[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1971 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 1971

To amend the Higher Education Act of 1965 to provide for loan repayment 
           simplification and income-driven repayment reform.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 14, 2023

Mr. Cornyn (for himself and Mr. Cassidy) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to provide for loan repayment 
           simplification and income-driven repayment reform.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Streamlining Accountability and 
Value in Education for Students Act''.

SEC. 2. LOAN REPAYMENT SIMPLIFICATION AND INCOME-DRIVEN REPAYMENT 
              REFORM.

    Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) 
is amended--
            (1) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by inserting ``not 
                        later than June 30, 2024,'' before ``a 
                        graduated'';
                            (ii) in subparagraph (C), by inserting 
                        ``not later than June 30, 2024,'' before ``an 
                        extended'';
                            (iii) in subparagraph (D)--
                                    (I) by inserting ``not later than 
                                June 30, 2024,'' before ``an income 
                                contingent''; and
                                    (II) by striking ``and'' after the 
                                semicolon;
                            (iv) in subparagraph (E)--
                                    (I) by inserting ``and not later 
                                than June 30, 2024,'' after ``beginning 
                                on July 1, 2009''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (v) by adding at the end the following:
                    ``(F) beginning on July 1, 2024, an income 
                contingent repayment plan known as the `Revised Pay As 
                You Earn Repayment plan', consistent with subsection 
                (e)(9).'';
                    (B) in paragraph (2), by striking ``in subparagraph 
                (A), (B), or (C) of paragraph (1)'' and inserting ``in 
                subparagraph (A) or (F) of paragraph (1)''; and
                    (C) in paragraph (4), by inserting ``not later than 
                June 30, 2024 and'' after ``The Secretary may 
                provide,''; and
            (2) in subsection (e), by adding at the end the following:
            ``(9) Revised pay as you earn repayment plan.--
                    ``(A) In general.--The Secretary shall carry out a 
                Revised Pay As You Earn Repayment plan in accordance 
                with section 685.209(c) of title 34, Code of Federal 
                Regulations, as in effect on December 17, 2015, except 
                as otherwise provided in this paragraph as follows:
                            ``(i) A borrower may complete loan 
                        rehabilitation on a defaulted loan through 
                        making eligible payments in accordance with 
                        this paragraph for 9 consecutive months.
                            ``(ii) A borrower who no longer wishes to 
                        repay under the REPAYE plan may change only to 
                        a standard repayment plan.
                            ``(iii) In addition to that provided under 
                        paragraph (5)(iv) of such section 685.209(c), a 
                        qualifying monthly payment may also include a 
                        month for which the borrower received--
                                    ``(I) deferment under subsection 
                                (f)(3) due to receiving treatment for 
                                cancer;
                                    ``(II) deferment under subsection 
                                (f)(2) for rehabilitation training;
                                    ``(III) deferment under subsection 
                                (f)(2) for unemployment;
                                    ``(IV) deferment under subsection 
                                (f)(2) for economic hardship, including 
                                any period of deferment for Peace Corps 
                                service;
                                    ``(V) deferment under subsection 
                                (f)(2) for military service;
                                    ``(VI) deferment under subsection 
                                (f)(2) for post-active duty service;
                                    ``(VII) forbearance under section 
                                428(c)(3)(A)(i)(III), for national 
                                service;
                                    ``(VIII) forbearance under section 
                                685.205(a)(7) of title 34, Code of 
                                Federal Regulations, for National Guard 
                                Duty;
                                    ``(IX) forbearance under section 
                                428(c)(3)(A)(i)(IV), for service for 
                                which the borrower would qualify for a 
                                partial repayment of his or her loan 
                                under the Student Loan Repayment 
                                Programs administered by the Department 
                                of Defense; or
                                    ``(X) administrative forbearance 
                                under paragraph (8) or (9) of section 
                                685.205(b) of title 34, Code of Federal 
                                Regulations.
                            ``(iv) A borrower shall be automatically 
                        enrolled in a Revised Pay As You Earn Repayment 
                        plan for a loan at 75 days delinquent on such 
                        loan.
                            ``(v) A borrower who missed qualifying 
                        payments during a forbearance or deferment 
                        period not listed in clause (iii), shall have 
                        the opportunity to provide a back payment for 
                        the missed payments in order have those 
                        payments counted toward the 20-year or 25-year 
                        forgiveness period, except there shall be no 
                        opportunity to provide a back payment for 
                        periods of in-school deferment.
                            ``(vi) For a borrower who is solely an 
                        undergraduate borrower--
                                    ``(I) who has borrowed $10,000 or 
                                less in total in loans under this part, 
                                not including loan fees, the Secretary 
                                may determine that the borrower has met 
                                the loan forgiveness requirements after 
                                120 payments under the Revised Pay As 
                                You Earn Repayment plan;
                                    ``(II) who has borrowed more than 
                                $10,000 but $11,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 132 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(III) who has borrowed more than 
                                $11,000 but $12,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 144 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(IV) who has borrowed more than 
                                $12,000 but $13,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 156 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(V) who has borrowed more than 
                                $13,000 but $14,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 168 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(VI) who has borrowed more than 
                                $14,000 but $15,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 180 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(VII) who has borrowed more than 
                                $15,000 but $16,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 192 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(VIII) who has borrowed more than 
                                $16,000 but $17,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 204 
                                payments under the Revised Pay As You 
                                Earn Repayment plan;
                                    ``(IX) who has borrowed more than 
                                $17,000 but $18,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 216 
                                payments under the Revised Pay As You 
                                Earn Repayment plan; and
                                    ``(X) who has borrowed more than 
                                $18,000 but $19,000 or less in total in 
                                loans under this part, not including 
                                loan fees, the Secretary may determine 
                                that the borrower has met the loan 
                                forgiveness requirements after 228 
                                payments under the Revised Pay As You 
                                Earn Repayment plan.
                    ``(B) Transfer of borrowers in repayment.--
                Notwithstanding any other provision of this Act, on 
                July 1, 2024, the Secretary shall transfer each 
                borrower who is in repayment on a loan made under this 
                part under an income contingent repayment plan pursuant 
                to subsection (d)(1)(D) to the Revised Pay As You Earn 
                Repayment plan under this paragraph.''.

SEC. 3. TAXPAYER AND CONSUMER PROTECTION ON STUDENT LOANS.

    Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)) is amended by adding at the end the following:
            ``(30)(A) The institution certifies that no funds available 
        under this title may be used by an undergraduate student for 
        enrollment in an educational program offered by the institution 
        that is described in subparagraph (B).
            ``(B) An educational program at an institution is described 
        in this subparagraph if the program is a program--
                    ``(i) in the case of a program that awards an 
                associate's degree or a lesser degree or credential, in 
                which the median earnings of students 6 years after the 
                date of entry into the program who are no longer 
                enrolled in the program and are working is, for not 
                less than 2 of the 3 years preceding the date of the 
                determination, less than the median earnings of a 
                working adult who is aged 25 to 34 with only a high 
                school diploma or its recognized equivalent, as 
                determined under subparagraph (C) and in accordance 
                with subparagraph (D); or
                    ``(ii) in the case of a program that awards a 
                bachelor's degree, in which the median earnings of 
                students 10 years after the date of entry into the 
                program who are no longer enrolled in the program and 
                are working is, for not less than 2 of the 3 years 
                preceding the date of the determination, less than the 
                median earnings of a working adult who is aged 25 to 34 
                with only a high school diploma or its recognized 
                equivalent, as determined under subparagraph (C) and in 
                accordance with subparagraph (D).
            ``(C) The median earnings of a working adult who is aged 25 
        to 34 with only a high school diploma or its recognized 
        equivalent shall be based on data from the Census Bureau--
                    ``(i) for the State in which the institution is 
                located; or
                    ``(ii) if fewer than 50 percent of the students 
                enrolled in the institution reside in the State where 
                the institution is located, for the entire United 
                States.
            ``(D) For any year for which the programmatic cohort is 
        fewer than 30 individuals, the Secretary shall--
                    ``(i) first, aggregate additional years of 
                programmatic data in order to achieve a cohort of at 
                least 30 individuals;
                    ``(ii) second, aggregate additional cohort years of 
                programmatic data for degrees or certificates of 
                equivalent length in order to achieve a cohort of at 
                least 30 individuals; and
                    ``(iii) if such data cannot be aggregated, use an 
                institution-based undergraduate-level measure, in lieu 
                of a programmatic measure.
            ``(E) An educational program shall not lose eligibility 
        under subparagraph (A) unless the institution has had the 
        opportunity to appeal the programmatic median earnings of 
        students working and not enrolled determination. During such 
        appeal, the Secretary may permit the educational program to 
        continue to participate in a program under this title. If an 
        educational program continues to participate in a program under 
        title, and the institution's appeal of the loss of eligibility 
        is unsuccessful, the institution shall pay to the Secretary an 
        amount equal to the amount of interest, and any related 
        payments made by the Secretary (or which the Secretary is 
        obligated to make) with respect to loans made under this title 
        to students attending, or planning to attend, that educational 
        program during the pendency of such appeal.
            ``(31)(A) The institution certifies that no funds available 
        under this title may be used by a graduate student for 
        enrollment in an educational program offered by the institution 
        that is described in subparagraph (B).
            ``(B) An educational program at an institution is described 
        in this subparagraph if the program is a program--
                    ``(i) in the case of a program that awards a 
                master's degree or a lesser degree or credential, in 
                which the median earnings of students 6 years after the 
                date of entry into the program who are no longer 
                enrolled in the program and are working is, for not 
                less than 2 of the 3 years preceding the date of the 
                determination, less than the median earnings of a 
                working adult who is aged 25 to 34 with only a 
                bachelor's degree, as determined under subparagraph (C) 
                and in accordance with subparagraph (D); or
                    ``(ii) in the case of program that awards a 
                professional degree or doctoral degree, in which the 
                median earnings of students 10 years after the date of 
                entry into the program who are no longer enrolled in 
                the program and are working is, for not less than 2 of 
                the 3 years preceding the date of the determination, 
                less than the median earnings of a working adult who is 
                aged 25 to 34 with only a bachelor's degree, as 
                determined under subparagraph (C) and in accordance 
                with subparagraph (D).
            ``(C) The median earnings of a working adult who is aged 25 
        to 34 with only a bachelor's degree shall be based on data from 
        the Census Bureau--
                    ``(i) for the State in which the institution is 
                located; or
                    ``(ii) if fewer than 50 percent of the students 
                enrolled in the institution reside in the State where 
                the institution is located, for the entire United 
                States.
            ``(D) For any year for which the programmatic cohort is 
        fewer than 30 individuals, the Secretary shall--
                    ``(i) first, aggregate additional years of 
                programmatic data in order to achieve a cohort of at 
                least 30 individuals;
                    ``(ii) second, aggregate additional cohort years of 
                programmatic data for degrees or certificates of 
                equivalent length in order to achieve a cohort of at 
                least 30 individuals; and
                    ``(iii) if such data cannot be aggregated, use an 
                institution-based graduate-level measure, in lieu of a 
                programmatic measure.
            ``(E) An educational program shall not lose eligibility 
        under subparagraph (A) unless the institution has had the 
        opportunity to appeal the programmatic median earnings of 
        students working and not enrolled determination. During such 
        appeal, the Secretary may permit the educational program to 
        continue to participate in a program under this title. If an 
        educational program continues to participate in a program under 
        title, and the institution's appeal of the loss of eligibility 
        is unsuccessful, the institution shall pay to the Secretary an 
        amount equal to the amount of interest, and any related 
        payments made by the Secretary (or which the Secretary is 
        obligated to make) with respect to loans made under this title 
        to students attending, or planning to attend, that educational 
        program during the pendency of such appeal.''.

SEC. 4. PHASE OUT OF INCOME-BASED REPAYMENT.

    Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) 
is amended--
            (1) in subsection (b)(1), by inserting ``who enters 
        repayment on such loan before July 1, 2024 and'' after ``a 
        borrower of any loan made, insured, or guaranteed under part B 
        or D (other than an excepted PLUS loan or excepted 
        consolidation loan)''; and
            (2) in subsection (e)--
                    (A) in the subsection heading by inserting ``and 
                Before July 1, 2024'' after ``July 1, 2014''; and
                    (B) by inserting ``, and before July 1, 2024'' 
                after ``July 1, 2014''.
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