117 S3953 IS: Affordable Loans for Any Student Act
U.S. Senate
2022-03-30
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 Affordable Loans for Any Student Act
.(b)The table of contents for this Act is as follows: Sec. 1. Short title; table of contents.Sec. 2. References in Act.TITLE I—Simplifying repayment plansSec. 101. Income-based repayment plan.Sec. 102. Fixed repayment plan.Sec. 103. Termination of certain repayment plan options.Sec. 104. Providing incentives to switch into simplified repayment plans.Sec. 105. Study and procedures on determining family size.TITLE II—Ending interest capitalization and origination feesSec. 201. Ending interest capitalization for Federal Direct Loans.Sec. 202. Elimination of origination fees for Federal Direct Loans.TITLE III—Providing assistance in situations of borrower distressSec. 301. Limits on seizing income for debt.Sec. 302. Allowing for multiple loan rehabilitations.Sec. 303. Pause payment process.Sec. 304. Automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans.Sec. 305. Separating joint consolidation loans.Sec. 306. Removing the collection cost requirement.TITLE IV—Improving loan information and counselingSec. 401. Student loan contract; simplifying loan disclosures.Sec. 402. Pre-loan information and counseling requirements.Sec. 403. Exit counseling.Sec. 404. Online counseling tools.Sec. 405. Private education loan certification and information.TITLE V—Effective date; transition; implementationSec. 501. Effective date; rulemaking regarding termination of certain repayment termination of certain repayment plans; implementation.2.Except as otherwise expressly provided in this Act, wherever an amendment or repeal is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).<enum>I</enum><header>Simplifying repayment plans</header><section id="id1beae4a3c2d04401828ccb18740dd254"><enum>101.</enum><header>Income-based repayment plan</header><text display-inline="no-display-inline">Section 493C (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5c6c0f347db44073883085641c9c9488"><section id="id5C8A097B88784B4BBD9694644FF3C535"><enum>493C.</enum><header>Income-based repayment</header><subsection commented="no" display-inline="no-display-inline" id="ID16AD5BA1848A406BBDA62C987792D4D1"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text><paragraph commented="no" display-inline="no-display-inline" id="ID94482234805145768E34B9889FEA3C9C"><enum>(1)</enum><header>Excepted plus loan</header><text>The term <term>excepted PLUS loan</term> means a loan under section 428B, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2F65C0E407D74A4EBF88C8085F2CE37E"><enum>(2)</enum><header>Excepted consolidation loan</header><text>The term <term>excepted consolidation loan</term> means a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID45074BBCF11246BCB201DD1DD846A977"><enum>(3)</enum><header>Partial financial hardship</header><text>The term <term>partial financial hardship</term>, when used with respect to a borrower, means that for such borrower—</text><subparagraph id="ID40B0511906EB4F6E8859A15F11AB76C2"><enum>(A)</enum><text>the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) to a borrower as calculated under the standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period; exceeds</text></subparagraph><subparagraph id="ID8CB7BA74D88249399EE3827853C43038"><enum>(B)</enum><text>15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—</text><clause id="ID609FC73D88E8419985F951EC7C0234D9"><enum>(i)</enum><text>the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds</text></clause><clause id="ID931D3099AD4244649CD31B062416EB5A"><enum>(ii)</enum><text>150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>).</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID6D82EC85A353484DBC5490B6E4122624"><enum>(b)</enum><header display-inline="yes-display-inline">Income-Based repayment program for borrowers who enter income-Based repayment before July 1, 2022</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—</text><paragraph commented="no" display-inline="no-display-inline" id="ID8D8C109F87AD4C8FBA111B68517FAF53"><enum>(1)</enum><text>a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) who has a partial financial hardship (whether or not the borrower's loan has been submitted to a guaranty agency for default aversion or had been in default) may elect, during any period the borrower has the partial financial hardship, to have the borrower's aggregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9824F874F1184DE3A8DEB1ED32012064"><enum>(2)</enum><text>the holder of such a loan shall apply the borrower's monthly payment under this subsection first toward interest due on the loan, next toward any fees due on the loan, and then toward the principal of the loan;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID485EA64B7C0D429882FE6D67A872720C"><enum>(3)</enum><text>any interest due and not paid under paragraph (2)—</text><subparagraph id="ID541B0B6AC37244B8B1C9EC4576BD80C6"><enum>(A)</enum><text>shall, on subsidized loans, 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); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6E2C116E46454F46B0049F14A7BD90DC"><enum>(B)</enum><text display-inline="yes-display-inline">beginning on the effective date of the Affordable Loans for Any Student Act, for an eligible loan made, insured, or guaranteed under this title, shall not be capitalized and shall be added to the balance of interest due for the loan; </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD7D9A64870264BB0B6CDD7F2E439B7F6"><enum>(4)</enum><text>any principal due and not paid under paragraph (2) shall be deferred;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD3E1992BC4A747EAB1137FEAB9DD93F5"><enum>(5)</enum><text>the amount of time the borrower makes monthly payments under paragraph (1) may exceed 10 years;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6ADA8E88EAF6411EAA7733A198DDFE72"><enum>(6)</enum><text>if the borrower no longer has a partial financial hardship or no longer wishes to continue the election under this subsection, then—</text><subparagraph id="IDEC5672A22F724F91BD6BE41447B7735C"><enum>(A)</enum><text>the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall not exceed the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection; and</text></subparagraph><subparagraph id="ID8B046AED19CF44EB966102ED67045DD9"><enum>(B)</enum><text>the amount of time the borrower is permitted to repay such loans may exceed 10 years;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8B85322AA2E34AE488C7E436EA546928"><enum>(7)</enum><text>the Secretary shall repay or cancel any outstanding balance of principal and interest due on all loans made under part B or D (other than a loan under section 428B or a Federal Direct PLUS Loan) to a borrower who—</text><subparagraph id="IDC7CA6AC431234A75B8BC7816C351E9FD"><enum>(A)</enum><text>at any time, elected to participate in income-based repayment under paragraph (1); and</text></subparagraph><subparagraph id="ID2E04074827C242C88BD81B885F6EC2FF"><enum>(B)</enum><text>for a period of time prescribed by the Secretary, not to exceed 25 years, meets 1 or more of the following requirements—</text><clause id="ID3480F30669254A0D87F538D8BF31F167"><enum>(i)</enum><text>has made reduced monthly payments under paragraph (1) or paragraph (6);</text></clause><clause id="ID3DA15029155147F28613AFDD6351AB52"><enum>(ii)</enum><text>has made monthly payments of not less than the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection;</text></clause><clause id="IDBE3C17E7CDAE4D76892F97A4251B56C1"><enum>(iii)</enum><text>has made payments of not less than the payments required under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a repayment period of 10 years;</text></clause><clause id="IDA010079617944BBE83C179BF7AD32935"><enum>(iv)</enum><text>has made payments under an income-contingent repayment plan under section 455(d)(1)(D); or</text></clause><clause id="IDCB5384F641764650B443F8A25AEE84CD"><enum>(v)</enum><text>has been in deferment due to an economic hardship described in section 435(o);</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8B8F6F8065014172A9D17013B095CEB7"><enum>(8)</enum><text>a borrower who is repaying a loan made under part B or D pursuant to income-based repayment may elect, at any time, to terminate repayment pursuant to income-based repayment and repay such loan under the fixed repayment plan under section 493E; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDFF14B97102B64972B417BC44FACB6A6B"><enum>(9)</enum><text>the special allowance payment to a lender calculated under section 438(b)(2)(I), when calculated for a loan in repayment under this section, shall be calculated on the principal balance of the loan and on any accrued interest unpaid by the borrower in accordance with this section.</text></paragraph></subsection><subsection id="idd9e606d75f954bc19c396184bf6acc4d"><enum>(c)</enum><header>Income-Based repayment program for borrowers who enter income-Based repayment on or after July 1, 2022</header><paragraph id="idc0ceca3da8eb429e9bc9c87fec54487a"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this section, the provisions of this subsection shall apply—</text><subparagraph id="id4811d3de0b33419d81b4257549999684"><enum>(A)</enum><text>with respect to any loan made, insured, or guaranteed under this title for which the borrower enters repayment on or after July 1, 2022, and for which the borrower elects the income-based repayment plan under this section; and </text></subparagraph><subparagraph id="idb5048489176048b8bf0949eb0860034d"><enum>(B)</enum><text>with respect to any loan made, insured, or guaranteed under this title for which the borrower enrolled in an income-based repayment plan before July 1, 2022, if such borrower elects to enter the income-based repayment plan under this subsection, in accordance with paragraph (3).</text></subparagraph></paragraph><paragraph id="id5facd173e1d84001b7d8d9f21048ed92"><enum>(2)</enum><header>Special terms</header><text>With respect to a loan described in paragraph (1), the following terms shall apply to the income-based repayment plan carried out under this section:</text><subparagraph commented="no" id="id84e07a04a8e74b9fa9be8ff452cf58b1"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id27e0f9317168410881ba9aa3e433ef85"><enum>(i)</enum><text>Notwithstanding subsection (a)(3)(B), (b), or (e)—</text><subclause commented="no" id="id5330a05407ce4a2182b706ca714cb7af" indent="up1"><enum>(I)</enum><text>the annual repayment amount under this subsection—</text><item commented="no" id="idCFD39321C11E43B8A5806267332A10BA"><enum>(aa)</enum><text>with respect to a borrower whose (and whose spouse's, if applicable) adjusted gross income equals or exceeds 1,300 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) shall be an amount equal to 10 percent of such adjusted gross income; </text></item><item commented="no" id="id5C56432AE4C44435B7768BC3287CE3D8"><enum>(bb)</enum><text>with respect to a borrower whose (and whose spouse's, if applicable) adjusted gross income equals or exceeds 800 percent of the poverty line but is less than 1,300 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) shall be equal to the amount determined under clause (ii)(I);</text></item><item commented="no" id="id8E490B020C92445D8ABBA91ED7E61D61"><enum>(cc)</enum><text>with respect to a borrower whose (and whose spouse's, if applicable) adjusted gross income exceeds 250 percent of the poverty line but is less than 800 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) shall be equal to the amount determined under clause (ii)(II); and</text></item><item commented="no" id="id3544DA70816D48EFA556CF9AF2B655B0"><enum>(dd)</enum><text>with respect to a borrower whose (and whose spouse's, if applicable) adjusted gross income equals or is less than 250 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>) shall be an amount equal to 0 percent of such adjusted gross income; and</text></item></subclause><subclause commented="no" id="id480638fd449b4cbca53d0da8d6f46e3a" indent="up1"><enum>(II)</enum><text>a borrower’s monthly payment shall be determined in accordance with subclause (I) divided by 12, which amount may exceed the monthly repayment amount under a standard 10-year repayment plan or a fixed repayment plan described in section 493E.</text></subclause></clause><clause commented="no" indent="up1" id="id19BC9CA1ABDE4BE5BCB9AA112B75404C"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id98820FC7AF4440B7B27C3405A4AC00DC"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id42A7842961EF4293A192FA6C3578128F"><enum>(aa)</enum><text>For purposes of clause (i)(I)(bb), the annual repayment amount for borrowers described in such clause shall be an amount equal to 10 percent of the result obtained by calculating, on at least an annual basis, the amount by which—</text><subitem commented="no" indent="up2" id="idBF966301C28846B992BAC97318386C91"><enum>(AA)</enum><text>the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds</text></subitem><subitem commented="no" indent="up2" id="id7B7B3C2D0B7444E8B5AED8442CE2D0FD"><enum>(BB)</enum><text>the percent determined under item (bb) of the poverty line that is applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>). </text></subitem></item><item commented="no" indent="up2" id="id443D7F09B7DD4872A67159DBE7CB1AE1"><enum>(bb)</enum><text>The percent shall be determined under this item as follows: </text><subitem commented="no" id="id96EFD1AE885745DB8C58F3641C6669C1"><enum>(AA)</enum><text>If the borrower's, and the borrower's spouse's (if applicable), adjusted gross income equals 800 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), the percent shall be equal to 250 percent.</text></subitem><subitem commented="no" id="id5CA2C86AE20E4C43B645135439A703A8"><enum>(BB)</enum><text>If the borrower's, and the borrower's spouse's (if applicable), adjusted gross income exceeds 800 percent of the poverty line but is less than 1,300 percent of the poverty line that is applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), the percent shall be equal to 250 percent reduced by 0.5 percentage points for every 1 percentage point increase in the borrower's, and the borrower's spouse's (if applicable), adjusted gross income that is more than 800 percent. </text></subitem></item></subclause><subclause commented="no" indent="up2" id="id3B102CC499A941E5936565093A01E1E1"><enum>(II)</enum><text>For purposes of clause (i)(I)(cc), the annual repayment amount for borrowers described in such clause shall be an amount equal to 10 percent of the result obtained by calculating, on at least an annual basis, the amount by which—</text><item commented="no" id="id8137AE3AF610486D98AE3BC60C2B7BC0"><enum>(aa)</enum><text>the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds</text></item><item commented="no" id="id46515F168769415FA7424CB78E343720"><enum>(bb)</enum><text>250 percent of the poverty line that is applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>).</text></item></subclause></clause></subparagraph><subparagraph id="id9c6b2ee443f24476aa71a4750acd958a" indent="up1"><enum>(B)</enum><text>Notwithstanding subsection (e)(2), subsection (b)(7)(B) shall be applied by substituting <quote>20 years</quote> for <quote>25 years</quote>.</text></subparagraph><subparagraph id="idd9eae00fceb6455ca826e89a23e7a306" indent="up1"><enum>(C)</enum><text>Notwithstanding subparagraph (A) of subsection (b)(6), a borrower of such a loan shall not be required to have a partial financial hardship and may elect, and remain enrolled in, the income-based repayment plan under this section regardless of income level, with the repayment amount calculated under subparagraph (A). </text></subparagraph><subparagraph id="id446ba8812b3b44a7990f60a74414dc9b" indent="up1"><enum>(D)</enum><text>Notwithstanding subsection (b), a borrower of an excepted PLUS loan or excepted consolidation loan may elect the income-based repayment plan under this subsection for the excepted PLUS loan or excepted consolidation loan, and the Secretary shall treat such loan, only for the purposes of the repayment terms, as a Federal Direct PLUS Loan issued to a student borrower. The Secretary may issue rules and regulations, as the Secretary determines necessary, regarding the treatment of excepted PLUS loans or excepted consolidation loans that are to be repaid under an income-based repayment plan under this subsection. </text></subparagraph></paragraph><paragraph id="idea95afe391aa424d9b89d913477dcdbd"><enum>(3)</enum><header>Rule for borrowers in income-based repayment before July 1, 2022</header><text>A borrower of a loan made, insured, or guaranteed under this title who enrolled in an income-based repayment plan before July 1, 2022, may choose to retain such repayment plan or elect to enter an income-based repayment plan under this subsection or a fixed repayment plan described in section 493E, as provided in section 428(b)(1)(D)(ii) or section 455(d)(7) (as applicable). </text></paragraph><paragraph id="ide7a4081534e4468bb0a0d33d5a6568c3"><enum>(4)</enum><header>Interest accrual</header><text>Notwithstanding any other provision of this Act, if a borrower’s monthly payment for a loan under an income-based repayment plan under this subsection is insufficient to pay the accrued interest on the borrower’s loan for such month, any interest due and not paid on the loan for that month shall be paid or forgiven by the Secretary.</text></paragraph><paragraph id="idf43e82928af1430bb416279290e35a61"><enum>(5)</enum><header>Written, electronic, or verbal enrollment in income-based repayment</header><subparagraph id="id69bed24ef67946298cfe549ebf999aa4"><enum>(A)</enum><header>In general</header><text>A borrower of a loan made under this part may elect to repay such loan under the income-based repayment plan under this subsection by providing written, electronic, or verbal notice to the Secretary of the borrower’s desire to make such election, subject to subparagraph (C). </text></subparagraph><subparagraph id="idf7f4f7fc72da4043a81b9bf16d72a426"><enum>(B)</enum><header>Use of information</header><clause id="id295b014a439346ec957fc529887af76b"><enum>(i)</enum><header>In general</header><text>The estimated monthly payment amount under this section for a loan for a borrower who makes an election described in subparagraph (A) shall be immediately calculated using the income and family size information provided through the borrower’s written, electronic, or verbal statement. </text></clause><clause id="idcf392d58c0114331b585a60b36e99fe4"><enum>(ii)</enum><header>Verification</header><text>The information described in clause (i) shall be verified by the Secretary not later than 90 days after the date the borrower states such income and family size information. If the Secretary is unable to verify the information by the end of the 90-day period, the borrower’s payment after such 90-day period will be the amount applicable under the fixed repayment plan under section 493E. </text></clause><clause id="idb040ccefb8e046c2902cd620fedfe134"><enum>(iii)</enum><header>Adjustment if necessary</header><text>Upon verification by the Secretary under clause (ii), the Secretary shall adjust the estimated monthly payment described in clause (i) based on the verified income and family size information of the borrower, if necessary. Any adjusted monthly payment shall take effect beginning with the payment due not less than 60 days after the Secretary notifies the borrower of the adjusted amount. The Secretary shall consider any payments made prior to the adjusted monthly payment as having satisfied the amount due to qualify toward loan cancellation or forgiveness options under this title. </text></clause></subparagraph><subparagraph id="id663e377a513b40a7a6e21b8fb571245e"><enum>(C)</enum><header>Limitation</header><text>The Secretary shall permit a borrower to make an election of income-based repayment in the written, electronic, or verbal manner described in subparagraph (A) only in connection with the first instance of each of the following: </text><clause id="idb86189d061ec46acadc08511927d2141"><enum>(i)</enum><text>The borrower’s selection of a repayment plan during the grace period for such loan. </text></clause><clause id="id199c17b013bf4ec5a7458fe89f1c6bc9"><enum>(ii)</enum><text>The borrower changing from the fixed repayment plan under section 493E to income-based repayment. </text></clause><clause id="id7295e9fb6b484395abd1b7caa7cbc6f7"><enum>(iii)</enum><text>The borrower’s failure to complete the verification process described in subparagraph (B)(ii). </text></clause><clause id="idf0c1fa14d9f64904bd12e0f982a209f4"><enum>(iv)</enum><text>The borrower’s failure to recertify enrollment in income-based repayment under this subsection.</text></clause></subparagraph></paragraph></subsection><subsection id="id0ab23bb1f0d14b039821887540307a94"><enum>(d)</enum><header>Calculation of adjusted gross income for married borrowers</header><text>The Secretary shall calculate the adjusted gross income of a married borrower under this section—</text><paragraph id="id86106b50363f4d0fa2b2ea5c3b0d4c95"><enum>(1)</enum><text>in the case of a married borrower and spouse who jointly file a Federal income tax return, based on the adjusted gross income of the borrower and spouse as reported on the Federal income tax return; and </text></paragraph><paragraph id="id248534ff0d1a4bd29de83a44473ea4e3"><enum>(2)</enum><text>in the case of a married borrower who files a Federal income tax return separately from the borrower’s spouse, based on the sum of the adjusted gross income of the borrower and the spouse, as reported on the applicable Federal income tax returns, unless the borrower certifies, on a form approved by the Secretary, that the borrower is— </text><subparagraph id="id0b9f4f9491004ef8a81795fcdec4238b"><enum>(A)</enum><text>separated from the borrower’s spouse; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd2fdc537576b414bb6c74775aff62856"><enum>(B)</enum><text>unable to reasonably access the income information of the borrower’s spouse. </text></subparagraph></paragraph></subsection><subsection id="ID5FB5E4F10E614A6C8A228401CADB12A3"><enum>(e)</enum><header>Special terms for new borrowers on and after july 1, 2014</header><text>With respect to any loan made to a new borrower on or after July 1, 2014—</text><paragraph id="IDCD19D6D93E074E44874832222FCD8CAD"><enum>(1)</enum><text>subsection (a)(3)(B) shall be applied by substituting <quote>10 percent</quote> for <quote>15 percent</quote>; and</text></paragraph><paragraph id="ID4AC44E2DF66944B5AE0109CF360C1CAB"><enum>(2)</enum><text>subsection (b)(7)(B) shall be applied by substituting <quote>20 years</quote> for <quote>25 years</quote>.</text></paragraph></subsection><subsection id="id854c6a83fe304b8aa48a400619947f59"><enum>(f)</enum><header>Eligibility determinations and automatic recertification</header><paragraph id="id88a125dcaa6848b0949a35d796528cd5"><enum>(1)</enum><header>In general</header><text>Beginning as soon as the Secretary determines practicable after the Secretary finalizes the procedures under section 105 of the Affordable Loans for Any Student Act, the Secretary shall establish and implement, with respect to any borrower described in paragraph (2), procedures to— </text><subparagraph id="id642b18d5b8b34abb916ec2dd045697d9"><enum>(A)</enum><text>obtain (for each year of repayment and without further action by the borrower) such information as is reasonably necessary regarding the income of such borrower (and the borrower’s spouse, if applicable), for the purpose of determining the repayment obligation of the borrower for such year, including information with respect to the borrower’s family size in accordance with the procedures under such section 105, subject to subparagraph (B); </text></subparagraph><subparagraph id="id3aa13ac5795e4c518198a78d872815c3"><enum>(B)</enum><text>allow the borrower, at any time, to opt out of subparagraph (A) and prevent the Secretary from obtaining information under such subparagraph without further action by the borrower; </text></subparagraph><subparagraph id="id6ce07a7db27348ef9efc9846b672db9f"><enum>(C)</enum><text>provide the borrower with an opportunity to update the information obtained under subparagraph (A) before the determination of the annual repayment obligation of the borrower; and </text></subparagraph><subparagraph id="id0fd77f51e3874c9689cca964ca365e50"><enum>(D)</enum><text>in the case of a borrower for whom adjusted gross income can be obtained under this subsection and meets the qualifications of a payment amount of $0, ensure that the borrower will not be required to provide the Secretary with other documentation of income and provide the borrower with a calculated monthly payment of $0.</text></subparagraph></paragraph><paragraph id="id01c65ef609354662b3f301fa2874e7be"><enum>(2)</enum><header>Applicability</header><subparagraph id="idf47877851c6a4818963a0ba984d18f9a"><enum>(A)</enum><header>In general</header><text>Paragraph (1) shall apply to each borrower of a loan made under this part who, on or after the date on which the Secretary establishes procedures under such paragraph— </text><clause id="idf0d6645cd91e43b1a7319ba2d4977016"><enum>(i)</enum><text>selects, or for whom the Secretary selected under subparagraph (C) or (D) of paragraph (8), or paragraph (9), of subsection (d), or section 428(m)(1), an income-based repayment plan; or </text></clause><clause id="idb2c910b285a04ed2a490ae1938c18b46"><enum>(ii)</enum><text>recertifies income and family size under such plan.</text></clause></subparagraph><subparagraph id="ida9857bb6ff9941f985f102fead94a52c"><enum>(B)</enum><header>Eligibility exception</header><text>A borrower for whom adjusted gross income is unavailable because the borrower has been granted an extension on filing the borrower’s income taxes or is undergoing an audit or examination by the Internal Revenue Service shall not automatically be eligible for the calculated monthly payment of $0 in accordance with paragraph (1)(D) during such period. When the extension, audit, or examination is completed, the Secretary shall resume consideration of the borrower for automatic recertification under the procedures described in paragraph (1), including subparagraph (D) of such paragraph (if applicable). </text></subparagraph></paragraph><paragraph id="idd82e7cb69d4843fcb571f3aaedf68fa6"><enum>(3)</enum><header>Availability of returns and return information</header><text>Returns and return information (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103</external-xref> of the Internal Revenue Code of 1986) may be obtained under paragraph (1)(A) only to the extent authorized by section 6103(l)(13) of such Code.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id5d0c35536093455ab22f1cb8c42f2b74"><enum>102.</enum><header>Fixed repayment plan</header><text display-inline="no-display-inline">Part G of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idfa7ee996372d48a0a1a1debe1f2e65b9"><section id="iddf2491bde27b46ab84401d40fe81fc2c"><enum>493E.</enum><header>Fixed repayment plan</header><subsection id="id84c231b20ff449cdabe2b41bc5f55108"><enum>(a)</enum><header>In general</header><text>A borrower of a loan made under part D on or after July 1, 2022, and a borrower who is in repayment on a loan made, insured, or guaranteed under part B or D before July 1, 2022, may elect to repay such loan under the fixed repayment plan described in this section. </text></subsection><subsection id="id58ee61992fed4c6d8b329947e4aaa308"><enum>(b)</enum><header>Fixed repayment plan</header><text>Under the fixed repayment plan, a borrower shall repay each loan described in subsection (a) with a fixed monthly repayment amount paid over a period of 10 years, subject to subsection (c). </text></subsection><subsection id="idfbe02131b4534361b19a12fe57dc5601"><enum>(c)</enum><header>Special rules</header><paragraph id="id36a857bf32c841dda2ed6c8965b3d3cb"><enum>(1)</enum><header>Minimum</header><text>If a borrower’s monthly payment under this section (except for the final payment on the loan) is less than $25, the Secretary shall establish the borrower’s monthly payment as $25. </text></paragraph><paragraph id="id41e09d9b93bf46dfb0840bb5dc200a57"><enum>(2)</enum><header>Alternative minimum payments</header><text>Notwithstanding paragraph (1), the Secretary may accept an alternative minimum payment amount, which may include an amount of less than $25, to account for a borrower’s exceptional circumstances.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id7af3b88e4f2a4bd393d7155d2669cfd4"><enum>103.</enum><header>Termination of certain repayment plan options</header><subsection id="idfe63ce2d2e6d431c9abb08a39b0323de"><enum>(a)</enum><header>FFEL program repayment plan options</header><text>Section 428(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)</external-xref>) is amended—</text><paragraph id="ida7ee181be0a245409a4f209acac648c3"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="id0258ffb5b2ca43d4887ae816c8ce52d2"><enum>(A)</enum><text>in subparagraph (D)—</text><clause id="id3c601026c1d44c728a4c83d96748cf5e"><enum>(i)</enum><text>in clause (ii), by striking <quote>may annually change the selection of a repayment plan under this part,</quote> and inserting <quote>may at any time on or after July 1, 2022, change the selection of a repayment plan under this part or part G to one of the 2 repayment plans described in paragraph (9)(C),</quote>; and </text></clause><clause id="id4e89e0b7d549472fac493303332d82e1"><enum>(ii)</enum><text>in clause (iii), by inserting <quote>or, in the case of a default that occurs on or after July 1, 2022, be subject to income-based repayment in accordance with section 493C(c)</quote> before the semicolon at the end; </text></clause></subparagraph><subparagraph id="id0584cdd206494daeb909007dc5a8cf84"><enum>(B)</enum><text>in subparagraph (E)(i), by striking <quote>the option of repaying the loan in accordance with a standard, graduated, income-sensitive, or extended repayment schedule (as described in paragraph (9)) established by the lender in accordance with regulations of the Secretary; and</quote> and inserting <quote>the option of repaying the loan in accordance with an applicable repayment plan described in paragraph (9)(C)</quote>; and </text></subparagraph><subparagraph id="id10d80c50e0a142ad9e1b0a30910c294e"><enum>(C)</enum><text>by striking subparagraph (L); and</text></subparagraph></paragraph><paragraph id="idcf686d62a6f64d61bb2ecef622fd4449"><enum>(2)</enum><text>in paragraph (9)—</text><subparagraph id="id98c6da11183c4bf0b985ba6bd94d16e0"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="idfa5fc8a7afb6486fbab64a54bf3da77c"><enum>(i)</enum><text>in the subparagraph heading, by inserting <quote><header-in-text level="subparagraph" style="OLC">before July 1, 2022</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">Selection</header-in-text></quote>; and</text></clause><clause id="idea93a3b0fa744cf8a30a7aab8341c522"><enum>(ii)</enum><text>in the matter preceding clause (i)—</text><subclause id="idac6a822cb0b747f59e6395637f6c64b5"><enum>(I)</enum><text>by inserting <quote>or subparagraph (C), as applicable,</quote> after <quote>this subparagraph</quote>; and</text></subclause><subclause id="id8c03025db3544ffa9b0ea641f1eb4e03"><enum>(II)</enum><text>by striking <quote>The borrower</quote> and inserting <quote>Before July 1, 2022, the borrower</quote>;</text></subclause></clause></subparagraph><subparagraph id="id0e14c102f94a41efbb501cc0c39d0c7d"><enum>(B)</enum><text>in subparagraph (B), by inserting before the period at the end <quote>or, for a borrower entering repayment on or after July 1, 2022, the lender shall provide the borrower with the fixed repayment plan described in section 493E</quote>; and </text></subparagraph><subparagraph id="ide4f6a075d74a481faedf143a9604f976"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0364e06ce604459e8240d03d941409b9"><subparagraph id="id2d13a7dcfa9d49bdbee9f64f040bc067"><enum>(C)</enum><header>Selection of repayment plans on and after July 1, 2022</header><text>Notwithstanding any other provision of law, and in accordance with regulations promulgated, beginning on July 1, 2022, a lender shall offer a borrower of a loan made, insured, or guaranteed under this part the opportunity to change repayment plans at any time on or after July 1, 2022, and then not more than once per calendar year thereafter. The borrower may choose between the following repayment plans:</text><clause id="id2848831cbfd6438e8e609f2e3097a2e8"><enum>(i)</enum><text>A fixed repayment plan described in section 493E.</text></clause><clause id="ide7f89309af1746cf856630a85d509967"><enum>(ii)</enum><text>The income-based repayment plan under section 493C(c).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="idaaa0a5ba9d2248c6bba531ca6339f9e6"><enum>(b)</enum><header>Federal direct loan program repayment plan options</header><text>Section 455(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>) is amended—</text><paragraph id="id97b60fa68841404c97811335866d6738"><enum>(1)</enum><text>by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively;</text></paragraph><paragraph id="id8417acbc39764b178f7007332fea9a25"><enum>(2)</enum><text>in paragraph (1)—</text><subparagraph id="ide9058fdf45f84a91a5edf741b6d0577d"><enum>(A)</enum><text>in the paragraph heading, by inserting <quote><header-in-text level="paragraph" style="OLC">before July 1, 2022</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Selection</header-in-text></quote>; and</text></subparagraph><subparagraph id="id5d0e8927335440039322539a9cf17616"><enum>(B)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>that enters repayment before July 1, 2022,</quote> before <quote>a variety</quote>;</text></subparagraph></paragraph><paragraph id="id4e6e225344b24a2ba14e068270a1c02b"><enum>(3)</enum><text>by inserting after paragraph (1) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6cb10e5b88dd4d3bb4810405c6b2b8dd"><paragraph id="id44e5afae0a6644e8844f64d5bc54a1b2"><enum>(2)</enum><header>Design and selection beginning July 1, 2022</header><subparagraph id="id4250ae3ae47847238b4580f392d22d77"><enum>(A)</enum><header>In general</header><text>Notwithstanding paragraph (1), for any borrower of a loan made under this part that enters repayment on or after July 1, 2022, and for any borrower subject to paragraph (7), the Secretary shall offer the borrower a choice between the following 2 plans for repayment of such loan, including principal and interest on the loan. The borrower may choose—</text><clause id="id58271f97b4fa44c595428ba2774e48dc"><enum>(i)</enum><text>a fixed repayment plan described in section 493E; or</text></clause><clause id="id52059cf5e0224f0bb4dfe7a9ffbeb1ff"><enum>(ii)</enum><text>an income-based repayment plan under section 493C(c).</text></clause></subparagraph><subparagraph id="ida1f3b39ae4cc4e869a5d593dd3f94b39"><enum>(B)</enum><header>Acceleration</header><text>A borrower in repayment shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part.</text></subparagraph><subparagraph id="id4b0b205be92943e1a74ce94c1e7ea7b1"><enum>(C)</enum><header>Selection by the secretary</header><text>If a borrower of a loan made under this part that enters repayment on or after July 1, 2022, does not select a repayment plan described in subparagraph (A) before the first payment on such loan is due, the Secretary shall provide the borrower with a fixed repayment plan described in section 493E.</text></subparagraph><subparagraph id="idf9ff8ce9e7034c0ebdc177a525fc5bda"><enum>(D)</enum><header>Changes in selections</header><text>A borrower of a loan made under this part that enters repayment or on after July 1, 2022, may change the borrower’s selection of a repayment plan in accordance with subparagraphs (B) and (C) of paragraph (7). </text></subparagraph><subparagraph id="idb71fe46bf77a4106810727eb202410f7"><enum>(E)</enum><header>Borrower in default</header><text>Beginning on July 1, 2022, in lieu of the requirements of paragraph (6), the Secretary may require any borrower who has defaulted on a loan made under this part on or after July 1, 2022, to repay the loan pursuant to an income-based repayment plan under section 493C(c).</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id96ec7af7eb624c9483dd7f5abf9253f8"><enum>(4)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id078ec72d934e40baaf319b2987f8dba8"><paragraph id="idafdad4d3b1c8451ab2d38ada38e7a69d"><enum>(7)</enum><header>Borrowers of loans made before July 1, 2022</header><text>A borrower who is in repayment on a loan made under this part before July 1, 2022—</text><subparagraph id="id7d23e856322349de9faf73f9c782f399"><enum>(A)</enum><text>may choose to retain the repayment plan that the borrower was enrolled in on the day before such date;</text></subparagraph><subparagraph id="id6a56330ab4744d41a6c3d8ceaddae039"><enum>(B)</enum><text>may elect to—</text><clause id="id322462429d8b47938aad096d08798659"><enum>(i)</enum><text>enter an income-based repayment plan under section 493C(c);</text></clause><clause id="id72c7f3726faf491c8b11e4eb7141659d"><enum>(ii)</enum><text>enter a fixed repayment plan described in section 493E; or</text></clause><clause id="id47ca82604ca341c1ab903c108bf31c83"><enum>(iii)</enum><text>switch between the repayment plans described in clauses (i) and (ii);</text></clause></subparagraph><subparagraph id="id32accac9c72a425996ed96df216776df"><enum>(C)</enum><text>after switching to a repayment plan described in clause (i) or (ii) of subparagraph (B), shall not be permitted to select a repayment plan not described in subparagraph (B) for the loan; and</text></subparagraph><subparagraph id="id2133923e521c431db33e092709cab9c8"><enum>(D)</enum><text>shall retain, for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan (as described in section 493C(b)(7)), any payments on such loan under another income-based or income contingent repayment plan under this title that would otherwise be qualifying.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id43fe5c1116034eda9eb25dd4375b74a3"><enum>(c)</enum><header>Conforming amendment</header><text>Section 433(b)(7)(B) (<external-xref legal-doc="usc" parsable-cite="usc/20/1083">20 U.S.C. 1083(b)(7)(B)</external-xref>) is amended by striking <quote>on a standard repayment plan</quote> and inserting <quote>, in the case of a borrower who has not selected a repayment plan, on the repayment plan designated under subparagraph (B) of section 428(b)(9)</quote>.</text></subsection></section><section id="idec2fa7908323497f82a833eabb645239"><enum>104.</enum><header>Providing incentives to switch into simplified repayment plans</header><subsection id="id204d1f570da2410096158b12d71812df"><enum>(a)</enum><header>Enabling consolidation in order To simplify repayment</header><text>Section 455(g) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(g)</external-xref>) is amended—</text><paragraph id="idd97b5bea3deb43f4b61e96fae681ada9"><enum>(1)</enum><text>by striking <quote>A borrower of</quote> and inserting the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="idC3232DB2136C4E738F79C74EF8E7928F"><paragraph commented="no" id="ida5cf0a542a554580835d87783453fcc0"><enum>(1)</enum><header>In general</header><text>A borrower of</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="id314340c56a8248e2821c691e0f3a320e"><enum>(2)</enum><text>by striking the second sentence; and</text></paragraph><paragraph id="idf8d1a7f1e6564b3d85c1f9d2cd812eb4"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7e3e8a6e09074be3bdf5cd4fdf56879e"><paragraph id="id07040dbcf77c44be8cea840ad071fcd3"><enum>(2)</enum><header>Eligibility</header><text>To be eligible for a Federal Direct Consolidation Loan under this part, a borrower shall meet the eligibility criteria set forth in section 428C(a)(3), except that, notwithstanding section 428C(a)(3)(B), a borrower may obtain a Federal Direct Consolidation Loan if the borrower—</text><subparagraph id="ide6db36bf8e7a4dfa97f5aa4be62c2fc6"><enum>(A)</enum><text>obtains the Federal Direct Consolidation Loan for the purpose of—</text><clause id="id6d7c26604a044a7ca9fb61d5df203af0"><enum>(i)</enum><text>selecting the income-based repayment plan under section 493C(c) or fixed- income repayment plan under section 495E; or </text></clause><clause id="id40b4ae55bc234386b68d423074fff0f2"><enum>(ii)</enum><text>participating in the pause payment process under section 460B; and</text></clause></subparagraph><subparagraph id="id274e524d74c446b4b30e54a66b0ec93f"><enum>(B)</enum><text>meets the requirements of section 428C(a)(3)(A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id3d23372d7a824e10bfc7144dcc51cb83"><enum>(b)</enum><header>Incentives for simplified repayment plans</header><text>Part G of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>), as amended by section 102, is further amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id24e3bec3048740b398d44f04122035e3"><section id="ida774defcf9414d2584f20332f386bbf8"><enum>493F.</enum><header>Incentives for simplified repayment plans</header><subsection id="id00ab68817d24434a9385aeeeb6a6184c"><enum>(a)</enum><header>In general</header><text>To facilitate the transition of borrowers to simplified repayment plan options, the Secretary shall reduce the interest rate applicable under section 455(b) or 427A to a loan under part B or D held by a borrower as of July 1, 2022, by 100 basis points (or the equivalent), if the borrower of the loan, after the effective date of the Affordable Loans for Any Student Act— </text><paragraph id="ide7ab98f222dc4bb8b572f5fcb4022db0"><enum>(1)</enum><text>changes from a repayment plan described in subparagraphs (A) through (E) of section 455(d)(1) for such loan to an income-based repayment plan under section 493C(c) or a fixed repayment plan under section 493E; or </text></paragraph><paragraph id="idbf4bee6396874bca835cec205ee8fdaa"><enum>(2)</enum><text>consolidates 1 or more loans under this title, or described in section 428C(a)(4), that were under a repayment plan described in subparagraphs (A) through (E) of section 455(d)(1), or clauses (i) through (v) of section 428(b)(9), into a Federal Direct Consolidation Loan and selects an income-based repayment plan under section 493C(c) or a fixed repayment plan under section 493E for the loan. </text></paragraph></subsection><subsection id="id71266e84a4fc4dc49f7ac637a8cacbf2"><enum>(b)</enum><header>Limitation</header><text>The interest rate for a loan eligible for the incentive under subsection (a) may be reduced only once under this section. </text></subsection><subsection id="idfd4dd7afbb514323914e2232af003900"><enum>(c)</enum><header>Rules and waivers</header><text>The Secretary shall promulgate rules carrying out the incentive program established under this section. In promulgating such rules, the Secretary may waive the application of— </text><paragraph id="idd545a940d80f4b70b752d536bf6d9a97"><enum>(1)</enum><text>subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">chapter 35</external-xref> of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>);</text></paragraph><paragraph id="id7389a8bc273b48c48ce9734f43dddd97"><enum>(2)</enum><text>the master calendar requirements under section 482;</text></paragraph><paragraph id="id0ec513e33cc448778e48a9660b2a78c2"><enum>(3)</enum><text>negotiated rulemaking under section 492; and</text></paragraph><paragraph id="idf5a6d5632d1940f4b8df6c2e0c6106f1"><enum>(4)</enum><text>the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of section 552a(e) of title 5, United States Code (commonly known as the <quote>Privacy Act of 1974</quote>), except that the notices shall be published not later than 180 days after the date of implementation of this Act.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id80e0d94a082b4e00b354ec512abbb990"><enum>105.</enum><header>Study and procedures on determining family size</header><subsection id="id93cc90cee1b8412da9e41123c0f1a1f3"><enum>(a)</enum><header>In general</header><text>The Secretary of Education, acting jointly with the Secretary of the Treasury, shall— </text><paragraph id="id5b38f55f4a064c668229d681bce5b78b"><enum>(1)</enum><text>not later than 1 year after the date of enactment of this Act, publish, in the Federal Register, notice of the Secretary’s intent to conduct a study on the effect of using data from the Internal Revenue Service such as personal exemptions, filing status, or child tax credits, as proxies for family size in an income-driven repayment plan, and invite public comment regarding the study; </text></paragraph><paragraph id="idf5f9b276eef34478b3502149ff5ea3ed"><enum>(2)</enum><text>after reviewing any public comments provided under paragraph (1), conduct the study and publish the results of the study in the Federal Register; </text></paragraph><paragraph id="idBD450B3993AE4DE2805BD5596AE17DDE"><enum>(3)</enum><text>use the results of the study conducted under paragraph (1) to develop procedures for determining family size for the automatic recertification of income for an income-driven repayment plan in a manner that minimizes burdens and unintended harm to borrowers; </text></paragraph><paragraph id="id76fe36e37a5d455a88e38b608b2c298b"><enum>(4)</enum><text>publish the procedures developed under paragraph (3) in the Federal Register; and</text></paragraph><paragraph id="id8ae9b466309047f5b293ef0429aeff44"><enum>(5)</enum><text>after a notice and comment period on such procedures, use such comments to finalize the procedures.</text></paragraph></subsection><subsection id="idf76b0fde6a3f4f61b56eeca933629fd6"><enum>(b)</enum><header>Specifications</header><text>The study conducted under subsection (a) shall—</text><paragraph id="idbd74118f55c347309f8152c2143bd472"><enum>(1)</enum><text>be completed, with the results published pursuant to subsection (a)(2), not later than 3 years after the date of enactment of this Act; </text></paragraph><paragraph id="idf7e8695d6bf3460a9eb075fe4c31865b"><enum>(2)</enum><text>determine how closely personal exemptions, filing status, or child tax credits match the family size that borrowers report on their income-driven repayment plan request form; </text></paragraph><paragraph id="idc077777decba4ada83b78cee269b858b"><enum>(3)</enum><text>compare the borrower’s actual monthly payment amount with the monthly payment amount borrowers would have using family size information derived from tax returns; </text></paragraph><paragraph id="id9c4e6a04fa9f4ec7a42f276e25d1daf3"><enum>(4)</enum><text>include data from tax year 2018 or later tax years; and</text></paragraph><paragraph id="id68e2f21bb1274178b6cd011a955cddd0"><enum>(5)</enum><text>use data from more than one year, where possible, to analyze how much family size changes over time. </text></paragraph></subsection><subsection commented="no" id="id1fee6204b3b544edb785c777eebd1282"><enum>(c)</enum><header>Definition</header><text>The term <term>income-driven repayment plan</term> means any of the following authorized under 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>):</text><paragraph commented="no" id="id0330D83D3CE14365A3D956328219BBB0"><enum>(1)</enum><text>The income-contingent repayment plan.</text></paragraph><paragraph commented="no" id="idC1ACADEB1AC8490889DB5C84EB9A897D"><enum>(2)</enum><text>The income-based repayment plan.</text></paragraph><paragraph commented="no" id="id362535848CD34B6FA7A328FA2C905D9B"><enum>(3)</enum><text>The PAYE repayment plan.</text></paragraph><paragraph commented="no" id="idD48FDA1A32484805AF672F7C1A93BB8F"><enum>(4)</enum><text>The REPAYE repayment plan.</text></paragraph></subsection></section><enum>II</enum><header>Ending interest capitalization and origination fees</header><section id="id93d9bb28bbc540e198b1777f5b18f1e6"><enum>201.</enum><header>Ending interest capitalization for Federal Direct Loans</header><text display-inline="no-display-inline">Section 455 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>) is amended—</text><paragraph id="id06b10624bf424db3a4de7cce01f329ab"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="ideaa870c86e81460abd1db636ff99a663"><enum>(A)</enum><text>in the subsection heading, by inserting <quote>and Practices</quote> after <quote>Rate</quote>; and</text></subparagraph><subparagraph id="idd5cf5d3559b343ab9048f4f990c53ad3"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9dc5828e25f24d528269069dc02f55ef"><paragraph id="idb110654be8de4883902ff86ea28fef5e"><enum>(11)</enum><header>Interest practices</header><subparagraph id="idc93885c08b374489bb5328a0a296be97"><enum>(A)</enum><header>In general</header><text>Beginning on the effective date of the Affordable Loans for Any Student Act, interest on a loan made under this part shall accrue and only be added to the balance of interest due on the loan, and shall not ever be capitalized. </text></subparagraph><subparagraph id="id0d0bfec96cf8435aa84f0c8c6787b8aa"><enum>(B)</enum><header>No capitalization of interest during in-school or grace periods</header><clause id="id6aea5973b82e41628fe0f0be09f6f48c"><enum>(i)</enum><header>In general</header><text>Beginning on the effective date of the Affordable Loans for Any Student Act, interest on loans made under this part for which payments of principal are not required during the in-school and grace periods or for which payments are deferred in accordance with sections 427(a)(2)(C) and 428(b)(1)(M) shall accrue and be added to the balance of interest due from the borrower when the loan enters repayment, but shall not ever be capitalized. </text></clause><clause id="id30c45cca5dcb413faf5ed2e795ceb8c8"><enum>(ii)</enum><header>Notice requirement</header><text>The Secretary shall adjust any forbearance notice required in accordance with section 428(a)(3)(A)(iii) to reflect the availability of the pause payment process pursuant to section 460B and the treatment of interest under such section. </text></clause></subparagraph><subparagraph id="id7d4304c9a053489996974d67a65c9be4"><enum>(C)</enum><header>Limited retroactivity</header><text>For a borrower of a loan made under this part on or before the effective date of the Affordable Loans for Any Student Act that is in a status, on the day before such effective date, that involves interest capitalization, such loan shall have capitalization pro-rated to the effective date of such Act, but shall not be subject to further capitalization after the effective date of such Act. </text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id0ece2bbabcb441d2b259cde49f882696"><enum>(2)</enum><text>in subsection (e)(5)—</text><subparagraph id="id6b69728e5495427fb2af170c5dca2fc6"><enum>(A)</enum><text>by inserting “(which, beginning after the effective date of the Affordable Loans for Any Student Act, shall not be capitalized)” after <quote>accrued interest</quote>; and </text></subparagraph><subparagraph id="iddeb324305abd4cc0b060541a6d53f852"><enum>(B)</enum><text>by striking the second sentence. </text></subparagraph></paragraph></section><section id="id983c265cefbe46ca93d5ccc34d7583a9"><enum>202.</enum><header>Elimination of origination fees for Federal Direct Loans</header><subsection id="id7861d31dd40841d0a2e9d62fc1bb0bfd"><enum>(a)</enum><header>Repeal of origination fees</header><text>Subsection (c) of section 455 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(c)</external-xref>) is repealed.</text></subsection><subsection id="id6e25faab55774bd2ba6d2c8c009b037c"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) for which the first disbursement of principal is made on or after July 1, 2022.</text></subsection></section><enum>III</enum><header>Providing assistance in situations of borrower distress</header><section id="ida20233ec742247ac9a43f18fcdc5bab6"><enum>301.</enum><header>Limits on seizing income for debt</header><text display-inline="no-display-inline">Part D of title IV (<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" display-inline="no-display-inline" id="idC4304EAA3BFA425D8876A6CAF94954D0"><section id="id7bb32502262a45078cd029d51dd80b7a"><enum>460A.</enum><header>Limits on seizing income for debt relating to Federal student loans</header><subsection id="id38f14ec1d79f4be2a80f17dfbab658c5"><enum>(a)</enum><header>Definitions</header><text>In this section—</text><paragraph id="id5a1ae5ce9261469caf985c28b990ccff"><enum>(1)</enum><text>the term <term>adjusted gross income</term> has the meaning given the term in <external-xref legal-doc="usc" parsable-cite="usc/26/62">section 62</external-xref> of the Internal Revenue Code of 1986; and </text></paragraph><paragraph id="id962a6bd72fda419084359a09b0d6dc14"><enum>(2)</enum><text>the term <term>poverty line</term> means the poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>)) applicable to a family of the size involved. </text></paragraph></subsection><subsection id="idbff304285a95410c85ec5c7e258910c5"><enum>(b)</enum><header>Limitation on collection</header><paragraph id="ida8f4dc8d38f34e8b8775d6240792866c"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of law, any entity engaged in the collection of debts relating to loans made under this title may not take any action to cause, or seek to cause, the collection of such a debt that is taken from the wages, Federal benefits, or other amounts due to a borrower through garnishment, deduction, offset, or seizure in an amount on a monthly basis that is more than the amount described in paragraph (2). </text></paragraph><paragraph id="id05b35267c257472dbb85cd3301933dee"><enum>(2)</enum><header>Calculation</header><text>The amount described in this paragraph is the amount obtained by calculating what the monthly repayment amount would be for loans made under this title, with respect to the borrower, under the income-based repayment plan under section 493C(c). </text></paragraph><paragraph id="id8ecf02bbece346a59f01cfd839039d0a"><enum>(3)</enum><header>Presumption</header><text>For purposes of this section, if an entity described in paragraph (1) is unable to determine the family size of a borrower after taking reasonable steps to collect the information necessary to do so, that person shall presume that the family size of the borrower is 1 individual. </text></paragraph></subsection><subsection id="idB78BDCE617FF43AB9D4B3196BA32D87B"><enum>(c)</enum><header>Communications</header><text>Any communication by an entity described in subsection (b)(1) that is for the purpose of seizing income of a consumer for debt that relates to a loan made under this title shall—</text><paragraph id="id7b5a9895d3b049678e7562a8e2f7fd8b"><enum>(1)</enum><text>be considered—</text><subparagraph id="id6e26e91eb15a4f9b8c22949701e2ecce"><enum>(A)</enum><text>an attempt to collect a debt; and</text></subparagraph><subparagraph id="id213cc58f08804bf8ab5da268f24f2e44"><enum>(B)</enum><text>conduct in connection with the collection of a debt for the purposes of this title; and </text></subparagraph></paragraph><paragraph id="id0ea71d20307c4632a1c337e9517226eb"><enum>(2)</enum><text>contain a notice to the borrower that, consistent with the procedures for rehabilitating a loan pursuant to section 428F(a) or consolidating loans out of default as described in section 428C(a)(3)(B)(i)(V), the borrower may exit default and reenter current repayment status (as defined in section 428(l)(2)(C)) with a similar monthly payment amount on an income-based repayment plan under section 493C(c) and thereby obtain the full flexibility and benefits of such status, including the ability to adjust family size and make qualifying payments for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan (as described in section 493C(b)(7)). </text></paragraph></subsection><subsection id="iddaa6279db0bb491b91727c31a35dcf58"><enum>(d)</enum><header>Remedies</header><paragraph id="id43efca92aabf4fbf8de9ff8a77dfb2fa"><enum>(1)</enum><header>First tier</header><text>The Secretary may impose a civil penalty on an entity for a violation of this section not to exceed $5,000 for each day during which such violation continues. </text></paragraph><paragraph id="idb01695e42c7146c1ae3011cf7c422d19"><enum>(2)</enum><header>Second tier</header><text>Notwithstanding paragraph (1), the Secretary may impose a civil penalty on an entity that recklessly engages in a violation of this section not to exceed $25,000 for each day during which such violation continues. </text></paragraph><paragraph id="id4b481c15d2dc4261a2854413e9ccdd14"><enum>(3)</enum><header>Third tier</header><text>Notwithstanding paragraphs (1) and (2), the Secretary may impose a civil penalty on an entity that knowingly violates this section not to exceed $1,000,000 for each day during which such violation continues. </text></paragraph><paragraph id="id01889f93387b4bc2a0bcb3d78dce693f"><enum>(4)</enum><header>No exemplary or punitive damages</header><text>Nothing in this subsection shall be construed as authorizing the imposition of exemplary or punitive damages. </text></paragraph><paragraph id="ida9fe02df8efc4c5b912b4926cb811b92"><enum>(5)</enum><header>Entities subject to penalty</header><text>An entity subject to a penalty under this subsection may include a contractor or agent of the Department.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id2e8870aed97349e4895325d2a0fd770a"><enum>302.</enum><header>Allowing for multiple loan rehabilitations</header><subsection id="id43c70c2c109746bb98285547f829f39c"><enum>(a)</enum><header>FFEL loans</header><text>Section 428F(a)(5) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-6">20 U.S.C. 1078–6(a)(5)</external-xref>) is amended by striking <quote>one time per loan</quote> and inserting <quote>2 times per loan</quote>. </text></subsection><subsection id="id5eb34b3b22a445cfbc880cb1292f81e4"><enum>(b)</enum><header>Direct loans</header><text>Section 455(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by section 103, is further amended by adding at the end the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="id9E6ADB016AA84BC182AB715EAFFF22DB"><paragraph id="idcbdfabb09bb34df4afa6a0ad3b155508"><enum>(8)</enum><header>Loan rehabilitation</header><text>In carrying out the process for loan rehabilitation described in section 428F(a)(5) with respect to loans made under this part and in accordance with subsection (a), the Secretary shall allow a borrower to obtain the benefits available under such section not more than 2 times per loan.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="idbda59b61b11647a9b370ff1cd7474226"><enum>303.</enum><header>Pause payment process</header><subsection id="idb2693084d8324d3bbec80d5b894a0168"><enum>(a)</enum><header>Establishment of pause payment process</header><text>Part D of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>), as amended by section 301, is further amended by adding at the end the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="id871748E36A5F404EBCD7E26384D4D7F6"><section id="id80b860a51d5041cf97797cf86faa8746"><enum>460B.</enum><header>Pause payment process</header><subsection id="ide2c134fc6f954e7c98850994daf3a7bf"><enum>(a)</enum><header>In general</header><text>The Secretary shall establish a single, streamlined pause payment process available in a single application with respect to loans made under this part that replaces the deferment and forbearance options and their respective applications that are available to borrowers before the effective date of the Affordable Loans for Any Student Act and provides temporary relief from repayment of such loans in accordance with this section. </text></subsection><subsection id="id1c313830151d47bf9a84f2b79c819cec"><enum>(b)</enum><header>Application for relief</header><text>Notwithstanding any other provision of this Act, a borrower of a loan made under this part that desires to receive temporary relief from repayment with respect to such loan shall request relief in accordance with the pause payment process established by the Secretary under subsection (a), which shall include the options to select a temporary cessation of payments and to make smaller payments than the monthly payments required under the borrower’s repayment plan. </text></subsection><subsection id="id662a2c2e8cc341d2a519c8aefd3ff9f9"><enum>(c)</enum><header>Pause payment</header><paragraph id="id69337A1FF10646FB9ED02163D24BA0A8"><enum>(1)</enum><header>In general</header><text>A borrower of a loan made under this part who meets the requirements described in paragraph (2) shall be eligible for a pause payment, during which periodic installments of principal need not be paid, and interest— </text><subparagraph id="idcfd13fe4359244ff92b73b6a75ebfe05"><enum>(A)</enum><text>shall not accrue, in the case of a—</text><clause id="id112f572feb5144ee87ce0e1fd77a9cd2"><enum>(i)</enum><text>Federal Direct Stafford Loan; or</text></clause><clause id="id038f41e3778a4c67a1a59781c4eacb34"><enum>(ii)</enum><text>a Federal Direct Consolidation Loan that consolidated only Federal Direct Stafford Loans, or a combination of such loans and Federal Stafford Loans for which the student borrower received an interest subsidy under section 428; or </text></clause></subparagraph><subparagraph id="id9e5fe9d068d143bfa8df76fde6b37f15"><enum>(B)</enum><text>shall accrue and be added to the balance of interest due but not be capitalized, or be paid by the borrower, in the case of a Federal Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in subparagraph (A)(ii). </text></subparagraph></paragraph><paragraph id="id6e503613bca54f35b087f50e61b32057"><enum>(2)</enum><header>Eligibility</header><text>A borrower of a loan made under this part shall be eligible for a pause payment during any period— </text><subparagraph id="id4940fcd57efe475aa570a5d90a0760a8"><enum>(A)</enum><text>during which—</text><clause id="id0077ea31f2c045838754bf1077506750"><enum>(i)</enum><text>the borrower is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined by the eligible institution (as such term is defined in section 435(a)) the student is attending; or </text></clause><clause id="idb30bbcac5cc245e2b72acf39f769134c"><enum>(ii)</enum><text>in the case of a parent borrower, the borrower or the student on whose behalf the loan was borrowed is carrying at least one-half the normal full-time work load, in accordance with clause (i); </text></clause></subparagraph><subparagraph id="idb191a478fe3e4b8bb92dc1775bc7db72"><enum>(B)</enum><text>during which the borrower is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary;</text></subparagraph><subparagraph id="id32bf00524f674793b4d96a33b14341e1"><enum>(C)</enum><text>during which the borrower is serving in a medical or dental internship or residency program; </text></subparagraph><subparagraph id="ide2cbfd539423429bae400162e074bb4c"><enum>(D)</enum><text>during which the borrower is in a rehabilitation training program for individuals with disabilities approved by the Secretary; </text></subparagraph><subparagraph id="ida8eea92a01df4f96823ac483205fc34c"><enum>(E)</enum><text>during which the borrower—</text><clause id="id2369dd09fba94b0bac363a02e1559548"><enum>(i)</enum><text>is serving on active duty during a war or other military operation or national emergency and for the 180-day period following the demobilization date for the service; or </text></clause><clause id="id5f57f4d602d2460781aac34ef2cfb938"><enum>(ii)</enum><text>qualifies for partial repayment of the borrower’s loans under a provision of chapter 109 or 1609 of title 10, United States Code; </text></clause></subparagraph><subparagraph id="id9819bf2b49554d31bf92a79dca9ff912"><enum>(F)</enum><text>during which the borrower is performing qualifying National Guard duty during a war or other military operation or national emergency and for the 180-day period following the demobilization date for the service; </text></subparagraph><subparagraph id="ida1fa1dac0e5247338e4db35972935449"><enum>(G)</enum><text>during which the borrower is serving in—</text><clause id="ida1ed977968a348ee894623abb118c649"><enum>(i)</enum><text>an approved national service position (as defined in section 101 of the National and Community Service Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12511">42 U.S.C. 12511</external-xref>)) in an Americorps program (defined for purposes of this subparagraph as a program carried out under subtitle C or E of title I of the National and Community Service Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12571">42 U.S.C. 12571 et seq.</external-xref>, 12611 et seq.) or title I of the Domestic Volunteer Service Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4951">42 U.S.C. 4951 et seq.</external-xref>)); </text></clause><clause id="id4463272bf3d5453b95b00342d280c444"><enum>(ii)</enum><text>in the Peace Corps; or</text></clause><clause id="id1b860934058745edb81410c76b629ac9"><enum>(iii)</enum><text>in a teaching position that would qualify for teacher loan forgiveness under section 428J or 460; </text></clause></subparagraph><subparagraph id="id29f278cc0b3445259535504691ac7fb2"><enum>(H)</enum><text>not in excess of a total period of 3 years of repayment of a loan during which the Secretary determines, in accordance with regulations prescribed under section 435(o), that the borrower has experienced or will experience an economic hardship, such as experiencing financial difficulties, having unexpected or significant medical expenses, or being unable to find full-time employment; </text></subparagraph><subparagraph id="ide11cf172ba8243edadbe9bfffa4ecbfd"><enum>(I)</enum><text>during which a borrower’s ability to make payments, as determined by the Secretary, has been adversely affected by— </text><clause id="idc87e4ed0196941699ed78b3b4d10e9e3"><enum>(i)</enum><text>any major disaster or emergency declared by the President under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency 34 Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5170">42 U.S.C. 5170</external-xref>, 5191); </text></clause><clause id="id0c3274287f6c40cc953f3d0af065e579"><enum>(ii)</enum><text>a local emergency, as declared by the appropriate government agency; or</text></clause><clause id="id2a45dfe975274ecb8c99e63eac0544b5"><enum>(iii)</enum><text>a military mobilization;</text></clause></subparagraph><subparagraph id="id4cdd683cf7a847578048f9e2522aaf11"><enum>(J)</enum><text>during which the borrower is awaiting a determination by the Secretary of the borrower’s request for a pause payment, change in repayment plan, loan forgiveness or cancellation, or consolidation loan; or </text></subparagraph><subparagraph id="id95eb21824d24420598c952d6e7a579af"><enum>(K)</enum><text>during which the borrower is experiencing other exceptional circumstances for which pause payment under this section is in the best interest of the borrower, as determined by the Secretary through regulation.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idda098e8a352641cfa7195b7a1e9eb100"><enum>(b)</enum><header>Conforming amendments</header><text>Section 455 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>) is amended—</text><paragraph id="id9f660a5a6ba84c76855f2586df220985"><enum>(1)</enum><text>in subsection (e)(7)(B)(i), by striking <quote>is in deferment</quote> and inserting <quote>is under pause payment pursuant to section 460B</quote>; </text></paragraph><paragraph id="id05496833a4f3481d99d596542a6f8948"><enum>(2)</enum><text>by striking subsection (f) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id78D0DB62AD7348A8986D01B37220C890"><subsection id="id114da08fd3fb4ac4b4f0c94a9445b54a"><enum>(f)</enum><text><inline-comment>reserved</inline-comment></text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id157470c9c703492aa49177d0b37da43a"><enum>(3)</enum><text>in subsection (l)—</text><subparagraph id="id464b26fc6105477f9cb0da5abe198246"><enum>(A)</enum><text>by striking <quote><header-in-text level="section" style="OLC">Program.—</header-in-text></quote> and all that follows through <quote>Using funds</quote> and inserting the following: <quote><header-in-text level="section" style="OLC">Program.—Using funds</header-in-text></quote>; and </text></subparagraph><subparagraph id="id6d85353f077d4294ba088dd6dee67f0f"><enum>(B)</enum><text>by striking paragraph (2).</text></subparagraph></paragraph></subsection></section><section id="id77c8453ef79a4502a9a4b9a423e4e8b2"><enum>304.</enum><header>Automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans</header><subsection id="id90a8c35ed0b44a34ac93e80780819b95"><enum>(a)</enum><header>Notification and automatic enrollment procedures</header><text>Section 455(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)</external-xref>), as amended by sections 103 and 302, is further amended by adding at the end the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="idA3D1417BF2DF4FD28334222CF8BDC24C"><paragraph id="id2bb312ca46af40e48dcc4271ab9e9725"><enum>(9)</enum><header>Notification and automatic enrollment procedures for borrowers who are delinquent on loans</header><subparagraph id="ide8d96c74fa164cbba4207e8ef9a681f0"><enum>(A)</enum><header>Authority to obtain income information</header><clause id="idfbcef135bed34a058eed46bf46cf736a"><enum>(i)</enum><header>In general</header><text>In the case of any borrower who is at least 60 days delinquent on a loan made under this part, the Secretary may 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="id4de8fdf5f4654a87b010ec7ef6458fb6"><enum>(ii)</enum><header>Availability of returns and return information</header><text>Returns and return information (as defined in section 6103 of the Internal Revenue Code of may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code). </text></clause></subparagraph><subparagraph id="id6064f1f8e4e1432db3394f7983a45d8a"><enum>(B)</enum><header>Borrower notification</header><text>With respect to each borrower of a loan made under this part who is at least 60 days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding 120 days, the Secretary shall, as soon as practicable after such 60-day delinquency, provide to the borrower the following: </text><clause id="ide702df5056744aadb591d560b78645d6"><enum>(i)</enum><text>Notification that the borrower is at least 60 days delinquent on at least 1 loan under this part, and a description of all delinquent loans under this part, and nondelinquent loans under this part, of the borrower. </text></clause><clause id="id8e05e3c8f1bd476fb757035c4b39b3d9"><enum>(ii)</enum><text>A brief description of the repayment plans for which the borrower is eligible and the borrower’s loans made under this part, and loans made, insured, or guaranteed under part B or E, that may be eligible for such plans, based on information available to the Secretary. </text></clause><clause id="id6628eff26a34419c8737c8a69eaa3f2b"><enum>(iii)</enum><text>Clear and simple instructions on how to select the repayment plans.</text></clause><clause id="ida36264c3d4b944e2a827b13e39ed3830"><enum>(iv)</enum><text>The amount of monthly payments for the loans made under this part, and any loans made, insured, or guaranteed under part B or E, under the repayment plans for which the borrower is eligible, based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A)— </text><subclause id="idf3e460ab67be491e801ecd3890ad302e"><enum>(I)</enum><text>the amount of the monthly payment under the income-based repayment plan under section 493C(c) for which the borrower is eligible for the borrower’s loans made under this part, based on such income information; and </text></subclause><subclause id="id2cf2547a57c6424684dfca023b1338ae"><enum>(II)</enum><text>the income, family size, tax filing status, and tax year information on which each the monthly payment is based. </text></subclause></clause><clause id="idb76c311ec77445e88cd96b288a18f2ab"><enum>(v)</enum><text>An explanation that the Secretary shall take the actions under subparagraph (C) with respect to such borrower, if— </text><subclause id="id0084a59ef4b7400c8ab56bbcdbc254bb"><enum>(I)</enum><text>the borrower is 120 days delinquent on one or more loans under this part and has not selected a new repayment plan for the borrower’s loans under this part; and </text></subclause><subclause id="id01e0c847c7ef434db9a08864de02a236"><enum>(II)</enum><text>in the case of such a borrower whose repayment plan for any loans made under this part is not an income-based repayment plan under section 493C(c), the monthly payments under such repayment plan are higher than such monthly payments would be under an income-based repayment plan for such loans. </text></subclause></clause><clause id="id4b28ba37996f455e8e78ba216de1be15"><enum>(vi)</enum><text>Instructions on updating the information of the borrower obtained under subparagraph (A). </text></clause></subparagraph><subparagraph id="idc88860f0022646c7aa58299a7269caa3"><enum>(C)</enum><header>Secretary’s initial selection of plan</header><text>With respect to each borrower described in subparagraph (B) who has a repayment plan for loans made under this part that meets the requirements of clause (v)(II) of subparagraph (B), 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 120 days delinquent on such a loan, the Secretary shall, as soon as practicable— </text><clause id="id9a99b86b242f44dd9fde73fc2538148c"><enum>(i)</enum><text>in a case in which any of the borrower’s loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), provide the borrower with the income-based repayment plan; and </text></clause><clause id="id9c44c4312b784c8ea0768c82256b6f12"><enum>(ii)</enum><text>in a case in which none of the borrower’s loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), 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><subparagraph id="id126173c81ba443f48537cbd0b62428e3"><enum>(D)</enum><header>Secretary’s additional selection of plan</header><clause id="id13e6409a8ac746d3ba4b73984128e363"><enum>(i)</enum><header>In general</header><text>With respect to each borrower of a loan made under this part who selects a new repayment plan in accordance with the notice received under subparagraph (B) and who continues to be delinquent on such loan for a period described in clause (ii), the Secretary shall, as soon as practicable after such period, carry out the procedures described in subparagraph (C) for the borrower’s loans made under this part, if such procedures would result in lower monthly repayment amounts on such loan. </text></clause><clause id="id8bd6203b2b7b49faabeacd7b1091c2ce"><enum>(ii)</enum><header>Description of period</header><text>The duration of the period described in clause shall be the amount of time that the Secretary determines is sufficient to indicate that the borrower may benefit from repaying such loan under a new repayment plan, but in no case shall such period be less than 60 days. </text></clause></subparagraph><subparagraph id="id42c6a31432da47dfa7eb1aac94b59f33"><enum>(E)</enum><header>Opt-out</header><text>A borrower of a loan made under this part shall have the right to opt out of the procedures under this paragraph. </text></subparagraph><subparagraph id="idbec2619015a6472a894d3609f4c5315c"><enum>(F)</enum><header>Procedures</header><text>The Secretary shall establish procedures as are necessary to effectively implement this paragraph. </text></subparagraph></paragraph><paragraph id="idcef73422eab3405699ac61acd52659c4"><enum>(10)</enum><header>Notification and automatic enrollment procedures for borrowers who are rehabilitating defaulted loans</header><subparagraph id="id5004fb0eed00470abfed9f4a19c91adc"><enum>(A)</enum><header>Authority to obtain income information</header><clause id="idd748e04e6d1e441cb20869a88322b056"><enum>(i)</enum><header>In general</header><text>In the case of any borrower who is rehabilitating a loan made under this part pursuant to section 428F(a), the Secretary may 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="id5eddae0d4f474252b14c91c6cdb6667d"><enum>(ii)</enum><header>Availability of returns and return information</header><text>Returns and return information (as defined in section 6103 of the Internal Revenue Code of may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code). </text></clause></subparagraph><subparagraph id="id8f025cf85ae5414fb060513d6ad6bc29"><enum>(B)</enum><header>Borrower notification</header><text>Not later than 30 days after a borrower makes the 6th payment required 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="id9e951ecc18e04d4482db05adea1d9082"><enum>(C)</enum><header>Secretary’s automatic enrollment</header><text>With respect to each borrower who has made the 9th payment required for the loan rehabilitation described in subparagraph (A) and is eligible for the income-based repayment plan under section 493C(c), the Secretary shall, as soon as practicable after such payment, provide the borrower with the income-based repayment plan. </text></subparagraph><subparagraph id="id091fe899e6684bf3869e0542111b90e2"><enum>(D)</enum><header>Opt-out</header><text>A borrower of a loan made under this part shall have the right to opt out of the procedures for enrollment in an income-based repayment plan under this paragraph. </text></subparagraph><subparagraph id="iddc025a6e3c784621bd8676d3a01fdbf0"><enum>(E)</enum><header>Procedures</header><text>The Secretary shall establish procedures as are necessary to effectively implement this paragraph.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="ide040277129b74dcd87d92216a4cc7c81"><enum>(b)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall—</text><paragraph id="idd50ed9cc74fd41c9aa15e490afb036bb"><enum>(1)</enum><text>take effect as soon as the Secretary of Education determines practicable after the Secretary finalizes the procedures under section 105; and </text></paragraph><paragraph id="id5279c8cc5a1643f8b40a82820672ec07"><enum>(2)</enum><text>apply to all borrowers of loans made under part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>). </text></paragraph></subsection></section><section id="idc6f769902684457fbc89e07462023c68"><enum>305.</enum><header>Separating joint consolidation loans</header><subsection id="idffc9c7110e4a4f91b1ff6e363382584d"><enum>(a)</enum><header>In general</header><text>Section 455(g) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(g)</external-xref>), as amended by section 104, is further amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3B5AF702219D42F895E527B08543EB5D"><paragraph id="id417cff5de5ed4db99b63a8c95ba53bf6"><enum>(3)</enum><header>Separating joint consolidation loans</header><subparagraph id="id33fe272ce59f4c9795cee12a1d53825d"><enum>(A)</enum><header>In general</header><text>A married couple, or 2 individuals who were previously a married couple, and who received a joint consolidation loan as such married couple under subparagraph (C) of section 428C(a)(3) (as such subparagraph was in effect on or before June 30, 2006), may apply to the Secretary for each individual borrower in the married couple (or previously married couple) to receive a separate Federal Direct Consolidation Loan under this part— </text><clause id="idfd6e48d1a40645b18ed06111b669a0a9"><enum>(i)</enum><text>that shall—</text><subclause id="id5b8d2ea503f44872a3fce87b4df307ef"><enum>(I)</enum><text>unless the Secretary receives notice of an agreement described in subclause (II)(aa), be equal to the sum of— </text><item id="id163bf9b6d9bf485088851a8dda9e14cd"><enum>(aa)</enum><text>the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that, as of the day before such joint consolidation loan was made, was attributable to the loans of the individual borrower for whom such separate consolidation loan is being made; and </text></item><item id="ida359ca49db764e65ba1c64dd77a0a0dc"><enum>(bb)</enum><text>any other loans described in section 428C(a)(4) that such individual borrower selects for consolidation under this part; or </text></item></subclause><subclause id="id825fe65069a842799033364c65479669"><enum>(II)</enum><text>be equal to the sum of—</text><item id="idde98394572c040a7bea122b8b4bdab78"><enum>(aa)</enum><text>the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that, as of the date of application under this paragraph, the married couple (or previously married couple) agrees shall be considered attributable to the loans of the individual borrower for whom such separate consolidation loan is being made; and </text></item><item id="ida2b9b9a0fc144471a94335ade4ce85ab"><enum>(bb)</enum><text>any other loans described in section 428C(a)(4) that such individual borrower selects for consolidation under this part; </text></item></subclause></clause><clause id="idb719b3cb84e54aec84e4da2e9ad2ad4a"><enum>(ii)</enum><text>the proceeds of which shall be paid by the Secretary to the holder or holders— </text><subclause id="id6b564a608ff64579906acd228dc72cd1"><enum>(I)</enum><text>of the joint consolidation loan for the purpose of discharging the liability on the percentage of such joint consolidation loan described in subclause (I)(aa) or (II)(aa) of clause (i); and </text></subclause><subclause id="id039d473b87e94109a1008db75f739877"><enum>(II)</enum><text>of the loans selected for consolidation under subclause (I)(bb) or of clause (i) for the purpose of discharging the liability on such loans; </text></subclause></clause><clause id="id1db1d908377e4c7ebf12fbc8ed8f7252"><enum>(iii)</enum><text>except as otherwise provided in this paragraph, that has the same terms and conditions, and rate of interest as the joint consolidation loan, except if other loans are included in such Federal Direct Consolidation Loan after the date the Federal Direct Consolidation Loan is first made under this paragraph; </text></clause><clause id="ide21fcbbc7d504d1f9ceb478f4b698d9d"><enum>(iv)</enum><text>for which any payment made under subsection (m)(1)(A) on the joint consolidation loan during a period in which the individual borrower for whom such separate consolidation loan is being made was employed in a public service job described in subsection (m)(1)(B) shall be treated as if such payment were made on such separate consolidation loan; and </text></clause><clause id="ida9449c458014466da372fbf1df6e7c54"><enum>(v)</enum><text>for which any payment made under an income contingent repayment plan under subsection (d)(1)(D), or an income-based repayment plan under paragraph (1)(E) or (2)(A)(ii) of subsection (d), on the joint consolidation loan shall be treated as if such payment were made on such separate consolidation loan. </text></clause></subparagraph><subparagraph id="id70822686c44740f1a7ad6d953bcca9be"><enum>(B)</enum><header>Application for separate direct consolidation loans</header><clause id="idf56edb648e9d4e9bb09db24da973899f"><enum>(i)</enum><header>Joint application</header><text>Except as provided in clause (ii), to receive separate consolidation loans under subparagraph (A), both individual borrowers in a married couple (or previously married couple) shall jointly apply under such subparagraph. </text></clause><clause id="id7ac66095752d48a5964d89b80ebaf34a"><enum>(ii)</enum><header>Separate application</header><text>An individual borrower in a married couple (or previously married couple) may apply for a separate consolidation loan under subparagraph (A) separately and without regard to whether or when the other individual borrower in the married couple (or previously married couple) applies under such subparagraph, and shall be relieved of any remaining liability for the joint consolidation loan, in a case in which— </text><subclause id="idc5df97c69fa349aca1ed4cb61966bd8b"><enum>(I)</enum><text>the individual borrower has experienced from the other individual borrower— </text><item id="id2366b63a306044d0b45cadb48e5882c1"><enum>(aa)</enum><text>domestic violence (as defined in section 40002(a) of the Violence Against Women Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/34/12291">34 U.S.C. 12291(a)</external-xref>)); </text></item><item id="id63cfc52bdf1a4432be8dd0a97dbaf6b9"><enum>(bb)</enum><text>economic abuse (including behaviors that control such borrower’s ability to acquire, use, and maintain access to money, credit, or the joint financial obligations of both borrowers); or </text></item><item id="id1cd27bc152914b4b8144ee41f309b4ee"><enum>(cc)</enum><text>other exceptional circumstances, as determined by the Secretary; and </text></item></subclause><subclause id="id65df72fcaea94b0d9d8f96dab62a0168"><enum>(II)</enum><text>the Secretary determines that authorizing each individual borrower to apply separately under subparagraph (A) would be in the best fiscal interests of the Federal Government, including by reducing the risk of delinquency or default. </text></subclause></clause></subparagraph><subparagraph id="id2a59de13e8324cbea385aee29cfbbba7"><enum>(C)</enum><header>Borrower eligibility</header><text>Notwithstanding section 428C(a)(3)(A), the Secretary shall provide a consolidation loan under this part to each borrower who— </text><clause id="id2e5310a0e86042b59e62d23640e7f1be"><enum>(i)</enum><text>applies for such loan under subparagraph (A); and</text></clause><clause id="id80e443ae953942faad730b6e0195a41b"><enum>(ii)</enum><text>meets the requirements of subparagraphs (A) and (B).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id7edd0ba4414341f383d699e2f282e544"><enum>(b)</enum><header>Conforming amendment</header><text>Section 428C(a)(3)(B)(i)(V) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3(3)(B)(i)(V)</external-xref>) is amended— </text><paragraph id="id96497fe9ed3d4e1b8ef01e334ad10803"><enum>(1)</enum><text>by striking <quote>or</quote> at the end of item (bb);</text></paragraph><paragraph id="idb2f37cf57e794a62b5f98be50b7c43bb"><enum>(2)</enum><text>by striking the period at the end of item (cc) and inserting <quote>; or</quote>; and</text></paragraph><paragraph id="idf25b4793d2b64a7e89e85e5b5a400e75"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6B85319388614DED9FD2AD87250BE26D"><item id="idba05524c73e041009eb29ddc375a9241"><enum>(dd)</enum><text>for the purpose of separating a joint consolidation loan into 2 separate Federal Direct Consolidation Loans under section 455(g)(3).</text></item><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section id="id3e7a49acaeb3487083e75f74da930674"><enum>306.</enum><header>Removing the collection cost requirement</header><subsection id="idaf524b0343354ee5bf6c6b57eb0cdd69"><enum>(a)</enum><header>Removal of requirement</header><text>Section 484A(b)(1) (<external-xref legal-doc="usc" parsable-cite="usc/20/1091a">20 U.S.C. 1091a(b)(1)</external-xref>) is amended by striking <quote>shall be required to pay, in addition to other charges specified in this title, reasonable collection costs</quote> and inserting <quote>shall not be required to pay collection costs</quote>. </text></subsection><subsection id="id1508728506b640c8997da14c40f38970"><enum>(b)</enum><header>Repayment after default</header><text>Section 455(d)(6) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(d)(6)</external-xref>), as redesignated under section 103(b), is amended by striking <quote>to—</quote> and all that follows through the period at the end and inserting <quote>to repay the loan pursuant to an income-based repayment plan under section 493C(c).</quote>. </text></subsection></section><enum>IV</enum><header>Improving loan information and counseling</header><section id="iddc4972e810f441368bddd12c00b7a862"><enum>401.</enum><header>Student loan contract; simplifying loan disclosures</header><subsection id="idb3798f78a2fc4e38b7cb65b74f8791e6"><enum>(a)</enum><header>Student loan contract</header><text>Section 455 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>), as amended by section 202, is further amended by inserting after subsection (b) the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="id755887BD30B844359B2905AD3C739273"><subsection id="id0c364c32643748e8a516ec151af7e882"><enum>(c)</enum><header>Student loan contract; simplifying loan disclosures</header><paragraph id="id87c4725e08b64d55b9d967aac6b782b1"><enum>(1)</enum><header>Student loan contract</header><subparagraph id="idb4f99f4e49374b59be870e96bfa4e3fb"><enum>(A)</enum><header>In general</header><text>Any master promissory note form described in section 432(m)(1)(D) that is developed or used for covered loans shall be referred to as a <quote>student loan contract</quote>. </text></subparagraph><subparagraph id="id406cf7ef04094fd1937b8ce6574e7346"><enum>(B)</enum><header>Clarification on use</header><text>Notwithstanding section 432(m)(1)(D)(i), each student loan contract for a covered loan shall— </text><clause id="id3e001443359342488fbacfc81f816ea8"><enum>(i)</enum><text>not be entered into by a student unless the student has completed all required counseling related to such loan, including counseling required under section 485(l); </text></clause><clause id="id5215fa2965c54d04b9e24d2e4b70583a"><enum>(ii)</enum><text>be signed by the student entering such student loan contract after completion of such counseling; </text></clause><clause id="idac33ffcf50aa4820a7919f0585691aab"><enum>(iii)</enum><text>be signed by the student during the first award year of such student’s enrollment at an institution; </text></clause><clause id="id09c433c310c34b78bcc4b0bd44ea740f"><enum>(iv)</enum><text>be valid for each award year after the award year described in clause (iii) in which the student remains enrolled at the same institution; and</text></clause><clause id="idA5415D84603E4A7DB3B8E30D8DDF06C4"><enum>(v)</enum><text>include options for the student to enter both the student’s current contact information and permanent contact information that is likely to remain valid upon the student’s exit from the institution. </text></clause></subparagraph><subparagraph id="idebdabfec16bb4b6f9abc92adbf9d9ceb"><enum>(C)</enum><header>Covered loan</header><clause id="id5c890ff362e34137a42124e0f2e53132"><enum>(i)</enum><header>In general</header><text>In this subsection, the term <term>covered loan</term> means a loan made under this part on or after the effective date of the Affordable Loans for Any Student Act, except with respect to a borrower described in clause (ii). </text></clause><clause id="ide21b361d72e94c5b948ff04b40685d9b"><enum>(ii)</enum><header>Exception</header><text>A borrower is described in this clause if the loan made under this part on or after the effective date of the Affordable Loans for Any Student Act with respect to such borrower is for the award year during which the Affordable Loans for Any Student Act is enacted and the borrower has already taken out a loan under this part (other than a Federal Direct Consolidation Loan) for such award year (including any such loan for attendance at another institution from which the student transferred or in which the student had previously enrolled). </text></clause></subparagraph></paragraph><paragraph id="id1480ccba72994c80b69e3c05d5215faa"><enum>(2)</enum><header>Loan disclosures</header><text>For loans made under this part for periods of enrollment beginning on or after the effective date of the Affordable Loans for Any Student Act, the Secretary shall take such steps as are necessary to streamline the student loan disclosure requirements under this Act. The Secretary shall ensure that information required to be disclosed to a student who is applying for, receiving, or preparing to repay a loan under this part shall be consumer-tested and delivered in a manner that— </text><subparagraph id="ida18c5a0973094e96b102f5db009b42cf"><enum>(A)</enum><text>reduces and simplifies the paperwork students are required to complete;</text></subparagraph><subparagraph id="idaf706319550c470fb75c8fb7c296c808"><enum>(B)</enum><text>limits the number of times a student is presented with disclosures by incorporating the streamlined disclosures into required student loan counseling under section 485(l), the student loan contract under this subsection, or both; and </text></subparagraph><subparagraph id="id8f6415b349184f5491bc03d4195e35b9"><enum>(C)</enum><text>is effective in helping the student understand the student’s rights and obligations as a Federal student loan borrower. </text></subparagraph></paragraph><paragraph id="idc9a4b82fb46e430ab114cf2d87ec7af3"><enum>(3)</enum><header>Loan acceptance</header><text>Prior to making the first disbursement of a covered loan (other than a Federal Direct Consolidation Loan) to a borrower, the eligible institution shall ensure that the borrower— </text><subparagraph id="idf860c15783894c5da0e6d0e243ac2415"><enum>(A)</enum><text>has completed the applicable counseling under paragraph (2) or (3) of section 485(l); and </text></subparagraph><subparagraph id="id4036709f27e14588ba4ebbb13138a960"><enum>(B)</enum><text>after completing such counseling, accepts the loan by—</text><clause id="id5a4ccbb4514645389a920b0be64cf949"><enum>(i)</enum><text>signing and returning to the institution the student loan contract described in section 455(c)(1) that affirmatively states that the borrower accepts the loan; or </text></clause><clause id="id8a53d9e7eefa479686e82dd9f6b09e4f"><enum>(ii)</enum><text>electronically signing an electronic version of such student loan contract, which may be done through the online counseling tool in accordance with section 485(n)(1)(B).</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idf0671b854bbc40b59bba0aea45ffe03d"><enum>(b)</enum><header>Conforming amendment</header><text>Section 487(a)(7) (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(a)(7)</external-xref>) is amended by striking <quote>section 485</quote> and inserting <quote>sections 455(c)(3) and 485</quote>. </text></subsection></section><section id="ida269c69afdfb42188b897c0acc142a3a"><enum>402.</enum><header>Pre-loan information and counseling requirements</header><text display-inline="no-display-inline">Section 485(l) (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(l)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3689352EBF6C4CCE90745F9A02189F14"><subsection id="id2e260c4bb6104dc59aaf186ae54d6dce"><enum>(l)</enum><header>Student loan entrance counseling</header><paragraph id="idb3bc7314af504a548c0daa6fe553a12a"><enum>(1)</enum><header>Student loan entrance counseling requirement for institutions</header><subparagraph id="id783634e778574e19b74ddcd8517cc70c"><enum>(A)</enum><header>In general</header><text>Each eligible institution shall ensure that, prior to the date of the disbursement of a loan for a period of enrollment at such institution, each individual for whom the institution has knowledge that the individual has accepted, or will accept, 1 or more student loans under part D (including any such loans for attendance at another institution from which the student transferred or in which the student had previously enrolled, other than a Federal Direct Consolidation Loan) for such period of enrollment, receives comprehensive information on the terms and conditions of such loans and the responsibilities the individual has with respect to such loans. Such information shall be provided in a simple, understandable, and consumer-friendly manner during a counseling session conducted— </text><clause id="id91b64412fe8847b692ebdf980e2787d9"><enum>(i)</enum><text>in person;</text></clause><clause id="id49f1877788c848ef96acf4aa9adfd2e8"><enum>(ii)</enum><text>online, with the individual acknowledging receipt of the information; or</text></clause><clause id="idc86dc5bc0d524fbda6eca179876c99f3"><enum>(iii)</enum><text>through the use of the online counseling tool described in subsection (n)(1)(B).</text></clause></subparagraph><subparagraph id="id640f795f38fc41a69a8d4d76b72c2973"><enum>(B)</enum><header>Use of interactive programs</header><text>In the case of institutions not using the online counseling tool described in subsection (n)(1)(B), the Secretary shall require such institutions to carry out the requirements of subparagraph (A) through the use of interactive programs, during a counseling session that is in-person or online, that test the individual’s understanding of the terms and conditions of the loan awarded to the individual, using simple and understandable language and clear formatting. </text></subparagraph></paragraph><paragraph id="idee6a3616f59c4b0181bf43a7d065e600"><enum>(2)</enum><header>Loan counseling for borrowers receiving loans made under part d (other than parent plus loans)</header><text>The information to be provided under paragraph (1)(A) to a borrower of a loan made under part D (other than a Federal Direct PLUS Loan made on behalf of a dependent student) shall include the following:</text><subparagraph id="id1ded6411ebb445068c59698f23fa5977"><enum>(A)</enum><text>A notification that some students may qualify for other financial aid that does not need to be repaid, and an explanation that the borrower should consider accepting any such grant, scholarship, military tuition assistance, veterans benefits, Federal or State work-study, or other programs for which the borrower is eligible, prior to accepting student loans. </text></subparagraph><subparagraph id="id90254db00fec4069acc71295ae52de6a"><enum>(B)</enum><text>An explanation of the use of the student loan contract referred to in section 455(c).</text></subparagraph><subparagraph id="idaeaf31f91ba047e58b277bfbadec077f"><enum>(C)</enum><text>A recommendation to the borrower to exhaust the borrower’s Federal student loan options prior to taking out private education loans, an explanation that Federal student loans typically offer better terms and conditions than private education loans, an explanation that Federal student loans offer consumer protections typically not available in the private education loan market, an explanation of treatment of loans made under part D and private education loans in bankruptcy, and an explanation that if a borrower decides to take out a private education loan— </text><clause id="idd920ea4848994ba08e2a6762f58226d9"><enum>(i)</enum><text>the borrower has the ability to select a private educational lender of the borrower’s choice; </text></clause><clause id="id2012869adc7949e985d0284955356729"><enum>(ii)</enum><text>the proposed private education loan may impact the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title; and </text></clause><clause id="id96cea91862784fe7995f7451b8752f66"><enum>(iii)</enum><text>the borrower has a right—</text><subclause id="idb62f2ac96c0d4e9aa1b4f0db1722a7b2"><enum>(I)</enum><text>to accept the terms of the private education loan within 30 calendar days following the date on which the application for such loan is approved and the borrower receives the required disclosure documents, pursuant to section 128(e) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(e)</external-xref>); and </text></subclause><subclause id="id0487b1b45d754670a0af3bd82025c2a4"><enum>(II)</enum><text>to cancel such loan within 3 business days of the date on which the loan is consummated, pursuant to section 128(e)(7) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(e)(7)</external-xref>). </text></subclause></clause></subparagraph><subparagraph id="ide1a69376190447e28419ae69d3444044"><enum>(D)</enum><text>An explanation of the importance of contacting the appropriate offices at the institution of higher education if the student withdraws prior to completing a program of study so that the institution can provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation. </text></subparagraph><subparagraph id="id8a285fb8540c4cb087516197d7939efc"><enum>(E)</enum><text>A general description of the terms and conditions under which the student may obtain forgiveness or cancellation of any principal and interest of a loan issued under this title. </text></subparagraph><subparagraph id="id632929db68504186ae3f18239ffc5883"><enum>(F)</enum><text>Information as to how the borrower can access their loan records and the contact information for inquiries regarding repaying the loan. </text></subparagraph><subparagraph id="id98f5a585efa94d6b855517bd2b8585d0"><enum>(G)</enum><text>The contact information for the financial aid office, or other appropriate office, at the institution that the borrower may contact if the borrower has any questions about the borrower’s rights and responsibilities or the terms and conditions of the loan. </text></subparagraph><subparagraph id="idba9e129f3e5a41c6a8764dcbab169217"><enum>(H)</enum><text>An explanation that the borrower has the right to annually request a copy of the credit report of the borrower from a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1681j">15 U.S.C. 1681j(a)</external-xref>). </text></subparagraph><subparagraph id="idEA8B57B699154E1BB74B5DE6EAB0472C"><enum>(I)</enum><text>An explanation that—</text><clause id="id5A207CDA173A4C1B8596A76259014E1C"><enum>(i)</enum><text>the borrower may be contacted during the repayment period by a third-party student debt relief company;</text></clause><clause id="id21496AE9FD65403C8A8F9B10F3DEC9ED"><enum>(ii)</enum><text>the borrower should use caution when dealing with such a company; and</text></clause><clause id="id865955301FF64962B25E56E6CCF3F3F1"><enum>(iii)</enum><text>the services that such a company typically provides are offered to borrowers free of charge through the Department or the borrower's servicer. </text></clause></subparagraph></paragraph><paragraph id="ide5abf02a51c84ed18910c0731b081848"><enum>(3)</enum><header>Borrowers receiving parent plus loans for dependent students</header><text>The information to be provided under paragraph (1)(A) to a borrower of a Federal Direct PLUS Loan made on behalf of a dependent student shall include the following: </text><subparagraph id="idce7f9d946e784048b756266f9e24a0c8"><enum>(A)</enum><text>A notification that some students may qualify for other financial aid and an explanation that the student for whom the borrower is taking out the loan should consider accepting any such grant, scholarship, military tuition assistance, veterans benefits, Federal or State work-study jobs, or other programs for which the student for whom the borrower is taking out the loan is eligible, prior to borrowing any Federal Direct PLUS Loan on behalf of a dependent student. </text></subparagraph><subparagraph id="id50ac1567200f44e2a91f45bf9194f634"><enum>(B)</enum><text>The information described in subparagraphs (B) through (I) of paragraph (2), as applicable. </text></subparagraph><subparagraph id="id193B48EDD6BF4E2D9DE87872410E20BF"><enum>(C)</enum><text>The circumstances under which a borrower of a Federal Direct PLUS Loan made on behalf of a dependent student may transfer such loan to the student for whom the loan was taken out.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id9cc8469ebed74fe790ddc39cee52f6f4"><enum>403.</enum><header>Exit counseling</header><text display-inline="no-display-inline">Section 485(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(b)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC5AF028114204918A5C708F40DE77BE4"><subsection id="id41e3d793808d4a589c006f92dd5c93db"><enum>(b)</enum><header>Student loan exit counseling</header><paragraph id="id8B139607F6534B14822AB0F0E547FE09"><enum>(1)</enum><header>In general</header><subparagraph id="idA7186B0DD39D4A69ABF01D36D89D0C7D"><enum>(A)</enum><header>Counseling included</header><text>Each eligible institution shall provide counseling to borrowers of loans made under part D (including any such loans for attendance at another institution from which the student transferred or in which the student had previously enrolled, other than a Federal Direct Consolidation Loan) prior to the completion of the course of study for which the borrower enrolled at the institution or at the time of departure from such institution. The counseling required by this subsection shall be provided through the use of an interactive program, during an exit counseling session that is in-person or online, or through the use of the online counseling tool described in subsection (n)(1)(A), and shall include—</text><clause id="idb29b6e09656e4c7b91812e92a2885996"><enum>(i)</enum><text>an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment;</text></clause><clause id="idecb38bcbc1bc4246b7119688424268bf"><enum>(ii)</enum><text>an explanation that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of pause payment;</text></clause><clause id="idc4c91ca9abaf432c9235fea3f0f24ad2"><enum>(iii)</enum><text>the outstanding balance of principal and interest owed by the borrower at the time of such counseling on loans made, insured, or guaranteed to the borrower under this title;</text></clause><clause id="id125a398bd4464f109e896cf4a132d4e1"><enum>(iv)</enum><text>information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan;</text></clause><clause id="id0ff19c0c060e4736bb433cb7bac66a89"><enum>(v)</enum><text>a description of the borrower’s options for pause payment under section 460B;</text></clause><clause id="idc08cdb38a30742b5833452c2cec6b559"><enum>(vi)</enum><text>a description of the Federal tax benefits that may be available for repaying loans made under this title;</text></clause><clause id="idf2cce932d22b44d1a173244a04afd09b"><enum>(vii)</enum><text>a description of the terms and conditions under which the student may obtain forgiveness or cancellation of any principal and interest of a loan made under this title;</text></clause><clause id="id62d1acb8f4804e7caf83006447584262"><enum>(viii)</enum><text>an explanation that the borrower has the option to prepay each loan, pay each loan on a shorter schedule, and change repayment plans;</text></clause><clause id="id274206887c02470089b79537fd185168"><enum>(ix)</enum><text>the implications of, and options to get out of, default on a loan;</text></clause><clause id="id86e59ac9590c400f9645aac52cea7570"><enum>(x)</enum><text>information as to how the student borrower can access their loan records;</text></clause><clause id="id1899a0f546cb4266aebf8a1552e22d67"><enum>(xi)</enum><text>an explanation that—</text><subclause id="ide10eff556cd74f0b8784fa5fec37f500"><enum>(I)</enum><text>the borrower may be contacted during the repayment period by a third-party student debt relief company;</text></subclause><subclause id="id396c020192614602ac744f2fe2d81c8f"><enum>(II)</enum><text>the borrower should use caution when dealing with such a company; and</text></subclause><subclause id="id2c6da179df8a4b78962bbb936e354cbb"><enum>(III)</enum><text>the services that such a company typically provides are offered to borrowers free of charge through the Department or the borrower’s servicer; and</text></subclause></clause><clause id="id2373c3d820b94e2dae4770c7dad43f06"><enum>(xii)</enum><text>an explanation that the borrower has the right to annually request a copy of the credit report of the borrower from a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1681j">15 U.S.C. 1681j(a)</external-xref>).</text></clause></subparagraph><subparagraph id="idae6df42c270f484f994f2b388408ec03"><enum>(B)</enum><header>Students leaving without prior notice to the institution</header><text>In the case of borrower who leaves an institution without the prior knowledge of the institution, the institution shall attempt to provide the information described in subparagraph (A) to the borrower in online or in writing, except that in the case of an institution using the online counseling tool described in subsection (n)(1)(A), the Secretary shall attempt to provide such information to the borrower in the manner described in subsection (n)(3)(C).</text></subparagraph></paragraph><paragraph id="id462210dfa5f3436183f6ee0d55f372f1"><enum>(2)</enum><header>Information to be submitted by borrower</header><subparagraph id="id242174CADABD4BA5BB21DBFF4119768F"><enum>(A)</enum><header>In general</header><text>Each eligible institution shall require that the borrower of a loan made under part D submit to the institution, during the exit counseling required by this subsection—</text><clause id="id34afb9ab158144858d5a3cb997633754"><enum>(i)</enum><text>the borrower’s expected permanent address after leaving the institution;</text></clause><clause id="ida405786057d444f6b3d29a8010c259d1"><enum>(ii)</enum><text>the borrower’s most recent contact information; and</text></clause><clause id="id1634cc8661cd47a796846db70c3d0aed"><enum>(iii)</enum><text>any corrections in the institution’s records relating the borrower’s name, social security number, and driver’s license number, as applicable.</text></clause></subparagraph><subparagraph id="idba8d038cc1d142a3bfc5bfddb732337d"><enum>(B)</enum><header>Information to be provided to the secretary</header><text>Each eligible institution shall, not later than 60 days after the date of collection of the information described in subparagraph (A), forward the information received from the borrower to the Secretary.</text></subparagraph><subparagraph id="idd026d66943714bb7a7657ed18ae350f0"><enum>(C)</enum><header>Rule of construction</header><text>Nothing in this subsection shall be construed to prohibit an institution of higher education from utilizing electronic means to provide personalized exit counseling.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id12b3bef4bf114388b6098f396eb07fa2"><enum>404.</enum><header>Online counseling tools</header><text display-inline="no-display-inline">Section 485 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092</external-xref>), as amended by this Act, is further amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id38305ECD14364F78AFCB88798CEE680D"><subsection id="id2f18e6d549354888b054d0f5f3e51d3f"><enum>(n)</enum><header>Online counseling tools</header><paragraph id="ida38ed6a87a9542a5bd6340e227e1a59a"><enum>(1)</enum><header>In general</header><text>Beginning not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act, the Secretary shall maintain— </text><subparagraph id="id03515208e9b7488d984dbd46ff707a1f"><enum>(A)</enum><text>an online counseling tool that provides the exit counseling required under subsection (b) and meets the applicable requirements of this subsection; and </text></subparagraph><subparagraph id="id384cc6b6d17b49d8a47a4e72bf288f4d"><enum>(B)</enum><text>an online counseling tool that provides the counseling required under subsection (l), enables a borrower to electronically sign and accept the borrower’s student loan contract, and meets the applicable requirements of this subsection. </text></subparagraph></paragraph><paragraph id="id52c75e6d6cc94a91ae01858d9b443e7a"><enum>(2)</enum><header>Requirements of tools</header><text>In maintaining the online counseling tools described in paragraph (1), the Secretary shall ensure that each such tool, and its underlying content— </text><subparagraph id="idf2f4beaaa35344bd8de45960dee28e8a"><enum>(A)</enum><text>are consumer tested, in consultation with other relevant Federal agencies, students, borrowers, institutions of higher education, secondary school and postsecondary counselors, and consumer advocacy organizations, to ensure that the tool is effective in helping individuals understand their rights and obligations with respect to borrowing a loan made under part D; </text></subparagraph><subparagraph id="id0aa6502b1ea649c1a086e9b023ab1eb1"><enum>(B)</enum><text>are understandable to borrowers of loans made under part D;</text></subparagraph><subparagraph id="id6153b16633c94671a448fbed45485f02"><enum>(C)</enum><text>are freely available to all eligible institutions; and</text></subparagraph><subparagraph id="id146602fdef2645638c500c9712e879be"><enum>(D)</enum><text>integrate applicable loan data from the National Student Loan Data System or a successor system, including data regarding loans made, insured, or guaranteed under this title and data regarding private education loans, pursuant to section 485B(i). </text></subparagraph></paragraph><paragraph id="id0f7c00227f1a4c6794404d38050301ad"><enum>(3)</enum><header>Record of counseling completion</header><text>The Secretary shall—</text><subparagraph id="id8cad636bc52a4e098a313e33be59d026"><enum>(A)</enum><text>use each online counseling tool described in paragraph (1) to—</text><clause id="id1C7DC1C056C04AA8BA06ACC33F8757A6"><enum>(i)</enum><text>keep a record of which individuals have received counseling using the tool; and </text></clause><clause id="idBF111A2865904319A768E5B0AE8179EE"><enum>(ii)</enum><text>notify the applicable institutions of the individual’s completion of such counseling; </text></clause></subparagraph><subparagraph id="id30506e7dfa384ee4b565b2be8924792e"><enum>(B)</enum><text>in the case of a borrower who receives counseling for a loan made under part D using the tool described in paragraph (1)(B)— </text><clause id="id7623c50b23fc4ee6964ef9cc4c8ffea0"><enum>(i)</enum><text>enable the borrower to accept and electronically sign the student loan contract as required under section 455(c)(3)(B)(ii), and notify the applicable institutions that the individual completed the counseling and electronically signed the contract; and </text></clause><clause id="idfe3d63303c7b411a8778949bd9b77389"><enum>(ii)</enum><text>if the borrower chooses not to sign the student loan contract through the online counseling tool— </text><subclause id="id488928a530914b41a82e9ce540c84107"><enum>(I)</enum><text>inform the borrower, through the online counseling tool, of the date by when the borrower should accept and sign the student loan contract for which the borrower has received such counseling; and </text></subclause><subclause id="id0bea4b64f09a4507a79d969b60f31be0"><enum>(II)</enum><text>notify the applicable institution that the borrower completed the counseling but did not sign the student loan contract; and </text></subclause></clause></subparagraph><subparagraph id="id3f5342514b0b4793a57986c41f889aea"><enum>(C)</enum><text>in the case of a borrower described in subsection (b)(1)(B) at an institution that uses the online counseling tool described in paragraph (1)(A) of this subsection, attempt to provide the information described in subsection (b)(1)(A) to the borrower through such tool.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idd9785da09b4e40dbab502e77d3513eee"><enum>405.</enum><header>Private education loan certification and information</header><subsection id="id83d79e69c34e4a6c8c362b5af948add7"><enum>(a)</enum><header>Amendments to the higher education act of 1965</header><paragraph id="idf32cf6d52e4f4c09af3aac9279d4aa13"><enum>(1)</enum><header>In general</header><text>Section 487(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(a)</external-xref>) is amended by striking paragraph (28) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF6544E1362804D869695249408FC1401"><paragraph id="idb9db5f83e332439c811809abb9b98a4b"><enum>(28)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id2b169468ec4440f48e3eebc186c9dcfe"><enum>(A)</enum><text>The institution shall—</text><clause id="id6f8b50004ce544b9b555e4d543657675" indent="up1"><enum>(i)</enum><text>upon the request of a private educational lender, acting in connection with an application initiated by a borrower for a private education loan in accordance with section 128(e)(3) of the Truth in Lending Act, provide certification to such private educational lender— </text><subclause id="idd5c415f84b924f18b41119c303dcac2b"><enum>(I)</enum><text>that the student who initiated the application for the private education loan, or on whose behalf the application was initiated, is enrolled or is scheduled to enroll at the institution; </text></subclause><subclause id="ided8a783763bd4b0cab3d23907bb9a319"><enum>(II)</enum><text>of such student’s cost of attendance at the institution as determined under part F; and </text></subclause><subclause id="id2c07b08324294b5fb068f2de8a209c9a"><enum>(III)</enum><text>of the difference between—</text><item id="id0958472679bd4bd0af2f4d8497348546"><enum>(aa)</enum><text>the cost of attendance at the institution; and</text></item><item id="idab505969da964a429eb1f68cf755a9d5"><enum>(bb)</enum><text>the student’s estimated financial assistance received under this title and other assistance known to the institution, as applicable; and </text></item></subclause></clause><clause id="id4446805b79c24f7a9aa3bcd0230b31bf" indent="up1"><enum>(ii)</enum><text>provide the certification described in clause (i), or notify the private educational lender that the institution has received the request for certification and will need additional time to comply with the certification request— </text><subclause id="idbb3dfaf935054a6ab4c88467ea393a0a"><enum>(I)</enum><text>within 15 business days of receipt of such certification request; and</text></subclause><subclause id="idb518c9a4649e422894a4b78db5adb0e9"><enum>(II)</enum><text>only after the institution has completed the activities described in subparagraph (B). </text></subclause></clause></subparagraph><subparagraph id="id80e8907be13844749a327d831e603b0c" indent="up1"><enum>(B)</enum><text>The institution shall, upon receipt of a certification request described in subparagraph (A)(i), and prior to providing such certification— </text><clause id="id8706c5cc6bf549ccbde33a19d737d184"><enum>(i)</enum><text>determine whether the student who initiated the application for the private education loan, or on whose behalf the application was initiated, has applied for and exhausted the Federal financial assistance available to such student under this title and inform the student accordingly; and </text></clause><clause id="idc95deb73fda74be781f3552cb4fca7d8"><enum>(ii)</enum><text>provide the borrower whose loan application has prompted the certification request by a private education lender, as described in subparagraph (A)(i), with the following information and disclosures: </text><subclause id="id0a4513ef1ac6408cb29e14df9291a80a"><enum>(I)</enum><text>If the borrower has not yet exhausted the financial assistance available to the borrower under this title, the amount of additional Federal student assistance for which the borrower is eligible and the potential advantages of Federal loans under this title, including disclosure of— </text><item id="idcc24de5d81cb4e3d9909c6835dac1e71"><enum>(aa)</enum><text>the fixed interest rates and pause payment processes;</text></item><item id="id5b5e57c946a948b9a1c863fe029613de"><enum>(bb)</enum><text>the option for and terms of income-based repayment, loan forgiveness programs, and additional protections; and </text></item><item id="id574dff7475a24916901f65ad59fc3cb2"><enum>(cc)</enum><text>the higher student loan limits for dependent students whose parents are not eligible for a Federal Direct PLUS Loan. </text></item></subclause><subclause id="id36cec798fbae48e692ad02f7de13e047"><enum>(II)</enum><text>The borrower’s ability to select a private educational lender of the borrower’s choice. </text></subclause><subclause id="id09be56080f0f4175a186748d2e7c540d"><enum>(III)</enum><text>The impact of a proposed private education loan on the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title. </text></subclause><subclause id="idf09a3ea409a04e5bb5b6dfc9c1c97bcc"><enum>(IV)</enum><text>The borrower’s right to accept or reject a private education loan within the 30-day period following a private educational lender’s approval of a borrower’s application, and a borrower’s 3-day right to cancel period under section 128(e)(7) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(e)(7)</external-xref>). </text></subclause></clause></subparagraph><subparagraph id="ide84c8ebeecee421fa7e311fe31855e5d" indent="up1"><enum>(C)</enum><text>For purposes of this paragraph, the terms <term>private educational lender</term> and <term>private education loan</term> have the meanings given such terms in section 140 of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650</external-xref>).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id02ad1d10968d44758c2856a0b71ca878"><enum>(2)</enum><header>National student loan data system</header><text>Section 485B (<external-xref legal-doc="usc" parsable-cite="usc/20/1092b">20 U.S.C. 1092b</external-xref>) is amended— </text><subparagraph id="idea5fb923c5d34e47800e9d5ab67141a4"><enum>(A)</enum><text>in subsection (a), by striking <quote>and loans made under parts D and E</quote> and inserting <quote>, loans made under parts D and E, and private education loans (in accordance with subsection (i))</quote>; </text></subparagraph><subparagraph commented="no" id="id276049954f794ba38ba0cb0aaade8ed7"><enum>(B)</enum><text>in subsection (g), in the subsection heading, by inserting <quote><header-in-text level="subsection" style="OLC">for Federal Loans</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Data Reporting</header-in-text></quote>; and</text></subparagraph><subparagraph id="id2169a87113b7499684dd0173452e128e"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id56D8630640F2452BB972B5CF4E0A65F9"><subsection id="id917A83FDDDFB42FA94C09F57325E6F0B"><enum>(j)</enum><header>Private education loan reporting</header><text>The Secretary shall include in the National Student Loan Data System the information regarding private education loans that the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary, determines necessary to be included pursuant to section 128(e)(9)(B)(ii) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(e)(9)(B)(ii)</external-xref>).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id2521161546384093865a553ee999ae2f"><enum>(3)</enum><header>Effective date</header><text>The amendments made by paragraphs (1) and (2) shall take effect on the effective date of the regulations described in subsection (b)(3).</text></paragraph></subsection><subsection id="id204df1e8e7e0430c9fe3b102b0d470fa"><enum>(b)</enum><header>Amendments to the truth in lending act</header><paragraph id="id6ce73a8f37f1408ba81811ccec69b424"><enum>(1)</enum><header>In general</header><text>Section 128(e) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(e)</external-xref>) is amended—</text><subparagraph id="idf441313f88f540cf89fb182bb89093f4"><enum>(A)</enum><text>by striking paragraph (3) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBCB780FA999C42779B0EB393C8909A04"><paragraph id="id3365c1e998e740c79cf84484486293ab"><enum>(3)</enum><header>Institutional certification required</header><subparagraph id="id61b141921dbb41f892c4ea5c263dedbe"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), before a private educational lender may issue any funds with respect to a private education loan, the private educational lender shall obtain, from the relevant institution of higher education where such loan is to be used for a student, a certification in accordance with section 485(a)(28)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(a)(28)(A)</external-xref>)— </text><clause id="ida34f60561853426daacfce76d1f46eb2"><enum>(i)</enum><text>confirming that the student is enrolled or is scheduled to be enrolled at the institution; and </text></clause><clause id="id8ab0274021ed40be95d8ed40843d054e"><enum>(ii)</enum><text>stating—</text><subclause id="id610955ca761d487a9735b748c4af9b07"><enum>(I)</enum><text>the student’s cost of attendance at the institution, as determined by the institution under part F of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087kk">20 U.S.C. 1087kk et seq.</external-xref>); and </text></subclause><subclause id="id6810faa163cb461797e82720acafd538"><enum>(II)</enum><text>the difference between—</text><item id="idf25fd3e953a740b4b4faa986db2e6dab"><enum>(aa)</enum><text>such cost of attendance; and</text></item><item id="id4e35ffe3bdc4493baecf3d105badf4af"><enum>(bb)</enum><text>the student’s estimated financial assistance, including such assistance received under title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) and other financial assistance known to the institution, as applicable. </text></item></subclause></clause></subparagraph><subparagraph id="idd0fc471a916f4826bd3c8ffc08b6e272"><enum>(B)</enum><header>Timing</header><text>Pursuant to section 485(a)(28)(A) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(a)(28)(A)</external-xref>), a private education lender shall receive the certification described in subparagraph (A) within 15 days of a request by the private education lender, unless the institution of higher education notifies the private educational lender pursuant to section 485(a)(28)(A)(ii) of such Act that additional time is needed. </text></subparagraph><subparagraph id="id9ac013adedc84b9e8f332710d875b953"><enum>(C)</enum><header>Additional requirements</header><text>Upon receiving the certification described in subparagraph (A) for a private education loan, the private educational lender—</text><clause id="id7fddf86f4ce0421e987f7e4653b990f8"><enum>(i)</enum><text>may proceed to issue funds with respect to the private education loan; and</text></clause><clause id="id1af58727b56642a390679a819d8bb497"><enum>(ii)</enum><text>after issuing the private education loan, shall—</text><subclause id="id0a5f4d360f5d4438a7ee03e377d8c649"><enum>(I)</enum><text>notify the institution of higher education involved that the private education loan has been issued to the borrower, and the amount of such loan; and</text></subclause><subclause id="id4072475f90894a4881abb2160bacf11a"><enum>(II)</enum><text>provide the Director of the Consumer Financial Protection Bureau and the Secretary of Education with the information described in paragraph (9)(B).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="id96806093c97f41199aa8e73874473ac4"><enum>(B)</enum><text>by redesignating paragraphs (9), (10), and (11), as paragraphs (10), (11), and (12), respectively; and </text></subparagraph><subparagraph id="idf6e29bb3f102440682ce853822130564"><enum>(C)</enum><text>by inserting after paragraph (8) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id18951AB278144D89A043FEB04E3650B2"><paragraph id="id07ed7ed91be64cbcaaae527e777fcb10"><enum>(9)</enum><header>Provision of information</header><subparagraph id="idd0da0bfd8e8e460885c3c4a039a854c3"><enum>(A)</enum><header>Provision of information to borrowers</header><clause id="id27858d2f37e042cdac2c3eb6d99b56e4"><enum>(i)</enum><header>Loan statements</header><text>A private educational lender that issues any funds with respect to a private education loan shall— </text><subclause id="id1005be54799d4a288243cf2e15966ac9"><enum>(I)</enum><text>send loan statements, if the loan is to be used for a student, to borrowers of the funds not less than once every 3 months during the time that the student is enrolled at an institution of higher education; and </text></subclause><subclause id="id7a4209fe2b7748d8847910ad9bb3dd91"><enum>(II)</enum><text>in the case of a private education loan that includes a cosigner, annually send a loan statement to the borrower’s cosigner, notifying the cosigner of the terms, conditions, and status of such private education loan. </text></subclause></clause><clause id="idb81ab576fd004707b6a175280e0513e8"><enum>(ii)</enum><header>Contents of loan statement</header><text>Each statement described in clause (i) shall— </text><subclause id="idb6fcd306d0614acdbce37a6174fe95da"><enum>(I)</enum><text>report the borrower’s total remaining debt to the private educational lender, including accrued but unpaid interest and capitalized interest; </text></subclause><subclause id="id460ec404820e4d77b155b96058159362"><enum>(II)</enum><text>report any debt increases since the last statement; and</text></subclause><subclause id="id7642b9d5e0b147fc9c204ff8b49e69fb"><enum>(III)</enum><text>list the current interest rate for each loan.</text></subclause></clause></subparagraph><subparagraph id="idc2fbaef0c40148ed82cdf171b9541e9c"><enum>(B)</enum><header>Provision of information to federal agencies</header><clause id="idf459cb4271f04d598c539684afe5a3bb"><enum>(i)</enum><header>Information from lender</header><text>Each private educational lender shall—</text><subclause id="idab2d6eec12024d228b58fadfed9b71de"><enum>(I)</enum><text>submit to the Director of the Consumer Financial Protection Bureau and the Secretary of Education such information regarding a private education loan as may be determined necessary by the Director and the Secretary under clause (ii) for inclusion in the National Student Loan Data System under section 485B(i) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092b">20 U.S.C. 1092b(i)</external-xref>); and </text></subclause><subclause id="id1b87b7a0d39f44e3b5cf12a1583c739c"><enum>(II)</enum><text>prepare and submit an annual report to the Consumer Financial Protection Bureau regarding the private education loans issued by the private educational lender. </text></subclause></clause><clause id="id483b1e3dc940416c82668edbd8e68259"><enum>(ii)</enum><header>Promulgation of regulations</header><text>Not later than 1 year after the date of enactment of the <short-title>Affordable Loans for Any Student Act</short-title>, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations regarding the private education loan information required to be submitted under clause (i), including the content, method, and format for submission. The information required for inclusion in the National Student Loan Data System shall include—</text><subclause id="id2ce2e60b2dfa48ada76d7a35f9964cce"><enum>(I)</enum><text>information identifying the borrower, including the borrower’s name and social security number; </text></subclause><subclause id="id6a6b231c627e41f3bcd0a0dd791e67b3"><enum>(II)</enum><text>the name of the institution of higher education that has certified the private education loan; </text></subclause><subclause id="idcc6126584e8d4e8ab21add3d7cfa9ef3"><enum>(III)</enum><text>the name of the lender;</text></subclause><subclause id="id2d7795308ed247aa901a7e1d782d2c36"><enum>(IV)</enum><text>the amount of the private education loan;</text></subclause><subclause id="id5af56510135c458ea7db459d844b77a5"><enum>(V)</enum><text>the term, or other enrollment period, for which the private education loan is issued; and </text></subclause><subclause id="id399c0a0e09a5427989f5e0be6d39c9f3"><enum>(VI)</enum><text>whether a cosigner was required as a condition of the private education loan.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idd14ec4eb3be54e0499743ca98cfceb07"><enum>(2)</enum><header>Definition of private education loan</header><text>Section 140(a)(8)(A) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1650">15 U.S.C. 1650(a)(8)(A)</external-xref>) is amended— </text><subparagraph id="id00c37659296c46de82469590377f395d"><enum>(A)</enum><text>by redesignating clause (ii) as clause (iii);</text></subparagraph><subparagraph id="idc3a4be7fca4f4c58bf97c5621feb73ba"><enum>(B)</enum><text>in clause (i), by striking <quote>and</quote> after the semicolon; and</text></subparagraph><subparagraph id="id08db74dd822c47c5b409a1249f80e6f7"><enum>(C)</enum><text>by adding after clause (i) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7531FA572A2C4E8B9C6743C2E0376230"><clause id="idb5ec37b5bd924f3684296e16b5433908"><enum>(ii)</enum><text>is not made, insured, or guaranteed under title VII or title VIII of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/292">42 U.S.C. 292 et seq.</external-xref> and 296 et seq.); and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id939987fd8b4b4a72a68d8abf5beb0f16"><enum>(3)</enum><header>Regulations</header><subparagraph id="id6fd1aeb81fdc4c74a73b48a76eda178b"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations to implement paragraphs (3) and (9) of section 128(e) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(e)</external-xref>), as amended by paragraph (1) of this subsection.</text></subparagraph><subparagraph id="id2fbd697c1ca6497792df4f66560c98be"><enum>(B)</enum><header>Effective date</header><text>The regulations promulgated under subparagraph (A) shall take effect on the date that is 180 days after the date on which the regulations are promulgated. </text></subparagraph></paragraph></subsection></section><enum>V</enum><header>Effective date; transition; implementation</header><section id="id5b504f8f8ec6479c818d52f3cb6baccd"><enum>501.</enum><header>Effective date; rulemaking regarding termination of certain repayment plans; implementation</header><subsection id="id7e7a002589f5469e919592e673b7a993"><enum>(a)</enum><header>Effective date</header><text>Except as otherwise specifically provided, this Act, and the amendments made by this Act, shall take effect on July 1, 2022. </text></subsection><subsection id="id24da1370bf0d477492bdb088dff93e5d"><enum>(b)</enum><header>Applicability with respect to forbearance and deferment for direct loan borrowers</header><text>With respect to any borrower of a loan under part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) that is, or has been, in forbearance or deferment as of the day before the effective date described in subsection (a), the Secretary shall take such steps as are necessary— </text><paragraph id="id6cc0292edc4a47b78a241c2da9e12b04"><enum>(1)</enum><text>to transfer a borrower with a loan in forbearance or deferment as of such day automatically into relief provided under the pause payment process established under section 460B of such Act (as amended by this Act); and </text></paragraph><paragraph id="id990279a4bc9340c1b300fcc683318d5c"><enum>(2)</enum><text>to ensure that the period of time for which a borrower is eligible for pause payment under such section 460B for a loan is appropriately reduced to account for any time the loan was previously in forbearance or deferment. </text></paragraph></subsection><subsection id="id2257ff9af05e40b3a7ff4f285d6baf05"><enum>(c)</enum><header>Regulations</header><text>Before the effective date described in subsection (a), the Secretary of Education shall carry out a plan to end all eligibility for repayment plans other than a fixed repayment plan described in section 493E of the Higher Education Act of 1965, as added by this Act, and an income-based repayment plan under section 493C(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1098e">20 U.S.C. 1098e(f)</external-xref>) for loans made under part B or D of title IV of such Act, unless the borrower is enrolled in another repayment plan before such effective date, in accordance with the amendments made by this Act. </text></subsection><subsection id="id8663ECC7271143E0BBC5136673E10289"><enum>(d)</enum><header>Implementation</header><text>In carrying out the amendments made by this Act, or any regulations promulgated under this Act, the Secretary of Education may waive the application of—</text><paragraph id="id71e66df74ad54902966411b6a0104ec3"><enum>(1)</enum><text>subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">chapter 35</external-xref> of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>);</text></paragraph><paragraph id="id3db333d8b76f4798ba55e384b1d5eba7"><enum>(2)</enum><text>the master calendar requirements under section 482 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1089">20 U.S.C. 1089</external-xref>);</text></paragraph><paragraph id="id3a346b8eb0224f47ae27760e94e80243"><enum>(3)</enum><text>negotiated rulemaking under section 492 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1098a">20 U.S.C. 1098a</external-xref>); and</text></paragraph><paragraph id="id54427fe52ac046bbb11e1c45be602e79"><enum>(4)</enum><text>the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of section 552a(e) of title 5, United States Code (commonly known as the <quote>Privacy Act of 1974</quote>). </text></paragraph></subsection></section>