117 HR 8872 IH: Lowering Obstacles to Achievement Now Act
U.S. House of Representatives
2022-09-15
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Lowering Obstacles to Achievement Now Act
or the LOAN Act
. (b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Federal Pell Grants
Sec. 101. Doubling Federal Pell Grants and providing all Federal Pell Grants through mandatory funding.
Sec. 102. Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits.
Sec. 103. Federal aid eligibility for dreamer students.
Sec. 104. Restoring the total semesters of Federal Pell Grant eligibility.
Sec. 105. Reducing financial aid penalties from satisfactory academic progress determinations.
Sec. 106. Federal Pell Grants for graduate students.
Title II—Amendments to terms and conditions of loans and repayment plans
Part A—Direct loans
Sec. 201. Subsidized loans for graduate and professional students.
Sec. 202. Interest rate on subsidized loans for graduate and professional students.
Sec. 203. Repeal of origination fees.
Sec. 204. Prepayment amounts.
Part B—Automatic enrollment in income-Driven repayment for certain borrowers
Sec. 211. Notification and automatic enrollment procedures for borrowers who are delinquent on loans.
Sec. 212. Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans.
Sec. 213. Covered loan, income-driven repayment plan, and non-covered loan defined.
Sec. 214. Automatic recertification of income for income-driven repayment plans.
Sec. 215. Procedure and requirement for requesting tax return information from the IRS.
Part C—Amendments to certain loan forgiveness programs
Sec. 221. Amendments to terms and conditions of Public Service Loan Forgiveness.
Sec. 222. Loan forgiveness for teachers.
Title III—Interest Capitalization
Sec. 301. Elimination of interest capitalization.
Sec. 302. Elimination of disclosure requirements relating to capitalization.
Title IV—Interest Rates
Sec. 401. Interest rate provisions for new Federal student loans on or after July 1, 2023.
Sec. 402. Refinancing FFEL and Federal Direct Loans.
Sec. 403. Refinancing private student loans.
<enum>I</enum><header>Federal Pell Grants</header>
<section id="H6D6810BBE20E422982EDF728C0DB233B"><enum>101.</enum><header>Doubling Federal Pell Grants and providing all Federal Pell Grants through mandatory funding</header>
<subsection id="H57F2DBC0D2F34BFEA8A852D5FA0B3D07"><enum>(a)</enum><header>Amount of minimum Federal Pell Grants</header><text display-inline="yes-display-inline">Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>), as amended by title VII of division FF of the FAFSA Simplification Act (<external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended—</text> <paragraph id="HA8E88FF5C1BC4473BCE1641ABF103665"><enum>(1)</enum><text>in subsection (a)(2)(F), by striking <quote>10 percent</quote> and inserting <quote>5 percent</quote>;</text></paragraph>
<paragraph id="HB8E0258ADE1D439F985431631DE4600B"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H162D2DE6EB3A4353B807A3A9CAA2EE8E"><enum>(A)</enum><text>in paragraph (1)(B)(i), by striking <quote>paragraph (5)(A)</quote> and inserting <quote>paragraph (5)</quote>;</text></subparagraph>
<subparagraph id="H284D26860A9B453CA5FAF6960866D36F"><enum>(B)</enum><text>by striking paragraph (5) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H3493681B1E944849A7D98E3503D9B09E"> <paragraph id="H8570E4AE1094499A9E58163208C0BF8D"><enum>(5)</enum><header>Maximum Federal Pell Grant</header> <subparagraph id="H0DE37A91A6404D10B68CA3BCF433E2E7"><enum>(A)</enum><header>Award year 2024–2025</header><text>For award year 2024–2025, the total maximum Federal Pell Grant award shall be $9,000.</text></subparagraph>
<subparagraph id="H8A0DA6B96E2B4EEF9C36BA1FBC7522C7"><enum>(B)</enum><header>Award year 2025–2026</header><text>For award year 2025–2026, the total maximum Federal Pell Grant award shall be $10,000.</text></subparagraph> <subparagraph id="HBCF29138ACA54DB197080781615BED9C"><enum>(C)</enum><header>Award year 2026–2027</header><text>For award year 2026–2027, the total maximum Federal Pell Grant award shall be $11,000.</text></subparagraph>
<subparagraph id="HC1DB82DBD46F4970B1860DCF07455168"><enum>(D)</enum><header>Award year 2027–2028</header><text>For award year 2027–2028, the total maximum Federal Pell Grant award shall be $12,000.</text></subparagraph> <subparagraph id="H7B80C0A41F6C4E1DB4DA9269E6A62165"><enum>(E)</enum><header>Award year 2028–2029</header><text>For award year 2028–2029, the total maximum Federal Pell Grant award shall be $13,000. </text></subparagraph>
<subparagraph id="H06BCF89038054396BDFE4B5E8DC71C97"><enum>(F)</enum><header>Award year 2029–2030 and subsequent years</header><text>For award year 2029–2030, and each subsequent award year, the total maximum Federal Pell Grant award shall be $13,000— </text> <clause id="H3301B2054CA1441D9EEBA6E1B847D7CC"><enum>(i)</enum><text>increased by the adjustment percentage for the award year for which the amount under this subparagraph is being determined; and</text></clause>
<clause id="HD19025BF8ED8455C9284C1F0D742C86B"><enum>(ii)</enum><text>rounded to the nearest $50. </text></clause></subparagraph> <subparagraph id="H9E5BCC72FCED4D28BDB836F36BEB4E6B"><enum>(G)</enum><header>Definition of adjustment percentage</header><text>In this paragraph, the term <term>adjustment percentage,</term> as applied to an award year, is equal to the percentage increase in the Consumer Price Index, as defined in section 478(f), for the most recent calendar year ending prior to the beginning of the award year.</text></subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H827E6148DCC5488CA942C21DBCAB3B5A"><enum>(C)</enum><text>by striking paragraphs (6) and (7) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8C814715C91D4823AC5CBDA4BE962987"> <paragraph id="HF99FD58F2F604D3788FCDE163839A75C" commented="no" display-inline="no-display-inline"><enum>(6)</enum><header display-inline="yes-display-inline">Appropriation of funds</header><text display-inline="yes-display-inline">There are authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for fiscal year 2024 and each subsequent fiscal year to provide the total maximum Federal Pell Grant for which a student shall be eligible under this section during an award year.</text></paragraph><after-quoted-block>; and </after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HB032EEB06AD74686A0588A1A25F74A68"><enum>(D)</enum><text>by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively; </text></subparagraph></paragraph> <paragraph id="HB65FCFEFDC694B5FA67D9F309C22D663"><enum>(3)</enum><text>in subsection (d)(5)(B)(ii)—</text>
<subparagraph id="HB829B64E7A984506A193E3986F55E233"><enum>(A)</enum><text>in subclause (I)(bb), by striking <quote>or</quote> after the semicolon; </text></subparagraph> <subparagraph id="H7E3CF7110B994C98AC1FB81073A24CEF"><enum>(B)</enum><text>in subclause (II)(bb)(CC), by striking the period and inserting <quote>; or</quote>; and</text></subparagraph>
<subparagraph id="H50771F0F18E94A63AE14236E20D8F5F6"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H19378948F6A844B2B295F5238BBE44C0"> <subclause id="H8A4D784ECF444850AD357A536302B691"><enum>(III)</enum><text>during a period for which the student did not receive a loan under this title but for which, if the student had received such a loan, such loan would have been discharged under the circumstances described in subclause (II)(bb)(CC).</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H94DF9F9519624A4EA4E4C202D6F5819D"><enum>(4)</enum><text>by striking subsections (g) and (h); and</text></paragraph> <paragraph id="H28EA125F152B424B86A8768558F7FCC6"><enum>(5)</enum><text>by redesignating subsections (i) and (j) as subsections (g) and (h), respectively. </text></paragraph></subsection>
<subsection id="H2578801B27FA4E11B499D9250281781E"><enum>(b)</enum><header>Repeal of scoring requirement</header>
<paragraph id="H9C9BDFCA0A4048A986B8924562793AD1"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 406 of H. Con. Res. 95 (109th Congress) is amended—</text> <subparagraph id="H7240BE4632054A0ABC01C69608B1BB05"><enum>(A)</enum><text>by striking subsection (b); and</text></subparagraph>
<subparagraph id="HFE11E24F1E3548779BF8AA8369C9B77A"><enum>(B)</enum><text>by striking <quote>(a) <header-in-text level="subsection" style="OLC">In general</header-in-text>.—Upon</quote> and inserting the following: <quote>Upon</quote>.</text></subparagraph></paragraph> <paragraph id="H2EB5B93B02EE46D38AAAAB2B0E5C9CE1"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect beginning on July 1, 2024.</text></paragraph></subsection>
<subsection id="H9D0D405861E24BEA8986D04B479784E4"><enum>(c)</enum><header>Student support services</header><text display-inline="yes-display-inline">Section 402D(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-14">20 U.S.C. 1070a–14(d)(1)</external-xref>) is amended by striking <quote>the minimum</quote> and inserting <quote>10 percent of the maximum</quote>.</text></subsection> <subsection id="H05E9F9710ECB49D7B82DE4EE7C11E0CE"><enum>(d)</enum><header>Scholarship component</header><text display-inline="yes-display-inline">Section 404E(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-25">20 U.S.C. 1070a–25(d)</external-xref>) is amended by striking <quote>less than the minimum</quote> and inserting <quote>less than 10 percent of the maximum</quote>. </text></subsection></section>
<section id="H0FF916C93BB841B496EB9FD7FBACEFD6"><enum>102.</enum><header>Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits</header>
<subsection id="HC152A5B5266B41AB9FE8F744CD0FF2FF"><enum>(a)</enum><header>Increased amount of maximum Federal Pell Grants for students with negative student aid indexes</header><text display-inline="yes-display-inline">Section 401(b)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(1)</external-xref>), as amended by section 2 and section 703 of the FAFSA Simplification Act (<external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended—</text> <paragraph id="H52015119D6CB4284BB73A40DE231602E"><enum>(1)</enum><text>in subparagraph (A)—</text>
<subparagraph id="HE4179BDFFFF345EB8F824412B9CE8486"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>A student</quote> and inserting <quote>Except in the case of a student with a student aid index of less than zero, a student</quote>;</text></subparagraph> <subparagraph id="HF4B77BD5C88E4DE1884FD5D8C3919543"><enum>(B)</enum><text>by striking clause (i); and</text></subparagraph>
<subparagraph id="H10532EF0071F43108C66A75E569DC71C"><enum>(C)</enum><text>by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively;</text></subparagraph></paragraph> <paragraph id="H5B205759764040F78F25CD1BA84CA6B2"><enum>(2)</enum><text>by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively;</text></paragraph>
<paragraph id="H05F60E4287DF4641A8D1FFB411C0AC95" commented="no"><enum>(3)</enum><text>by inserting after subparagraph (A) the following: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H90C64717DBF443BDBE8BC583C4DE3D66"> <subparagraph id="HA32A8CDAC9AF4768A6AC23C48DDCAE50"><enum>(B)</enum><text>A student with a student aid index of less than zero shall be eligible for a Federal Pell Grant award that exceeds the total maximum Federal Pell Grant by an amount equal to the amount by which the student’s student aid index is less than zero.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></paragraph>
<paragraph id="H5CAB7AF36524475AB3B467A96DCFEC01" commented="no"><enum>(4)</enum><text>in subparagraph (C), as redesignated by paragraph (2)—</text> <subparagraph id="H44ADB9AC3AB7439494D42CCC4E7ECE54" commented="no"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>subparagraph (A) for an academic year,</quote> and inserting <quote>subparagraph (A), or an increased Federal Pell Grant under subparagraph (B), for an academic year,</quote>; and</text></subparagraph>
<subparagraph id="H900CDE076B54418F9566B9339A8CFE3D" commented="no" display-inline="no-display-inline"><enum>(B)</enum><text>in clause (ii), by striking <quote>, except that a student aid index of less than zero shall be considered to be zero for the purposes of this clause</quote>; </text></subparagraph></paragraph> <paragraph id="H6C88072B19574F84B6DB1B4DDC2D31DB" commented="no" display-inline="no-display-inline"><enum>(5)</enum><text>in subparagraph (D), as redesignated by paragraph (2), by striking <quote>(A) or (B)</quote> and inserting <quote>(A), (B), or (C)</quote>;</text></paragraph>
<paragraph id="H0304B05C81AC4AE09BDCBECC157B1AAF" commented="no" display-inline="no-display-inline"><enum>(6)</enum><text>in subparagraph (E), as redesignated by paragraph (2), by inserting <quote>or an increased Federal Pell Grant under subparagraph (B)</quote> after <quote>subparagraph (A)</quote>; or</text></paragraph> <paragraph id="H72B3611307EC424A8D4EF023A20810BD" commented="no" display-inline="no-display-inline"><enum>(7)</enum><text>in subparagraph (F), as redesignated by paragraph (2), by striking <quote>or a minimum Federal Pell Grant under subparagraph (C)</quote> and inserting <quote>an increased Federal Pell Grant under subparagraph (B), or a minimum Federal Pell Grant under subparagraph (D)</quote>.</text></paragraph></subsection>
<subsection id="H8B3B3A8F67384BC8BB86B57097475178" commented="no"><enum>(b)</enum><header>Special student aid index rule for recipients of means-Tested benefits</header><text display-inline="yes-display-inline">Section 473 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087mm">20 U.S.C. 1087mm</external-xref>), as amended by section 702(b) of the FAFSA Simplification Act (<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 style="OLC" display-inline="no-display-inline" id="HF78A0241AD6C4083869832D9A6B7C611"> <subsection id="H5EAB0BDF09704F89BAB4BB3261EBF0C8"><enum>(d)</enum><header>Special rule for means-Tested benefit recipients</header><text>Notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant’s parents) who, at any time during the previous 24-month period, received a benefit under a means-tested Federal benefit program (or whose parent or spouse received such a benefit, as applicable), the Secretary shall for the purposes of this title consider the student aid index as equal to –$1,500 for the applicant.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H2E060A0B72ED40019106AFE385F37946"><enum>103.</enum><header>Federal aid eligibility for dreamer students</header><text display-inline="no-display-inline">Section 484 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091</external-xref>), as amended by section 702(n) of the FAFSA Simplification Act (<external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended—</text> <paragraph id="HA1D14AA7B5924937B02964F3AF098FB3"><enum>(1)</enum><text>in subsection (a)(5), by inserting <quote>, or be a Dreamer student, as defined in subsection (u)</quote> after <quote>becoming a citizen or permanent resident</quote>; and</text></paragraph>
<paragraph id="H66C046494F474976B30A86E7244BE6C0"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H19AF7815ED0B410B8D2FDF1DF6BE3DF0"> <subsection id="H39B68CC6F6A04824AE21A3DBD9667550"><enum>(u)</enum><header>Dreamer students</header> <paragraph id="HD702B03A96004CC6975183D1C0939272" commented="no"><enum>(1)</enum><header>In general</header><text>In this section, the term <term>Dreamer student</term> means an individual who—</text>
<subparagraph id="H8176056CDA88439A92EB0D278966A28A" commented="no"><enum>(A)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HB17BD17293AA4F119D08D1C1B4D10D4C"><enum>(i)</enum><text>is not a citizen or national of the United States; and</text></clause> <clause id="H20A5B35D72CE4531AC686D95FCEC03A7" indent="up1" commented="no"><enum>(ii)</enum><text>is inadmissible or deportable under the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1101">8 U.S.C. 1101 et seq.</external-xref>)); and</text></clause></subparagraph>
<subparagraph id="H6832911D96874A208C6D6DCAF5F788CD" commented="no"><enum>(B)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H0E148EDF1539499C9CFC9D9C06F7D52A"><enum>(i)</enum><text>in the case of such an individual who was younger than 18 years of age on the date on which the individual initially entered the United States—</text> <subclause id="H15F1FB3E6A2047CCB3ED164652071AC1" indent="up1" commented="no"><enum>(I)</enum><text>has earned a high school diploma, the recognized equivalent of such diploma from a secondary school, or a high school equivalency diploma recognized by State law, or is scheduled to complete the requirements for such a diploma or equivalent before the next academic year begins;</text></subclause>
<subclause id="HCB6777F2AA1748A08C1A9CAA2F4F1BD6" indent="up1" commented="no"><enum>(II)</enum><text>is enrolled at an institution of higher education pursuant to subsection (d);</text></subclause> <subclause id="H15BDAE50ECD743469893A784610F60A5" indent="up1" commented="no"><enum>(III)</enum><text>has served in the uniformed services (as such term is defined in section 101 of title 10, United States Code) for not less than 2 years and, if discharged, received an honorable discharge; </text></subclause>
<subclause id="H95C0CC8F6FF548418E46823D0D89462E" indent="up1" commented="no"><enum>(IV)</enum><text>has acquired a degree, certificate, or recognized postsecondary credential from an institution of higher education or area career and technical education school (as such term is defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C. 2302</external-xref>)); or</text></subclause> <subclause id="H4B17A9FCB77F49828040AA641817F3A1" indent="up1" commented="no"><enum>(V)</enum><text>has completed not less than 2 years in a postsecondary program at an institution of higher education, or area career and technical education school, in the United States and has made satisfactory academic progress, as defined in subsection (c), during such time period; or</text></subclause></clause>
<clause id="H897A3675BCE54106AD268E2F11A01F5C" indent="up1" commented="no"><enum>(ii)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="H2829128468CC4373A15960A77758919E"><enum>(I)</enum><text>is, or at any time was, eligible for a grant of deferred action pursuant to—</text> <item id="HCD4044094B5F44558131F57FE2B3714D" indent="up1" commented="no"><enum>(aa)</enum><text>the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children</quote> issued on June 15, 2012; or</text></item>
<item id="H65314D0F8B6F4EFBA9862F6D1524E594" indent="up1" commented="no"><enum>(bb)</enum><text>the memorandum of the Department of Homeland Security entitled <quote>Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children and with Respect to Certain Individuals Who Are the Parents of U.S. Citizens or Permanent Residents</quote> issued on November 20, 2014; or</text></item></subclause> <subclause id="HDD3F40B724434C62903757E9384E88F2" indent="up1" commented="no"><enum>(II)</enum><text>would have been eligible for such a grant of deferred action if the applicable memorandum described in subclause (I) had been fully in effect since the date on which it was issued. </text></subclause></clause></subparagraph></paragraph>
<paragraph id="HCD69A5E59A104FB68A0AC3370D6C30F0"><enum>(2)</enum><header>Hardship exception</header><text>The Secretary shall issue regulations that direct when the Department shall waive the age requirement of paragraph (1)(B)(i) for an individual to qualify as a Dreamer student under such paragraph, if the individual demonstrates compelling circumstances, such as economic hardship (as defined in section 435(o)).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H5B52BFBCA7D04C05977CF473F6B6B8AC" commented="no"><enum>104.</enum><header>Restoring the total semesters of Federal Pell Grant eligibility</header><text display-inline="no-display-inline">Section 401(d)(5)(A) of the Higher Education Act of 1965, as added by section 703 of the FAFSA Simplification Act (<external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended by striking <quote>12</quote> each place the term appears and inserting <quote>18</quote>.</text></section>
<section id="H428A53509F8445CDAA01465AF4E24725"><enum>105.</enum><header>Reducing financial aid penalties from satisfactory academic progress determinations</header><text display-inline="no-display-inline">Section 484(c) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C. 1091(c)</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7477CACFBD55470292D99341498043CE"> <subsection id="H0A2F64C035FD4C9B90D79B6CD47F86BA"><enum>(c)</enum><header>Satisfactory progress</header> <paragraph id="HCCDDF48938A14B2F850AED48E74D2140"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text>
<subparagraph id="H55C859AA7BFE487F9575AB5CFFB8CE21"><enum>(A)</enum><header>Appeal</header><text>The term <term>appeal</term> means a process by which a student who is not meeting the institution’s satisfactory academic progress standards petitions the institution for reconsideration of the student’s eligibility for assistance under this title.</text></subparagraph> <subparagraph id="HBB0CA486D10E46D889A0AF847FBD9980"><enum>(B)</enum><header>Financial aid probation</header><text>The term <term>financial aid probation</term> means a status assigned by an institution to a student who fails to make satisfactory academic progress and who has appealed and has had eligibility for aid reinstated.</text></subparagraph>
<subparagraph id="HE2263CE7373346F3B3C2CA63E9DBF7EB"><enum>(C)</enum><header>Financial aid warning</header><text>The term <term>financial aid warning</term> means a status assigned to a student who fails to make satisfactory academic progress at the end of the semester or equivalent period in which the student first fails to make such progress.</text></subparagraph> <subparagraph id="HCC8898C5612E4ED7B0EA1F875C2BBC28"><enum>(D)</enum><header>Payment period</header><text>The term <term>payment period</term> means the applicable payment period described in section 668.4 of title 34, Code of Federal Regulations, or any successor regulation.</text></subparagraph></paragraph>
<paragraph id="H0DC86373868E41AA9438D16C7B9C7A38"><enum>(2)</enum><header>Satisfactory academic progress policy</header><text>An institution shall establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in the student’s educational program and may receive assistance under this title. The Secretary shall consider the institution’s policy to be reasonable if—</text> <subparagraph id="HFAC853FF66504BB7B33B30C9945EA69A"><enum>(A)</enum><text>the policy is at least as strict as the policy the institution applies to a student who is not receiving assistance under this title;</text></subparagraph>
<subparagraph id="HF96F3D38420E41959A7EBFA84A8A8635"><enum>(B)</enum><text>the policy provides for consistent application of standards to all students, including full-time, part-time, undergraduate, and graduate students, and all educational programs established by the institution;</text></subparagraph> <subparagraph id="H5049B9C98FAB47AF8A62C694B23DA095"><enum>(C)</enum> <clause commented="no" display-inline="yes-display-inline" id="HE563A7CE7FC241CAA57A6E8C044F993B"><enum>(i)</enum><text>the policy specifies the grade point average that a student must achieve at each evaluation, or if a grade point average is not an appropriate qualitative measure, a comparable assessment measured against a norm; and</text></clause>
<clause id="H2896E69D0AD842EDA4ABD10587868B3B" indent="up1"><enum>(ii)</enum><text>if a student is enrolled in an educational program of more than 2 academic years, the policy specifies that at the end of the second academic year, the student must have a grade point average of at least a <quote>C</quote> or its equivalent, or have academic standing consistent with the institution’s requirements for graduation;</text></clause></subparagraph> <subparagraph id="H33B79228550741C492198935DE678BB6"><enum>(D)</enum><text>the policy provides for measurement of the student’s progress at each evaluation;</text></subparagraph>
<subparagraph id="H85707E8EDAB441249EF3A82D88EDAFE3"><enum>(E)</enum><text>the policy describes—</text> <clause id="H1FA796D9CA2842D19D2EC211C0BB9E7E"><enum>(i)</enum><text>how a student’s grade point average and the pace at which the student progresses toward completion are affected by course incompletes, withdrawals, or repetitions, or transfers of credit from other institutions, including that credit hours from another institution that are accepted toward the student’s educational program are counted as both attempted and completed hours; and</text></clause>
<clause id="H762FFB88FAAF4A88A57C2BC331E01442"><enum>(ii)</enum><text>how after a student reenrolls after the student’s satisfactory academic progress was reset pursuant to paragraph (3)(B), the student may have any credits that were earned before the student was determined not to be making satisfactory academic progress counted for purposes of determining progress when the student reenrolls, but any attempted hours that were not earned by the student (including incompletes, withdrawn courses, and failed courses) before the student was determined not to be making satisfactory academic progress will not negatively impact the determination of whether the student made satisfactory academic progress after such reset;</text></clause></subparagraph> <subparagraph id="HB189A1CA58DA4A15A58CBEDB5185C1CF"><enum>(F)</enum><text>the policy provides that, except as provided in subparagraph (G) with respect to a student placed on financial aid warning or financial aid probation and paragraph (3), a student is no longer eligible to receive assistance under this title if the student has not achieved the required grade point average or who is not making progress toward completion in the student’s educational program—</text>
<clause id="H4D55AA3C41614ADCA2208A70195F961A"><enum>(i)</enum><text>at the time of each evaluation with respect to a student who is in an educational program of 2 academic years or less in length; or </text></clause> <clause id="HDA64135656EE4DEEA03F6232E1B0C511"><enum>(ii)</enum><text>at the end of the second academic year with respect to a student who is in an educational program of more than 2 academic years in length;</text></clause></subparagraph>
<subparagraph id="HFB16E1B13CBD4C10A7968067E19ABDB0"><enum>(G)</enum><text>the policy describes when students will be placed on financial aid warning or financial aid probation, in accordance with paragraph (4), and provides that— </text> <clause id="HE6AEC781ED4B4F688569EE9BCBCF7673"><enum>(i)</enum><text>a student on financial aid warning—</text>
<subclause id="H5536D879DCF64369B78564AF1C2EBEBB"><enum>(I)</enum><text>shall receive assistance under this title for one payment period despite a determination that the student is not making satisfactory academic progress; and</text></subclause> <subclause id="HDF5882861A5A42AA8305A08E196F43AD"><enum>(II)</enum><text>may be assigned such status without an appeal or other action by the student; and</text></subclause></clause>
<clause id="H4675845345C54720882D2E05FF29BDDE"><enum>(ii)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="H08D3264B4E014ED4819CBDCFE4AE5AA1"><enum>(I)</enum><text>a student on financial aid probation may receive assistance under this title for one payment period and the institution may require the student to fulfill specific terms and conditions, such as taking a reduced course load or enrolling in specific courses; and</text></subclause> <subclause id="H882BD6ADCD4942B4AF0A512E1621E741" indent="up1"><enum>(II)</enum><text>at the end of such one payment period, the student is required to meet the institution’s satisfactory academic progress standards, or meet the requirements of the academic plan developed by the institution and the student, in order to qualify for continued assistance under this title; </text></subclause></clause></subparagraph>
<subparagraph id="HDAEE393635254F828B6A095CBBADF9E6"><enum>(H)</enum><text>if the institution permits a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes—</text> <clause id="HEB65743C5261452CA104E94625BF06BC"><enum>(i)</enum><text>how the student may reestablish the student’s eligibility to receive assistance under this title;</text></clause>
<clause id="H412AF693B0D14359959AD4136E4A8CD8"><enum>(ii)</enum><text>the basis on which the student may file an appeal, including because of the death of a relative, an injury or illness of the student, or another special circumstance; and</text></clause> <clause id="HB54FB9F583BB4F8FAF7F260C4A6F4273"><enum>(iii)</enum><text>information the student is required to submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student’s situation that will allow the student to demonstrate satisfactory academic progress at the next evaluation;</text></clause></subparagraph>
<subparagraph id="HFBE6C3D2210341D78EB912460005AA61"><enum>(I)</enum><text>if the institution does not permit a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes how the student may reestablish the student’s eligibility to receive assistance under this title;</text></subparagraph> <subparagraph id="HD15E5FFE076A412C834D837DEA205010"><enum>(J)</enum><text>the policy provides for notification to students of the results of an evaluation that impacts the student’s eligibility for assistance under this title; and</text></subparagraph>
<subparagraph id="HF19AF4FD73F54F7D8B4C98D6D92D4989"><enum>(K)</enum><text>the policy does not impose satisfactory progress limitations on need-based institutional aid that are more stringent than the standard applied under this subsection without demonstrating to the Secretary the effectiveness of such limitations on improving student persistence in, and completion of, postsecondary study.</text></subparagraph></paragraph> <paragraph id="H82DC70FEAA1745C69876FD2119FA7ECD"><enum>(3)</enum><header>Regaining eligibility</header> <subparagraph id="HF2B479075D7D4FDEA89B77AB00FD77E5"><enum>(A)</enum><header>Students who remain in school</header><text>Whenever a student fails to meet the eligibility requirements of subsection (a)(2) as a result of the application of this subsection and, subsequent to that failure, the student has academic standing for any grading period consistent with the requirements for staying on track to graduate within 150 percent of the published length of the educational program, as determined by the institution, the student shall again be eligible under subsection (a)(2) for a grant, loan, or work assistance under this title, as long as the student maintains satisfactory academic progress under paragraph (2) beginning on and after the date that the student regains eligibility. </text></subparagraph>
<subparagraph id="H8448F1B1D26641C7B056117EA738284E"><enum>(B)</enum><header>Students who leave school</header>
<clause id="H14F03A9020464B33878C99F3B18F057D"><enum>(i)</enum><header>In general</header><text>If a student has not been enrolled in any institution of higher education for the immediately preceding 2 years, any previous failure to meet the eligibility requirements of subsection (a)(2) shall not be used in any determination of eligibility of such student under such subsection. Such student shall, on the date of enrollment subsequent to such 2-year period, have the student's eligibility for a grant, loan, or work assistance under this title reset and be deemed as meeting the requirements described in paragraph (2). Beginning on and after such date, the student's satisfactory academic progress shall be determined in accordance with paragraph (2)(E)(ii).</text></clause> <clause id="H6151036D76C244248522849293610ADE"><enum>(ii)</enum><header>Maximum number of resets</header><text>A student shall be eligible for a reset of eligibility pursuant to this subparagraph not more than 2 times. </text></clause></subparagraph>
<subparagraph id="H976BEA8EED8B4C448E4D79C71D5491C7"><enum>(C)</enum><header>Duties of the Secretary</header><text>The Secretary shall—</text> <clause id="H493CA871CD7E474FA2334941F20691B9"><enum>(i)</enum><text>send, to each student who failed to meet the eligibility requirements of subsection (a)(2) and who has not regained eligibility for a grant, loan, or work assistance under subparagraph (A), a notice, two years after such failure, that includes—</text>
<subclause id="H759C8AB54BA34923940B15CAF6A6F2C8"><enum>(I)</enum><text>a notification that, if the student has not been enrolled in any institution of higher education for the preceding two years and has not received two resets of eligibility under subparagraph (B), the student may use grant, loan, or work assistance under this title for enrollment at any eligible institution, including an institution other than the institution in which the student was previously enrolled;</text></subclause> <subclause id="HE848C26D75474A17A6ECE9A65436A2A7"><enum>(II)</enum><text>a notification that, if the student has remained enrolled, or resumed enrollment, at an institution of higher education, the student may be eligible for a grant, loan, or work assistance under this title subject to the requirements of subparagraph (A);</text></subclause>
<subclause id="HC17E0FAA2EB649F588182776F7F7460B"><enum>(III)</enum><text>information on how many semesters of eligibility for a grant, loan, or work assistance under this title to which the student still has access; and</text></subclause> <subclause id="H6816BB941AFD47F3A459FE5DB6215F15"><enum>(IV)</enum><text>a notification that the student should ask any prospective eligible institution how many of the student’s previously completed credits the student would be able to transfer; and</text></subclause></clause>
<clause id="HAC878A044A2E4948B0B086FCA3EC59AD"><enum>(ii)</enum><text>submit an annual report to Congress on the outcomes of students who have received a reset of eligibility pursuant to this paragraph, including—</text> <subclause id="H980B8CE0040F4512BEDAFE2F7C776F4F"><enum>(I)</enum><text>the number of students who reenroll in an eligible institution after such reset, disaggregated by race or ethnicity, sex, age, socioeconomic status, and disability status;</text></subclause>
<subclause id="HBD60A73EED1F4107B9DFF72EA9F53D7A"><enum>(II)</enum><text>the 250 eligible institutions with the highest numbers of enrolled students receiving grant, loan, or work assistance under this title after such a reset;</text></subclause> <subclause id="H7265BC92653C4DDF90FC6FB5F1184E22"><enum>(III)</enum><text>the 250 eligible institutions with the highest share of enrolled students receiving grant, loan, or work assistance under this title after such a reset; and</text></subclause>
<subclause id="HD77F3216E9ED4008AFE9B27DE81DA94C"><enum>(IV)</enum><text>the average completion rate and time to completion for students who reenroll in an eligible institution after such reset, disaggregated by institution.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H777203E466C84728A791F530694B0735"><enum>(4)</enum><header>Evaluation of academic progress</header> <subparagraph id="HDF634C91F33E4BA689195BE328C17603"><enum>(A)</enum><header>In general</header><text>An institution that determines that a student is not making satisfactory academic progress under its policy may disburse funds provided through student financial assistance programs under this title (including work-study programs under subtitle C) to the student in accordance with subparagraphs (B), (C), and (D). </text></subparagraph>
<subparagraph id="HE817F58A01A84E37AF00C0465DA5756A"><enum>(B)</enum><header>Payment period following not making satisfactory academic progress</header><text>For the payment period following the payment period in which a student did not make satisfactory academic progress, the institution shall place the student on financial aid warning and disburse funds under this title to the student.</text></subparagraph> <subparagraph id="H990204B7E27545FEBA2859BABA6FCF0A"><enum>(C)</enum><header>Payment period following financial aid warning</header><text>For the payment period following a payment period during which a student was on financial aid warning, the institution may place the student on financial aid probation, and disburse funds under this title to the student if—</text>
<clause id="H95736EDD4C164152A5A1AF481C06740B"><enum>(i)</enum><text>the institution evaluates the student’s progress and determines that student did not make satisfactory academic progress during the payment period the student was on financial aid warning;</text></clause> <clause id="HCA0A442E9FEE4E78884C72F166A2EB73"><enum>(ii)</enum><text>the student appeals the determination; and</text></clause>
<clause id="HFB4B100639B74C5B83A3CC4F55BC5159"><enum>(iii)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="H5AB8C5590F144E2F8FC284988CBF38EF"><enum>(I)</enum><text>the institution determines that the student should be able to meet the institution’s satisfactory academic progress standards by the end of the subsequent payment period; or</text></subclause> <subclause id="H238D088006364066980E5C712D72D234" indent="up1"><enum>(II)</enum><text>the institution develops an academic plan for the student that, if followed, will ensure that the student is able to meet the institution’s satisfactory academic progress standards by a specific point in time.</text></subclause></clause></subparagraph>
<subparagraph id="H8C3FDEAFFD4B484F8BA945CBA60B4655"><enum>(D)</enum><header>Payment period following financial aid probation</header><text>A student on financial aid probation for a payment period may not receive funds under this title for the subsequent payment period unless the student makes satisfactory academic progress or the institution determines that the student met the requirements specified by the institution in the academic plan for the student developed under subparagraph (C)(iii)(II).</text></subparagraph> <subparagraph id="H73447DFD43C44DF790DF38776680C6A8"><enum>(E)</enum><header>Frequency of academic progress evaluation and communication</header> <clause id="H50C6E089D53943E5B2DE9619A7843CA1"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), for the purpose of determining whether presently enrolled students are maintaining satisfactory progress, each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall review the progress of such students at the end of each payment period.</text></clause>
<clause id="H4BACBD2B852A493098F33F420DAD4396"><enum>(ii)</enum><header>Shorter payment periods</header><text>For each institution described in clause (i) that has payment periods that are shorter than on the semester system basis (such as on a quarterly or trimester system basis or by clock hour program or non-term program), such institution shall review the progress of presently enrolled students at the end of each semester or equivalent period of 12 to 18 weeks.</text></clause> <clause id="HA8F7D106ED2247A6A349BAC2D5130E26"><enum>(iii)</enum><header>Financial aid warning</header><text>At the end of each payment period (or, in the case of an institution described in clause (ii), at the end of each semester or equivalent period), each institution shall send a financial aid warning to presently enrolled students that do not meet the grade point average requirement described in paragraph (2), or its equivalent or academic standing consistent with the requirements for graduation, as determined by the institution, that informs the students of their risk of being determined to not be maintaining satisfactory progress and therefore losing eligibility for grant, loan, or work assistance under this title and provides information on—</text>
<subclause id="HE32DCA931A6A44B386288C4596E4497D"><enum>(I)</enum><text>the specific criteria of the institution’s academic requirements that the student is not meeting and the specific improvements needed to meet the requirements; and</text></subclause> <subclause id="HD1115FD4AF74410C8C7471759AB9348E"><enum>(II)</enum><text>how to meet with the student’s academic advisor to get the academic support the student needs.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="H126C33EC8A064B9088B8236788D4C1E1"><enum>(5)</enum><header>Detailing requirements to students</header><text>Each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall detail the institution’s requirements regarding students maintaining satisfactory academic progress—</text> <subparagraph id="H9002F852FC994C9CA446463B2FCDCA14"><enum>(A)</enum><text>to such students before the students begin classes at the institution through a detailed communication that may be separate from a financial aid offer; and</text></subparagraph>
<subparagraph id="H26C662E385EC4B2E88831FAB6435B716"><enum>(B)</enum><text>on the financial aid webpage of the website of the institution.</text></subparagraph></paragraph> <paragraph id="H1EE47E3ABFB4446BA241C193866AC8F5"><enum>(6)</enum><header>Consumer testing</header><text>The Secretary—</text>
<subparagraph id="H331B9DC783DE43E6A46C6B9A022F6898"><enum>(A)</enum><text>shall conduct consumer testing to develop exemplary practices and templates—</text> <clause id="H66033224CEEA4E3A893CD3DDAD340FB2"><enum>(i)</enum><text>to support institutions of higher education in carrying out paragraph (5); and</text></clause>
<clause id="H52EF7DB23CF24CE6A8BCFAF4848D6234"><enum>(ii)</enum><text>which shall be available as resources for institutions of higher education; and</text></clause></subparagraph> <subparagraph id="H4F759647DB814F5DB2BAC0EF6553E062"><enum>(B)</enum><text>shall not require the use of such practices and templates by institutions of higher education.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H381604EDA0A84DC69FD7A5F105A4E887"><enum>106.</enum><header>Federal Pell Grants for graduate students</header><text display-inline="no-display-inline">Section 401 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>), as amended by title VII of division FF of the FAFSA Simplification Act (<external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref>), is amended—</text> <paragraph id="H011688B220364F84B230026423AF91A4"><enum>(1)</enum><text>in subsection (b)(8)(A), by inserting <quote>or as a postbaccalaureate student in accordance with subsection (d)(1)</quote> after <quote>as an undergraduate</quote>; and</text></paragraph>
<paragraph id="H53DE7C832C0641478B91CCDED8F81473"><enum>(2)</enum><text>in subsection (d)—</text> <subparagraph id="H95658BACA4AF40EBB0C368A6F08771E7"><enum>(A)</enum><text>by amending paragraph (1) to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HFA7D28665DF34A73AD729BBE096A7C8B">
<paragraph id="H9A29B54BB5914858823194696A375B77"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The period during which a student may receive Federal Pell Grants shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance except that—</text> <subparagraph id="HDAA86D4471764F60A0094C1AA4AC9B42"><enum>(A)</enum><text display-inline="yes-display-inline">any 1-year period during which the student is enrolled in a noncredit or remedial course of study as defined in paragraph (2) shall not be counted for the purpose of this paragraph; and </text></subparagraph>
<subparagraph id="HF462610463DF4A39A7FB9A547B4B3FC0"><enum>(B)</enum><text>the period during which a student may receive Federal Pell Grants shall also include the period required for the completion of the first postbaccalaureate course of study in a case in which—</text> <clause id="H6D4CE01FD82D43DC8FDF63A9E6D7EF58"><enum>(i)</enum><text>the student received a Federal Pell Grant during the period required for the completion of the student’s first undergraduate baccalaureate course of study for at least 1 but fewer than 18 semesters, or the equivalent of at least 1 but fewer than 18 semesters, as determined under paragraph (5);</text></clause>
<clause id="HE70888E332FC4ED991A69736E46103CD"><enum>(ii)</enum><text>the student would otherwise be eligible for a Federal Pell Grant, but for the completion of such baccalaureate course of study; and </text></clause> <clause id="HF476FD0C14C04A4694F7DF5133BB4332"><enum>(iii)</enum><text>the period during which the student receives Federal Pell Grants does not exceed the student’s duration limits under paragraph (5).</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HA6480CFF83E140EE8BAF69CB5652B9DA"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>or certificate</quote> and inserting <quote>, certificate, or first postbaccalaureate degree</quote>.</text></subparagraph></paragraph></section> <enum>II</enum><header>Amendments to terms and conditions of loans and repayment plans</header> <part id="HDBF07C80D3594DDE8EC88EE3BD9AC918"><enum>A</enum><header>Direct loans</header> <section id="HE280613ADF1D438A8AFF1BD6FC304F3F" section-type="subsequent-section"><enum>201.</enum><header>Subsidized loans for graduate and professional students</header><text display-inline="no-display-inline">Section 455(a)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(a)(3)</external-xref>) is amended—</text>
<paragraph id="HA16384F37BD64A39AB20B585B217A861"><enum>(1)</enum><text>in subparagraph (A), in the matter preceding clause (i), by striking “subparagraph (B)” and inserting “subparagraphs (B) and (C)”; and </text></paragraph> <paragraph id="H0B08D628A83540548EF66A26E7E57BE5"><enum>(2)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H1ADA913873DE4FDD914D4E225CEF40F9" display-inline="no-display-inline">
<subparagraph id="H9A170D90E8EA46BFA7D85078A5E93F72"><enum>(C)</enum><header>Authority to make interest subsidized loans to graduate and professional students</header><text display-inline="yes-display-inline">For any period of instruction at an institution of higher education (as defined in section 101 or section 102(a)(1)(C), except that a graduate medical school, nursing school, or a veterinary school, located outside the United States that does not meet the requirements of section 101(a)(4) shall be excluded) beginning on or after July 1, 2023, a graduate or professional student shall be eligible to receive a Federal Direct Stafford loan under this part.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H4F5CBB55F0CD47429E11109BE49ABDAA"><enum>202.</enum><header>Interest rate on subsidized loans for graduate and professional students</header><text display-inline="no-display-inline">Section 455(b)(8)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(b)(8)(B)</external-xref>) is amended—</text>
<paragraph id="H9AD8D24CDB5445F6B2C4A6BFB7009AC3"><enum>(1)</enum><text display-inline="yes-display-inline">in the heading for subparagraph (B), by striking <quote><header-in-text level="subparagraph" style="OLC">fdusl</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">fdsl and fdusl</header-in-text></quote>; and </text></paragraph> <paragraph id="H92C266FFAF524580AEFCB8BD8E4156CC"><enum>(2)</enum><text>by inserting <quote>and Federal Direct Stafford Loans</quote> after <quote>Federal Direct Unsubsidized Stafford Loans</quote>.</text></paragraph></section>
<section id="HABFC1629F6E44E9DA3E67961761A4FB5" commented="no"><enum>203.</enum><header>Repeal of origination fees</header><text display-inline="no-display-inline">Section 455(c)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(c)(2)</external-xref>) is amended—</text> <paragraph id="H2CEBA96C3F0741AC896972685BE329C5"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end of subparagraph (D); and</text></paragraph>
<paragraph id="H139BB1849998464DB45B1401BCDE3F7B"><enum>(2)</enum><text>by adding at the end the following: </text> <quoted-block style="OLC" id="HF3C6AD7899BC496788ECE04A11698300" display-inline="no-display-inline"> <subparagraph id="H384A418E497545E0ABD115B560916D12"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>0.0 percent</quote> for <quote>4.0 percent</quote> with respect to loans for which the first disbursement of principal is made on or after July 1, 2023.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H0A00790B75E84A14A2A72C0CF8EC5511"><enum>204.</enum><header>Prepayment amounts</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H7C6F43A598AF43E4BC59B9A0FC688571" display-inline="no-display-inline"> <paragraph id="H8AE7F58BA30A47029B3796491CD50586"><enum>(6)</enum><header>Application of prepayment amounts</header> <subparagraph id="H7E30A900A6064603B64D4FBEDB83E3E1"><enum>(A)</enum><header>Requirement for eligible borrowers</header> <clause id="HCCA2E41023E94CDA8F79EBB11F2D999B"><enum>(i)</enum><header>In general</header><text>Notwithstanding any other provision of this subsection or any other provision of law—</text>
<subclause id="HA6D6B7C96C2D4BAD84C4C1EC8118B8B4"><enum>(I)</enum><text>with respect to loans made to an eligible borrower under this part or part B, which are held by the same holder and which have different applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans; and</text></subclause> <subclause id="H4D654006BC24440DA45AA77772C4BB2C"><enum>(II)</enum><text>except as provided in subclause (I), with respect to loans made to an eligible borrower under this part or part B, which are held by the same holder and which have the same applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest principal balance among such loans.</text></subclause></clause>
<clause id="H0D1438A8C4724F2FA51FDFE4FD6AEA37"><enum>(ii)</enum><header>Eligible borrower defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>eligible borrower</term> means a borrower with no outstanding balance of fees, including collection costs and authorized late charges, due on any loan made under this part or part B.</text></clause></subparagraph> <subparagraph id="HFFC6DAA52F9D4A54907120A40AE515CA"><enum>(B)</enum><header>Requirement for other borrowers</header><text>A prepayment amount (as described in subparagraph (A)(i)) made by a borrower who is not an eligible borrower to a holder shall be applied first toward the borrower’s outstanding balance of fees, including collection costs and authorized late charges, due on any loan made under this part or part B held by such holder.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section></part>
<part id="H7B74CD68AB384280AF6E83E679C2FD8C"><enum>B</enum><header>Automatic enrollment in income-driven repayment for certain borrowers</header>
<section id="HD91D8E90C59B47058D35976328BA8067"><enum>211.</enum><header>Notification and automatic enrollment procedures for borrowers who are delinquent on loans</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H259ABA02143848ABA4773244D7B217F5" display-inline="no-display-inline"> <paragraph id="H55C26355600D48F3A9FE5C5F47AF4F6C" commented="no"><enum>(9)</enum><header>Notification and automatic enrollment procedures for borrowers who are delinquent on loans</header> <subparagraph id="H07716BB95A094A349073BB9B68DEE0DD" commented="no"><enum>(A)</enum><header>Authority to obtain income information</header><text display-inline="yes-display-inline">The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to—</text>
<clause id="H4E5E876EAC104A9791151F45E9777C00" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">use return information of the borrower (and the borrower's spouse, if applicable) disclosed under <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(13)</external-xref> of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the income and family size of the borrower (and the borrower's spouse, if applicable) without further action by the borrower; </text></clause> <clause id="H64039D2E1F7B4D2CBA03AAD31860755B"><enum>(ii)</enum><text display-inline="yes-display-inline">allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the income and family size of the borrower (and the borrower's spouse, if applicable); and</text></clause>
<clause id="H63FE14BFF1DE411BA02309CA3FFE2D1F"><enum>(iii)</enum><text display-inline="yes-display-inline">provide the borrower with an opportunity to update the return information so disclosed before the determination of the income and family size of the borrower for purposes of this paragraph.</text></clause></subparagraph> <subparagraph id="H4EA4AC1437EB464AB822ACD49CFDE4CB" commented="no"><enum>(B)</enum><header>Borrower notification</header><text>With respect to each borrower of a covered loan who is at least 31 days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding 62 days, the Secretary shall, as soon as practicable after such 31-day delinquency, provide to the borrower the following:</text>
<clause id="HD38D2732BB374C349940D1FF4F081569" commented="no"><enum>(i)</enum><text>Notification that the borrower is at least 31 days delinquent on at least 1 covered loan, and a description of all delinquent covered loans, nondelinquent covered loans, and noncovered loans of the borrower.</text></clause> <clause id="H47A325F8BA0E4578B1706FFD9003CA85" commented="no"><enum>(ii)</enum><text>A brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans, based on information available to the Secretary.</text></clause>
<clause id="H79A92D4809D349A8844F67EA5873CC25" commented="no"><enum>(iii)</enum><text>The amount of monthly payments for the covered and noncovered loans under each repayment plan identified under clause (ii), based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A), the income, family size, tax filing status, and tax year information on which each such monthly payment is based.</text></clause> <clause id="H50608FFBB2F142F6AF2FEB59F476FD19" commented="no"><enum>(iv)</enum><text>Clear and simple instructions on how to select the repayment plans.</text></clause>
<clause id="HFFEEC004F67448ECAE3F9992B15F22D2" commented="no"><enum>(v)</enum><text>An explanation that, in the case of a borrower for whom adjusted gross income is unavailable—</text> <subclause id="H119D821E45D244AE8F559DCB831BB6D4" commented="no"><enum>(I)</enum><text>if the borrower selects to repay the covered loans of such borrower pursuant to an income-driven repayment plan that defines discretionary income in such a manner that an individual not required under <external-xref legal-doc="usc" parsable-cite="usc/26/6012">section 6012(a)(1)</external-xref> of the Internal Revenue Code of 1986 to file a return with respect to income taxes imposed by subtitle A of such Code may have a calculated monthly payment greater than $0, the borrower will be required to provide the Secretary with other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appropriate repayment schedule; and</text></subclause>
<subclause id="H8033DF45517E4D59BB2F0A2A36A9911C" commented="no"><enum>(II)</enum><text>if the borrower selects to repay such loans pursuant to an income-driven repayment plan that is not described in subclause (I), the borrower will not be required to provide the Secretary with such other documentation of income, and the borrower will have a calculated monthly payment of $0.</text></subclause></clause> <clause id="HF26D90DEAE154A23A8D407C4CDCF90DC" commented="no"><enum>(vi)</enum><text>An explanation that the Secretary shall take the actions under subparagraph (C) with respect to such borrower, if—</text>
<subclause id="HC548D4DAD4D14773A2BDE227117432D8" commented="no"><enum>(I)</enum><text>the borrower is 80 days delinquent on 1 or more covered loans and has not selected a new repayment plan for the covered loans of the borrower; and</text></subclause> <subclause id="H1BB77DC55DA2490BA63451A8AE7AB8AC" commented="no"><enum>(II)</enum><text>in the case of such a borrower whose existing repayment plan for the covered loans of the borrower is not an income-driven repayment plan, the monthly payments under such existing repayment plan are higher than such monthly payments would be under an income-driven repayment plan.</text></subclause></clause>
<clause id="HB82354853AA24E9190B0449C2303AF5D" commented="no"><enum>(vii)</enum><text>Instructions on updating the information of the borrower obtained under subparagraph (A).</text></clause></subparagraph> <subparagraph id="HDE66DADA9BD444F1A50C6401C15B4E65" commented="no"><enum>(C)</enum><header>Secretary’s selection of a plan</header><text display-inline="yes-display-inline">With respect to each borrower described in subparagraph (B) whose existing repayment plan for the covered loans of the borrower is described in clause (vi)(II) of subparagraph (B), and who has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph and who is at least 80 days delinquent on such a loan, the Secretary shall, as soon as practicable—</text>
<clause id="H3AE3AC06151C4EE7848FD699F5DA6B00" commented="no"><enum>(i)</enum><text>in a case in which any of the borrower’s covered loans are eligible for an income-driven repayment plan—</text> <subclause id="HBD594DFF2BEB4A9DABCCF9F053220F16" commented="no"><enum>(I)</enum> <item commented="no" display-inline="yes-display-inline" id="HAD92B73C8C1B4F33969839F6DCB9C435"><enum>(aa)</enum><text>provide the borrower with the income-driven repayment plan that requires the lowest monthly payment amount for each covered loan of the borrower, compared to any other such plan for which the borrower is eligible; or</text></item>
<item id="H260CAD341CDB44B089A63FE5D2668863" indent="up1" commented="no"><enum>(bb)</enum><text>if more than one income-driven repayment plan would offer the borrower the same lowest monthly payment amount, provide the borrower with the income-driven repayment plan that has the most favorable terms for the borrower;</text></item></subclause> <subclause id="H25D362E3E1DC49EE8FDA902EB9434403" commented="no"><enum>(II)</enum><text>if the plan selected under subclause (I) is not the income-driven repayment plan that would have the lowest monthly payment amount if the borrower were eligible for such plan for the borrower’s covered loans and noncovered loans, notify the borrower of the actions, if any, the borrower may take to become eligible for such income-driven repayment plan; and</text></subclause>
<subclause id="H4AD9CCA3EE9846CFA04057CEE3D494F0" commented="no"><enum>(III)</enum><text>authorize the borrower to change the Secretary’s selection of a plan under this clause to any plan described in paragraph (1) for which the borrower is eligible; and</text></subclause></clause> <clause id="H5511A16F2AEB48638E3A807D5C91F896" commented="no"><enum>(ii)</enum><text>in a case in which none of the borrower’s covered loans are eligible for an income-driven repayment plan, notify the borrower of the actions, if any, the borrower may take for such loans to become eligible for such a plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H4E33F6ABA85947A4A012C101DB6484E6" display-inline="no-display-inline"><enum>212.</enum><header>Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H6900D929B9164C75B0C711FBAF3BAE0D" display-inline="no-display-inline"> <paragraph id="HB512EDFCBA1F47B2A473E1519CA34194" commented="no"><enum>(10)</enum><header>Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans</header> <subparagraph id="H10433482B83C4D49A9751E6DA6F5C79D" commented="no"><enum>(A)</enum><header>Authority to obtain income information</header><text display-inline="yes-display-inline">The Secretary shall establish and implement, with respect to any borrower who is rehabilitating a covered loan pursuant to section 428F(a), procedures to—</text>
<clause id="HAF224C6DD24A453697E07F98F766E978"><enum>(i)</enum><text display-inline="yes-display-inline">use return information of the borrower (and the borrower's spouse, if applicable) disclosed <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(13)</external-xref> of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower's spouse, if applicable); </text></clause> <clause id="HEB6C96DDCC0C4A50875574CD89F33EC5"><enum>(ii)</enum><text>allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to obtain such information; and </text></clause>
<clause id="H67511F8CA49C4069870C63EAAD916B5D"><enum>(iii)</enum><text display-inline="yes-display-inline">provide the borrower with an opportunity to update the return information so disclosed before the determination of income and family size of the borrower (and the borrower's spouse, if applicable) for purposes of this paragraph.</text></clause></subparagraph> <subparagraph id="HCF91F684301A4B3DA1F348154D767036" commented="no"><enum>(B)</enum><header>Borrower notification</header><text>Not later than 30 days after a borrower makes the 6th payment required on such covered loan for the loan rehabilitation described in subparagraph (A), the Secretary shall notify the borrower of the process under subparagraph (C) with respect to such loan.</text></subparagraph>
<subparagraph id="H47CE167DA312469194DC0AB7529E9132" commented="no"><enum>(C)</enum><header>Secretary’s selection of plan</header><text display-inline="yes-display-inline">With respect to each borrower who has made the 9th payment required on such covered loan for the loan rehabilitation described in subparagraph (A), the Secretary shall, as soon as practicable after such payment, carry out the procedures described in clauses (i) and (ii) of paragraph (9)(C) with respect to such loan. </text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HDB2314B8839A4133B9588CB879712B77"><enum>213.</enum><header>Covered loan, income-driven repayment plan, and non-covered loan defined</header><text display-inline="no-display-inline">Section 455(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text>
<quoted-block style="OLC" id="HAA9E7C8BB10F42CC874B49D3D49DB479" display-inline="no-display-inline">
<paragraph id="H2D3AF1BCEE474019A10C36C634F2F396" commented="no"><enum>(11)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="H0E5E29FA1A4D4FE7AEFD25E8A5C32DD1" commented="no"><enum>(A)</enum><header>Covered loan</header><text>The term <term>covered loan</term> means—</text>
<clause id="H6B41F08C353043F69C069B727380D14C" commented="no"><enum>(i)</enum><text>a loan made under this part;</text></clause> <clause id="HDE9735EA3A684BF791B4AC041DD01A0D" commented="no"><enum>(ii)</enum><text>a loan purchased under section 459A; or</text></clause>
<clause id="HB9185C576EF944C1B60849622C5AF819" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">a loan that has been assigned to the Secretary under subsection (c)(8) or (j)(3)(B) of section 428, or subsection (a)(1)(A)(ii) or (a)(1)(G) of section 428F.</text></clause></subparagraph> <subparagraph id="HEE65850DFCF24BDEB936277971B05487" commented="no"><enum>(B)</enum><header>Income-driven repayment plan</header><text display-inline="yes-display-inline">The term <term>income-driven repayment plan</term> means a repayment plan described in subparagraph (D) or (E) of paragraph (1). </text></subparagraph>
<subparagraph id="HADF424741F9D4B2AB4C69223DF405745" commented="no"><enum>(C)</enum><header>Noncovered loan</header><text>The term <term>noncovered loan</term> means a loan made, insured, or guaranteed under this title that is not a covered loan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8A2801C511EF4757A2C22A385988C1ED"><enum>214.</enum><header>Automatic recertification of income for income-driven repayment plans</header> <subsection id="HD1A3481D51CF45F78DC29ED60404F12F"><enum>(a)</enum><header>Income-Contingent repayment plans</header><text display-inline="yes-display-inline">Section 455(e)(8)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)(8)(A)</external-xref>) is amended—</text>
<paragraph id="H24D7D13E6F254C4CAF4B34EE274DE0CA" commented="no"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of clause (ii);</text></paragraph> <paragraph id="H1460A4DFDF504F428152AEB3E1B92AE4"><enum>(2)</enum><text>by redesignating clause (iii) as clause (iv);</text></paragraph>
<paragraph id="HD3786BE88EE149D28BC78317DCD6E7F9"><enum>(3)</enum><text>in clause (iv) (as so redesignated), by striking the period at the end and inserting <quote>; and</quote>; and </text></paragraph> <paragraph id="H2F2BFE225FA04380A3F0DB9FF21DC4A6" commented="no"><enum>(4)</enum><text>by inserting after clause (ii), the following: </text>
<quoted-block style="OLC" id="HD2A353B6EEF14E11B96E6105BECB56B7" display-inline="no-display-inline">
<clause id="H29E5179892914D56AC58E7B2B0C2D504" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a borrower who has selected to repay a loan made under this part pursuant to an income contingent repayment plan that defines discretionary income in such a manner that the borrower would have a calculated monthly payment equal to $0, not require the borrower to provide the Secretary the information described in clause (i) or (ii), and ensure that the borrower will have a calculated monthly payment of $0; and </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H08F4C966C4DA42A699EB7FFD3C39F6C6" commented="no"><enum>(b)</enum><header>Income-Based repayment plans</header><text>Section 493C(c)(2)(B) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(c)(2)(B)</external-xref>) is amended by striking <quote>any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan)</quote> and inserting <quote>any covered loan (as defined in section 455(d)(11))</quote>. </text></subsection></section>
<section id="HADC979DA63564ADCAEA82071A952B6DE" commented="no"><enum>215.</enum><header>Procedure and requirement for requesting tax return information from the IRS</header><text display-inline="no-display-inline">Section 494(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098h">20 U.S.C. 1098h(a)</external-xref>) is amended—</text> <paragraph id="H482E79D0FC124B54A65C7637970B3E83" commented="no"><enum>(1)</enum><text>in paragraph (2)—</text>
<subparagraph id="H18B1C3CCAD0B49BBB35D7580905B12D1" commented="no"><enum>(A)</enum><text>in subparagraph (A), in the matter preceding clause (i), by striking <quote>a loan under part D</quote> and inserting <quote>a covered loan (as defined in section 455(d)(11))</quote>; and</text></subparagraph> <subparagraph id="H260E77FE85D34C0E97C895EC71CE7C7A" commented="no"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>a loan under part D</quote> and inserting <quote>a covered loan (as defined in section 455(d)(11))</quote>; and</text></subparagraph></paragraph>
<paragraph id="HB71297E7B08E479BBC23FE68F7E977E3" commented="no"><enum>(2)</enum><text>by adding at the end the following: </text> <quoted-block style="OLC" id="H33EA135A1A884C7AB5BAE19B7B48D500" display-inline="no-display-inline"> <paragraph id="HC3FAC2240D99483EB583B799CBB389EB" commented="no"><enum>(4)</enum><header>Loan delinquency and rehabilitation</header> <subparagraph id="H2D1145600E664DD39F9805723B6E7DFD" commented="no"><enum>(A)</enum><header>Borrowers delinquent on loans</header><text>In the case of an individual who is a borrower of a covered loan and who is at least 31 days delinquent on such loan, the Secretary, with respect to such individual and any spouse of such individual, shall—</text>
<clause id="H9E1318DDBF734911B95A60B5004763F8" commented="no"><enum>(i)</enum><text>provide to such individuals the notification described in paragraph (1)(A)(i); and</text></clause> <clause id="H1C916AB04EF94107B8AF5CEAE195EC02" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">require, as a condition of eligibility for the notification and automatic enrollment procedures under section 455(d)(9), that such individuals—</text>
<subclause id="H92A328ED5C5E45ABA890497871BA843C" commented="no"><enum>(I)</enum><text>affirmatively approve the disclosure described in paragraph (1)(A)(i) and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section 455(d)(9)(A)(ii); or </text></subclause> <subclause id="H294B03CDC8134239A16B1B04B285E387" commented="no"><enum>(II)</enum><text>provide such information as the Secretary may require to carry out the procedures under section 455(d)(9) with respect to such individual.</text></subclause></clause></subparagraph>
<subparagraph id="H30F9FC0438BB4282B071A89A8974A064" commented="no"><enum>(B)</enum><header>Loan rehabilitation</header><text display-inline="yes-display-inline">In the case of any written or electronic application by an individual for the rehabilitation of a covered loan pursuant to section 428F(a), the Secretary, with respect to such individual and any spouse of such individual, shall—</text> <clause id="HF09DAB180DBD4961BB2402EF13F81A34" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">provide to such individuals the notification described in paragraph (1)(A)(i); and</text></clause>
<clause id="HAFB8C0F37D984B1F8F5CAD39DDC03537" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">require, as a condition of eligibility for loan rehabilitation pursuant to section 428F(a), that such individuals—</text> <subclause id="HBBC377B6829E475089FAC1DD5C0BC0AA" commented="no"><enum>(I)</enum><text>affirmatively approve the disclosure described in paragraph (1)(A)(i) and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section 455(d)(10)(A)(ii); or </text></subclause>
<subclause id="HF0B331E265EE4717983BED949B1AC953" commented="no"><enum>(II)</enum><text>provide such information as the Secretary may require to carry out the procedures under section 455(d)(10) with respect to such individual.</text></subclause></clause></subparagraph> <subparagraph id="HF805D603834F43BDB51E1A32DE0C103F" commented="no"><enum>(C)</enum><header>Covered loan defined</header><text>In this paragraph, the term <term>covered loan</term> has the meaning given the term in section 455(d)(11).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></part>
<part id="HE49F727B61CE40DDA8F3763BBAD7ED31"><enum>C</enum><header>Amendments to certain loan forgiveness programs</header>
<section id="HD4CF31442F404E18BE2C7223ACD5C314" section-type="subsequent-section" commented="no"><enum>221.</enum><header>Amendments to terms and conditions of Public Service Loan Forgiveness</header>
<subsection id="H0DD99F57D30B4E1CBDEB7B7EFA4BBD8D" commented="no"><enum>(a)</enum><header>Number of monthly payments; repayment plans</header><text display-inline="yes-display-inline">Paragraph (1) of section 455(m) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)</external-xref>) is amended—</text> <paragraph id="H46E780DDA6A0457396FF1C23A2F0CB60" commented="no"><enum>(1)</enum><text>in subparagraph (A)—</text>
<subparagraph id="HD63C910D91CD41C99D3BF91CD705F861" commented="no"><enum>(A)</enum><text>in the matter preceding clause (i), by striking <quote>120</quote> and inserting <quote>96</quote>; </text></subparagraph> <subparagraph id="HE6C1CB59A3A848B8A8799B82F0E40A03" commented="no"><enum>(B)</enum><text>by striking <quote>or</quote> at the end of clause (iii);</text></subparagraph>
<subparagraph id="H7865FAC9C1E64969865CF7AEB05F7105" commented="no"><enum>(C)</enum><text>in clause (iv), by striking <quote>and</quote> and inserting <quote>or</quote>; and</text></subparagraph> <subparagraph id="HDDCEB66DA2E64EA1BE2C9A44CF743AFF" commented="no"><enum>(D)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" id="H0A23DA066DEA48DB880BEE4AB77EFB70" display-inline="no-display-inline">
<clause id="H760B5167583F4ADF9B91055B44C65C51" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">in lieu of such a payment, has been in—</text> <subclause id="H05E2C69B2C0142C381D0B2D1FCB9D9F5" display-inline="no-display-inline" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">cancer treatment deferment under section 427(a)(2)(C)(iv), 428(b)(1)(M)(v), or 455(f)(3);</text></subclause>
<subclause id="HCE009BEA2A0946A6800AC936F2B06E70" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">rehabilitation training program deferment under section 427(a)(2)(C)(i)(II), 428(b)(1)(M)(i)(II), or 455(f)(2)(A)(ii); </text></subclause> <subclause id="H36F48769595949ACB74AEAEF212E7156" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">military service deferment under section 428(b)(1)(M)(iii) or 455(f)(2)(C);</text></subclause>
<subclause id="H8A99F522F74A427AA1F5CDA4A14DF209" commented="no"><enum>(IV)</enum><text display-inline="yes-display-inline">unemployment deferment under section 427(a)(2)(C)(ii), 428(b)(1)(M)(ii), 428B(d)(1)(A)(i), or 455(f)(2)(B);</text></subclause> <subclause id="H377F26651C56426E8693A92267464EBC" commented="no"><enum>(V)</enum><text>deferment due to an economic hardship described in section 427(a)(2)(C)(iii), section 428(b)(1)(M)(iv), section 428B(d)(1)(A)(i), section 435(o), or section 455(f)(2)(D);</text></subclause>
<subclause id="HACFB1AFCC90C48CFBECA220A5D6915FB" commented="no"><enum>(VI)</enum><text display-inline="yes-display-inline">Peace Corps service deferment under section 682.210(b)(2)(ii) or 682.210(k) of title 34, Code of Federal Regulations (or successor regulations), as made applicable to Direct Loan borrowers under section 685.204(j) of such title 34;</text></subclause> <subclause id="H69FD7BEB023C4C9A89837F522380C503" commented="no"><enum>(VII)</enum><text display-inline="yes-display-inline">has been in post-active-duty student deferment under section 493D;</text></subclause>
<subclause id="H1462E5849FC04F62B5631FA23ADBCBF6" commented="no"><enum>(VIII)</enum><text display-inline="yes-display-inline">AmeriCorps forbearance under section 428(c)(3)(A)(i)(III); </text></subclause> <subclause id="HF6B3E44B1F26444C9C9FD0C228B73A3C" commented="no"><enum>(IX)</enum><text display-inline="yes-display-inline">National Guard Duty forbearance under section 682.211(h)(2)(iii) or 685.205(a)(7) of title 34, Code of Federal Regulations (or successor regulations);</text></subclause>
<subclause id="HC9468E51FD5C49DE9A260F4842214727" commented="no"><enum>(X)</enum><text display-inline="yes-display-inline">Department of Defense student loan repayment program forbearance under section 428(c)(3)(A)(i)(IV);</text></subclause> <subclause id="H625D4D4432814320B6586C840645E6A1" commented="no"><enum>(XI)</enum><text display-inline="yes-display-inline">Administrative forbearance or mandatory administrative forbearance under section 428(c)(3)(D) or 428H(e)(7); or</text></subclause>
<subclause id="HE2C24E1156D3452C9A2E713C72A2F103" commented="no"><enum>(XII)</enum><text display-inline="yes-display-inline">Student loan debt burden forbearance under section 428(c)(3)(A)(i)(II); and</text></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HC6E03AE72D7A48209DCF91CEDDF2B2C4" commented="no"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>(i) is employed</quote> and all that follows through <quote>has been</quote> and inserting <quote>has been</quote>.</text></paragraph></subsection>
<subsection id="HF6204BE4F1DE43D8A29D2667FECDDBA1" commented="no"><enum>(b)</enum><header>Automatic cancellation</header><text display-inline="yes-display-inline">Paragraph (2) of section 455(m) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)(2)</external-xref>) is amended by adding at the end the following: <quote>In the case of a borrower who meets the requirements under paragraph (1) for such cancellation, such cancellation shall occur without further action by the borrower.</quote>.</text></subsection> <subsection id="HF0CCBFAF8B474F69BD23150BC4DECFD3" commented="no"><enum>(c)</enum><header>Treatment of refinanced loans; on-Line portal; database of public service jobs</header><text>Section 455(m) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(m)</external-xref>) is further amended—</text>
<paragraph id="HC2C9EA027E324DC2991D83B14F3D9A41" commented="no"><enum>(1)</enum><text>by redesignating paragraphs (3) and (4) as paragraphs (6) and (7), respectively; and</text></paragraph> <paragraph id="HF8C5BA5818904873B8B05DF39FEC42ED" commented="no"><enum>(2)</enum><text>by inserting after paragraph (2) the following:</text>
<quoted-block id="HFA0B8D62AB954EEEAD62DF334FB2866C" style="OLC">
<paragraph id="HD7A83C03BE1042AE8E3CA7CBAEABDE70" commented="no"><enum>(3)</enum><header>Treatment of loans refinanced under sections 460A</header><text display-inline="yes-display-inline">In the case of an eligible refinanced Federal Direct Loan under section 460A, any monthly payment pursuant to any repayment plan listed in paragraph (1)(A) (including a period of deferment or forbearance described in paragraph (1)(A)(v)) made on a loan, for which the liability has been discharged by such refinanced loan and without regard to whether such loan is an eligible Federal Direct Loan, shall be treated as a monthly payment under paragraph (1)(A) on the portion of such refinanced loan that is attributable to such discharged loan. </text></paragraph> <paragraph id="H9835D8C4A72341C9B4D8E4DA41C22C94" commented="no"><enum>(4)</enum><header>On-line portal</header> <subparagraph id="H2003DC0B857A41318788AFBB7D136ED2" commented="no"><enum>(A)</enum><header>Borrowers</header><text>The Secretary shall ensure that borrowers have access to an on-line portal that provides each borrower who signs on to such portal with the following:</text>
<clause id="H0F11B8E039DE45DEAAA118502DD3CE21" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">Instructions on how to access the database under paragraph (5) so that the borrower can determine whether the borrower is employed in a public service job.</text></clause> <clause id="H2D4DCFE0856A4E228D94CCF20C8F3656" commented="no"><enum>(ii)</enum><text>An identification of the loans of the borrower that are eligible Federal Direct Loans.</text></clause>
<clause id="HABB9E00A5E5C4F0F890C3E4F48752A1E" commented="no"><enum>(iii)</enum><text>With respect to each such eligible Federal Direct Loan, the number of monthly payments on such loan that qualify as a monthly payment under paragraph (1)(A), and the estimated number of monthly payments under paragraph (1)(A) remaining on such loan before the borrower may be eligible for loan cancellation under this subsection.</text></clause> <clause id="H52CA39964E02464181F448731622FEA5" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">With respect to each loan of the borrower that is not eligible for loan cancellation under this subsection, an explanation of why the loan is not so eligible and instructions on how what, if anything, the borrower may do to make the loan so eligible.</text></clause>
<clause id="HA2C4A97CB6D74A32BDC35F57F6985754" commented="no"><enum>(v)</enum><text>Instructions for the submission of any forms associated with such loan cancellation, and an ability for the borrower to use the portal to electronically sign and submit such forms.</text></clause> <clause id="H56E1B03BE05A40F9975FBBA08A4AB9B9" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">In the case of a borrower who disputes a determination of the Secretary relating to the entitlement of the borrower to loan cancellation under paragraph (2)—</text>
<subclause id="H611F85D847C34F3C9E7B9E38F17322D8" commented="no"><enum>(I)</enum><text>an ability for the borrower to file a claim with the Secretary to dispute such determination through the portal; and</text></subclause> <subclause id="H613AFE4F78884687B7CBE5433EBC1ACF" commented="no"><enum>(II)</enum><text>in the case of such a claim that has been filed, the status of such claim, for which updates shall be provided not fewer than once every 90 days.</text></subclause></clause></subparagraph>
<subparagraph id="H4CA7CB64994A4585AABE4681BB98C9FF" commented="no"><enum>(B)</enum><header>Employers</header><text display-inline="yes-display-inline">The Secretary shall ensure that an employer of a borrower has the option to electronically sign and submit any forms associated with loan cancellation under this subsection.</text></subparagraph> <subparagraph id="HFEF78F43132340A4AE9A9B615272FAAF" commented="no"><enum>(C)</enum><header>Information</header><text>The Secretary shall ensure that any information provided through the on-line portal described in this paragraph is up-to-date information.</text></subparagraph></paragraph>
<paragraph id="H8B8FCD62F19B41468DE6E9E0F557F90C" commented="no"><enum>(5)</enum><header>Database of public service jobs</header>
<subparagraph id="H2D6A8C943CA146959900A4249202B894" commented="no"><enum>(A)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of Labor, shall establish and regularly update a database that lists public service jobs. </text></subparagraph> <subparagraph id="HA0DF477239DC428EAC44BAF385214F5C" commented="no"><enum>(B)</enum><header>Public availability</header><text display-inline="yes-display-inline">The database established under subparagraph (A) shall be made available on a publicly accessible website of the Department in an easily searchable format.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H1D5D58E6479A4E49B0429147B5606AA1" commented="no"><enum>(d)</enum><header>Definitions</header><text>Section 455(m) of such Act is further amended in paragraph (6)(A) (as so redesignated by subsection (c))—</text> <paragraph id="H2B6CAD77FDC14F1085486360527D12B8" commented="no"><enum>(1)</enum><text>by inserting before the period at the end the following: <quote>(including any Federal Direct Stafford Loan, Federal Direct PLUS Loan, Federal Direct Unsubsidized Stafford Loan, or Federal Direct Consolidation Loan refinanced under section 460A)</quote>; </text></paragraph>
<paragraph id="HF114ED160317487298596FF168035016" commented="no"><enum>(2)</enum><text>by striking <quote>The term</quote> and inserting the following:</text> <quoted-block id="H599C45352E1644A5951B0C1A9550A879" style="OLC"> <clause id="H8C72B6356C4248119CCC1049787AEA5D" commented="no"><enum>(i)</enum><header>In general</header><text>The term</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="H4FAEFC30443B481084D5A27D0CB09A62" commented="no"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block id="H1CC89BD0DDFC4C45BD67258E3C0F53BF" style="OLC"> <clause id="HEC278863E2EF4B19A67F6DD5339B8CCF" commented="no"><enum>(ii)</enum><header>Treatment of certain consolidation loan payments</header><text display-inline="yes-display-inline">In the case of an eligible Federal Direct Loan that is a Federal Direct Consolidation Loan made on or after the date of enactment of the LOAN Act, any monthly payment pursuant to any repayment plan listed in paragraph (1)(A) (including a period of deferment or forbearance described in paragraph (1)(A)(v)) made on a loan, for which the liability has been discharged by the proceeds of such Federal Direct Consolidation Loan and without regard to whether the loan is an eligible Federal Direct Loan, shall be treated as a monthly payment under paragraph (1)(A) on the portion of such Federal Direct Consolidation Loan that is attributable to such discharged loan, except that in a case of a borrower who previously received a Federal Direct Consolidation Loan, any monthly payment made on a loan for which the liability has been discharged by such previous consolidation loan shall not be treated as a monthly payment on a portion of the subsequent Federal Direct Consolidation Loan made on or after such date of enactment.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H8796C78FA92D4F5393F81A5776F577C6" commented="no"><enum>(e)</enum><header>Treatment of double benefits</header><text display-inline="yes-display-inline">Section 455(m) of such Act is further amended in paragraph (7) (as so redesignated by subsection (c)) by striking <quote>both this subsection and section 428J, 428K, 428L, or 460</quote> and inserting <quote>both this subsection and section 428K or 428L</quote>.</text></subsection></section> <section id="HE224A3A7162944B9A93C8CC38C405EA6"><enum>222.</enum><header>Loan forgiveness for teachers</header><text display-inline="no-display-inline">The Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>) is further amended—</text>
<paragraph id="H66A276703D5240C5ACB8000187411F77"><enum>(1)</enum><text>in section 428J(g)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-10">20 U.S.C. 1078–10(g)(2)</external-xref>)—</text> <subparagraph id="H215BF45ADE8E497D83E200C4A12F4E8C"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph>
<subparagraph id="H8EEBCAE6581A4A14AE33E710D70E52A2"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph> <subparagraph id="H2076E5778D9D4D0FAF785269D1D65A84"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B); and</text></subparagraph></paragraph>
<paragraph id="H8946B3BB5A0B45B29ECD0607F5CC591B"><enum>(2)</enum><text display-inline="yes-display-inline">in section 460(g)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087j">20 U.S.C. 1087j(g)(2)</external-xref>)—</text> <subparagraph id="H424D58DC801B4DD59D4EA51FA8A59495"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph>
<subparagraph id="H7E634DD245AD4909A3E1FFFA70B0D854"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph> <subparagraph id="H65E2FDDE76614761B2CDF2D141EEF11B"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></subparagraph></paragraph></section></part>
<enum>III</enum><header>Interest Capitalization</header>
<section id="H5EA76AE5E4F14CD2A6ED03532197486B"><enum>301.</enum><header>Elimination of interest capitalization</header>
<subsection id="H8FE98D92A2E14704919CE029A555B5D9" display-inline="no-display-inline"><enum>(a)</enum><header>Federal PLUS loans</header><text display-inline="yes-display-inline">Section 428B(d)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-2">20 U.S.C. 1078–2(d)(2)</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H37605599CD124178B85745DC2D3D983F"> <paragraph id="HFE6C202E39254AB29E970B14D116C498"><enum>(2)</enum><header>No capitalization of interest</header><text display-inline="yes-display-inline">Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall be paid by the borrower and shall not be capitalized.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1DDB3A6ECB064085888218D3F16EE789" commented="no"><enum>(b)</enum><header>Federal consolidation loans deferrals</header><text display-inline="yes-display-inline">Section 428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3(b)(4)(C)(III)</external-xref>) is amended by striking <quote>or capitalized,</quote>.</text></subsection> <subsection id="H8ED99F158E384E2DB4C7E18396AED2FE" commented="no"><enum>(c)</enum><header>Default reduction program</header><text display-inline="yes-display-inline">Section 428F(a)(1)(E) of such Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)(1)(E)</external-xref>) is amended to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H854EC186737C41BDBFD6AD018DC4A38B">
<subparagraph id="H5BE1D135C70646E9ACD0804DC95E908B" commented="no"><enum>(E)</enum><header>Duties upon assignment</header><text display-inline="yes-display-inline">With respect to a loan assigned under subparagraph (A)(ii)—</text> <clause id="H028EE83810CC4F5EA078655F29C95B90" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>the guaranty agency shall add to the principal and interest outstanding at the time of the assignment of such loan an amount equal to the amount described in subparagraph (D)(i)(II)(aa);</text></clause>
<clause id="H0797E711242C4B29A8BEA2E55409233B" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the Secretary shall pay the guaranty agency, for deposit in the agency’s Operating Fund established pursuant to section 422B, an amount equal to the amount added to the principal and interest outstanding at the time of the assignment in accordance with <internal-xref idref="H028EE83810CC4F5EA078655F29C95B90" legis-path="(E)(i)">clause (i)</internal-xref>; </text></clause> <clause id="HD33A0874945443158C47C74DDF088FAD" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">for a loan assigned on or after the date of enactment of the LOAN Act, the interest outstanding at the time of the assignment of such loan, and any interest accruing after such time, shall not be capitalized; and</text></clause>
<clause id="H0ECC11E5117948169AD487BF004BDA6E" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">beginning on the date of enactment of LOAN Act, interest shall only accrue on the percentage of such a loan that is equal to—</text> <subclause id="H5EF821FCC2CE474E8F2243391AF86A23" commented="no" display-inline="no-display-inline"><enum>(I)</enum><text>the amount of the outstanding principal on the original loan on the date it was assigned; divided by</text></subclause>
<subclause id="H96F9A7EF3A404895AD0E1B1E63032D2C" commented="no"><enum>(II)</enum><text>the total amount of such assigned loan, including interest outstanding at the time of the assignment of such loan and the amount added by the guaranty agency in accordance with <internal-xref idref="H028EE83810CC4F5EA078655F29C95B90" legis-path="(E)(i)">clause (i)</internal-xref>, on the date such loan was assigned.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBFC4DD5F628E4FB98CCCDD85008AE699" display-inline="no-display-inline"><enum>(d)</enum><header>Loan limits for Unsubsidized Stafford Loans</header><text display-inline="yes-display-inline">Section 428H(d)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-8">20 U.S.C. 1078–8(d)(5)</external-xref>) is amended by inserting <quote>before the date of enactment of the LOAN Act</quote> after <quote>Interest capitalized</quote>. </text></subsection>
<subsection id="H8C5775B7C72A4E38955F2AAAB7CE8111" commented="no"><enum>(e)</enum><header>Unsubsidized Stafford loans for middle income borrowers</header><text display-inline="yes-display-inline">Section 428H(e)(2) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-8">20 U.S.C. 1078–8(e)(2)</external-xref>) is amended—</text> <paragraph id="H630CE6BEC6984175BBBA34D928B6862A" commented="no"><enum>(1)</enum><text>in the header, by striking <quote><header-in-text level="paragraph" style="OLC">Capitalization</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">No capitalization</header-in-text></quote>; </text></paragraph>
<paragraph id="HFD0326107F3B446F8D56D92D27B85CF6"><enum>(2)</enum><text>in subparagraph (A), in the matter before clause (i), by striking <quote>, if agreed upon by the borrower and the lender</quote> and all that follows through clause (ii)(IV) and inserting <quote>be paid by the borrower and shall not be capitalized.</quote>;</text></paragraph> <paragraph id="H0BD49BC3A53B4D1B80E8F98290E8F1E6" commented="no"><enum>(3)</enum><text>by striking subparagraph (B); and</text></paragraph>
<paragraph id="H35682C6714DE4386A9AC1A60B5A7C33E" commented="no"><enum>(4)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></paragraph></subsection> <subsection id="H57534C781C5D46CD96FC32FF0A107898"><enum>(f)</enum><header>Income contingent repayment</header><text display-inline="yes-display-inline">Section 455(e)(5) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)(5)</external-xref>) is amended by striking the last sentence and inserting <quote>No interest may be capitalized on such loan on or after the date of the enactment of the LOAN Act, and the Secretary shall promulgate regulations with respect to the treatment of accrued interest that is not capitalized</quote>.</text></subsection>
<subsection id="H853161ADFC1442AD8150F43579D0A1E8" commented="no" display-inline="no-display-inline"><enum>(g)</enum><header>Deferment and forbearance</header>
<paragraph id="H5824F0D001EE4929A1EB942AF513DB50"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 455(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(f)</external-xref>) is amended—</text> <subparagraph id="H9675F01EFAFA471DA2EF72FBC46356FB" commented="no"><enum>(A)</enum><text>in the subsection heading, by inserting at the end the following: <quote><header-in-text level="subsection" style="OLC">and forbearance</header-in-text></quote>;</text></subparagraph>
<subparagraph id="H7C9905F535424CCEA81CCE121E1FC635" commented="no"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>capitalized or</quote>; and</text></subparagraph> <subparagraph id="HD9A04047437443378939DCA44CDA459E" commented="no"><enum>(C)</enum><text>by adding at the end the following: </text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H2E669EE893954C5BB6BA644CB4FCB031">
<paragraph id="HD0B41AAF5D1545CFAA179B200E541968" commented="no"><enum>(6)</enum><header>Forbearance</header><text display-inline="yes-display-inline">At the expiration of a period of forbearance, interest shall not be capitalized on any loans made under this part. </text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1D09DA4BDA03480D85AB94CFE3FAF77A"><enum>(2)</enum><header>Application of amendment</header><text>The amendments made by paragraph (1) shall apply to any deferment or forbearance period in effect on the date of enactment of this Act, or any deferment or forbearance period beginning on or after such date of enactment.</text></paragraph></subsection>
<subsection id="HABF504404C3C4210BBAB4C563BCB096F"><enum>(h)</enum><header>Income-Based Repayment program</header><text display-inline="yes-display-inline">Section 493C(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(b)(3)</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7FF80ACA631A49F39E671E66A90DE660"> <paragraph id="H2DC4FD65C0284B59821454C37EEC9165"><enum>(3)</enum><text display-inline="yes-display-inline">on subsidized loans, any interest due and not paid under paragraph (2) shall be paid by the Secretary for a period of not more than 3 years after the date of the borrower’s election under paragraph (1), except that such period shall not include any period during which the borrower is in deferment due to an economic hardship described in section 435(o);</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HC10888DCFFCC43C4AE1A5D8C66004020" commented="no"><enum>(i)</enum><header>Notes and insurance certificates in Combined Payment plans</header><text display-inline="yes-display-inline">Section 485A(f) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092a">20 U.S.C. 1092a(f)</external-xref>) is amended by adding at the end the following new paragraph: </text> <quoted-block style="OLC" display-inline="no-display-inline" id="H417BE9911DF54DA7AED2F4230302F530"> <paragraph id="HDD6D003D41E3450D923E7CA5DBB3BA84" commented="no"><enum>(3)</enum><header>Treatment of interest</header><text display-inline="yes-display-inline">Not withstanding paragraphs (1) and (2), beginning on the date of enactment of the <short-title></short-title>LOAN Act, interest on a loan reissued under subsection (e) shall not be capitalized, and interest shall only accrue on the percentage of such reissued loan that is equal to—</text>
<subparagraph id="H3BA679F22402442DBD453BD4D46851A7" commented="no"><enum>(A)</enum><text>the amount of the outstanding principal on the original loan on the date it was reissued; divided by</text></subparagraph> <subparagraph id="HBD309D6E55CE477BA221BF6596CFC797" commented="no"><enum>(B)</enum><text>the total amount of such reissued loan on the date such loan was reissued.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HB1ED7453F58F40A3B99EEF35C03235F5"><enum>302.</enum><header>Elimination of disclosure requirements relating to capitalization</header>
<subsection id="H2494B44EFC8F4FAF81EBB0C387950B02"><enum>(a)</enum><header>Insurance Program Agreements To Qualify Loans for Interest Subsidies</header><text display-inline="yes-display-inline">Section 428(b)(1)(Y) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)(1)(Y)</external-xref>) is amended—</text> <paragraph id="H041CCDFF6BEF46D2A2BBC4BD8E13750C"><enum>(1)</enum><text>in clause (i)(IV), by inserting <quote>and</quote> after the semicolon;</text></paragraph>
<paragraph id="H95B12BF356944E159A2E057EF4D74DAC"><enum>(2)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a period; and</text></paragraph> <paragraph id="HD2BAD7889F1444B1A3FFDE24D1507E9D"><enum>(3)</enum><text>by striking clause (iii).</text></paragraph></subsection>
<subsection id="H6BC2DB4B2CED41E6AFACD47A1D878D2E"><enum>(b)</enum><header>Forbearance</header><text display-inline="yes-display-inline">Section 428(c)(3)(C) of such Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(c)(3)(C)</external-xref>) is amended—</text> <paragraph id="H889DB78144984D6E94F1D1058CFF464D"><enum>(1)</enum><text>in clause (ii), by inserting <quote>and</quote> after the semicolon; and</text></paragraph>
<paragraph id="HD3494A0B73E54B70B92446EC10B7ACC7"><enum>(2)</enum><text>by striking clauses (iii) and (iv) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HB2BBD03D1DFE4C18B1A23E7DBC5EC509"> <clause id="HE135DD438A40495A955819B0D259B682" commented="no"><enum>(iii)</enum><text>the lender shall contact the borrower not less often than once every 180 days during the period of forbearance to inform the borrower of—</text>
<subclause id="H310E764B62844B9D85C65ADB803FB2EF" commented="no"><enum>(I)</enum><text>the amount of unpaid principal and the amount of interest that has accrued since the last statement of such amounts provided to the borrower by the lender;</text></subclause> <subclause id="HF7396764301141569EAD63A537DF0690" commented="no"><enum>(II)</enum><text>the fact that interest will accrue on the loan for the period of forbearance;</text></subclause>
<subclause id="H377DD0E6A5C64C659C2F51652179EC73" commented="no"><enum>(III)</enum><text>the responsibility of the borrower to pay the interest that has accrued; and</text></subclause> <subclause id="H558C7BAD96864B74877156342F8EC0C8" commented="no"><enum>(IV)</enum><text>the borrower’s option to discontinue the forbearance at any time; and</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HB06D9121B7544E019D98C3F6D27F4128"><enum>(c)</enum><header>Required Disclosure Before Disbursement</header><text display-inline="yes-display-inline">Section 433(a) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(a)</external-xref>) is amended—</text> <paragraph id="HD0A5EDD425C544EF945E4A34C63106A3"><enum>(1)</enum><text>by amending paragraph (6) to read as follows:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H69054D8225A54703A034565DDEAA481D">
<paragraph id="H6BC1229AE03A48CAAE2125EF5F696D66" commented="no"><enum>(6)</enum><text display-inline="yes-display-inline">for loans made under section 428H or to a student borrower under section 428B, an explanation that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education;</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H986341DE1DA347DABBF1FBC0E54AA1DB"><enum>(2)</enum><text>in paragraph (7)—</text>
<subparagraph id="H4072CBD9DF434FFE9B14EB8938796E54"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon; </text></subparagraph> <subparagraph id="H1E278F0010B1450BA67137C133ACF2EB"><enum>(B)</enum><text>by striking subparagraph (B); and</text></subparagraph>
<subparagraph id="H059964D3EF9F44CBB16AEAD0D58AACAD"><enum>(C)</enum><text>by redesignating subparagraph (C) as subparagraph (B).</text></subparagraph></paragraph></subsection> <subsection id="H9D6C5230225449D9A230206564BADA59" display-inline="no-display-inline"><enum>(d)</enum><header>Required disclosure before repayment</header><text display-inline="yes-display-inline">Section 433(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(b)(3)</external-xref>) is amended by striking <quote>(including, if applicable, the estimated amount of interest to be capitalized)</quote>. </text></subsection>
<subsection id="H28708DA7718F4EB99E5FA3946E90D2A4"><enum>(e)</enum><header>Special Disclosure Rules on PLUS Loans and Unsubsidized Loans</header><text display-inline="yes-display-inline">Section 433(d) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(d)</external-xref>) is amended—</text> <paragraph id="HB6CF1AF979474A86B37A1D48C00D8AC2"><enum>(1)</enum><text>in the matter preceding paragraph (1)—</text>
<subparagraph id="H7C746F9C46304DA6B0A04AC99058DED8"><enum>(A)</enum><text>by striking <quote>resulting from capitalization of interest</quote>; and</text></subparagraph> <subparagraph id="HE21F3A86601A431C86E810C94FFFD8D7"><enum>(B)</enum><text>by striking <quote>borrower of—</quote> and inserting <quote>borrower of paying the interest as the interest accrues.</quote>; and</text></subparagraph></paragraph>
<paragraph id="H6AD5EC5086FE4F749D81E190069CEB0F"><enum>(2)</enum><text>by striking paragraphs (1) and (2).</text></paragraph></subsection> <subsection id="H33F8BF348A7B42119FA470CF47AA5D78" display-inline="no-display-inline"><enum>(f)</enum><header>Disclosure Required prior to Perkins repayment</header><text>Section 463A(b)(3) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087cc-1">20 U.S.C. 1087cc–1(b)(3)</external-xref>) is amended by striking <quote>(including, if applicable, the estimated amount of interest to be capitalized)</quote>. </text></subsection>
<subsection id="H7F5F18A54500483AB91A94CF36FF63F9"><enum>(g)</enum><header>Departmental Publication of Descriptions of Assistance Programs</header><text display-inline="yes-display-inline">Section 485(d)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(d)(1)</external-xref>) is amended by striking <quote>, including the increase in debt that results from capitalization of interest</quote>. </text></subsection> <subsection id="H0EF5694803584A0C9C19571B6973C2A6"><enum>(h)</enum><header>Information To be provided during Entrance Counseling for Borrowers</header><text display-inline="yes-display-inline">Section 485(l)(2)(C) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(l)(2)</external-xref>) is amended by striking <quote>and is capitalized</quote>. </text></subsection></section>
<enum>IV</enum><header>Interest Rates</header>
<section id="H87A4914E37084668BD14ECD5BF6A1E6D" section-type="subsequent-section"><enum>401.</enum><header>Interest rate provisions for new Federal student loans on or after July 1, 2023</header><text display-inline="no-display-inline">Section 455(b) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(b)</external-xref>) is amended—</text> <paragraph id="H4D6F61EF93B04811A9D884CF974EC140"><enum>(1)</enum><text>in paragraph (8)—</text>
<subparagraph id="H42BBAC52331F4D3683B212038324C895"><enum>(A)</enum><text>in the paragraph heading, by inserting <quote><header-in-text level="paragraph" style="OLC">and before July 1, 2023</header-in-text></quote>; and</text></subparagraph> <subparagraph id="H7B1E9B0EB02A40858580A5C741D50DFF"><enum>(B)</enum><text>by inserting <quote>and before July 1, 2023,</quote> after <quote>July 1, 2013,</quote> each place it appears;</text></subparagraph></paragraph>
<paragraph id="H336C4C9F5FEA4FD4B7524B8760E6938A"><enum>(2)</enum><text>by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively; and</text></paragraph> <paragraph id="H9496545D48794AD1B13EE2BA277C2060"><enum>(3)</enum><text>by inserting after paragraph (8) the following new paragraph:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H97FF090B81604D4F82BE7850EE430D97">
<paragraph id="H90CFA5AB91DB489181C013F80336DAB6"><enum>(9)</enum><header>Interest rate provisions for new loans on or after July 1, 2023</header>
<subparagraph id="H55127E80A6FD463CB588EB934DFF2CB4"><enum>(A)</enum><header>Rate for FDSL, FDUSL, and PLUS loans</header><text>Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2023, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text> <clause id="H845374FE2FF343238F54B3F51E989DBB"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1; or</text></clause>
<clause id="H146568EFCE9C44B8BAF5C30CFD26FDA6"><enum>(ii)</enum><text>5.0 percent.</text></clause></subparagraph> <subparagraph id="HC62A9DD012BD46D780CD0C50AAB8ABB6"><enum>(B)</enum><header>Consolidation loans</header><text display-inline="yes-display-inline">Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation Loan for which the application is received on or after July 1, 2023, shall—</text>
<clause id="HAAB55AD34E3549DAA3D884A9450C89B8"><enum>(i)</enum><text>bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of—</text> <subclause id="H4FC9F6E8D64D41AEA5BDBCA0F7EB6F69"><enum>(I)</enum><text>the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or</text></subclause>
<subclause id="HE6DF7607CD0D4041AC38A546AEB9588E"><enum>(II)</enum><text>5.0 percent; and</text></subclause></clause> <clause id="H4C6E69B908044E839B6AE63F7EBC2D12"><enum>(ii)</enum><text display-inline="yes-display-inline">only accrue interest on the percentage of such Federal Direct Consolidation Loan that is equal to—</text>
<subclause id="H58911FDF78D04812856AAF9F8D47291E"><enum>(I)</enum><text>the amount of the sum of the unpaid principal on the loans consolidated; divided by</text></subclause> <subclause id="H92C262CE645A4744AA9A9384F974A15D"><enum>(II)</enum><text>the total amount of such Federal Direct Consolidation Loan.</text></subclause></clause></subparagraph>
<subparagraph id="HF85507B5017A45CDB4124C624D6227AA"><enum>(C)</enum><header>Consultation</header><text>The Secretary shall determine the applicable rate of interest under this paragraph after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.</text></subparagraph> <subparagraph id="H34DE120C197041B897B3F72A4026E382"><enum>(D)</enum><header>Fixed rate</header><text>The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan shall be fixed for the period of the loan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H4D2120B99653456ABC91867376AD7068"><enum>402.</enum><header>Refinancing FFEL and Federal Direct Loans</header><text display-inline="no-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HD78FD3FF28784CF49D34FE5035C47EF0"> <section id="H1E3546C9CB454F91BB82E208D607631B"><enum>460A.</enum><header>Refinancing FFEL and Federal Direct Loans</header> <subsection id="H395284C4EB0B47D8A4946B5002FD8360"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish a program under which the Secretary, upon the receipt of an application from a qualified borrower, makes a loan under this part, in accordance with the provisions of this section, in order to permit the borrower to obtain the interest rate provided under subsection (c).</text></subsection>
<subsection id="H8CACF9CA1B55406E9797AA491A775B22"><enum>(b)</enum><header>Refinancing Direct loans</header>
<paragraph id="HDBDB8483E3654FE3AD37E95133E097A1"><enum>(1)</enum><header>Federal direct loans</header><text>Upon application of a qualified borrower, the Secretary shall repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan of the qualified borrower, for which the first disbursement was made, or the application for the consolidation loan was received, before July 1, 2023, with the proceeds of a refinanced Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan, respectively, issued to the borrower in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the original loan.</text></paragraph> <paragraph id="HF028FA87D2E44552B3B53BA5142EE15E"><enum>(2)</enum><header>Refinancing FFEL program loans as refinanced Federal Direct Loans</header><text>Upon application of a qualified borrower for any loan that was made, insured, or guaranteed under part B and for which the first disbursement was made, or the application for the consolidation loan was received, before July 1, 2010, the Secretary shall make a loan under this part, in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the original loan to the borrower in accordance with the following:</text>
<subparagraph id="H2B5BA30CCBE84426A8DCFB049BF3362E"><enum>(A)</enum><text>The Secretary shall pay the proceeds of such loan to the eligible lender of the loan made, insured, or guaranteed under part B, in order to discharge the borrower from any remaining obligation to the lender with respect to the original loan.</text></subparagraph> <subparagraph id="H2FF563C80E9C42998B16C1CE7B8938D7"><enum>(B)</enum><text>A loan made under this section that was originally—</text>
<clause id="HAACABA3A5A2D456DAA94672CB5ECD215"><enum>(i)</enum><text>a loan originally made, insured, or guaranteed under section 428 shall be a Federal Direct Stafford Loan;</text></clause> <clause id="H2DFEABAD6D2845A5AE417A6A5E687B6D"><enum>(ii)</enum><text>a loan originally made, insured, or guaranteed under section 428B shall be a Federal Direct PLUS Loan;</text></clause>
<clause id="HC9AC2F6469024369A8A5E7986964AB43"><enum>(iii)</enum><text>a loan originally made, insured, or guaranteed under section 428H shall be a Federal Direct Unsubsidized Stafford Loan; and</text></clause> <clause id="H5ECCDB47AFCB4ADEA6F4BB95220AF8CF"><enum>(iv)</enum><text>a loan originally made, insured, or guaranteed under section 428C shall be a Federal Direct Consolidation Loan.</text></clause></subparagraph>
<subparagraph id="H8925203B4E2F407985E2A2F0AD03F826"><enum>(C)</enum><text>The interest rate for each loan made by the Secretary under this paragraph shall be the rate provided under subsection (c).</text></subparagraph></paragraph></subsection> <subsection id="H90E2A933F30046D3BA4CECC5A30482D0" commented="no"><enum>(c)</enum><header>Interest rates</header> <paragraph id="HF2920B412FBE4B809963A405E244DD53" commented="no"><enum>(1)</enum><header>In general</header><text>The interest rate for the refinanced Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans, shall be a rate equal to—</text>
<subparagraph id="H56A0899857D84496A68D0C8BF2672201" commented="no"><enum>(A)</enum><text>in any case where the original loan was a loan under section 428, 428B, 428H, a Federal Direct Stafford loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan, a rate equal to the interest rate determined under section 455(b)(9)(A) for the date on which the refinanced loan is made; and</text></subparagraph> <subparagraph id="HA4F88057B45345EB885B293DF1DAE9E1" commented="no"><enum>(B)</enum><text>in any case where the original loan was a loan under section 428C or a Federal Direct Consolidation Loan, a rate calculated in accordance with <internal-xref idref="H1D65AA36545548BF82D2E2F74071058F" legis-path="460A.(c)(2)">paragraph (2)</internal-xref>.</text></subparagraph></paragraph>
<paragraph id="H1D65AA36545548BF82D2E2F74071058F" commented="no"><enum>(2)</enum><header>Interest rates for consolidation loans</header>
<subparagraph id="H0FD660AFF35B46389AE823C034526644" commented="no"><enum>(A)</enum><header>Method of calculation</header><text>In order to determine the interest rate for any refinanced Federal Direct Consolidation Loan under <internal-xref idref="HA4F88057B45345EB885B293DF1DAE9E1" legis-path="460A.(c)(1)(B)">paragraph (1)(B)</internal-xref>, the Secretary shall—</text> <clause id="H4B78CB1C683E4E3F8D4FA855D33CF459" commented="no"><enum>(i)</enum><text>determine each of the component loans that were originally consolidated in the loan under section 428C or the Federal Direct Consolidation Loan, and calculate the proportion of the unpaid principal balance of the loan under section 428C or the Federal Direct Consolidation Loan that each component loan represents;</text></clause>
<clause id="HAC445E6958B14CDBAF7645439C7BFFA4" commented="no"><enum>(ii)</enum><text>use the proportions determined in accordance with <internal-xref idref="H4B78CB1C683E4E3F8D4FA855D33CF459" legis-path="460A.(c)(2)(A)(i)">clause (i)</internal-xref> and the interest rate applicable for each component loan, as determined under subparagraph (B), to calculate the weighted average of the interest rates on the loans consolidated into the loan under section 428C or the Federal Direct Consolidation Loan; and</text></clause> <clause id="HD0CEE14C525E41739265F6944772DFE4" commented="no"><enum>(iii)</enum><text>make the applicable interest rate for the refinanced Federal Direct Consolidation Loan the lesser of—</text>
<subclause id="HA8D8761365704B578435A127FA2F42ED"><enum>(I)</enum><text>the weighted average calculated under <internal-xref idref="HAC445E6958B14CDBAF7645439C7BFFA4" legis-path="460A.(c)(2)(A)(ii)">clause (ii)</internal-xref>; or</text></subclause> <subclause id="H65FB9AE1F3D24C0E8E697C2677B0BA5C"><enum>(II)</enum><text>5.0 percent.</text></subclause></clause></subparagraph>
<subparagraph id="H11405657FF89415982B95B5C63B0EEA7" commented="no"><enum>(B)</enum><header>Interest rates for component loans</header><text>The interest rates for the component loans of a loan made under section 428C or a Federal Direct Consolidation Loan shall be the following:</text> <clause id="HE5CC2D85708246088B810859D33C566C" commented="no"><enum>(i)</enum><text>The interest rate for any loan under section 428, 428B, 428H, Federal Direct Stafford Loan, Federal Direct Unsubsidized Stafford Loan, or Federal Direct PLUS Loan shall be a rate equal to the lesser of—</text>
<subclause id="H2F5F11EADC58491E98B45EC96F3A9524" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the interest rate determined under section 455(b)(9)(A) for the date on which the component loan is made; or</text></subclause> <subclause id="H3898EDB134364023BCB8F8CF66B24D0D" commented="no"><enum>(II)</enum><text>the original interest rate of the component loan.</text></subclause></clause>
<clause id="HB7555D0767AE4757980B550D0C6DB985" commented="no"><enum>(ii)</enum><text>The interest rate for any component loan that is a loan under section 428C or a Federal Direct Consolidation Loan shall be the lesser of—</text> <subclause id="H23B8C34A324E4DCCB7B5C34E7426B906"><enum>(I)</enum><text>the weighted average of the interest rates that would apply under this subparagraph for each loan comprising the component consolidation loan; or</text></subclause>
<subclause id="H4983D77CA1724396B6828823995BF77D"><enum>(II)</enum><text>5 percent.</text></subclause></clause> <clause id="HF41326BDB71E46DA8F6AE2A44CB48DC6" commented="no"><enum>(iii)</enum><text>The interest rate for any eligible loan that is a component of a loan made under section 428C or a Federal Direct Consolidation Loan and is not described in clauses (i) or (ii) shall be the lesser of—</text>
<subclause id="HA132B8C5D97240808993B75F7EE6A9AA"><enum>(I)</enum><text>the interest rate on the original component loan; or</text></subclause> <subclause id="H6145DD39855C4EDE904346DB58216811"><enum>(II)</enum><text>5 percent.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="H2B9E6E4E0A9146FEAA685844AD536974" commented="no"><enum>(3)</enum><header>Fixed rate</header><text>The applicable rate of interest determined under paragraph (1) for a refinanced loan under this section shall be fixed for the period of the loan.</text></paragraph> <paragraph id="H8C7C94D73EAA460AA5F1D735DF7418BA"><enum>(4)</enum><header>Capitalized interest and fees excluded</header><text display-inline="yes-display-inline">With respect to a refinanced loan under this section, interest shall only accrue on the percentage of such refinanced loan that is equal to—</text>
<subparagraph id="H865C7594742B435CB91BB20EF4091AF4"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of the unpaid principal of the original loan, or in the case of a refinanced Federal Direct Consolidation Loan, the sum of the unpaid principal of all the component loans, comprising the refinanced loan; divided by</text></subparagraph> <subparagraph id="H704CAC9E26F5445FA7396D213C78877D"><enum>(B)</enum><text>the total amount of such refinanced loan.</text></subparagraph></paragraph></subsection>
<subsection id="H3A26B8D6ED7842FE9C1B70BC80F44BAD"><enum>(d)</enum><header>Terms and conditions of loans</header>
<paragraph id="HA3E3EFA706644E6BB08C6FBB3F81B914"><enum>(1)</enum><header>In general</header><text>A loan that is refinanced under this section shall have the same terms and conditions as the original loan, except as otherwise provided in this section.</text></paragraph> <paragraph id="HA2C7C25FE4584E94B7C176FA2CB71CB4"><enum>(2)</enum><header>No automatic extension of repayment period</header><text>Refinancing a loan under this section shall not result in the extension of the duration of the repayment period of the loan, and the borrower shall retain the same repayment term that was in effect on the original loan. Nothing in this paragraph shall be construed to prevent a borrower from electing a different repayment plan at any time in accordance with section 455(d)(4).</text></paragraph></subsection>
<subsection id="H7677AC5D098B41B3A74EF7F7869A534C"><enum>(e)</enum><header>Definition of qualified borrower</header><text>For purposes of this section, the term <term>qualified borrower</term> means a borrower—</text> <paragraph id="H8364899345614F55A22D6151C7C9F115"><enum>(1)</enum><text>of a loan under this part or part B for which the first disbursement was made, or the application for a consolidation loan was received, before July 1, 2023; and</text></paragraph>
<paragraph id="H7BAF9EF5B35D4E4B8CF51BFC4433F921" commented="no"><enum>(2)</enum><text>who has one or more loans described in paragraph (1) or (2) of subsection (b) with an interest rate that exceeds 5 percent.</text></paragraph></subsection> <subsection id="HFD511A1B8001498DA087CE6645C53CD4"><enum>(f)</enum><header>Notification to borrowers</header><text>The Secretary, in coordination with the Director of the Bureau of Consumer Financial Protection, shall undertake a campaign to alert borrowers of loans that are eligible for refinancing under this section that the borrowers are eligible to apply for such refinancing. The campaign shall include the following activities:</text>
<paragraph id="H96FBD436577347DC964941926CBDA21B"><enum>(1)</enum><text>Developing consumer information materials about the availability of Federal student loan refinancing.</text></paragraph> <paragraph id="H18C087B3B455402A87309929D3A7677D"><enum>(2)</enum><text>Requiring servicers of loans under this part or part B to provide such consumer information to borrowers in a manner determined appropriate by the Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H6197188062A44A0B96F713B1DD88D4B5"><enum>403.</enum><header>Refinancing private student loans</header><text display-inline="no-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HCC5CF26496644C6083BC57519F685C61"> <section id="H89C2238A6DDE4320874A1E9CC41F56B3"><enum>460B.</enum><header>Federal Direct Refinanced Private Loan program</header> <subsection id="HC5EFF3CDB14341458B1635C4D9052A18"><enum>(a)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H8D10893796864305B06CE29193A159B6"><enum>(1)</enum><header>Eligible private education loan</header><text>The term <term>eligible private education loan</term> means a private education loan, as defined in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>), that—</text> <subparagraph id="HE121E8C99E9346A18A9F4896851B1B98"><enum>(A)</enum><text>was disbursed to the borrower before July 1, 2023; and</text></subparagraph>
<subparagraph id="H4E51E4931A9F457F858D274C6C9EA622"><enum>(B)</enum><text>was for the borrower’s own postsecondary educational expenses for an eligible program at an institution of higher education participating in the loan program under this part, as of the date that the loan was disbursed.</text></subparagraph></paragraph> <paragraph id="H36440C329D6C480883AA07C7FB51E9E3"><enum>(2)</enum><header>Federal direct refinanced private loan</header><text>The term <term>Federal Direct Refinanced Private Loan</term> means a loan issued under <internal-xref idref="HCD7DA70B8A444ED58F10123408810527" legis-path="460B.(b)(1)">subsection (b)(1)</internal-xref>.</text></paragraph>
<paragraph id="H3BAF25149C0C4DBAB33DF0092FDD4830"><enum>(3)</enum><header>Private educational lender</header><text>The term <term>private educational lender</term> has the meaning given the term in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>).</text></paragraph> <paragraph id="HAC1E39E77C7F4D1E9FD832B44CE0D78A"><enum>(4)</enum><header>Qualified borrower</header><text>The term <term>qualified borrower</term> means an individual who—</text>
<subparagraph id="H35D6C3F9800E44BB8AA8C23D6C87CEFA"><enum>(A)</enum><text>has an eligible private education loan;</text></subparagraph> <subparagraph id="HC644A2A139AC4BB280D081F4C2C6C423"><enum>(B)</enum><text>has been current on payments on the eligible private education loan for the 6 months prior to the date of the qualified borrower’s application for refinancing under this section, and is in good standing on the loan at the time of such application;</text></subparagraph>
<subparagraph id="H4018461BD1234A66BB1B3A53011F65E1"><enum>(C)</enum><text>is not in default on the eligible private education loan or on any loan made, insured, or guaranteed under this part or part B or E; and</text></subparagraph> <subparagraph id="H04063A75B6F64DD08EE63002F5E4939B"><enum>(D)</enum><text>meets the eligibility requirements described in <internal-xref idref="H799E98CE0D8F413F9DEC0FF2C1F1323C" legis-path="460B.(b)(2)">subsection (b)(2)</internal-xref>.</text></subparagraph></paragraph></subsection>
<subsection id="H624E6BFEA4FF41A89162023041FD5AD0"><enum>(b)</enum><header>Program authorized</header>
<paragraph id="HCD7DA70B8A444ED58F10123408810527"><enum>(1)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of the Treasury, shall carry out a program under which the Secretary, upon application by a qualified borrower who has an eligible private education loan, shall issue such borrower a loan under this part in accordance with the following:</text> <subparagraph id="HC301813901E24DCCA73CDD51502DD915"><enum>(A)</enum><text>The loan issued under this program shall be in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the private education loan. </text></subparagraph>
<subparagraph id="HEB23BC6F90E447FEBD1203F5D8558552"><enum>(B)</enum><text>The Secretary shall pay the proceeds of the loan issued under this program to the private educational lender of the private education loan, in order to discharge the qualified borrower from any remaining obligation to the lender with respect to the original loan.</text></subparagraph> <subparagraph id="HCDABC044DB8247119B1851FF40D1ADC6"><enum>(C)</enum><text>The Secretary shall require that the qualified borrower undergo loan counseling that provides all of the relevant information and counseling required under section 485(l)(2) before the loan is refinanced in accordance with this section, and before the proceeds of such loan are paid to the private educational lender.</text></subparagraph>
<subparagraph id="HDDD9E7F1C4D948D2A774675DCAB3346D"><enum>(D)</enum><text>The Secretary shall issue the loan as a Federal Direct Refinanced Private Loan, which shall have the same terms, conditions, and benefits as a Federal Direct Unsubsidized Stafford Loan, except as otherwise provided in this section.</text></subparagraph> <subparagraph id="HD3F0CB756EF840C998EC1D33092B978F" commented="no"><enum>(E)</enum><text display-inline="yes-display-inline">The interest rate for each loan made by the Secretary under this section shall be the rate provided under subsection (c).</text></subparagraph></paragraph>
<paragraph id="H799E98CE0D8F413F9DEC0FF2C1F1323C" commented="no"><enum>(2)</enum><header>Borrower eligibility</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of the Treasury and the Director of the Consumer Financial Protection Bureau, shall establish eligibility requirements—</text> <subparagraph id="HF9072C2ECA1A440FAB6E1D9FA8436B61" commented="no"><enum>(A)</enum><text>to ensure eligibility only for borrowers in good standing;</text></subparagraph>
<subparagraph id="HE517A0D4AE554FB7A9AF90FA080B0813" commented="no"><enum>(B)</enum><text>to minimize inequities between Federal Direct Refinanced Private Loans and other Federal student loans;</text></subparagraph> <subparagraph id="HED75DCB4F039423087E177291DC46B00" commented="no"><enum>(C)</enum><text>to preclude windfall profits for private educational lenders; and</text></subparagraph>
<subparagraph id="H03E937FD531346EBBD99875A991EE8E8" commented="no"><enum>(D)</enum><text>to ensure full access to the program authorized in this subsection for borrowers with private loans who otherwise meet the criteria established in accordance with <internal-xref idref="HF9072C2ECA1A440FAB6E1D9FA8436B61" legis-path="460B.(b)(2)(A)">subparagraph (A)</internal-xref>.</text></subparagraph></paragraph></subsection> <subsection id="H94A8AE1224C3433199FB0B1F61A32D29" commented="no"><enum>(c)</enum><header>Interest rate</header> <paragraph id="HA389CD695C3E461D84E4428D8F5B7CD9" commented="no"><enum>(1)</enum><header>In general</header><text>The interest rate for a Federal Direct Refinanced Private Loan is a rate equal to the interest rate determined under section 455(b)(9)(A) for the date on which the refinanced private loan is made.</text></paragraph>
<paragraph id="H07E33FCEE5D64C7C88D86D242FC643F9" commented="no"><enum>(2)</enum><header>Fixed rate</header><text>The interest rate determined under this subsection for a Federal Direct Refinanced Private Loan shall be fixed for the period of the loan.</text></paragraph> <paragraph id="H4454B6DEF10B4B1AA835562E74A420CB"><enum>(3)</enum><header>Capitalized interest and fees excluded</header><text display-inline="yes-display-inline">With respect to a Federal Direct Refinanced Private Loan under this section, interest shall only accrue on the percentage of such Refinanced Private Loan that is equal to—</text>
<subparagraph id="H8AC0B4583B2E4A339DEAB328A683DE15"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of the unpaid principal of the original loan comprising the Refinanced Private Loan on the date such original loan was refinanced; divided by</text></subparagraph> <subparagraph id="H3325F7D332F04439B6E3DA6D20CF2D1B"><enum>(B)</enum><text>the total amount of such Refinanced Private Loan.</text></subparagraph></paragraph></subsection>
<subsection id="HFF2F63C7D303462EB9207BFF647400D7"><enum>(d)</enum><header>No inclusion in aggregate limits</header><text>The amount of a Federal Direct Refinanced Private Loan, or a Federal Direct Consolidated Loan to the extent such loan was used to repay a Federal Direct Refinanced Private Loan, shall not be included in calculating a borrower’s annual or aggregate loan limits under section 428 or 428H.</text></subsection> <subsection id="HF73F76D29B9942B196B611C9CEE887A0"><enum>(e)</enum><header>No eligibility for service-Related repayment</header><text display-inline="yes-display-inline">A Federal Direct Refinanced Private Loan, or any Federal Direct Consolidation Loan to the extent such loan was used to repay a Federal Direct Refinanced Private Loan, shall not be eligible for any loan repayment or loan forgiveness program under section 428K, 428L, or 460 or for the loan cancellation repayment plan for public service employees under section 455(m).</text></subsection>
<subsection id="H67F918E3796841BAA936AE3CEDAE3857"><enum>(f)</enum><header>Private educational lender reporting requirement</header>
<paragraph id="HABC7CA22A233460A80820192D8B70DEC"><enum>(1)</enum><header>Reporting required</header><text display-inline="yes-display-inline">The Secretary, in consultation with the Secretary of the Treasury and the Director of the Bureau of Consumer Financial Protection, shall establish a requirement that, in order to allow for an assessment of the private education loan market, private educational lenders report the data described in <internal-xref idref="H12A72CFFCA9D426BA87DC0188049D178" legis-path="460B.(f)(2)">paragraph (2)</internal-xref> to—</text> <subparagraph id="H3B123BFA6142423A8D9B158D391AE153"><enum>(A)</enum><text>the Secretary;</text></subparagraph>
<subparagraph id="H9ADE097E14CF41D1B676599663212051"><enum>(B)</enum><text>the Secretary of the Treasury; </text></subparagraph> <subparagraph id="H77C39E1B17FF44FDA420724A36711950"><enum>(C)</enum><text>the Director of the Consumer Financial Protection Bureau;</text></subparagraph>
<subparagraph id="H204DF7BCCD29403495DA71A94D56BA2F"><enum>(D)</enum><text>the Committee on Education and Labor of the House of Representatives;</text></subparagraph> <subparagraph id="HBFFC0AECE41B4699BB8B8E23C5D1103F"><enum>(E)</enum><text>the Committee on Financial Services of the House of Representatives;</text></subparagraph>
<subparagraph id="H65F9FDCA1C814F658CBD3CA3179B4A0F"><enum>(F)</enum><text>the Senate Committee on Health, Education, Labor, and Pensions; and</text></subparagraph> <subparagraph id="H0DF2539DC1D84D87BBFC8BBFAB9F9914"><enum>(G)</enum><text>the Senate Committee on Banking, Housing, and Urban Affairs.</text></subparagraph></paragraph>
<paragraph id="H12A72CFFCA9D426BA87DC0188049D178"><enum>(2)</enum><header>Contents of reporting</header><text>The data that private educational lenders shall report in accordance with <internal-xref idref="HABC7CA22A233460A80820192D8B70DEC" legis-path="460B.(f)(1)">paragraph (1)</internal-xref> shall include each of the following about private education loans (as defined in section 140(a) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)</external-xref>)):</text> <subparagraph id="HA2FABEF867FA4A26838201F54F3D7E79"><enum>(A)</enum><text>The total amount of private education loan debt the lender holds.</text></subparagraph>
<subparagraph id="H2824DED30B8E4DD1B71B06DE233C42D7"><enum>(B)</enum><text>The total number of private education loan borrowers the lender serves.</text></subparagraph> <subparagraph id="H408B4B7253C54253B1E290EF88376CEE"><enum>(C)</enum><text>The average interest rate on the outstanding private education loan debt held by the lender.</text></subparagraph>
<subparagraph id="H4ACC55C7FC52432FA5D6A29574B6EF78"><enum>(D)</enum><text>The proportion of private education loan borrowers who are in default on a loan held by the lender.</text></subparagraph> <subparagraph id="HDFC8B38C19CE4D82A35755F3FDCE467B"><enum>(E)</enum><text>The proportion of the outstanding private education loan volume held by the lender that is in default.</text></subparagraph>
<subparagraph id="HA815EB0EEA1A4ACFA5891718EDC5F27B"><enum>(F)</enum><text>The proportions of outstanding private education loan borrowers who are 30, 60, and 90 days delinquent.</text></subparagraph> <subparagraph id="H9CB77C93A243497996CD9B3C174EBA22"><enum>(G)</enum><text>The proportions of outstanding private education loan volume that is 30, 60, and 90 days delinquent.</text></subparagraph></paragraph></subsection>
<subsection id="H437E7514AFB344C9A7EA9E499F9BEEB4"><enum>(g)</enum><header>Notification to borrowers</header><text display-inline="yes-display-inline">The Secretary, in coordination with the Secretary of the Treasury and the Director of the Consumer Financial Protection Bureau, shall undertake a campaign to alert borrowers about the availability of private student loan refinancing under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>