288891C867447D4C4B3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A qualified borrower shall be eligible for a deferment during periods, not to exceed 3 years in total, during which the qualified borrower experiences an economic hardship described in subparagraph (B).</text></subparagraph> <subparagraph id="HA1B2011240D242779EBE70B55C99D8A8"><enum>(B)</enum><header>Economic hardship</header><text>An economic hardship described in this clause is a period during which the qualified borrower—</text>
<clause id="H3A0BBCA7492D4A2585F75B1F7E7A66E7"><enum>(i)</enum><text>is receiving payment under a means-tested benefit program;</text></clause> <clause id="HED0676E2BF534BE68F9EFA1737B8AD22"><enum>(ii)</enum><text display-inline="yes-display-inline">is employed full-time and the monthly gross income of the qualified borrower does not exceed the greater of—</text>
<subclause id="H8D4A6E38BA8B4BF28FDC5635AE47D554"><enum>(I)</enum><text>the minimum wage rate described in section 6 of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206</external-xref>); or</text></subclause> <subclause id="H5D76D5DEFD5D402C911013706CF9B1C6"><enum>(II)</enum><text>an amount equal to 150 percent of the poverty line; or</text></subclause></clause>
<clause id="H377681701AD3411DBB2F043639035B7C"><enum>(iii)</enum><text display-inline="yes-display-inline">demonstrates that the sum of the qualified borrower’s monthly payments on the qualified borrower’s excepted PLUS Loan or an excepted consolidation loan is not less than 20 percent of the qualified borrower’s monthly gross income.</text></clause></subparagraph> <subparagraph id="H263AED21B29E4FB99561423D3BF78C88" commented="no"><enum>(C)</enum><header>Eligibility</header><text display-inline="yes-display-inline">To be eligible to receive a deferment under this subparagraph, a qualified borrower shall submit to the Secretary—</text>
<clause id="HBCF650E37BEA4C8AA22E9BA86A28EC1D" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">for the first period of deferment under this subparagraph, evidence showing the monthly gross income of the qualified borrower; and</text></clause> <clause id="HD063115D99034E6881DED29791AB7265" commented="no"><enum>(ii)</enum><text>for a subsequent period of deferment that begins less than one year after the end of a period of deferment granted under this subparagraph—</text>
<subclause id="H2B7D02B4B901402684EA2E82374EE455" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">evidence showing the monthly gross income of the qualified borrower; or</text></subclause> <subclause id="H5C2E6A052ECA4495A182D6028794DA02" commented="no"><enum>(II)</enum><text>the qualified borrower’s most recently filed Federal income tax return, if such a return was filed in either of the two tax years preceding the year in which the qualified borrower requests the subsequent period of deferment.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="HD04D0D0218464D24B9C34EDD97F26568"><enum>(4)</enum><header>Unemployment deferment</header>
<subparagraph id="HD86819DBC20F43C1B431D5C171011000"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A qualified borrower shall be eligible for a deferment for periods during which the qualified borrower is seeking, and is unable to find, full-time employment.</text></subparagraph> <subparagraph id="H25874C45191B4F3082581553732AE4F8"><enum>(B)</enum><header>Eligibility</header><text>To be eligible to receive an deferment under this subparagraph, a qualified borrower shall submit to the Secretary—</text>
<clause id="H6903D61D5E89496E9F084B574300F399"><enum>(i)</enum><text>evidence of the qualified borrower’s eligibility for unemployment benefits; or</text></clause> <clause id="HCEEA023F1C844984A9B1CD2A657F1A08"><enum>(ii)</enum><text>for requests submitted after the initial request, written confirmation, or an equivalent as approved by the Secretary, that the qualified borrower has made at least six diligent attempts during the preceding six-month period to secure full-time employment.</text></clause></subparagraph>
<subparagraph id="HBCB247E884A94513818F36215598E468"><enum>(C)</enum><header>Terms of deferment</header><text>The following terms shall apply to a deferment under this subparagraph:</text> <clause id="HB65333E6D4ED4AAFB7BCC3E4FA94AEB9"><enum>(i)</enum><header>Initial period</header><text>The first deferment granted to a qualified borrower under this subparagraph may be for a period of unemployment beginning not more than 6 months before the date on which the Secretary receives the qualified borrower’s request for deferment and may be granted for a period of up to 6 months after that date.</text></clause>
<clause id="HAED279786ED24DA8A6306AD808FE0AEB"><enum>(ii)</enum><header>Renewals</header><text display-inline="yes-display-inline">Deferments under this subparagraph shall be renewable at 6-month intervals beginning after the expiration of the first period of deferment under clause (i). To be eligible to renew a deferment under this subparagraph, a qualified borrower shall submit to the Secretary the information described in subparagraph (B)(i).</text></clause> <clause id="H6C733E9803A947D1B7BD37EC38150BFA"><enum>(iii)</enum><header>Aggregate limit</header><text display-inline="yes-display-inline">The period of all deferments granted to a borrower under this subparagraph may not exceed 3 years in aggregate.</text></clause></subparagraph></paragraph>
<paragraph id="H9FEF4BADF73449629E43B433813E7F8F"><enum>(5)</enum><header>Health deferment</header>
<subparagraph id="HF146BF9DA01343A291389B19478D7BBD"><enum>(A)</enum><header>In general</header><text>A qualified borrower shall be eligible for a deferment during periods in which the qualified borrower is unable to make scheduled loan payments due to high medical expenses, as determined by the Secretary.</text></subparagraph> <subparagraph id="H70D22D837DE24BA985095809FBCECE88"><enum>(B)</enum><header>Eligibility</header><text>To be eligible to receive a deferment under this subparagraph, a qualified borrower shall—</text>
<clause id="HED1CECCC737F491DB19F68F34B424CA6"><enum>(i)</enum><text> submit to the Secretary documentation demonstrating that making scheduled loan payments would be an extreme economic hardship to the borrower due to high medical expenses, as determined by the Secretary; and</text></clause> <clause id="H6211FC2CCEE94194944536CD07B51711"><enum>(ii)</enum><text>resubmit such documentation to the Secretary not less frequently than once every 3 months.</text></clause></subparagraph></paragraph></subsection>
<subsection id="H1C5C0C05EED84F91B84723F9DF45A171"><enum>(l)</enum><header>Prohibitions</header>
<paragraph id="H17FCD585113A4C3DBD8A82548FECFC88"><enum>(1)</enum><header>Prohibition on fees</header><text>No administrative fee or other fee may be charged to the borrower in connection with the granting of a deferment under this subsection.</text></paragraph> <paragraph id="H415C1D6FCEEC4A1BA50B1D2D5E6EB493"><enum>(2)</enum><header>Prohibition on adverse credit reporting</header><text>No adverse information relating to a borrower may be reported to a consumer reporting agency solely because of the granting of a deferment under this subsection.</text></paragraph>
<paragraph id="HE345400B44654D37A12EF5A34759760A"><enum>(3)</enum><header>Limitation on authority</header><text>The Secretary shall not, through regulation or otherwise, authorize additional deferment options or periods of deferment other than the deferment options and periods of deferment authorized under this subsection.</text></paragraph></subsection> <subsection id="H3CF526C441734BBE8C862DC9C42749F4"><enum>(m)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H95A0D0B1C8E340118465A7BC29A2063A"><enum>(1)</enum><header>Eligible graduate fellowship program</header><text display-inline="yes-display-inline">The term <term>eligible graduate fellowship program</term>, when used with respect to a course of study pursued by the borrower of a loan under this part, means a fellowship program that—</text> <subparagraph id="H4C8B63C0530E4A5DA7F4FBE35284AA35"><enum>(A)</enum><text>provides sufficient financial support to graduate fellows to allow for full-time study for at least six months;</text></subparagraph>
<subparagraph id="HF736E4E2FE0E482A8E8A3B082ACCAA1A"><enum>(B)</enum><text>requires a written statement from each applicant explaining the applicant’s objectives before the award of that financial support;</text></subparagraph> <subparagraph id="H4674A0FDA4504C07AC97D67ABC145929"><enum>(C)</enum><text>requires a graduate fellow to submit periodic reports, projects, or evidence of the fellow’s progress; and</text></subparagraph>
<subparagraph id="HD53B4D15D8584B35B14F69C2E3DCD5A1"><enum>(D)</enum><text>in the case of a course of study at an institution of higher education outside the United States described in section 102, accepts the course of study for completion of the fellowship program.</text></subparagraph></paragraph> <paragraph id="H73287BB4BB1E45E3B53047A240C701BA" display-inline="no-display-inline"><enum>(2)</enum><header>Eligible rehabilitation training program for individuals with disabilities</header><text>The term <term>eligible rehabilitation training program for individuals with disabilities</term>, when used with respect a course of study pursued by the borrower of a loan under this part, means a program that—</text>
<subparagraph id="HC7E22F093D2749F9BBEE407E6D3BAE56"><enum>(A)</enum><text>is necessary to assist an individual with a disability in preparing for, securing, retaining, or regaining employment;</text></subparagraph> <subparagraph id="HF594270D75754D30A113BA123537FEDB"><enum>(B)</enum><text>is licensed, approved, certified, or otherwise recognized as providing rehabilitation training to disabled individuals by—</text>
<clause id="H39F31C0B1B2C4DC0B812B0B0E7EDF6CB"><enum>(i)</enum><text>a State agency with responsibility for vocational rehabilitation programs, drug abuse treatment programs, mental health services programs, or alcohol abuse treatment programs; or</text></clause> <clause id="H289337CD4D2E4B4A900EB82D9BF3478C"><enum>(ii)</enum><text>the Secretary of Veterans Affairs; and</text></clause></subparagraph>
<subparagraph id="H0C732C5BABB749518E5B7633067B95BD"><enum>(C)</enum><text>provides or will provide the borrower with rehabilitation services under a written plan that—</text> <clause id="HB3FE1EA1DC564EF691D26D5ACEB43438"><enum>(i)</enum><text>is individualized to meet the borrower’s needs;</text></clause>
<clause id="H6E7CDC38A31D4FB2B14ACE4C4D1C6C8E"><enum>(ii)</enum><text>specifies the date on which the services to the borrower are expected to end; and</text></clause> <clause id="H682ECAADE56C4946B9EA94B1F75387C1"><enum>(iii)</enum><text>requires a commitment of time and effort from the borrower that prevents the borrower from being employed at least 30 hours per week, either because of the number of hours that must be devoted to rehabilitation or because of the nature of the rehabilitation.</text></clause></subparagraph></paragraph>
<paragraph id="H81D398C492C14F398BAB7302DFF611EE"><enum>(3)</enum><header>Excepted PLUS loan; excepted consolidation loan</header><text display-inline="yes-display-inline">The terms <term>excepted PLUS loan</term> and <term>excepted consolidation loan</term> have the meanings given such terms in section 460A.</text></paragraph> <paragraph id="H344C259B22D845289D340FCBCBB29DAC"><enum>(4)</enum><header>Family size</header><text>The term <term>family size</term> means the number that is determined by counting—</text>
<subparagraph id="H7F55999275434FCDB27B290CAD7CDD3E"><enum>(A)</enum><text>the borrower;</text></subparagraph> <subparagraph id="H5C9D0FFBAE494CA18B62C64065D73E01"><enum>(B)</enum><text>the borrower’s spouse;</text></subparagraph>
<subparagraph id="H205B0C6A9FE7450581DCDF1895C4D137"><enum>(C)</enum><text>the borrower’s children, including unborn children who are expected to be born during the period covered by the deferment, if the children receive more than half their support from the borrower; and</text></subparagraph> <subparagraph id="HE5E5A8F2F22B40D1BA51456652CFD2FD"><enum>(D)</enum><text>another individual if, at the time the borrower requests a deferment under this section, the individual—</text>
<clause id="H88EAF539985B40DAB21D1652EF812E7C"><enum>(i)</enum><text>lives with the borrower;</text></clause> <clause id="H3182F0B5C6E14F2398BEE1D7E95DD94E"><enum>(ii)</enum><text display-inline="yes-display-inline">receives more than half of the individual’s support (which may include money, gifts, loans, housing, food, clothes, car, medical and dental care, and payment of college costs) from the borrower; and</text></clause>
<clause id="HDD913473DA1B48FEB839A5B313373E11"><enum>(iii)</enum><text>is expected to receive such support from the borrower during the relevant period of deferment.</text></clause></subparagraph></paragraph> <paragraph id="HA19D40ADF6D143EFAD93615FCE23E9E1" display-inline="no-display-inline"><enum>(5)</enum><header>Full-time</header><text display-inline="yes-display-inline">The term <term>full-time</term>, when used with respect to employment, means employment for not less than 30 hours per week that is expected to continue for not less than three months.</text></paragraph>
<paragraph id="HCE81D6E88AE24DABA6C3E0B070719B65"><enum>(6)</enum><header>Means-tested benefit program</header><text>The term <term>means-tested benefit program</term> means—</text> <subparagraph id="HAC6A12700F8A43BCAEBF9B01B338CFD2"><enum>(A)</enum><text display-inline="yes-display-inline">a State public assistance program under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit; or</text></subparagraph>
<subparagraph id="HE70E7E8423DB4098BD9302FE1CE9BB93"><enum>(B)</enum><text display-inline="yes-display-inline">a mandatory spending program of the Federal Government, other than a program under this title, under which eligibility for the program's benefits, or the amount of such benefits, are determined on the basis of income or resources of the individual or family seeking the benefit, and may include such programs as—</text> <clause id="HA84A1C6E242F4862B2D2FC7E321E1831"><enum>(i)</enum><text>the supplemental security income program under title XVI of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1381">42 U.S.C. 1381 et seq.</external-xref>);</text></clause>
<clause id="H8A229C2F4C2E40D48B52864989293910"><enum>(ii)</enum><text>the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/7/2011">7 U.S.C. 2011 et seq.</external-xref>);</text></clause> <clause id="H04F3F6B8E36147129A48A608C2337088"><enum>(iii)</enum><text>the program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/601">42 U.S.C. 601 et seq.</external-xref>);</text></clause>
<clause id="H7A4D56B4471B43BDB2FBAA8D75044109"><enum>(iv)</enum><text>the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (<external-xref legal-doc="usc" parsable-cite="usc/42/1786">42 U.S.C. 1786</external-xref>); and</text></clause> <clause id="HC963ECCC6D7B43448A7608435665D69B"><enum>(v)</enum><text>other programs identified by the Secretary.</text></clause></subparagraph></paragraph>
<paragraph id="HDDD33EAA7CA94F6EA4EE78AABE2AC980" commented="no"><enum>(7)</enum><header>Monthly gross income</header><text display-inline="yes-display-inline">The term <term>monthly gross income</term>, when used with respect to a borrower, means—</text> <subparagraph id="H578F33379C954673BADCA6C3BAF3621B"><enum>(A)</enum><text>the gross amount of income received by the borrower from employment and other sources for the most recent month; or</text></subparagraph>
<subparagraph id="H8AD24040C249416CBFC5931CB434BF25"><enum>(B)</enum><text>one-twelfth of the borrower’s adjusted gross income, as recorded on the borrower’s most recently filed Federal income tax return.</text></subparagraph></paragraph> <paragraph id="H084391E8D90142169236C65CDB90B969" commented="no"><enum>(8)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to impact a borrower’s eligibility to receive the benefit of section 455(o). </text></paragraph></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection>
<subsection id="H3C5F4F0B9AC747A196C7D484FAAE525E" commented="no"><enum>(b)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Section 493D(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1098f">20 U.S.C. 1098f(a)</external-xref>) is amended by inserting <quote>, or section 460B</quote> after <quote>464(c)(2)(A)(iii)</quote>. </text></subsection></section></part> <part id="HC99DFB698008420A9E49DA242FA394D1"><enum>D</enum><header>Elimination of interest capitalization</header> <section id="H332C85EDE3DD4611AD878C99BE44B339"><enum>231.</enum><header>Elimination of interest capitalization</header> <subsection id="H96AC875F856940998A18C77CD9716E09" display-inline="no-display-inline"><enum>(a)</enum><header>Federal PLUS loans</header><text display-inline="yes-display-inline">Section 428B(d)(2) (<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" id="H6CE4E3DD83E0498F86DE4A1EA32C7832" display-inline="no-display-inline">
<paragraph id="HBD21A324F3614D43A599448D4E0150CC"><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 monthly or quarterly, if agreed upon by the borrower and the lender.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCBB213C3D5C44DD1A0CE4523936FEB32" commented="no"><enum>(b)</enum><header>Federal consolidation loans deferrals</header><text display-inline="yes-display-inline">Section 428C(b)(4)(C)(ii)(III) (<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="HA188C2D54D7C49139311F840F0D2037F" display-inline="no-display-inline"><enum>(c)</enum><header>Loan limits for Unsubsidized Stafford Loans</header><text display-inline="yes-display-inline">Section 428H(d)(5) (<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 <short-title>REAL Reforms Act</short-title></quote> after <quote>Interest capitalized</quote>. </text></subsection> <subsection id="H4B630AD80FC84C8EB0085953234599DC"><enum>(d)</enum><header>Unsubsidized Stafford loans for middle income borrowers</header><text display-inline="yes-display-inline">Section 428H(e)(2) (<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="H97EAB868C2C4430686E5ADB2CE581959"><enum>(1)</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 monthly or quarterly, if agreed upon by the borrower and the lender.</quote>;</text></paragraph> <paragraph id="HE024638A27CE4E6B9560A4DDDC96BA5B"><enum>(2)</enum><text>by striking subparagraph (B); and</text></paragraph>
<paragraph id="HCD25BD2A82484F9899D62CC04886E74A"><enum>(3)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></paragraph></subsection> <subsection id="H14C7B6FFD9964A24B1B4D85B3B1158EF"><enum>(e)</enum><header>Income contingent repayment</header><text display-inline="yes-display-inline">Section 455(e)(5) (<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 <short-title>REAL Reforms Act</short-title>, and the Secretary shall promulgate regulations with respect to the treatment of accrued interest that is not capitalized</quote>.</text></subsection>
<subsection id="HB076BCF61CAC4571B5F1D4E6E2FE1B4E" commented="no"><enum>(f)</enum><header>Effect of deferment on principal and interest</header><text display-inline="yes-display-inline">Section 455(f)(1)(B) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(f)(1)(B)</external-xref>) is amended by striking <quote>capitalized or</quote>. </text></subsection> <subsection id="H710C5A668C1D4A8B842CE1FA48FA3D96" commented="no"><enum>(g)</enum><header>Income-Based Repayment program</header><text display-inline="yes-display-inline">Section 493C(b)(3)(B) (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)(3)(B)</external-xref>) is amended by inserting <quote>shall accrue but not</quote> before <quote>be capitalized</quote>.</text></subsection></section></part>
<enum>III</enum><header>Workforce Pell Grants</header>
<section id="H3EBBEFDADE4F459BBBD2CDF4D3B848A6"><enum>301.</enum><header>Data collection and dissemination related to Workforce Pell</header><text display-inline="no-display-inline">Section 131 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015">20 U.S.C. 1015</external-xref>) is amended by adding at the end the following: </text> <quoted-block style="OLC" id="H02522CC396AC4ACB9195A53FEC811018" display-inline="no-display-inline"> <subsection id="HE98232718B2C453F84C5E5104EBDF4F8"><enum>(i)</enum><header>Data collection and dissemination related to Workforce Pell</header> <paragraph id="H929AE5BC92A24C388E41BD1FCDAA2B13"><enum>(1)</enum><header>Appeal of earnings information</header><text display-inline="yes-display-inline">The Secretary may establish an appeals process to permit eligible programs for purposes of the Workforce Pell Grants program under section 401(k) to submit alternate earnings data to comply with section 481(b)(3)(F), provided that such data are statistically rigorous, accurate, comparable, and representative of students who receive a Workforce Pell Grant and complete the eligible program.</text></paragraph>
<paragraph id="H0641EF08352F4186B4D5A70D3AFBC847"><enum>(2)</enum><header>Dissemination of information</header><text display-inline="yes-display-inline">The Secretary shall collect, verify, and make publicly available the information required under subparagraph (E) of subsection (b)(3) of section 481 on the College Scorecard or any similar successor website.</text></paragraph> <paragraph id="HA1BE0C3414094BF19B05B86C17B4AB83"><enum>(3)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this subsection, if disclosure of any data under paragraph (2) is prohibited under State or Federal privacy laws or regulations, the Secretary shall take such steps as the Secretary determines necessary to make publicly available such data in accordance with such laws and regulations.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H4B3E4E2E9CBE4B02BB0984B6D789DA11"><enum>302.</enum><header>Program eligibility for Workforce Pell grants</header><text display-inline="no-display-inline">Section 481(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088(b)</external-xref>) is amended—</text> <paragraph id="H9E293BF9FCE847149981A9EA7F159309"><enum>(1)</enum><text>by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and</text></paragraph>
<paragraph id="HA0A6313B4BD0449CAB1BC695C3872591"><enum>(2)</enum><text>by inserting after paragraph (2) the following: </text> <quoted-block style="OLC" id="H400A63BA289D462C8C65D93A647470DB" display-inline="no-display-inline"> <paragraph id="H805E06DAEBD24013AFCA36C2F873E395"><enum>(3)</enum><text display-inline="yes-display-inline">A program is an eligible program for purposes of the Workforce Pell Grants program under section 401(k) only if—</text>
<subparagraph id="H57BFB6482D5642ABBE6B09C3B1D3F955"><enum>(A)</enum><text display-inline="yes-display-inline">it is at least 150 clock hours of instruction, but not more than 600 clock hours of instruction, or an equivalent number of credit hours, offered during a minimum of 8 weeks, but not more than 15 weeks;</text></subparagraph> <subparagraph id="HB2A9C54CB6DF43EFBC527145E4278365"><enum>(B)</enum><text>it is determined by an accrediting agency or association recognized by the Secretary pursuant to section 496(a) to—</text>
<clause id="HE4F2A840488643BD930FA612EE3509A0"><enum>(i)</enum><text>provide an education aligned with the requirements of in-demand industry sectors or occupations, as defined in section 3 of the Workforce Innovation and Opportunity Act;</text></clause> <clause id="H937B87CC598C44D3BBB20F7F7E0C32B7"><enum>(ii)</enum><text>meet the hiring requirements of potential employers in the sectors or occupations described in <internal-xref idref="HE4F2A840488643BD930FA612EE3509A0" legis-path="(3)(B)(i)">clause (i)</internal-xref>;</text></clause>
<clause id="HD265C0130B9F473BAFAADDEB4F905C97"><enum>(iii)</enum><text display-inline="yes-display-inline">have been offered by an institution for not less than 1 year prior to a determination by such agency or association under this subparagraph;</text></clause> <clause id="H6D9D5FD6DACA4D95B512483679230092" commented="no"><enum>(iv)</enum><text>have a completion rate (based on the methodology of such agency or association) of at least 70 percent; and</text></clause>
<clause id="HFB717B948774426987521FB8AF0DF088" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">have a job placement rate (based on the methodology of such agency or association) of at least 70 percent; and</text></clause></subparagraph> <subparagraph id="H373092965CF64476842558B176FDF0B8" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">the increase in median earnings of students who receive Federal financial aid under this title and who complete the program is an amount that is equal to or greater than the published tuition and fees of such program, as determined by calculating the difference between—</text>
<clause id="HD282A559C90246B383305912479DC2FB"><enum>(i)</enum><text>the median earnings of such students at the time of initial enrollment in the program; and</text></clause> <clause id="HD5259841FFE24470829687F1490986FB"><enum>(ii)</enum><text>the median earnings of such students two years after completing such program.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H49E289D0963F4AE1B6A6798FDD65FFD5"><enum>303.</enum><header>Workforce Pell Grants</header>
<subsection id="H10C37703337E43BBAAF345E741FD6176"><enum>(a)</enum><header>Award year 2023–2024</header><text display-inline="yes-display-inline">Section 401 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) is amended by adding at the end the following: </text> <quoted-block id="HD7CEC6AA5F8B4CAFA5F402C48530C165" style="OLC"> <subsection id="H0DB9B55A0B56499FA39EE49A7D749C0E"><enum>(k)</enum><header>Workforce Pell Grants program</header> <paragraph id="H33E5268B2DE444FAA491B9FF6850023D"><enum>(1)</enum><header>In general</header><text>For the award year beginning on July 1, 2023, the Secretary shall award grants (referred to as a <quote>Workforce Pell Grants</quote>) to eligible students under <internal-xref idref="H24EC796C03C04CD3BF65FDF11DF60361" legis-path="(k)(2)">paragraph (2)</internal-xref> in accordance with this subsection.</text></paragraph>
<paragraph id="H24EC796C03C04CD3BF65FDF11DF60361"><enum>(2)</enum><header>Eligible students</header><text>For award year 2023–2024, to be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student—</text> <subparagraph id="HF5DDCB74C3BB45B1B2267A9B2225E864"><enum>(A)</enum><text>shall be enrolled, or accepted for enrollment, in an eligible program described in section 481(b)(3); and</text></subparagraph>
<subparagraph id="H3F5A2057696A458F82B182DAD49EF337"><enum>(B)</enum><text>may not have received a postbaccalaureate degree.</text></subparagraph></paragraph> <paragraph id="HD3DF047428B74F84ACB3BD48E16BB11B"><enum>(3)</enum><header>Terms and conditions of awards</header><text display-inline="yes-display-inline">The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under subsection (b), except that a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce development program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant.</text></paragraph>
<paragraph id="HE1F22F5656BB4EF388629CFDF144F8D8"><enum>(4)</enum><header>Prevention of double benefits</header><text display-inline="yes-display-inline">No eligible student described in <internal-xref idref="H24EC796C03C04CD3BF65FDF11DF60361" legis-path="(k)(2)">paragraph (2)</internal-xref> may, for the same period of enrollment, receive both a grant under this subsection and a Federal Pell Grant under subsection (b).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H20BB7472E1B74AAC906EA96DC46CABD3"><enum>(b)</enum><header>Subsequent award years</header> <paragraph id="H2CC38A6BC5324126BD0A06C69AF748DB"><enum>(1)</enum><header>In general</header><text>Section 401 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended by adding at the end the following:</text>
<quoted-block id="H76C166A165474D188850950CE70E350E" style="OLC">
<subsection id="HA275154FD86B4C298BCF6DCCB5BBAAA9"><enum>(k)</enum><header>Workforce Pell Grants program</header>
<paragraph id="H33EE8BB9B6ED424CB98F1C2022596D53"><enum>(1)</enum><header>In general</header><text>For the award year beginning on July 1, 2024, and each subsequent award year, the Secretary shall award grants (referred to as a <quote>Workforce Pell Grants</quote>) to eligible students under <internal-xref idref="H48291795F4AA4DFC8856873C8B546DF9" legis-path="(k)(2)">paragraph (2)</internal-xref> in accordance with this subsection.</text></paragraph> <paragraph id="H48291795F4AA4DFC8856873C8B546DF9"><enum>(2)</enum><header>Eligible students</header><text>For award year 2024–2025 and each succeeding award year, to be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student—</text>
<subparagraph id="HC4FE122B1E994271A282B37F3A88C559"><enum>(A)</enum><text>shall be enrolled, or accepted for enrollment, in an eligible program described in section 481(b)(3); and</text></subparagraph> <subparagraph id="H2A5428F7463543EB90D6E4F17AFA76C1"><enum>(B)</enum><text>may not have received a postbaccalaureate degree.</text></subparagraph></paragraph>
<paragraph id="H837C2D2024724959A61B2C0D405B7DE3"><enum>(3)</enum><header>Terms and conditions of awards</header><text display-inline="yes-display-inline">The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under subsection (b), except that a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce development program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant.</text></paragraph> <paragraph id="H60485707789446458B2B8E554BE0E7B7"><enum>(4)</enum><header>Prevention of double benefits</header><text display-inline="yes-display-inline">No eligible student described in <internal-xref idref="H48291795F4AA4DFC8856873C8B546DF9" legis-path="(k)(2)">paragraph (2)</internal-xref> may, for the same period of enrollment, receive both a grant under this subsection and a Federal Pell Grant under subsection (b).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HE0BDE461EF2843A59BF2CE1B82149E03"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>; 134 Stat. 3191) and in accordance with section 701(b) of such Act.</text></paragraph></subsection></section> <section id="H0A07BDD8EC0B44F69AA6045AD2F46168"><enum>304.</enum><header>Accrediting agency determination of eligibility requirements for the Workforce Pell Grants program</header> <subsection id="H515337ED43D643A9A9BA6A350F5F1AA7"><enum>(a)</enum><header>In general</header><text>Section 496(a)(4) (<external-xref legal-doc="usc" parsable-cite="usc/20/1099b">20 U.S.C. 1099b(a)(4)</external-xref>) is amended—</text>
<paragraph id="H9F6AC616D5974AC3A23B1C8FD23D6ADA"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="H579E63C44DB049349391A8E666A11257"><enum>(2)</enum><text>in subparagraph (B)(ii), by inserting <quote>and</quote> at the end; and</text></paragraph>
<paragraph id="HFDD94D8CC5654DC5A055DFA3358A24AF"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block id="H27609E5237864015A43F0F87F0A5625F" style="OLC"> <subparagraph id="H65042816B5A2436DB10A8709420900DD" indent="up1"><enum>(C)</enum><text>if such agency or association has or seeks to include within its scope of recognition the evaluation of the quality of institutions offering an eligible program for purposes of the Workforce Pell Grants program (in accordance with section 481(b)(3)), such agency or association shall, in addition to meeting the other requirements of this subpart, demonstrate to the Secretary that, with respect to such eligible programs—</text>
<clause id="H0EEC0AB4293B4969ADE475B6CF496F30"><enum>(i)</enum><text>the agency’s or association’s standards include a process for determining if the institution has the capability to effectively offer such an eligible program; and</text></clause> <clause id="HFC2E0EE3EE1F415B9744F837B89CD64A"><enum>(ii)</enum><text>the agency or association requires a demonstration that the program—</text>
<subclause id="H290B15959AB444529DB164300118E85C" commented="no"><enum>(I)</enum><text>satisfies the requirements of subparagraph (B) of section 481(b)(3); and</text></subclause> <subclause id="H0E5C23C8F6C749B88B00DB08ACB64F61"><enum>(II)</enum><text>provides academic content, an amount of instructional time, and competencies to satisfy any applicable educational requirement so that a student who completes the program and seeks employment is qualified to practice or find employment in the sectors or occupations that the program prepares students to enter.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCC4DD9D6BCEB411BBD65A643B2C30037"><enum>(b)</enum><header>Additional NACIQI review meetings</header><text display-inline="yes-display-inline">For the purpose of preparing for the implementation of the Workforce Pell Grant program under section 401(k) of the Higher Education Act of 1965 (as added by <internal-xref idref="H49E289D0963F4AE1B6A6798FDD65FFD5" legis-path="2.">section 304</internal-xref>), in addition to the meetings required under section 114(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1011c">20 U.S.C. 1011c(d)(1)</external-xref>), the National Advisory Committee on Institutional Quality and Integrity (as established by such section 114) shall, through 2025, hold meetings to evaluate the additions to the scope of recognition of accrediting agencies and associations with respect to an eligible program for purposes of the Workforce Pell Grants program (in accordance with section 481(b)(3) of the Higher Education Act of 1965, as added by section 302).</text></subsection></section>