[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4144 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 4144

To streamline and improve the Federal student loan repayment system to 
                    protect borrowers and taxpayers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 2023

  Mr. Owens (for himself, Mrs. McClain, and Ms. Foxx) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL


 
To streamline and improve the Federal student loan repayment system to 
                    protect borrowers and taxpayers.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Assistance 
to Initiate Repayment Act'' or the ``FAIR Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Return to repayment requirements.
Sec. 4. Repayment plans.
Sec. 5. Income-driven repayment assistance plan.
Sec. 6. Deferment on loans made on or after July 1, 2024.
Sec. 7. Loan rehabilitation.
Sec. 8. Limitation on authority of Secretary to propose or issue 
                            regulations and executive actions.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

SEC. 3. RETURN TO REPAYMENT REQUIREMENTS.

    (a) Borrower Notification.--
            (1) Notice to federal student loan borrowers who received 
        temporary relief.--During the period beginning on the date of 
        the enactment of this Act and ending on August 31, 2023, the 
        Secretary of Education shall provide, through 2 or more methods 
        of communication (including postal mail, telephone, and 
        electronic communication), a total of not fewer than 12 notices 
        to each borrower of any loan made, insured, or guaranteed under 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
        seq.) indicating--
                    (A) the date on which such borrower is required to 
                make monthly payments on such a loan pursuant to 
                section 271 of the Fiscal Responsibility Act (Public 
                Law 118-5);
                    (B) indicating the borrower's options for 
                repayment, including that such borrower may be eligible 
                to enroll, or may be automatically enrolled, as 
                applicable, in an income driven repayment assistance 
                plan under section 494A of the Higher Education Act of 
                1965 (as added by section 5 of this Act), including a 
                brief description of the plan and its associated 
                benefits; and
                    (C) the options available to such a borrower who is 
                in default, including--
                            (i) the option to consolidate or 
                        rehabilitate the loans under section 428F(a)(5) 
                        (as amended by section 7 of this Act); and
                            (ii) a brief description of the benefits 
                        and consequences of each option.
            (2) Additional notification.--
                    (A) In general.--During the period described in 
                paragraph (1), and in addition to the notices required 
                under such subsection, the Secretary of Education shall 
                provide the information described in subparagraph (B) 
                to each at-risk borrower.
                    (B) At-risk borrower outreach.--In carrying out 
                subparagraph (A), the Secretary of Education shall 
                provide, in the manner described in paragraph (1), a 
                total of not fewer than 6 notices to each at-risk 
                borrower indicating--
                            (i) the information described in 
                        subparagraphs (A) through (C) of paragraph (1); 
                        and
                            (ii) information specific to such borrower 
                        detailing--
                                    (I) why such borrower is receiving 
                                the notice; and
                                    (II) the steps such borrower may 
                                take to avoid delinquency and default.
            (3) Return to repayment portal.--Not later than 30 days 
        after the date of the enactment of this Act, the Secretary of 
        Education shall--
                    (A) publish, on a publicly accessible website of 
                the Department, an electronic resource portal; and
                    (B) through the use of such portal--
                            (i) disclose, in an easily searchable 
                        format, the date or dates upon which the 
                        Secretary carried out the borrower 
                        notifications required under paragraphs (1) and 
                        (2);
                            (ii) disclose copies of any final contract 
                        modifications (as such term is defined in 
                        section 2.101 of title 48, Code of Federal 
                        Regulations) the Secretary provided to Federal 
                        student loan servicers under contract during 
                        the period beginning March 1, 2020 and ending 
                        September 30, 2024, except that proprietary or 
                        confidential information related to such 
                        contracts or contract modifications, including 
                        source selection information (as such term is 
                        defined in section 2.101 of title 48, Code of 
                        Federal Regulations) and any information 
                        treated as confidential by such a loan servicer 
                        and obtained by the Secretary for purposes of 
                        such a final contract modification, shall be 
                        deemed confidential and exempt from disclosure 
                        under this clause and section 552 of title 5, 
                        United States Code, relating to freedom of 
                        information;
                            (iii) provide template examples of the 
                        language the Secretary used to carry out the 
                        borrower notifications required under 
                        paragraphs (1) and (2); and
                            (iv) provide examples of social media posts 
                        for public stakeholders who wish to amplify the 
                        Secretary's communications and provide 
                        borrowers with accurate information.
            (4) At-risk borrower defined.--In this subsection, the term 
        ``at-risk borrower'' means a borrower of a loan described in 
        paragraph (1) that is held by the Secretary of Education who, 
        with respect to any such loan--
                    (A) on or after March 1, 2020, was assigned a new 
                student loan servicer;
                    (B) on or after March 1, 2020, entered repayment 
                for the first time;
                    (C) on or after March 1, 2020, was in default;
                    (D) during the 2-year period preceding March 1, 
                2020, missed a payment or payments for a period of not 
                less than 60 days;
                    (E) submitted an application for one-time student 
                debt cancellation (as described by the Department of 
                Education in the Federal Register on October 12, 2022 
                (87 Fed. Reg. 61513 et seq.)); or
                    (F) received a refund from the Department of 
                Education for any payment made during the period 
                beginning on March 1, 2020, and ending on August 31, 
                2023, that, pursuant to a waiver or modification 
                described by the Department of Education in the Federal 
                Register on October 12, 2022 (87 Fed. Reg. 61513 et 
                seq.), was not required.
    (b) Federal Preemption.--Section 456 (20 U.S.C. 1087f) is amended 
by adding at the end the following:
    ``(c) Federal Preemption.--
            ``(1) In general.--Covered activities shall not be subject 
        to any law or other requirement of any State or political 
        subdivision of a State with respect to--
                    ``(A) disclosure requirements;
                    ``(B) requirements or restrictions on the content, 
                time, quantity, or frequency of communications with 
                borrowers, endorsers, or references with respect to 
                such loans; or
                    ``(C) any other requirement relating to the 
                servicing or collection of a loan made under this 
                title.
            ``(2) Covered activities defined.--In this subsection, the 
        term `covered activities' means any of the following 
        activities, as carried out by a qualified entity:
                    ``(A) Origination of a loan made under this title.
                    ``(B) Servicing of a loan made under this title.
                    ``(C) Collection of a loan made under this title.
                    ``(D) Any other activity related to the activities 
                described in subparagraphs (A) through (C).''.
    (c) Procurement Flexibility.--Section 142 (20 U.S.C. 1018a) is 
amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) Guidance to Student Loan Servicers.--
            ``(1) In general.--In notifying a student loan servicer of 
        a final contract modification (as such term is defined in 
        section 2.101 of title 48, Code of Federal Regulations) that 
        instructs such loan servicer to perform a function that is new 
        or different from a function such servicer performs pursuant to 
        an existing contract, the PBO shall, not later than 30 days 
        before such contract change takes effect, provide such 
        servicers with written guidance in the form of--
                    ``(A) a change order (as such term is defined in 
                section 2.101 of title 48, Code of Federal 
                Regulations);
                    ``(B) a dear colleague letter; or
                    ``(C) an electronic announcement.
            ``(2) Non-binding directives.--A student loan servicer that 
        is notified of a final contract modification described in 
        paragraph (1) and receives guidance in a form other than a form 
        described in paragraph (1) (including through emails or phone 
        calls) shall not be subject to such contract modification.''.
    (d) Requirements Relating to Annual Bonuses of Performance-Based 
Organization Officers.--Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (c)(4)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) that the Department has carried out the 
                borrower notifications required under section 3(a) of 
                the FAIR Act.'';
            (2) by amending subsection (d)(5)(B) to read as follows:
                    ``(B) Bonus.--
                            ``(i) In general.--In addition, subject to 
                        clause (ii), the Chief Operating Officer may 
                        receive a bonus in an amount that does not 
                        exceed 50 percent of such annual rate of basic 
                        pay, based upon the Secretary's evaluation of 
                        the Chief Operating Officer's performance in 
                        relation to the goals set forth in the 
                        performance agreement described in paragraph 
                        (4).
                            ``(ii) Exception.--In the case of a year in 
                        which the Department does not carry out the 
                        activities required under section 3(a) of the 
                        FAIR Act or comply with the requirements of 
                        sections 142(l) or 456(c), the Chief Operating 
                        Officer may not receive a bonus described in 
                        clause (i).''; and
            (3) by amending subsection (e)(3)(B) to read as follows:
                    ``(B) Bonus.--
                            ``(i) In general.--In addition, subject to 
                        clause (ii), a senior manager may receive a 
                        bonus in an amount such that the manager's 
                        total annual compensation does not exceed 125 
                        percent of the maximum rate of basic pay for 
                        the Senior Executive Service, including any 
                        applicable locality-based comparability 
                        payment, based upon the Chief Operating 
                        Officer's evaluation of the manager's 
                        performance in relation to the goals set forth 
                        in the performance agreement described in 
                        paragraph (2).
                            ``(ii) Exception.--In the case of a year in 
                        which the Department does not carry out the 
                        activities required under section 3(a) of the 
                        FAIR Act or comply with the requirements of 
                        sections 142(l) or 456(c), the senior manager 
                        may not receive a bonus described in clause 
                        (i).''.

SEC. 4. REPAYMENT PLANS.

    (a) Direct Loans.--Section 455(d) (20 U.S.C. 1087e(d)) is amended 
by adding at the end the following:
            ``(6) Repayment plans for loans in repayment on or after 
        july 1, 2023.--
                    ``(A) Design and selection.--Notwithstanding 
                paragraph (1), and subject to subparagraph (E), 
                beginning on July 1, 2023, the Secretary shall offer a 
                borrower of a loan made under this part two plans for 
                repayment of such loan, including principal and 
                interest on the loan. The borrower shall be entitled to 
                accelerate, without penalty, repayment on such loans. 
                The borrower may choose--
                            ``(i) a standard repayment plan with a 
                        fixed monthly repayment amount paid over a 
                        fixed period of time, not to exceed 10 years; 
                        or
                            ``(ii) an income-driven repayment 
                        assistance plan under section 494A.
                    ``(B) Selection by secretary.--If such borrower 
                does not select a repayment plan described in 
                subparagraph (A), the Secretary shall provide the 
                borrower with the repayment plan described in 
                subparagraph (A)(i).
                    ``(C) Changes in selection.--
                            ``(i) In general.--Subject to clause (ii), 
                        a borrower may change the borrower's selection 
                        of a repayment plan under subparagraph (A), or 
                        the Secretary's selection of a plan for the 
                        borrower under subparagraph (B), as the case 
                        may be. Nothing in this subsection shall 
                        prohibit the Secretary from encouraging 
                        distressed borrowers from enrolling in the 
                        income-driven repayment assistance plan under 
                        section 494A.
                            ``(ii) Same repayment plan required.--All 
                        loans made under this part on or after July 1, 
                        2023, to a borrower shall be repaid under the 
                        same repayment plan under subparagraph (A), 
                        except that the borrower may repay an excepted 
                        PLUS loan or an excepted consolidation loan (as 
                        such terms are defined in section 494A) 
                        separately from other loans made under this 
                        part to the borrower.
                    ``(D) Repayment after default.--The Secretary may 
                require a borrower who has defaulted on a loan made 
                under this part to--
                            ``(i) pay all reasonable collection costs 
                        associated with such loan; and
                            ``(ii) repay the loan pursuant to the 
                        income-driven repayment assistance plan under 
                        section 494A.
                    ``(E) Rules for existing borrowers.--
                            ``(i) Existing borrowers in standard or 
                        graduated plans.--A borrower who, as of the day 
                        before the date of enactment of FAIR Act, was 
                        repaying a loan made under this part pursuant 
                        to a plan described in subparagraph (A), (B), 
                        or (C) of paragraph (1) may--
                                    ``(I) continue to repay such loan 
                                pursuant to such plan; or
                                    ``(II) choose to repay such loan 
                                pursuant to a plan described in clause 
                                (i) or (ii) of subparagraph (A).
                            ``(ii) Other existing borrowers.--With 
                        respect to a borrower who, as of the day before 
                        the date of enactment of FAIR Act, was repaying 
                        a loan made under this part pursuant to a plan 
                        described in subparagraph (D) or (E) of 
                        paragraph (1), the Secretary shall, pursuant to 
                        section 494A(b), enroll such borrower into the 
                        income-driven repayment assistance plan under 
                        section 494A.
                    ``(F) Prohibition.--Except as provided in 
                subparagraph (E), the Secretary may not--
                            ``(i) authorize a borrower of a loan made 
                        under this part to repay such loan pursuant to 
                        a repayment plan that is not described in 
                        clause (i) or (ii) of subparagraph (A); or
                            ``(ii) carry out or modify a repayment plan 
                        that is not described in such clause (i) or 
                        (ii).''.
    (b) FFEL Loans.--Section 428(b)(9) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (iv), by striking ``and'' at the end;
                    (B) in clause (v), by striking the period at the 
                end and inserting ``; and'';
                    (C) by adding at the end the following:
                            ``(vi) for any borrower repaying, on or 
                        after July 1, 2023, a loan made, insured, or 
                        guaranteed under this part--
                                    ``(I) in the case of a borrower 
                                who, as of the day before the date of 
                                enactment of FAIR Act, was repaying 
                                such loan pursuant to a plan described 
                                in clause (i), (ii), (iii), or (iv), 
                                continuing to repay such loan pursuant 
                                to such plan; or
                                    ``(II)(aa) an income-driven 
                                repayment assistance plan under section 
                                494A; or
                                    ``(bb) the standard repayment plan 
                                described in clause (i).'';
            (2) by adding at the end the following:
                    ``(C) Repayment plans for loans in repayment on or 
                after july 1, 2023.--
                            ``(i) Changes in selection.--In the case of 
                        any borrower not described in subparagraph 
                        (A)(vi)(I), the borrower may change the 
                        borrower's selection of a repayment plan under 
                        subparagraph (A)(vi)(II). Nothing in this 
                        subsection shall prohibit the lender from 
                        encouraging distressed borrowers from enrolling 
                        in the income-driven repayment assistance plan 
                        under section 494A.
                            ``(ii) Treatment of certain borrowers.--
                        With respect to a borrower who, as of the day 
                        before the date of enactment of the FAIR Act 
                        was repaying a loan made, insured, or 
                        guaranteed under this part pursuant to a plan 
                        described in subparagraph (A)(v), the Secretary 
                        shall, pursuant to section 494A(b), enroll such 
                        borrower into an income-driven repayment 
                        assistance plan under section 494A.
                            ``(iii) Repayment after default.--The 
                        Secretary may require a borrower who has 
                        defaulted on a loan made, insured, or 
                        guaranteed under this part to--
                                    ``(I) pay all reasonable collection 
                                costs associated with such loan; and
                                    ``(II) repay the loan pursuant to 
                                the income-driven repayment assistance 
                                plan under section 494A.
                            ``(iv) Prohibition.--The Secretary may 
                        not--
                                    ``(I) authorize a borrower of a 
                                loan made, insured, or guaranteed under 
                                this part to repay such loan pursuant 
                                to a repayment plan that is not 
                                described in subparagraph (A)(vi); or
                                    ``(II) carry out or modify a 
                                repayment plan that is not described in 
                                subparagraph (A)(vi).''.
    (c) Federal Direct Consolidation Loans.--Section 428C (20 U.S.C. 
1078-3) is amended--
            (1) in subsection (a)(3)(B)(i)(V)(aa), by striking ``or 
        income-based repayment'' and inserting ``, income-based 
        repayment, or income-driven repayment assistance under section 
        494A''; and
            (2) in subsection (c)--
                    (A) in paragraph (2)(A)--
                            (i) in the first sentence, by inserting ``, 
                        or a schedule for income-driven repayment 
                        assistance under section 494A,'' after 
                        ``schedules''; and
                            (ii) in the second sentence, by inserting 
                        ``or by the terms of repayment pursuant to 
                        income-driven repayment assistance under 
                        section 494A,'' after ``subsection (b)(5)''; 
                        and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by inserting ``or 
                        an income-driven repayment assistance schedule 
                        under section 494A'' after ``section 493C''; 
                        and
                            (ii) in subparagraph (C), by inserting ``or 
                        an income-based repayment assistance schedule 
                        under section 494A'' after ``section 493C''.
    (d) Repayment Incentives.--
            (1) Amendment.--Section 455(b)(9)(C) (20 U.S.C. 
        1087e(b)(9)(C)) is amended by inserting ``(which in the case of 
        a loan for which the first disbursement of principal is made on 
        or after July 1, 2023, may not exceed than 0.25 percentage 
        points)'' after ``interest rate reduction''.
            (2) Application of amendment.--The amendment made by this 
        section shall not apply to any borrower who is a student 
        enrolled in a program of study at an institution of higher 
        education (as defined in section 102 of the Higher Education 
        Act of 1965 (20 U.S.C. 1002)) as of June 30, 2023, or any loans 
        made under part D of title IV of the Higher Education Act of 
        1965 (20 U.S.C. 1087a et seq.) to (or on behalf of) such 
        student, during the period required for the completion of such 
        program.
    (e) Other Conforming Amendments.--
            (1) Departmental publication of descriptions of assistance 
        programs.--The third sentence of section 485(d)(1) is amended--
                    (A) by striking ``income-sensitive and income-based 
                repayment plans for loans made, insured or guaranteed 
                under part B'' and inserting ``income-sensitive 
                repayment plans and an income-driven repayment plan 
                under section 494A for loans made, insured or 
                guaranteed under part B''; and
                    (B) by striking ``and income-contingent'' and all 
                that follows through ``under part D'' and inserting 
                ``and an income-driven repayment assistance plan under 
                section 494A for loans made under part D''.
            (2) PSLF.--Section 455(m)(1)(A) (20 U.S.C. 1087e(m)(1)(A)) 
        is amended--
                    (A) by striking ``or'' at the end of clause (iii);
                    (B) in clause (iv), by striking ``and'' and 
                inserting ``or''; and
                    (C) by inserting at the end the following:
                            ``(v) payments under an income-driven 
                        repayment assistance plan under section 494A; 
                        and''.

SEC. 5. INCOME-DRIVEN REPAYMENT ASSISTANCE PLAN.

    (a) Establishment of New Plan.--Part G of title IV (20 U.S.C. 1088 
et seq.) is amended by adding at the end the following:

``SEC. 494A. INCOME-DRIVEN REPAYMENT ASSISTANCE PROGRAM.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary shall carry out a program under which--
            ``(1) a borrower of any loan made, insured, or guaranteed 
        under part B or D (other than an excepted PLUS loan or excepted 
        consolidation loan), may elect to have the borrower's aggregate 
        monthly payment for all such loans not exceed the applicable 
        monthly payment for the borrower, except that a borrower may 
        not be precluded from repaying an amount that exceeds such 
        applicable monthly payment for any month;
            ``(2) the Secretary shall apply the borrower's monthly 
        payment under this section first toward interest due on such a 
        loan, next toward any fees due on the loan, and then toward the 
        principal of the loan;
            ``(3) any principal due and not paid under paragraph (2) 
        shall be deferred;
            ``(4) the amount of time the borrower makes monthly 
        payments under paragraph (1) may exceed 10 years;
            ``(5) the Secretary provides the repayment assistance for 
        distressed borrowers described in subsection (c);
            ``(6) 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 excepted PLUS loans or excepted 
        consolidation loans) to a borrower--
                    ``(A) who, at any time, elected to participate in 
                income-driven repayment assistance under paragraph (1);
                    ``(B) whose final monthly payment for such loans 
                prior to the loan cancellation under this paragraph was 
                made under such income-driven repayment assistance; and
                    ``(C) who has repaid on such loans (pursuant to 
                income-driven repayment assistance under paragraph (1), 
                a standard repayment plan under section 428(b)(9)(A)(i) 
                or 455(d)(6)(A)(i), or a combination of any such plan 
                or any of the repayment plans listed in clauses (i) 
                through (iv) of section 493C(b)(7)(B), or in the case 
                of a consolidation loan, pursuant to a repayment 
                schedule described clause (i)(II) of this subparagraph) 
                an amount that is equal to--
                            ``(i)(I) the total amount of principal and 
                        interest that the borrower would have repaid 
                        under a standard repayment plan under section 
                        428(b)(9)(A)(i), or paragraph (1)(A) or 
                        (6)(A)(i) of section 455(d), based on a 10-year 
                        repayment period, when the borrower entered 
                        repayment on such loans; or
                            ``(II) in the case of a Federal Direct 
                        Consolidation Loan or loans made under section 
                        428C, the total amount of principal and 
                        interest that the borrower would have repaid 
                        under the repayment schedule established for 
                        the loan under section 428C(c)(2) on the date 
                        on which such loan was made; plus
                            ``(ii) an amount equal to the amount of any 
                        unpaid interest that has accrued, but was not 
                        included in the calculation of the total amount 
                        of principal and interest that would have been 
                        repaid under the standard repayment plan or 
                        schedule described in clause (i)--
                                    ``(I) during any deferment period 
                                described in clause (i) or (ii) of 
                                section 455(f)(2)(A) or during any 
                                period of deferment under subparagraph 
                                (A) or (B) of section 460A(b)(1); and
                                    ``(II) during any forbearance 
                                period while serving in a medical or 
                                dental internship or residency program 
                                as described in section 
                                428(c)(3)(A)(i)(I) or subparagraph (F) 
                                of section 460A(b)(1);
            ``(7) in repaying under paragraph (6) the outstanding 
        balance of principal and interest due on a loan made under part 
        B to a borrower who meets the requirements of paragraph (6), 
        the Secretary shall--
                    ``(A) enter into an agreement with the holder of 
                such loan (or, if the holder acts as an eligible lender 
                trustee for the beneficial owner of the loan, the 
                beneficial owner of the loan) for the purpose of 
                assuming the repayment obligations of the borrower in 
                accordance with subparagraph (B), except that the 
                Secretary shall not assign to the United States the 
                right to such loan;
                    ``(B) assume the obligation of the borrower to 
                repay the holder of such loan (or, if the holder acts 
                as an eligible lender trustee for the beneficial owner 
                of the loan, the beneficial owner of the loan) the 
                total amount of principal and interest remaining to be 
                repaid on such loan (after taking into account the 
                amounts repaid by the borrower pursuant to paragraph 
                (6) and the Secretary under subsection (c), if 
                applicable) according to the terms and conditions, 
                including the repayment schedule, that were in effect 
                with respect to such loan on the day before the 
                Secretary assumes such obligation; and
                    ``(C) ensure that the holder of such loan (or, if 
                the holder acts as an eligible lender trustee for the 
                beneficial owner of the loan, the beneficial owner of 
                the loan) shall, upon entering into an agreement 
                described in subparagraph (A) with respect to a loan of 
                a borrower, reports to consumer reporting agencies that 
                the borrower's liability on such loan has been 
                discharged;
            ``(8) a borrower who is repaying a loan pursuant to income-
        driven repayment under paragraph (1) may elect, at any time, to 
        terminate repayment pursuant to such income-driven repayment 
        assistance and repay such loan under the standard repayment 
        plan under section 455(d)(6)(A)(i);
            ``(9) in the case of a borrower who, as of the date before 
        the date of enactment of the FAIR Act, was repaying any loan 
        made, insured, or guaranteed under part B or D (other than an 
        excepted PLUS loan or excepted consolidation loan) pursuant to 
        an income-based repayment plan described in section 493C or an 
        income-contingent repayment plan described in section 
        455(d)(1)(D), which has a term or condition (including a term 
        or condition related to loan forgiveness or cancellation, 
        required monthly payments, or interest subsidies) that is more 
        favorable for such borrower than a similar term or condition 
        under the income-driven repayment assistance plan under 
        paragraph (1), the Secretary shall apply the more favorable 
        term or condition to the income-driven repayment assistance 
        plan under paragraph (1) pursuant to which the borrower is 
        repaying such loan, in lieu of the similar, less favorable term 
        or condition; and
            ``(10) the special allowance payment to a lender calculated 
        under section 438, 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.
    ``(b) Eligibility Determinations and Notification Requirement.--The 
Secretary shall establish and implement with respect to any borrower 
who is (or will be) repaying a loan pursuant to income-driven repayment 
assistance under this section, procedures to--
            ``(1) enroll into such income-driven repayment assistance 
        plan, any borrower who, as of the date before the date of 
        enactment of the FAIR Act, was repaying a loan pursuant to an 
        income-based repayment plan described in section 493C or an 
        income-contingent repayment plan described in section 
        455(d)(1)(D), without further action from the borrower, other 
        than any action related to compliance with the recertification 
        requirements applicable to the borrower under section 
        494(a)(4)(B);
            ``(2) notify the borrower of the terms and conditions of 
        such plan;
            ``(3) use return information disclosed under section 
        6103(l)(13) of the Internal Revenue Code of 1986, pursuant to 
        approval provided under section 494, to determine the repayment 
        obligation of the borrower without further action by the 
        borrower;
            ``(4) allow the borrower (or the spouse of the borrower), 
        at any time, to opt out of disclosure under such section 
        6103(l)(13) and instead provide such information as the 
        Secretary may require to determine the repayment obligation of 
        the borrower (or withdraw from the repayment plan under this 
        section); and
            ``(5) provide the borrower with an opportunity to update 
        the return information so disclosed before the determination of 
        the repayment obligation of the borrower.
    ``(c) Repayment Assistance for Distressed Borrowers.--
            ``(1) Excessive interest.--For each month for which a 
        borrower's aggregate monthly payment under this section is 
        insufficient to pay the total amount of interest that accrues 
        on a loan for the month, the amount of interest accrued and not 
        paid for the month shall be subtracted from the total amount of 
        interest due on such loan for the month.
            ``(2) Repayment credit.--For each month for which a 
        borrower's aggregate monthly payment under this section repays 
        an amount due on an individual loan that is less than twice the 
        total amount of interest that accrues on such loan for the 
        month, the amount of the total principal due on such loan shall 
        be reduced by an amount equal to half of the monthly payment 
        under this section on such loan for the month.
            ``(3) Application to borrowers with certain adjusted gross 
        incomes.--With respect to any borrower whose adjusted gross 
        income exceeds 300 percent of the poverty line applicable to 
        the borrower's family size as determined under section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2)), 
        paragraph (1) or (2) may only apply to such borrower for any 
        month in which the borrower's aggregate monthly payment under 
        this section is equal to or greater than the amount obtained by 
        applying subsection (e)(2) by substituting `15 percent' for `10 
        percent' with respect to such borrower.
    ``(d) Prohibition.--In carrying out the requirements of subsection 
(a)(7), the Secretary may not--
            ``(1) revoke the rights to a special allowance under 
        section 438 of the holder (or, if the holder acts as an 
        eligible lender trustee for the beneficial owner of the loan, 
        the beneficial owner of the loan) of the loans being repaid by 
        the Secretary under subsection (a)(7);
            ``(2) prepay any such loan ahead of the loan's repayment 
        schedule referenced in subsection (a)(7)(B); or
            ``(3) use any authority or take any actions beyond what is 
        authorized explicitly in subsection (a)(7).
    ``(e) Definitions.--In this section:
            ``(1) Adjusted gross income.--The term `adjusted gross 
        income' has the meaning given the term in section 62 of the 
        Internal Revenue Code of 1986.
            ``(2) Applicable monthly payment.--The term `applicable 
        monthly payment' means, when used with respect to a borrower, 
        the amount obtained by dividing by 12, 10 percent of the result 
        obtained by calculating, on at least an annual basis, the 
        amount by which--
                    ``(A) the adjusted gross income of the borrower or, 
                if the borrower is married and files a Federal income 
                tax return jointly with or separately from the 
                borrower's spouse, the adjusted gross income of the 
                borrower and the borrower's spouse; exceeds
                    ``(B) 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 (42 
                U.S.C. 9902(2)).
            ``(3) Excepted consolidation loan.--The term `excepted 
        Consolidation Loan' means a Federal Direct Consolidation Loan, 
        if the proceeds of such loan were used to the discharge the 
        liability on--
                    ``(A) an excepted PLUS loan; or
                    ``(B) a Federal Direct Consolidation loan, if the 
                proceeds of such loan were used to discharge the 
                liability on an excepted PLUS loan.
            ``(4) Excepted plus loan.--The term `excepted PLUS Loan' 
        has the meaning given the term in section 493C.''.
    (b) Procedure and Requirements for Requesting Tax Return 
Information From the IRS.--Section 494(a) (20 U.S.C. 1098h(a)) is 
amended by adding at the end the following:
            ``(4) Income-driven repayment assistance for loans in 
        repayment on or after july 1, 2023.--
                    ``(A) New applicants.--In the case of any written 
                or electronic application by an individual for an 
                income-driven repayment plan under section 494A for a 
                loan made under part B or D, the Secretary, with 
                respect to such individual and any spouse of such 
                individual, shall--
                            ``(i) provide to such individuals the 
                        notification described in paragraph (1)(A)(i); 
                        and
                            ``(ii) require, as a condition of 
                        eligibility for such repayment plan, that such 
                        individuals--
                                    ``(I) affirmatively approve the 
                                disclosures described in subclauses (I) 
                                and (II) of paragraph (1)(A)(i), to the 
                                extent applicable, and agree that such 
                                approval shall serve as an ongoing 
                                approval of such disclosures until the 
                                date on which the individual elects to 
                                opt out of such disclosures under 
                                section 494A(b)(3); or
                                    ``(II) provide such information as 
                                the Secretary may require to confirm 
                                the eligibility of such individual for 
                                such repayment plan.
                    ``(B) Recertifications.--In the case of an 
                individual whom the Secretary enrolls, pursuant to 
                section 494A(b)(1), in an income-driven repayment 
                assistance plan under section 494A, the Secretary shall 
                meet the requirements of clauses (i) and (ii) of 
                subparagraph (A), with respect to such individual and 
                any spouse of such individual, for the first written or 
                electronic recertification of such individual's income 
                or family size for purposes of such income-driven 
                repayment assistance plan.''.

SEC. 6. DEFERMENT ON LOANS MADE ON OR AFTER JULY 1, 2024.

    (a) In General.--Part D of title IV (20 U.S.C. 1087e et seq.) is 
amended by adding at the end the following:

``SEC. 460A. DEFERMENT ON LOANS MADE ON OR AFTER JULY 1, 2024.

    ``(a) Effect on Principal and Interest.--
            ``(1) In general.--
                    ``(A) Requirements for borrowers.--Subject to 
                subparagraph (B), a borrower of a loan made under this 
                part on or after July 1, 2024--
                            ``(i) who meets the requirements described 
                        in subsection (b) shall be eligible for a 
                        deferment on such loan during which 
                        installments of principal need not be paid and, 
                        as specified in paragraph (2), interest shall 
                        not accrue, or shall accrue and be paid by the 
                        borrower; and
                            ``(ii) may not be eligible for a deferment 
                        or forbearance under section 455(f) or any 
                        other provision of this Act (other than a 
                        forbearance under section 455(l), a forbearance 
                        under section 685.205(a) of title 34, Code of 
                        Federal Regulations (or successor regulations), 
                        or a deferment under section 493D).
                    ``(B) Exceptions for borrowers enrolled in certain 
                programs of study.--Any borrower who is student who is 
                enrolled in a program of study at an institution of 
                higher education as of June 30, 2024, or any loans made 
                to (or on behalf of) such borrower, during the period 
                required for the completion of such program) shall not 
                be subject to this section
            ``(2)  Effect on interest.--
                    ``(A) No accrual of interest on subsidized loans.--
                With respect to a deferment period described in 
                subparagraphs (A) through (D) of subsection (b)(1), or 
                (b)(6) interest--
                            ``(i) shall not accrue, in the case of a--
                                    ``(I) Federal Direct Stafford Loan; 
                                or
                                    ``(II) 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
                            ``(ii) shall accrue or be paid by the 
                        borrower, in the case of a Federal Direct PLUS 
                        Loan, a Federal Direct Unsubsidized Stafford 
                        Loan, or a Federal Direct Consolidation Loan 
                        not described in clause (i)(II).
                    ``(B) Interest accrual on all loans.--With respect 
                to a deferment period described in subparagraph (E) or 
                (F) of subsection (b)(1), or paragraph (2), (3)(A), or 
                (4), interest shall accrue or be paid by the borrower, 
                in the case of any loan made under this part.
                    ``(C) No accrual of interest on any loan.--With 
                respect to a deferment period described in paragraph 
                (3)(B) or paragraph (5), interest shall not accrue, in 
                the case of any loan made under this part.
    ``(b) Eligibility.--Any borrower described in subsection (a) shall 
be eligible for a deferment on a loan made under this part on or after 
July 1, 2024--
            ``(1) during any period during which the borrower--
                    ``(A) is carrying at least one-half the normal 
                full-time work load for the course of study that the 
                borrower is pursuing, as determined by the eligible 
                institution the borrower is attending;
                    ``(B) is pursuing a course of study pursuant to--
                            ``(i) an eligible graduate fellowship 
                        program in accordance with subsection (g); or
                            ``(ii) an eligible rehabilitation training 
                        program for individuals with disabilities in 
                        accordance with subsection (i);
                    ``(C) is serving on active duty during a war or 
                other military operation or national emergency, and for 
                the 180-day period following the demobilization date 
                for such service;
                    ``(D) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency, and for the 180-day period following the 
                demobilization date for such service;
                    ``(E) is a member of the National Guard who is not 
                eligible for a post-active duty deferment under section 
                493D and is engaged in active State duty for a period 
                of more than 30 consecutive days beginning--
                            ``(i) the day after 6 months after the date 
                        the student ceases to carry at least one-half 
                        the normal full-time academic workload (as 
                        determined by the institution); or
                            ``(ii) the day after the borrower ceases 
                        enrollment on at least a half-time basis, for a 
                        loan in repayment; or
                    ``(F) is serving in a medical or dental internship 
                or residency program, the successful completion of 
                which is required to begin professional practice or 
                service, or is serving in a medical or dental 
                internship or residency program leading to a degree or 
                certificate awarded by an institution of higher 
                education, a hospital, or a health care facility that 
                offers postgraduate training;
            ``(2) during a period sufficient to enable the borrower to 
        resume honoring the agreement to repay the outstanding balance 
        of principal and interest on the loan after default, if--
                    ``(A) the borrower signs a new agreement to repay 
                such outstanding balance;
                    ``(B) the deferment period is limited to 120 days; 
                and
                    ``(C) such deferment is not granted for consecutive 
                periods;
            ``(3) during a period of administrative deferment--
                    ``(A) described in paragraphs (1) through (4) of 
                subsection (j); or
                    ``(B) described in subsection (j)(5);
            ``(4) in the case of a borrower of an excepted PLUS Loan or 
        an excepted Consolidation Loan, during a period described in 
        subsection (k);
            ``(5) during a period in which such borrower is receiving 
        treatment for cancer (in this paragraph referred to as the 
        `treatment period'), and the 6-month period after such 
        treatment period (in this paragraph referred to as the `post-
        treatment period'), except that, notwithstanding subsection 
        (a), interest shall not accrue during any such treatment period 
        or post-treatment period; or
            ``(6) during a period, not to exceed an aggregate of 180 
        days, in which the borrower--
                    ``(A) is the spouse of a member of the Armed Forces 
                serving on active duty; and
                    ``(B) has experienced a loss of employment as a 
                result of relocation to accommodate a permanent change 
                in duty station of such member.
    ``(c) Length of Deferment.--A deferment granted by the Secretary 
under subparagraph (F) of subsection (b)(1) shall--
            ``(1) be renewable at 12 month intervals; and
            ``(2) equal the length of time remaining in the borrower's 
        medical or dental internship or residency program.
    ``(d) Request and Documentation.--The Secretary shall determine the 
eligibility of a borrower for a deferment--
            ``(1) under paragraph (1), (2), or (4) of subsection (b), 
        based on--
                    ``(A) the receipt of a request for a deferment from 
                the borrower, and documentation of the borrower's 
                eligibility for the deferment;
                    ``(B) receipt of a completed loan application that 
                documents the borrower's eligibility for a deferment;
                    ``(C) receipt of a student status information 
                documenting that the borrower is enrolled on at least a 
                half-time basis; or
                    ``(D) the Secretary's confirmation of the 
                borrower's half-time enrollment status, if the 
                confirmation is requested by the institution of higher 
                education; and
            ``(2) under paragraph (6) based on--
                    ``(A)(i) evidence that the borrower is the spouse 
                of a member of the Armed Forces serving on active duty;
                    ``(ii) evidence that a military permanent change of 
                station order was issued to such member; and
                    ``(iii)(I) evidence that the borrower is eligible 
                for unemployment benefits due to a loss of employment 
                resulting from relocation to accommodate such permanent 
                change in duty station; or
                    ``(II) a written certification, or an equivalent as 
                approved by the Secretary, that the borrower is 
                registered with a public or private employment agency 
                due to a loss of employment resulting from relocation 
                to accommodate such permanent change in duty station; 
                or
                    ``(B) such other documentation as the Secretary 
                determines appropriate.
    ``(e) Notification.--The Secretary shall--
            ``(1) notify a borrower of a loan made under this part--
                    ``(A) the granting of a deferment under this 
                subsection on such loan; and
                    ``(B) the option of the borrower to continue making 
                payments on the outstanding balance of principal and 
                interest on such loan in accordance with subsection 
                (f);
            ``(2) at the time the Secretary grants a deferment to a 
        borrower of a loan made under this part, and not less 
        frequently than once every 180 days during the period of such 
        deferment, provide information to the borrower to assist the 
        borrower in understanding--
                    ``(A) the effect of granting a deferment on the 
                total amount to be paid under the income-driven 
                repayment plan under 494A;
                    ``(B) interest shall not accrue, or shall accrue or 
                be paid by the borrower, as specified in subsection 
                (a)(2);
                    ``(C) the amount of unpaid principal and the amount 
                of interest that has accrued since the last statement 
                of such amounts provided to the borrower; and
                    ``(D) the borrower's option to discontinue the 
                deferment at any time.
    ``(f) Payments by Borrowers Authorized.--A borrower may make 
payments on the outstanding balance of principal and interest on a loan 
made under this part during any period of deferment granted under this 
subsection.
    ``(g) Graduate Fellowship Deferment.--
            ``(1) In general.--A borrower of a loan under this part is 
        eligible for a deferment under subsection (b)(1)(B)(i) during 
        any period for which an authorized official of the borrower's 
        graduate fellowship program certifies that the borrower meets 
        the requirements of paragraph (2) and is pursuing a course of 
        study pursuant to an eligible graduate fellowship program.
            ``(2) Borrower requirements.--A borrower meets the 
        requirements of this subparagraph if the borrower--
                    ``(A) holds at least a baccalaureate degree 
                conferred by an institution of higher education;
                    ``(B) has been accepted or recommended by an 
                institution of higher education for acceptance on a 
                full-time basis into an eligible graduate fellowship 
                program; and
                    ``(C) is not serving in a medical internship or 
                residency program, except for a residency program in 
                dentistry.
    ``(h) Treatment of Study Outside the United States.--
            ``(1) In general.--The Secretary shall treat, in the same 
        manner as required under section 428(b)(4), any course of study 
        at a foreign university that is accepted for the completion of 
        a recognized international fellowship program by the 
        administrator of such a program as an eligible graduate 
        fellowship program.
            ``(2) Requests for deferment.--Requests for deferment of 
        repayment of loans under this subsection by students engaged in 
        graduate or postgraduate fellowship-supported study (such as 
        pursuant to a Fulbright grant) outside the United States shall 
        be approved until completion of the period of the fellowship, 
        in the same manner as required under section 428(b)(4).
    ``(i) Rehabilitation Training Program Deferment.--A borrower of a 
loan under this part is eligible for a deferment under subsection 
(b)(1)(B)(ii) during any period for which an authorized official of the 
borrower's rehabilitation training program certifies that the borrower 
is pursuing an eligible rehabilitation training program for individuals 
with disabilities.
    ``(j) Administrative Deferments.--The Secretary may grant a 
deferment to a borrower without requiring a request and documentation 
from the borrower under subsection (d) for--
            ``(1) a period during which the borrower was delinquent at 
        the time a deferment is granted, including a period for which 
        scheduled payments of principal and interest were overdue at 
        the time such deferment is granted;
            ``(2) a period during which the borrower was granted a 
        deferment under this subsection but for which the Secretary 
        determines the borrower should not have qualified;
            ``(3) a period necessary for the Secretary to determine the 
        borrower's eligibility for the cancellation of the obligation 
        of the borrower to repay the loan under section 437;
            ``(4) a period during which the Secretary has authorized 
        deferment due to a national military mobilization or other 
        local or national emergency; or
            ``(5) a period not to exceed 60 days, during which interest 
        shall accrue but not be capitalized, if the Secretary 
        reasonably determines that a suspension of collection activity 
        is warranted to enable the Secretary to process supporting 
        documentation relating to a borrower's request--
                    ``(A) for a deferment under this subsection;
                    ``(B) for a change in repayment plan under section 
                455(d)(6); or
                    ``(C) to consolidate loans under this part.
    ``(k) Deferments for Excepted PLUS Loans or Excepted Consolidation 
Loans.--
            ``(1) In general.--A qualified borrower shall be eligible 
        for deferments under paragraphs (3) through (5).
            ``(2) Qualified borrower defined.--In this subsection, the 
        term `qualified borrower' means a borrower of an excepted PLUS 
        Loan or an excepted consolidation loan.
            ``(3) Economic hardship deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods, not to exceed 
                3 years in total, during which the qualified borrower 
                experiences an economic hardship described in 
                subparagraph (B).
                    ``(B) Economic hardship.--An economic hardship 
                described in this clause is a period during which the 
                qualified borrower--
                            ``(i) is receiving payment under a means-
                        tested benefit program;
                            ``(ii) is employed full-time and the 
                        monthly gross income of the qualified borrower 
                        does not exceed the greater of--
                                    ``(I) the minimum wage rate 
                                described in section 6 of the Fair 
                                Labor Standards Act of 1938 (29 U.S.C. 
                                206); or
                                    ``(II) an amount equal to 150 
                                percent of the poverty line; or
                            ``(iii) demonstrates that the sum of the 
                        qualified borrower's monthly payments on the 
                        qualified borrower's excepted PLUS Loan or an 
                        excepted consolidation loan is not less than 20 
                        percent of the qualified borrower's monthly 
                        gross income.
                    ``(C) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall submit to the Secretary--
                            ``(i) for the first period of deferment 
                        under this subparagraph, evidence showing the 
                        monthly gross income of the qualified borrower; 
                        and
                            ``(ii) for a subsequent period of deferment 
                        that begins less than one year after the end of 
                        a period of deferment granted under this 
                        subparagraph--
                                    ``(I) evidence showing the monthly 
                                gross income of the qualified borrower; 
                                or
                                    ``(II) the qualified borrower's 
                                most recently filed Federal income tax 
                                return, if such a return was filed in 
                                either of the two tax years preceding 
                                the year in which the qualified 
                                borrower requests the subsequent period 
                                of deferment.
            ``(4) Unemployment deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment for periods during which the 
                qualified borrower is seeking, and is unable to find, 
                full-time employment.
                    ``(B) Eligibility.--To be eligible to receive an 
                deferment under this subparagraph, a qualified borrower 
                shall submit to the Secretary--
                            ``(i) evidence of the qualified borrower's 
                        eligibility for unemployment benefits; or
                            ``(ii) for requests submitted after the 
                        initial request, written confirmation, or an 
                        equivalent as approved by the Secretary, that 
                        the qualified borrower has made at least six 
                        diligent attempts during the preceding six-
                        month period to secure full-time employment.
                    ``(C) Terms of deferment.--The following terms 
                shall apply to a deferment under this subparagraph:
                            ``(i) Initial period.--The first deferment 
                        granted to a qualified borrower under this 
                        subparagraph may be for a period of 
                        unemployment beginning not more than 6 months 
                        before the date on which the Secretary receives 
                        the qualified borrower's request for deferment 
                        and may be granted for a period of up to 6 
                        months after that date.
                            ``(ii) Renewals.--Deferments under this 
                        subparagraph shall be renewable at 6-month 
                        intervals beginning after the expiration of the 
                        first period of deferment under clause (i). To 
                        be eligible to renew a deferment under this 
                        subparagraph, a qualified borrower shall submit 
                        to the Secretary the information described in 
                        subparagraph (B)(i).
                            ``(iii) Aggregate limit.--The period of all 
                        deferments granted to a borrower under this 
                        subparagraph may not exceed 3 years in 
                        aggregate.
            ``(5) Health deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods in which the 
                qualified borrower is unable to make scheduled loan 
                payments due to high medical expenses, as determined by 
                the Secretary.
                    ``(B) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall--
                            ``(i) submit to the Secretary documentation 
                        demonstrating that making scheduled loan 
                        payments would be an extreme economic hardship 
                        to the borrower due to high medical expenses, 
                        as determined by the Secretary; and
                            ``(ii) resubmit such documentation to the 
                        Secretary not less frequently than once every 3 
                        months.
    ``(l) Prohibitions.--
            ``(1) Prohibition on fees.--No administrative fee or other 
        fee may be charged to the borrower in connection with the 
        granting of a deferment under this section.
            ``(2) Prohibition on adverse credit reporting.--No adverse 
        information relating to a borrower may be reported to a 
        consumer reporting agency solely because of the granting of a 
        deferment under this section.
            ``(3) Limitation on authority.--The Secretary shall not, 
        through regulation or otherwise, authorize additional deferment 
        options or periods of deferment other than the deferment 
        options and periods of deferment authorized under this section.
    ``(m) Definitions.--In this section:
            ``(1) Eligible graduate fellowship program.--The term 
        `eligible graduate fellowship program', when used with respect 
        to a course of study pursued by the borrower of a loan under 
        this part, means a fellowship program that--
                    ``(A) provides sufficient financial support to 
                graduate fellows to allow for full-time study for at 
                least six months;
                    ``(B) requires a written statement from each 
                applicant explaining the applicant's objectives before 
                the award of that financial support;
                    ``(C) requires a graduate fellow to submit periodic 
                reports, projects, or evidence of the fellow's 
                progress; and
                    ``(D) in the case of a course of study at an 
                institution of higher education outside the United 
                States described in section 102, accepts the course of 
                study for completion of the fellowship program.
            ``(2) Eligible rehabilitation training program for 
        individuals with disabilities.--The term `eligible 
        rehabilitation training program for individuals with 
        disabilities', when used with respect a course of study pursued 
        by the borrower of a loan under this part, means a program 
        that--
                    ``(A) is necessary to assist an individual with a 
                disability in preparing for, securing, retaining, or 
                regaining employment;
                    ``(B) is licensed, approved, certified, or 
                otherwise recognized as providing rehabilitation 
                training to disabled individuals by--
                            ``(i) a State agency with responsibility 
                        for vocational rehabilitation programs, drug 
                        abuse treatment programs, mental health 
                        services programs, or alcohol abuse treatment 
                        programs; or
                            ``(ii) the Secretary of Veterans Affairs; 
                        and
                    ``(C) provides or will provide the borrower with 
                rehabilitation services under a written plan that--
                            ``(i) is individualized to meet the 
                        borrower's needs;
                            ``(ii) specifies the date on which the 
                        services to the borrower are expected to end; 
                        and
                            ``(iii) requires a commitment of time and 
                        effort from the borrower that prevents the 
                        borrower from being employed at least 30 hours 
                        per week, either because of the number of hours 
                        that must be devoted to rehabilitation or 
                        because of the nature of the rehabilitation.
            ``(3) Excepted plus loan; excepted consolidation loan.--The 
        terms `excepted PLUS loan' and `excepted consolidation loan' 
        have the meanings given such terms in section 494A.
            ``(4) Family size.--The term `family size' means the number 
        that is determined by counting--
                    ``(A) the borrower;
                    ``(B) the borrower's spouse;
                    ``(C) the borrower's children, including unborn 
                children who are expected to be born during the period 
                covered by the deferment, if the children receive more 
                than half their support from the borrower; and
                    ``(D) another individual if, at the time the 
                borrower requests a deferment under this section, the 
                individual--
                            ``(i) lives with the borrower;
                            ``(ii) receives more than half of the 
                        individual's support (which may include money, 
                        gifts, loans, housing, food, clothes, car, 
                        medical and dental care, and payment of college 
                        costs) from the borrower; and
                            ``(iii) is expected to receive such support 
                        from the borrower during the relevant period of 
                        deferment.
            ``(5) Full-time.--The term `full-time', when used with 
        respect to employment, means employment for not less than 30 
        hours per week that is expected to continue for not less than 
        three months.
            ``(6) Means-tested benefit program.--The term `means-tested 
        benefit program' means--
                    ``(A) a State public assistance program under which 
                eligibility for the program's benefits, or the amount 
                of such benefits, are determined on the basis of income 
                or resources of the individual or family seeking the 
                benefit; or
                    ``(B) a mandatory spending program of the Federal 
                Government, other than a program under this title, 
                under which eligibility for the program's benefits, or 
                the amount of such benefits, are determined on the 
                basis of income or resources of the individual or 
                family seeking the benefit, and may include such 
                programs as--
                            ``(i) the supplemental security income 
                        program under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(ii) the supplemental nutrition 
                        assistance program under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.);
                            ``(iii) the program of block grants for 
                        States for temporary assistance for needy 
                        families established under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.);
                            ``(iv) the special supplemental nutrition 
                        program for women, infants, and children 
                        established by section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786); and
                            ``(v) other programs identified by the 
                        Secretary.
            ``(7) Monthly gross income.--The term `monthly gross 
        income', when used with respect to a borrower, means--
                    ``(A) the gross amount of income received by the 
                borrower from employment and other sources for the most 
                recent month; or
                    ``(B) one-twelfth of the borrower's adjusted gross 
                income, as recorded on the borrower's most recently 
                filed Federal income tax return.
            ``(8) Rule of construction.--Nothing in this section shall 
        be construed to impact a borrower's eligibility to receive the 
        benefit of section 455(o).''.
    (b) Conforming Amendment.--Section 493D(a) (20 U.S.C. 1098f(a)) is 
amended by inserting ``, or section 460A'' after ``464(c)(2)(A)(iii)''.

SEC. 7. LOAN REHABILITATION.

    (a) In General.--Section 428F(a)(5) (20 U.S.C. 1078-6) is amended 
by striking ``one time'' and inserting ``two times''.
    (b) Application of Amendment.--The amendment made by this section 
shall apply to any borrower of a loan made, insured, or guaranteed 
under title IV of the Higher Education Act of 1965 before, on, or after 
the date of enactment of this Act.

SEC. 8. LIMITATION ON AUTHORITY OF SECRETARY TO PROPOSE OR ISSUE 
              REGULATIONS AND EXECUTIVE ACTIONS.

    (a) In General.--Part G of title IV (20 U.S.C. 1088 et seq.) is 
amended by inserting after section 492 the following:

``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR 
              ISSUE REGULATIONS AND EXECUTIVE ACTIONS.

    ``(a) Draft Regulations.--Beginning after the date of enactment of 
this section, a draft regulation implementing this title (as described 
in section 492(b)(1)) that is determined by the Secretary to be 
economically significant shall be subject to the following requirements 
(regardless of whether negotiated rulemaking occurs):
            ``(1) The Secretary shall determine whether the draft 
        regulation, if implemented, would result in an increase in a 
        subsidy cost.
            ``(2) If the Secretary determines under paragraph (1) that 
        the draft regulation would result in an increase in a subsidy 
        cost, then the Secretary may take no further action with 
        respect to such regulation.
    ``(b) Proposed or Final Regulations and Executive Actions.--
Beginning after the date of enactment of this section, the Secretary 
may not issue a proposed rule, final regulation, or executive action 
implementing this title if the Secretary determines that the rule, 
regulation, or executive action--
            ``(1) is economically significant; and
            ``(2) would result in an increase in a subsidy cost.
    ``(c) Relationship to Other Requirements.--The analyses required 
under subsections (a) and (b) shall be in addition to any other cost 
analysis required under law for a regulation implementing this title, 
including any cost analysis that may be required pursuant to Executive 
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and 
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to 
improving regulation and regulatory review), or any related or 
successor orders.
    ``(d) Definition.--In this section, the term `economically 
significant', when used with respect to a draft, proposed, or final 
regulation or executive action, means that the regulation or executive 
action is likely, as determined by the Secretary--
            ``(1) to have an annual effect on the economy of 
        $100,000,000 or more; or
            ``(2) adversely to affect in a material way the economy, a 
        sector of the economy, productivity, competition, jobs, the 
        environment, public health or safety, or State, local, or 
        tribal governments or communities.''.
    (b) Prohibition on Certain Final Rule.--Except as expressly 
authorized by an Act of Congress, the Secretary may not implement, 
administer, or enforce a final rule that is substantially similar to 
the proposed rule on ``Improving Income-Driven Repayment for the 
William D. Ford Federal Direct Loan Program'' published by the 
Department of Education in the Federal Register on January 11, 2023 (88 
Fed. Reg. 1894 et seq.).
                                 <all>