I 

114TH CONGRESS 

1ST SESSION H. R. 3752 

To simplify and improve the Federal student loan program through incomecontingent repayment to provide stronger protections for borrowers, encourage responsible borrowing, and save money for taxpayers. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 9, 2015 

Mr. POLIS (for himself and Mr. HANNA) introduced the following bill; which 

was referred to the Committee on Education and the Workforce, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To simplify and improve the Federal student loan program 

through income-contingent repayment to provide stronger 

protections for borrowers, encourage responsible borrowing, and save money for taxpayers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Earnings Contingent 

5 Education Loans Act of 2015’’ or the ‘‘ExCEL Act of 

6 2015’’. 


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1 SEC. 2. TERMINATION OF AUTHORITY TO MAKE FEDERAL 

2 DIRECT STAFFORD LOANS, FEDERAL DIRECT 

3 UNSUBSIDIZED STAFFORD LOANS, AND FED4 ERAL DIRECT PLUS LOANS TO STUDENTS 

5 UNDER THE WILLIAM D. FORD FEDERAL DI6 RECT LOAN PROGRAM. 

7 Section 455(a) of the Higher Education Act of 1965 

8 (20 U.S.C. 1087e(a)) is amended by adding at the end 

9 the following: 

10 ‘‘(4) TERMINATION OF AUTHORITY TO MAKE

11 FEDERAL DIRECT STAFFORD LOANS, FEDERAL DI12 RECT UNSUBSIDIZED STAFFORD LOANS, AND FED13 ERAL DIRECT PLUS LOANS TO STUDENTS UNDER

14 THIS PART.— 

15 ‘‘(A) IN GENERAL.—Notwithstanding any 

16 provision of this part or part B, for any period 

17 of instruction beginning on or after July 1, 

18 2016— 

19 ‘‘(i) a student shall not be eligible to 

20 receive a Federal Direct Stafford Loan 

21 under this part; and 

22 ‘‘(ii) a student shall not be eligible to 

23 receive a Federal Direct Unsubsidized 

24 Stafford Loan or Federal Direct PLUS 

25 Loan under this part, except as provided in 

26 subparagraph (B). 


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1 ‘‘(B) EXCEPTIONS.—Subparagraph (A)(ii) 

2 shall not be applicable with respect to the fol3 lowing: 

4 ‘‘(i) EXISTING STUDENT BOR5 ROWERS.—A student who, as of July 1, 

6 2016, has an outstanding balance of prin7 cipal or interest owing on any loan made, 

8 insured, or guaranteed under part B or 

9 this part may continue to be eligible to 

10 borrow a loan under this part, except for 

11 a Federal Direct Stafford Loan, in accord12 ance with subparagraph (C) until June 30, 

13 2019. 

14 ‘‘(ii) PARENT PLUS LOANS.—An ex15 cepted PLUS loan or excepted consolida16 tion loan (as such terms are defined in sec17 tion 493C(a)) under this part that is made 

18 to a parent on behalf of an undergraduate 

19 dependent student. 

20 ‘‘(iii) FEDERAL DIRECT CONSOLIDA21 TION LOANS.—A Federal Direct Consolida22 tion Loan under this part. 

23 ‘‘(C) MAXIMUM ANNUAL AMOUNTS OF

24 FEDERAL DIRECT UNSUBSIDIZED STAFFORD

25 LOANS.—The maximum annual amount of FedVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 eral Direct Unsubsidized Stafford Loans a stu2 dent described in subparagraph (B)(i) may bor3 row in an academic year (as defined in section 

4 481(a)(2)) or its equivalent shall be the max5 imum annual amount for such student deter6 mined under section 428H, plus an amount 

7 equal to the amount of Federal Direct Stafford 

8 Loans the student would have received in the 

9 absence of subparagraph (A)(i).’’. 

10 SEC. 3. ESTABLISHMENT OF THE INCOME DEPENDENT 

11 EDUCATION ASSISTANCE LOAN PROGRAM 

12 AND THE IDEA LOAN REPAYMENT PROGRAM. 

13 Title IV of the Higher Education Act of 1965 (20 

14 U.S.C. 1070a et seq.) is amended by adding at the end 

15 the following new part: 

16 ‘‘PART J—INCOME DEPENDENT EDUCATION 

17 ASSISTANCE LOANS 

18 ‘‘Subpart 1—IDEA Loans 

19 ‘‘SEC. 499A. PROGRAM AUTHORITY AND AGREEMENTS. 

20 ‘‘(a) PROGRAM AUTHORITY.— 

21 ‘‘(1) IN GENERAL.—There are hereby made 

22 available, in accordance with the provisions of this 

23 part, such sums as may be necessary to make loans 

24 to all eligible students in attendance at participating 

25 institutions of higher education selected by the SecVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 retary, to enable such students to pursue their 

2 courses of study at such institutions during the pe3 riod beginning July 1, 2016. Loans made under this 

4 part shall be made by participating institutions, or 

5 consortia thereof, that have agreements with the 

6 Secretary to originate loans, or by alternative origi7 nators designated by the Secretary to make loans for 

8 students in attendance at participating institutions. 

9 ‘‘(2) DESIGNATION.—The program established 

10 under this subpart shall be referred to as the ‘In11 come Dependent Education Assistance Loan Pro12 gram’, or the ‘IDEA Loan Program’. 

13 ‘‘(b) FUNDS FOR THE ORIGINATION OF IDEA 

14 LOANS.—The Secretary shall provide funds for student 

15 loans under this part in the same manner as the Secretary 

16 provides funds for the origination of Federal Direct Stu17 dent Loans under part D in accordance with section 452. 

18 The requirements, rights, and limitations under section 

19 452 with respect to the Secretary and institutions for 

20 funds provided for loans under part D shall apply with 

21 respect to the Secretary and institutions for funds pro22 vided for loans under this part, except that funds under 

23 this part shall not be provided for parent loans. 


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1 ‘‘(c) SELECTION OF INSTITUTIONS FOR PARTICIPA2 TION AND ORIGINATION, AND AGREEMENTS WITH INSTI3 TUTIONS.— 

4 ‘‘(1) SELECTION OF INSTITUTIONS FOR PAR5 TICIPATION AND ORIGINATION.—The Secretary shall 

6 enter into agreements with institutions of higher 

7 education to participate in the IDEA Loan Program 

8 under this part and agreements with institutions of 

9 higher education, or consortia thereof, to originate 

10 loans in such program for academic years beginning 

11 on or after July 1, 2016. The provisions of section 

12 453 shall apply with respect to agreements under 

13 this section. The Secretary shall provide alternative 

14 origination services for loans under this part, as ap15 propriate, in a manner consistent with the provisions 

16 of sections 453 and 456 related to alternative origi17 nation services for loans under part D. 

18 ‘‘(2) PARTICIPATION AND ORIGINATION AGREE19 MENTS WITH INSTITUTIONS.—An agreement with 

20 any institution of higher education for participation 

21 in the IDEA Loan Program under this part, and an 

22 agreement with any institution of higher education, 

23 or consortia thereof, to originate loans in such pro24 gram, shall have the same terms as the terms re25 quired under section 454 for agreements with an inVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 stitution for participation or origination, respec2 tively, in the student loan program under part D, 

3 except that agreements for participation or origina4 tion under this part shall not apply to parent loans. 

5 ‘‘(3) WITHDRAWAL AND TERMINATION PROCE6 DURES.—The Secretary shall establish procedures by 

7 which institutions or consortia may withdraw or be 

8 terminated from the program under this part. 

9 ‘‘SEC. 499B. TERMS AND CONDITIONS OF IDEA LOANS. 

10 ‘‘(a) PARALLEL TERMS, CONDITIONS, BENEFITS, 

11 AND AMOUNTS.—Unless otherwise specified in this part, 

12 Income Dependent Education Assistance Loans (herein13 after referred to as ‘IDEA Loans’) made to borrowers 

14 under this part shall have the same terms, conditions, and 

15 benefits, and be available in the same amounts, as Federal 

16 Direct Unsubsidized Stafford Loans made to borrowers 

17 under part D, and first disbursed on the day before the 

18 date of enactment of the Earnings Contingent Education 

19 Loans Act of 2015. 

20 ‘‘(b) ELIGIBLE BORROWERS.— 

21 ‘‘(1) IN GENERAL.—In addition to the require22 ments of section 484, to be eligible to receive a loan 

23 (other than an IDEA Consolidation Loan) under 

24 this part, a borrower— 


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1 ‘‘(A) shall be an individual who, on the 

2 date of application for such loan, has no out3 standing balance of principal or interest owing 

4 on any loan made, insured, or guaranteed under 

5 part B or D (other than an excepted PLUS 

6 loan or an excepted consolidation loan (as such 

7 terms are defined in section 493C(a))); or 

8 ‘‘(B) in the case of an individual with an 

9 outstanding balance of principal or interest 

10 owing on any loan described in subparagraph 

11 (A), shall consolidate all such existing loans 

12 into an IDEA Consolidation Loan under section 

13 499C. 

14 ‘‘(2) ONLY STUDENT BORROWERS ELIGIBLE.— 

15 For purposes of this part, the term ‘borrower’ shall 

16 not include a parent borrower. 

17 ‘‘(c) ANNUAL AND AGGREGATE LIMITS.— 

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

19 the maximum annual amount of IDEA Loans in any 

20 academic year (as defined in section 481(a)(2)) or 

21 its equivalent, and the maximum aggregate amount 

22 of IDEA Loans that a student may borrow, shall be 

23 the maximum annual amounts and maximum aggre24 gate amounts, respectively, of Federal Direct Unsub25 sidized Stafford Loans under part D that such stuVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 dent would have been eligible to borrow in the ab2 sence of section 455(a)(4), as added by Earnings 

3 Contingent Education Loans Act of 2015. 

4 ‘‘(2) GRADUATE AND PROFESSIONAL STU5 DENTS.—In the case of a graduate or professional 

6 student who would have been eligible to borrow a 

7 Federal Direct PLUS Loan under part D in the ab8 sence of section 455(a)(4), as added by Earnings 

9 Contingent Education Loans Act of 2015, the max10 imum annual amounts and maximum aggregate 

11 amounts, respectively, of IDEA Loans that the stu12 dent may borrow as determined under paragraph (1) 

13 for any academic year (as defined in section 

14 481(a)(2)) or its equivalent, may be increased to an 

15 amount equal to the maximum annual amounts and 

16 maximum aggregate amounts, respectively, of Fed17 eral Direct PLUS Loans that such student would 

18 have been eligible to borrow in the absence of such 

19 section 455(a)(4). 

20 ‘‘(d) LOAN FEE.—The Secretary shall charge the 

21 borrower of a loan (other than an IDEA Consolidation 

22 Loan) made under this part an origination fee. Such fee 

23 shall be the sum of— 

24 ‘‘(1) for the portion of the principal amount of 

25 the loan that is equal to (or less than) the maximum 


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1 annual amount a student may borrow under sub2 section (c)(1), 1.0 percent of such portion of the 

3 principal amount of the loan; plus 

4 ‘‘(2) for the portion of the principal amount of 

5 the loan that exceeds the maximum annual amount 

6 a student may borrow under subsection (c)(1), as 

7 authorized by subsection (c)(2), 4.0 percent of such 

8 portion of the principal amount of the loan. 

9 ‘‘(e) INTEREST RATES.— 

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graph (2), for IDEA Loans for which the first dis12 bursement is made on or after July 1, 2016, the ap13 plicable rate of interest shall, during any 12-month 

14 period beginning on July 1 and ending on June 30, 

15 be determined on the preceding June 1 and be equal 

16 to— 

17 ‘‘(A) the bond equivalent rate of 10-year 

18 Treasury bills auctioned at the final auction 

19 held prior to such June 1; plus 

20 ‘‘(B) 3.0 percent. 

21 ‘‘(2) CERTAIN GRADUATE AND PROFESSIONAL

22 STUDENTS.—Notwithstanding paragraph (1), with 

23 respect to graduate or professional students who 

24 have increased maximum annual and aggregate loan 

25 limits under subsection (c)(2), for IDEA Loans for 


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1 which the first disbursement is made on or after 

2 July 1, 2016, the applicable rate of interest shall be 

3 the weighted average of— 

4 ‘‘(A) the rate determined under paragraph 

5 (1) for the portion of the principal amount of 

6 the loan that is equal to (or less than) the max7 imum annual amount a student may borrow 

8 under subsection (c)(1); and 

9 ‘‘(B) the rate determined under paragraph 

10 (1), except that ‘4.1 percent’ shall be sub11 stituted for ‘3.0 percent’ in such determination, 

12 for the portion of the principal amount of the 

13 loan that exceeds the maximum annual amount 

14 a student may borrow under subsection (c)(1), 

15 as authorized by subsection (c)(2). 

16 ‘‘(3) CONSULTATION.—The Secretary shall de17 termine the applicable rate of interest under para18 graph (1) after consultation with the Secretary of 

19 the Treasury and shall publish such rate in the Fed20 eral Register as soon as practicable after the date of 

21 determination. 

22 ‘‘(4) APPLICATION OF INTEREST RATE DURING

23 THE LIFE OF THE LOAN.— 

24 ‘‘(A) FIXED RATE UNTIL CAP.—The appli25 cable rate of interest determined under paraVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 graph (1) or (2) for an IDEA Loan shall be 

2 fixed for the life of the loan, except that inter3 est shall cease to accrue when the total amount 

4 of interest (both paid and unpaid) that has ac5 crued during the borrower’s grace and repay6 ment periods equals 50 percent of the total 

7 amount of the loan (equal to the sum of the un8 paid principal, interest, penalties, and fees due 

9 on the loan) as of the first day of the bor10 rower’s grace period. 

11 ‘‘(B) IN-SCHOOL DEFERMENT PERIOD.— 

12 Interest shall accrue and be capitalized or paid 

13 by the borrower (but periodic installments of 

14 principal need not be paid) during the in-school 

15 deferment period with respect to an IDEA 

16 Loan. For the purposes of this part, the in17 school deferment period with respect to an 

18 IDEA Loan is the first period during which the 

19 borrower is pursuing at least one-half the nor20 mal full-time academic workload (as determined 

21 by the institution) in the course of study for 

22 which the borrower received such loan and end23 ing on the first day of the first month that be24 gins after the borrower ceases to carry at least 

25 one-half the normal full-time academic workload 


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1 (as determined by the institution) in the course 

2 of study. 

3 ‘‘(C) GRACE AND REPAYMENT PERIODS.— 

4 Interest that accrues during the borrower’s 

5 grace period (for the purposes of this title, de6 fined as the period between the borrower’s in7 school deferment period and the borrower’s re8 payment period) and during the borrower’s re9 payment period shall not be capitalized. 

10 ‘‘(f) ARMED FORCES STUDENT LOAN INTEREST

11 PAYMENT PROGRAM.—Using funds received by transfer to 

12 the Secretary under section 2174 of title 10, United States 

13 Code, for the payment of interest on a loan made under 

14 this part to a member of the Armed Forces, the Secretary 

15 shall pay the interest on the loan as due for a period not 

16 in excess of 36 consecutive months. The Secretary may 

17 not pay interest on such a loan out of any funds other 

18 than funds that have been so transferred. 

19 ‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY

20 SERVICEMEMBERS.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any other 

22 provision of this part and in accordance with para23 graphs (2) and (4), interest shall not accrue for an 

24 eligible military borrower on a loan made under this 


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1 part for which the first disbursement is made on or 

2 after July 1, 2016. 

3 ‘‘(2) IDEA CONSOLIDATION LOANS.—In the 

4 case of any IDEA Consolidation Loan made under 

5 this part that is disbursed on or after July 1, 2016, 

6 interest shall not accrue pursuant to this subsection 

7 only on such portion of such loan as was used to 

8 repay a loan made under part D for which the first 

9 disbursement is made on or after October 1, 2008. 

10 ‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 

11 subsection, the term ‘eligible military borrower’ 

12 means an individual who— 

13 ‘‘(A)(i) is serving on active duty during a 

14 war or other military operation or national 

15 emergency; or 

16 ‘‘(ii) is performing qualifying National 

17 Guard duty during a war or other military op18 eration or national emergency; and 

19 ‘‘(B) is serving in an area of hostilities in 

20 which service qualifies for special pay under 

21 section 310 of title 37, United States Code. 

22 ‘‘(4) LIMITATION.—An individual who qualifies 

23 as an eligible military borrower under this sub24 section may receive the benefit of this subsection for 

25 not more than 60 months. 


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1 ‘‘(h) LOAN CANCELLATION AND DISCHARGE.—The 

2 Secretary shall discharge a borrower’s liability on a loan 

3 made under this part in accordance with subsections (a) 

4 and (c) of section 437. 

5 ‘‘(i) NO PUBLIC SERVICE LOAN FORGIVENESS.—A 

6 loan made under this part shall not be eligible for the pub7 lic service loan forgiveness program under section 455(m). 

8 ‘‘SEC. 499C. IDEA CONSOLIDATION LOANS. 

9 ‘‘(a) IDEA CONSOLIDATION LOANS.— 

10 ‘‘(1) IN GENERAL.—Except as provided in this 

11 section, an IDEA Consolidation Loan under this sec12 tion shall have the same terms, conditions, and bene13 fits, as IDEA Loans under this part. 

14 ‘‘(2) BORROWER AND LOAN ELIGIBILITY.—To 

15 be eligible to receive an IDEA Consolidation Loan 

16 under this section, a borrower— 

17 ‘‘(A) shall— 

18 ‘‘(i) meet the criteria described in sec19 tion 428C(a)(3)(A); and 

20 ‘‘(ii) in the case of a borrower de21 scribed in section 499B(b)(1)(B), agree to 

22 consolidate into an IDEA Consolidation 

23 Loan all loans made to the borrower that 

24 are described in subparagraphs (A) and 

25 (C) of section 428C(a)(4) (other than an 


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1 excepted PLUS loan or an excepted con2 solidation loan (as such terms are defined 

3 in section 493C(a))); 

4 ‘‘(B) may consolidate the loans described 

5 in subparagraphs (B), (D), and (E) of section 

6 428C(a)(4) into such IDEA Consolidation 

7 Loan; and 

8 ‘‘(C) may not consolidate an IDEA Loan 

9 under section 499B into such IDEA Consolida10 tion Loan. 

11 ‘‘(3) REQUIREMENTS FOR THE SECRETARY.— 

12 In making IDEA Consolidation Loans under this 

13 section, the Secretary— 

14 ‘‘(A) shall ensure that— 

15 ‘‘(i) each IDEA Consolidation Loan 

16 will be made, notwithstanding any other 

17 provision of this title limiting the annual or 

18 aggregate principal amount for all loans 

19 made to the borrower, in an amount which 

20 is equal to the sum of the unpaid principal, 

21 interest, penalties, and fees of all loans re22 ceived by the borrower which are selected 

23 by the borrower for consolidation under 

24 this section; and 


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1 ‘‘(ii) the proceeds of each IDEA Con2 solidation Loan will be paid by the Sec3 retary to the holder or holders of the loans 

4 being consolidated to discharge the liability 

5 on such loans; 

6 ‘‘(B) shall not discriminate against any 

7 borrower seeking such an IDEA Consolidation 

8 Loan— 

9 ‘‘(i) based on the number or type of 

10 loans the borrower seeks to consolidate; 

11 ‘‘(ii) based on the interest rate to be 

12 charged to the borrower with respect to the 

13 consolidation loan; or 

14 ‘‘(iii) based on the type or category of 

15 institution of higher education that the 

16 borrower attends or attended; and 

17 ‘‘(C) shall disclose to a prospective bor18 rower, in simple and understandable terms, at 

19 the time the Secretary provides an application 

20 for an IDEA Consolidation Loan— 

21 ‘‘(i) whether consolidation would re22 sult in a loss of loan benefits under part 

23 B or part D, including loan forgiveness, 

24 cancellation, and deferment; 


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1 ‘‘(ii) with respect to Federal Perkins 

2 Loans under part E— 

3 ‘‘(I) that if a borrower includes a 

4 Federal Perkins Loan under part E in 

5 the consolidation loan, the borrower 

6 will lose all interest-free periods that 

7 would have been available for the Fed8 eral Perkins Loan, including— 

9 ‘‘(aa) the periods during 

10 which no interest accrues on such 

11 loan while the borrower is en12 rolled in school at least half-time; 

13 ‘‘(bb) the grace period under 

14 section 464(c)(1)(A); and 

15 ‘‘(cc) the periods during 

16 which the borrower’s student 

17 loan repayments are deferred 

18 under section 464(c)(2); 

19 ‘‘(II) that if a borrower includes 

20 a Federal Perkins Loan in the con21 solidation loan, the borrower will no 

22 longer be eligible for cancellation of 

23 part or all of the Federal Perkins 

24 Loan under section 465(a); and 


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1 ‘‘(III) the occupations listed in 

2 section 465 that qualify for Federal 

3 Perkins Loan cancellation under sec4 tion 465(a); 

5 ‘‘(iii) the options of the borrower to 

6 prepay the IDEA Consolidation Loan; 

7 ‘‘(iv) the consequences of default on 

8 the IDEA Consolidation Loan; and 

9 ‘‘(v) that by applying for an IDEA 

10 Consolidation Loan, the borrower is not 

11 obligated to agree to take the consolidation 

12 loan. 

13 ‘‘(b) INTEREST RATE.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding section 

15 499B(e), an IDEA Consolidation Loan for which the 

16 application is received on or after July 1, 2016, shall 

17 bear interest at an annual rate on the unpaid prin18 cipal balance of the loan that is equal to the weight19 ed average of the interest rates on the loans consoli20 dated, rounded to the nearest higher one-eighth of 

21 one percent. Interest that accrues on such an IDEA 

22 Consolidation Loan shall not be capitalized. 

23 ‘‘(2) APPLICATION OF INTEREST RATE DURING

24 THE LIFE OF THE LOAN.—The applicable rate of in25 terest determined under paragraph (1) shall be fixed 


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1 for the life of the IDEA Consolidation Loan, except 

2 that interest shall cease to accrue when the total 

3 amount of interest (both paid and unpaid) that has 

4 accrued on such Loan equals 50 percent of the total 

5 amount of the loans consolidated (as calculated on 

6 the date such Consolidation Loan is made, and equal 

7 to the sum of the unpaid principal, interest, pen8 alties, and fees of all loans received by the borrower 

9 which are selected by the borrower for consolidation 

10 under this section). 

11 ‘‘Subpart 2—IDEA Loan Repayment Program 

12 ‘‘CHAPTER 1—ESTABLISHMENT OF THE 

13 IDEA LOAN REPAYMENT PROGRAM 

14 ‘‘SEC. 499D. DUTIES OF THE SECRETARY OF THE TREAS15 URY. 

16 ‘‘(a) IN GENERAL.—As part of the IDEA Loan Re17 payment Program established under this subpart, the Sec18 retary of the Treasury shall, with respect to each indi19 vidual for whom a loan made under this part is in repay20 ment status during a taxable year, transmit to the Sec21 retary of Education— 

22 ‘‘(1) in the case of such an individual who files 

23 an income tax return for such taxable year, such tax 

24 information as is necessary to determine the individVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 ual’s income-based repayment obligation under sec2 tion 499E; and 

3 ‘‘(2) in the case of any such individual who does 

4 not file a return for such taxable year, any available 

5 tax information of the individual as may be nec6 essary to determine such obligation and whether 

7 such individual is in default under the terms of such 

8 loan for not so filing. 

9 ‘‘(b) ADDITIONAL PROGRAM REQUIREMENTS.—The 

10 Secretary of the Treasury shall establish such other poli11 cies, procedures, and guidance as may be necessary to 

12 carry out the purposes of this subpart, including measures 

13 to prevent underreporting and evasion of repayment or fil14 ing. 

15 ‘‘SEC. 499E. DUTIES OF THE SECRETARY OF EDUCATION. 

16 ‘‘(a) IN GENERAL.—The Secretary shall carry out, 

17 as part of the IDEA Loan Repayment Program estab18 lished under this subpart, the following activities: 

19 ‘‘(1) CALCULATION OF ANNUAL REPAYMENT

20 AMOUNTS.—The Secretary shall calculate the annual 

21 repayment amount under this subpart for borrowers 

22 with 1 or more loans made under this part in repay23 ment status, including the income-based repayment 

24 obligations of such borrowers in accordance with sec25 tion 499F(i). 


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1 ‘‘(2) COMMUNICATION WITH THE SECRETARY

2 OF THE TREASURY.—The Secretary shall transmit 

3 to the Secretary of the Treasury such information as 

4 is necessary for the Secretary of the Treasury to 

5 carry out section 499F(i). 

6 ‘‘(3) ANNUAL STATEMENTS.—Upon calculating 

7 the annual repayment amounts under paragraph (1) 

8 for a taxable year, the Secretary shall provide a 

9 statement, on an annual basis, to each borrower 

10 with a loan made under this part, which lists the fol11 lowing: 

12 ‘‘(A) Total payments made on the bor13 rower’s annual repayment amount for such tax14 able year. 

15 ‘‘(B) The borrower’s annual repayment 

16 amount for such taxable year. 

17 ‘‘(C) In the case of a borrower who, ac18 cording to section 499F(f), has underpaid such 

19 annual repayment amount, the amount of such 

20 underpayment and the process for paying such 

21 underpayment under section 499F(f)(2). 

22 ‘‘(D) In the case of a borrower with an 

23 overpayment on such annual repayment 

24 amount, the amount of such overpayment and 


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1 the process for requesting a refund of such 

2 amount under section 499F(g), if applicable. 

3 ‘‘(E) The outstanding balances on all the 

4 loans made to the borrower under this part. 

5 ‘‘(F) A description of how the borrower’s 

6 annual repayment amount was calculated under 

7 paragraph (1) or (2) of section 499F(b). 

8 ‘‘(4) DIRECT PAYMENT.—The Secretary shall 

9 enable a borrower to make direct payments on the 

10 borrower’s annual repayment amount for the taxable 

11 year to the Secretary throughout the year. 

12 ‘‘(5) PAYMENTS ON A BORROWER’S BEHALF.— 

13 The Secretary shall— 

14 ‘‘(A) provide a mechanism for other indi15 viduals or entities to make payments on the an16 nual repayment amount of a borrower for a tax17 able year; and 

18 ‘‘(B) notify the borrower that any pay19 ments made under subparagraph (A) for the 

20 taxable year that exceed the annual repayment 

21 amount for the year shall not be refunded to 

22 the borrower. 

23 ‘‘(6) CALCULATING INTEREST ACCRUED.—The 

24 Secretary shall calculate the interest accrued for the 

25 taxable year as if the borrower’s payments under 


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1 wage withholding under paragraph (10) for the tax2 able year were made in 12 equal increments 

3 throughout the year. 

4 ‘‘(7) APPEALS PROCESS.—The Secretary shall 

5 make available a process through which a borrower 

6 can appeal the calculation of the borrower’s annual 

7 repayment amount, including a worksheet that en8 ables a borrower to calculate the borrower’s annual 

9 repayment amount. 

10 ‘‘(8) DEFAULT FOR FAILURE TO FILE A RE11 TURN.—In a case in which the Secretary receives in12 formation from the Secretary of the Treasury under 

13 section 499D that a borrower with a loan made 

14 under this part in repayment status has failed to file 

15 a return under section 6012(a)(1) of the Internal 

16 Revenue Code of 1986 and such borrower was re17 quired to file such a return, the Secretary shall— 

18 ‘‘(A) notify the borrower of the borrower’s 

19 failure to file such a return; and 

20 ‘‘(B) if the borrower fails to file such a re21 turn within 90 days of receipt of the notice de22 scribed in subparagraph (A), consider the bor23 rower’s loans made under this part in repay24 ment status to be in default. 


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1 ‘‘(9) WITHHOLDING OPT-OUT.—The Secretary 

2 shall establish a process through which a borrower 

3 can indicate that the borrower would like to opt-out 

4 of the withholding process under subsection (b) and, 

5 in lieu of such process, make payments on a monthly 

6 basis, as described in subsection (c). 

7 ‘‘(10) EMPLOYER WITHHOLDING.—The Sec8 retary shall establish a process that meets the re9 quirements of subsection (b) under which employers 

10 making payment of wages deduct and withhold upon 

11 such wages amounts determined in accordance with 

12 subsection (b)(3) with respect to an employee— 

13 ‘‘(A) who has a loan made under this part 

14 that is in repayment status; 

15 ‘‘(B) who has not opted out of the with16 holding process under this paragraph; and 

17 ‘‘(C) who is not in a forbearance period 

18 under section 499F(a)(2)(C). 

19 ‘‘(11) MONTHLY PAYMENTS PROCESS.—The 

20 Secretary shall establish a monthly payments proc21 ess described in subsection (c). 

22 ‘‘(b) REQUIREMENTS FOR EMPLOYER WITH23 HOLDING.— 


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1 ‘‘(1) WITHHOLDING ORDERS.—In carrying out 

2 the employer withholding process under subsection 

3 (a)(10), the Secretary shall carry out the following: 

4 ‘‘(A) NEW EMPLOYMENT.—Upon deter5 mining, using the information provided under 

6 section 453(j)(12) of the Social Security Act 

7 (42 U.S.C. 653(j)(12)), that a borrower who 

8 meets the requirements of subparagraphs (A) 

9 through (C) of subsection (a)(10) obtains new 

10 employment, issue a withholding order to the 

11 borrower’s employer directing the employer to 

12 withhold and transmit the amounts described in 

13 paragraph (3) to the Secretary. 

14 ‘‘(B) OTHER PURPOSES.—Upon notifica15 tion by a borrower that the borrower no longer 

16 wishes to opt out of the withholding process 

17 under subsection (a)(10) or that a borrower 

18 who has been in forbearance under section 

19 499F(a)(2)(C), voluntarily ends or no longer 

20 qualifies for such forbearance, or upon deter21 mining that a borrower has entered repayment 

22 status on 1 or more loans made under this part 

23 (and the borrower had no loans made under 

24 this part already in repayment status), using 

25 the information provided under section 


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1 453(j)(12) of the Social Security Act (42 

2 U.S.C. 653(j)(12)), issue a withholding order to 

3 all of the borrower’s employers directing such 

4 employers to withhold and transmit the 

5 amounts described in paragraph (3) to the Sec6 retary. 

7 ‘‘(C) STOP WITHHOLDING ORDER.—Upon 

8 determining that a borrower is eligible for a for9 bearance under section 499F(a)(2)(C), that the 

10 borrower has opted out of the withholding proc11 ess under subsection (a)(10), or that a borrower 

12 has repaid the borrower’s loans made under 

13 this part, using the information provided under 

14 paragraph 12 of section 453(j)(12) of the So15 cial Security Act (42 U.S.C. 653(j)(12)), issue 

16 a withholding order to the borrower’s employers 

17 directing such employers to cease withholding 

18 under this paragraph. 

19 ‘‘(D) TRANSFER OF PAYMENTS.—Outline 

20 clearly the process through which employers 

21 shall transfer money withheld under this sub22 section to the Secretary. 

23 ‘‘(E) ELECTRONIC TRANSMISSION.— 

24 ‘‘(i) IN GENERAL.—Make available 

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1 essing both withholding orders and pay2 ments from employers, including a means 

3 to correct under- and overpayments to the 

4 extent feasible, with the goal of stream5 lining the processing of such orders and 

6 payments and minimizing impacts on em7 ployers. 

8 ‘‘(ii) NO REQUIREMENT TO USE ELEC9 TRONIC TRANSMISSION.—Nothing in this 

10 part shall be construed to require an em11 ployer, in carrying out a withholding order 

12 under this section, to use the electronic 

13 process described in clause (i). 

14 ‘‘(2) EMPLOYER REMITTANCE.— 

15 ‘‘(A) IN GENERAL.—In the case where an 

16 employer has received a withholding order 

17 under subparagraph (A) or (B) of paragraph 

18 (1) or the employee has indicated under para19 graph (4)(A) that the employee has a loan that 

20 meets the requirements of subparagraphs (A) 

21 through (C) of subsection (a)(10), and the em22 ployer has not subsequently received an order to 

23 stop withholding under paragraph (1)(C) for 

24 such employee, the employer shall withhold and 

25 transmit the amounts described in paragraph 


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1 (3) to the Secretary as directed under para2 graph (1)(D) and shall be liable for, and the 

3 Secretary, as appropriate, may sue the em4 ployer in a State or Federal court of competent 

5 jurisdiction to recover any amount that such 

6 employer fails to withhold from wages with re7 spect to an employee after being directed to do 

8 so for such employee, plus attorneys’ fees, costs, 

9 and, in the court’s discretion, punitive damages. 

10 Such employer shall not be required to vary the 

11 normal pay and disbursement cycles in order to 

12 comply with this subparagraph. 

13 ‘‘(B) TIMING.—An employer transmitting 

14 to the Secretary withholding payments under 

15 this subsection shall transmit such payments on 

16 a periodic basis, as determined by the employer 

17 but not less frequently than quarterly. 

18 ‘‘(3) WITHHOLDING AMOUNT.—The amount 

19 withheld by an employer for each pay period with re20 spect to any employee for whom the employer is 

21 withholding under this subsection shall be an 

22 amount equal to the sum of— 

23 ‘‘(A) the amount that results from the em24 ployer withholding— 


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1 ‘‘(i) 15 percent of the employee’s 

2 wages for such pay period that will count 

3 towards the employee’s annual repayment 

4 amount under section 499F(b) that is in 

5 excess of the employee’s exemption amount 

6 for such pay period (as determined by di7 viding the employee’s exemption amount 

8 under section 499F(i)(3) by the number of 

9 pay periods for the taxable year); or 

10 ‘‘(ii) in a case in which an employee 

11 requests that such exemption amount not 

12 be taken into account, 15 percent of the 

13 employee’s wages for such pay period that 

14 will count towards the employee’s annual 

15 repayment amount under section 499F(b); 

16 and 

17 ‘‘(B) any additional amounts the employee 

18 wishes to have withheld in accordance with 

19 paragraph (4)(C). 

20 ‘‘(4) WITHHOLDING PREFERENCES.—The Sec21 retary shall provide forms and procedures to allow 

22 an employee to indicate to the employee’s em23 ployer— 

24 ‘‘(A) that the employee has a loan that 

25 meets the requirements of subparagraphs (A) 


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1 through (C) of subsection (a)(10) and therefore 

2 the employer shall withhold payments under 

3 this subsection; 

4 ‘‘(B) that the employer shall not take into 

5 account the exemption amount to which the em6 ployee is eligible under this part in determining 

7 the employee’s withholding amount because the 

8 exemption amount has already been taken into 

9 account with respect to such employee; and 

10 ‘‘(C) an election by the employee to have 

11 amounts withheld in addition to the employee’s 

12 withholding amount as calculated under para13 graph (3). 

14 ‘‘(5) EMPLOYEE PROTECTION.—An employer 

15 may not discharge from employment, refuse to em16 ploy, or take disciplinary action against an indi17 vidual subject to wage withholding in accordance 

18 with this section by reason of the fact that the indi19 vidual’s wages have been subject to withholding 

20 under this section, nor may an employer require that 

21 an individual opt-out under subsection (a)(9) and 

22 such individual may sue in a State or Federal court 

23 of competent jurisdiction any employer who takes 

24 such action. The court shall award attorneys’ fees to 

25 a prevailing employee and, in its discretion, may 


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1 order reinstatement of the individual, award punitive 

2 damages and back pay to the employee, or order 

3 such other remedy as may be reasonably necessary. 

4 ‘‘(6) GARNISHMENT.—For purposes of title III 

5 of the Consumer Credit Protection Act (15 U.S.C. 

6 1671 et seq.), amounts withheld under this sub7 section shall— 

8 ‘‘(A) not be considered a garnishment; and 

9 ‘‘(B) be considered to be amounts required 

10 by law to be withheld. 

11 ‘‘(c) MONTHLY PAYMENTS PROCESS.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall estab13 lish a process under which a borrower may make 

14 monthly payments towards the borrower’s annual re15 payment amount, at any time in the taxable year, 

16 because the borrower— 

17 ‘‘(A) has opted-out of withholding under 

18 subsection (a)(10); or 

19 ‘‘(B) expects to have income that is not 

20 subject to the withholding process described in 

21 subsection (b). 

22 ‘‘(2) INFORMATION REQUIRED.—The procedure 

23 for initiating the monthly payments process under 

24 paragraph (1) shall include the following: 


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1 ‘‘(A) INCOME ESTIMATE.—A requirement 

2 for a borrower to provide an estimate of the 

3 borrower’s income for the taxable year that will 

4 count towards the borrower’s income-based re5 payment obligation, excluding, in the case of a 

6 borrower subject to the withholding process, 

7 any income subject to the withholding process. 

8 ‘‘(B) AMORTIZATION SCHEDULE.—In the 

9 case of a borrower who has opted out of the 

10 withholding process, the ability for the borrower 

11 to indicate that the borrower would like the bor12 rower’s monthly payments set such that the 

13 borrower’s outstanding loans made under this 

14 part would be repaid within a specified number 

15 of years. 

16 ‘‘(3) MONTHLY PAYMENTS AMOUNTS.—The 

17 Secretary shall set the borrower’s monthly payment 

18 amount to the greater of— 

19 ‘‘(A) the difference between the borrower’s 

20 annual repayment amount that would result 

21 given the income estimate provided by the bor22 rower under paragraph (2)(A) and the pay23 ments the borrower has already made in the 

24 year towards such amount (excluding, for bor25 rowers who have not opted-out of withholding, 


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1 payments through the withholding process), di2 vided by the remaining months in the taxable 

3 year; or 

4 ‘‘(B) for a borrower who indicates a time 

5 frame under paragraph (2)(B), the monthly 

6 payment amount that would result in the bor7 rower’s currently outstanding loans made under 

8 this part being repaid within the number of 

9 years specified by the borrower. 

10 ‘‘(4) AUTOMATIC CONTINUATION.—The month11 ly payments process shall continue until— 

12 ‘‘(A) the borrower elects to stop such pay13 ments; or 

14 ‘‘(B) the borrower’s loans made under this 

15 part are repaid. 

16 ‘‘(5) UPDATING PAYMENT AMOUNTS.— 

17 ‘‘(A) SECRETARY.—The Secretary shall 

18 automatically recalculate a borrower’s monthly 

19 payment amount at the beginning of a new tax20 able year using the most recent income estimate 

21 provided under paragraph (2)(A) by the bor22 rower. 

23 ‘‘(B) BORROWER.—The borrower may up24 date the borrower’s income estimate under 

25 paragraph (2)(A) at any time. 


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1 ‘‘CHAPTER 2—BORROWER REPAYMENT OF 

2 IDEA LOANS AND IDEA CONSOLIDA3 TION LOANS 

4 ‘‘SEC. 499F. BORROWER REPAYMENT. 

5 ‘‘(a) REPAYMENT PERIOD.—The repayment period of 

6 a loan made under this part shall— 

7 ‘‘(1) begin on the first day of the first taxable 

8 year that begins after the borrower’s in-school 

9 deferment period, or in the case of an IDEA Con10 solidation Loan, on the first day of the first taxable 

11 year that begins after such Consolidation Loan is 

12 disbursed; and 

13 ‘‘(2) continue until the loan is paid in full, ex14 cept that the Secretary may grant a borrower for15 bearance of the borrower’s annual repayment 

16 amount— 

17 ‘‘(A) for a period not to exceed 60 days, 

18 due to administrative or technical reasons; 

19 ‘‘(B) for a period not to exceed 3 months, 

20 due to unusual circumstances that disrupt the 

21 borrower’s ability to make timely payments on 

22 the loan; or 

23 ‘‘(C) renewable at 12-month intervals for a 

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1 mented extreme economic hardship on the part 

2 of a borrower. 

3 ‘‘(b) ANNUAL REPAYMENT AMOUNT.—The annual 

4 repayment amount under this part for a taxable year for 

5 a borrower with 1 or more loans made under this part 

6 in repayment status shall be equal to the lesser of— 

7 ‘‘(1) the income-based repayment obligation for 

8 such borrower for such year, as calculated under 

9 section 499E(a)(1); or 

10 ‘‘(2) an amount equal to the sum of the out11 standing balances (equal to the sum of the unpaid 

12 principal, interest, penalties, and fees) that the bor13 rower owes on such loans. 

14 ‘‘(c) METHODS OF REPAYMENT.—A borrower who 

15 expects to have an annual repayment amount for the tax16 able year that is greater than the amount specified in sub17 section (f)(1)(D) shall make payments through the fol18 lowing methods: 

19 ‘‘(1) With respect to any wages earned by the 

20 borrower that are subject to Federal income tax 

21 withholding, the withholding process described in 

22 section 499E(a)(10). 

23 ‘‘(2) The monthly payments process described 

24 in section 499E(c), to meet the portion of the bor25 rower’s obligation that is not paid through withVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 holding, or, in the case of a borrower who opts out 

2 of the withholding process, to meet the borrower’s 

3 entire obligation. 

4 ‘‘(3) The direct payments process under section 

5 499E(a)(4). 

6 ‘‘(4) The process described in section 

7 499E(a)(5) that allows other individuals or entities 

8 to make payments on the borrower’s annual repay9 ment amount for the year. 

10 ‘‘(d) ORDER OF CREDITING.—Payments on loans 

11 made under this part shall be applied, without regard to 

12 the method of such payments, first toward penalties due 

13 on the loans, next toward any fees due on the loans, then 

14 toward any interest due on the loans, and finally toward 

15 the principal due on the loan with the highest applicable 

16 rate of interest among such loans. 

17 ‘‘(e) PREPAYMENT AUTHORIZED.—A borrower shall 

18 have the right to prepay all or part of such loan, at any 

19 time and without penalty. Any such prepayment amount 

20 will be applied to loans made under this part in the same 

21 order as described in subsection (d). 

22 ‘‘(f) UNDERPAYMENTS.— 

23 ‘‘(1) PENALTIES FOR UNDERPAYMENTS.— 

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (C), if, as of the last day of a taxable 


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1 year, a borrower has not paid at least 90 per2 cent of the borrower’s annual repayment 

3 amount for such year, the borrower shall be 

4 charged a penalty in an amount equal to 15 

5 percent of the difference between— 

6 ‘‘(i) an amount equal to 90 percent of 

7 the borrower’s annual repayment amount 

8 for such year; and 

9 ‘‘(ii) the amount paid on such annual 

10 repayment amount as of such day. 

11 ‘‘(B) INCREASE OF ANNUAL REPAYMENT

12 AMOUNT.—A borrower’s annual repayment 

13 amount calculated under subsection (b) for such 

14 year shall be increased by the amount of such 

15 penalty, but such penalty shall not be treated as 

16 a principal or interest amount for a loan made 

17 under this part. 

18 ‘‘(C) EXCEPTION FOR MEETING THE OBLI19 GATION FOR THE PREVIOUS YEAR.—A borrower 

20 who has paid 100 percent of the borrower’s an21 nual repayment amount for the taxable year 

22 preceding the taxable year described in sub23 paragraph (A) shall not be subject to the pen24 alty under this paragraph for the taxable year 

25 described in subparagraph (A). 


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1 ‘‘(D) DE MINIMIS EXCEPTION.—A bor2 rower whose annual repayment amount is less 

3 than $300 shall not be subject to the penalty 

4 under this paragraph for the taxable year de5 scribed in subparagraph (A). 

6 ‘‘(2) RECONCILING UNDERPAYMENTS.— 

7 ‘‘(A) IN GENERAL.—If, as of the last day 

8 of a taxable year, the sum of the payments 

9 made on a borrower’s annual repayment 

10 amount for such year is less than the total 

11 amount of the borrower’s annual repayment 

12 amount for such year, the borrower— 

13 ‘‘(i) in the case of the first year that 

14 the borrower has a difference between such 

15 amounts— 

16 ‘‘(I) may request, in such manner 

17 as the Secretary shall require, that 

18 the Secretary reduce the borrower’s 

19 annual repayment amount for such 

20 year to the sum of— 

21 ‘‘(aa) the payments made, 

22 as of such day, on the borrower’s 

23 annual repayment amount for 

24 such year; and 


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1 ‘‘(bb) any penalties cal2 culated under paragraph (1) re3 sulting from such underpayment; 

4 and 

5 ‘‘(II) if the borrower qualifies for 

6 the reduction requested under sub7 clause (I), shall pay the sum cal8 culated under such subclause at such 

9 time and in such manner as required 

10 by the Secretary; 

11 ‘‘(ii) if the borrower does not qualify 

12 for a reduction under clause (i) or does not 

13 request such a reduction, shall pay to the 

14 Secretary an amount equal to the dif15 ference between such amounts within the 

16 30-day period beginning on the date of re17 ceipt by the borrower of the borrower’s an18 nual statement described in section 

19 499E(a)(3) for such year; or 

20 ‘‘(iii) if the borrower fails to pay the 

21 amount owed by the borrower as calculated 

22 under clause (ii) within the 30-day period, 

23 shall be charged a penalty equal to 2 per24 cent of such amount for each month (pro25 rated based on the percentage of a month 


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1 such penalty is charged) that such amount 

2 is owed or until the borrower defaults on 

3 the loan for which such amount is owed, 

4 whichever occurs first. 

5 ‘‘(B) DEFAULT.—A loan for which an 

6 amount is owed under subparagraph (A) and 

7 that is not paid within 270 days after the date 

8 of receipt by the borrower of the borrower’s an9 nual statement described in section 499E(a)(3) 

10 shall be considered to be in default. 

11 ‘‘(g) OVERPAYMENTS.—If, as of the last day of a tax12 able year, the sum of the payments made on a borrower’s 

13 annual repayment amount for such year is greater than 

14 the total amount of the borrower’s annual repayment 

15 amount for such year, the Secretary shall— 

16 ‘‘(1) refund the overpayment amount, if the 

17 borrower notifies the Secretary, within the 90-day 

18 period beginning on the date of receipt of the bor19 rower’s annual statement described in section 

20 499E(a)(3) for such year and in a manner pre21 scribed by the Secretary, that the borrower desires 

22 to have the overpayment amount refunded; or 

23 ‘‘(2) if a borrower fails to notify the Secretary 

24 of the borrower’s desire for a refund of such amount 

25 within such 90-day period, apply such amount as a 


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1 prepayment to the borrower’s loans made under this 

2 part in the same manner as a prepayment author3 ized under subsection (e). 

4 ‘‘(h) EMPLOYER FAILURE TO WITHHOLD PAY5 MENTS.—In the case of a borrower whose employer fails 

6 to withhold amounts under section 499E(b) upon any 

7 wages earned by the borrower that are subject to Federal 

8 income tax withholding and with respect to which the bor9 rower made an election to have amounts withheld under 

10 such section, the Secretary shall— 

11 ‘‘(1) reduce the borrower’s annual repayment to 

12 an amount equal to the borrower’s annual repay13 ment amount had wages from such employer been 

14 excluded when calculating the borrower’s annual re15 payment amount; and 

16 ‘‘(2) reduce any penalties for underpayments 

17 calculated under subsection (f)(1) and refund any 

18 overpayments on such annual repayment amount, 

19 accordingly. 

20 ‘‘(i) DETERMINATION OF INCOME-BASED REPAY21 MENT OBLIGATION.— 

22 ‘‘(1) IN GENERAL.—The income-based repay23 ment obligation with respect to an individual for any 

24 taxable year is an amount equal to 15 percent of the 

25 excess of— 


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1 ‘‘(A) the sum of— 

2 ‘‘(i) the wages, salaries, tips, and 

3 other employee compensation of the indi4 vidual, but only if such amounts are in5 cludible in gross income for the taxable 

6 year (determined without regard to sec7 tions 911, 931, and 933 of the Internal 

8 Revenue Code of 1986) and are readily at9 tributable to the individual, plus 

10 ‘‘(ii) any other amount included in 

11 total income of the taxpayer for the tax12 able year but not described in clause (i), 

13 except that such amount shall be divided 

14 by 2 in the case of an individual who is 

15 married and filing a joint tax return, over 

16 ‘‘(B) the sum of— 

17 ‘‘(i) the exemption amount with re18 spect to such individual, plus 

19 ‘‘(ii) the lesser of the amount deter20 mined with respect to the taxpayer under 

21 subparagraph (A)(ii). 

22 ‘‘(2) EXCLUSION OF CERTAIN AMOUNTS PAID

23 ON BEHALF OF INDIVIDUAL.—Any amount paid on 

24 the borrower’s behalf under section 499E(a)(5) shall 


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1 not be taken into account in determining such bor2 rower’s income-based repayment obligation. 

3 ‘‘(3) EXEMPTION AMOUNT.—For purposes of 

4 this subpart, the exemption amount with respect to 

5 an individual shall be 150 percent of the poverty line 

6 for the individual’s household size (as determined 

7 under section 673(2) of the Community Services 

8 Block Grant Act (42 U.S.C. 9902(2))) for the cal9 endar year in which the taxable year ends. 

10 ‘‘(4) INDIVIDUALS NOT FILING A RETURN.— 

11 The income-based repayment obligation with respect 

12 to an individual not required to file a return under 

13 section 6012(a)(1) of the Internal Revenue Code of 

14 1986 shall be treated as zero.’’. 

15 SEC. 4. CONFORMING CHANGES TO THE HIGHER EDU16 CATION ACT OF 1965. 

17 (a) LOAN FORGIVENESS AND CANCELLATION FOR

18 TEACHERS.— 

19 (1) LOAN FORGIVENESS FOR TEACHERS.—Sec20 tion 428J of the Higher Education Act of 1965 (20 

21 U.S.C. 1078–10) is amended— 

22 (A) in subsection (b), by inserting ‘‘or for 

23 an IDEA loan made under part J,’’ after ‘‘or 

24 428H,’’; and 

25 (B) in subsection (c)— 


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1 (i) in paragraph (1), by inserting ‘‘or 

2 an IDEA loan made under part J’’ after 

3 ‘‘or 428H’’; and 

4 (ii) in paragraph (2)— 

5 (I) by striking ‘‘A loan’’ and in6 serting the following: 

7 ‘‘(A) LOANS MADE UNDER SECTION

8 428C.—A loan’’; and 

9 (II) by adding at the end the fol10 lowing new subparagraph: 

11 ‘‘(B) IDEA CONSOLIDATION LOAN.—A 

12 loan amount for an IDEA Consolidation Loan 

13 may be a qualified loan amount for purposes of 

14 this subsection only to the extent that such loan 

15 amount was used to repay a Federal Direct 

16 Stafford Loan, a Federal Direct Consolidation 

17 Loan, a Federal Direct Unsubsidized Stafford 

18 Loan, or a loan made under section 428, 428C, 

19 or 428H.’’. 

20 (2) LOAN CANCELLATION FOR TEACHERS.— 

21 Section 460 of such Act (20 U.S.C. 1087j) is 

22 amended— 

23 (A) in subsection (b), by inserting ‘‘or for 

24 an IDEA loan made under part J’’ after 

25 ‘‘under this part’’; and 


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1 (B) in subsection (c)— 

2 (i) in paragraph (1), by striking ‘‘or a 

3 Federal Direct Unsubsidized Stafford 

4 Loan’’ and inserting ‘‘, a Federal Direct 

5 Unsubsidized Stafford Loan, or an IDEA 

6 loan made under part J’’; and 

7 (ii) in paragraph (2)— 

8 (I) by striking ‘‘A loan’’ and in9 serting the following: 

10 ‘‘(A) FEDERAL DIRECT CONSOLIDATION

11 LOAN.—A loan’’; and 

12 (II) by adding at the end the fol13 lowing new subparagraph: 

14 ‘‘(B) IDEA CONSOLIDATION LOAN.—A 

15 loan amount for an IDEA Consolidation Loan 

16 may be a qualified loan amount for purposes of 

17 this subsection only to the extent that such loan 

18 amount was used to repay a Federal Direct 

19 Stafford Loan, a Federal Direct Consolidation 

20 Loan, a Federal Direct Unsubsidized Stafford 

21 Loan, or a loan made under section 428, 428C, 

22 or 428H.’’. 

23 (b) LOAN FORGIVENESS FOR SERVICE IN AREAS OF

24 NATIONAL NEED.—Section 428K(a)(2) of such Act (20 

25 U.S.C. 1078–11(a)(2)) is amended— 


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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (A); 

3 (2) by striking the period at the end of sub4 paragraph (B) and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following new sub6 paragraph: 

7 ‘‘(C) to cancel the qualified loan amount 

8 for a loan made under part J of this title.’’. 

9 (c) LOAN REPAYMENT FOR CIVIL LEGAL ASSIST10 ANCE ATTORNEYS.—Section 428L(b)(2)(A) of such Act 

11 (20 U.S.C. 1078–12(b)(2)(A)) is amended— 

12 (1) in clause (i), by striking ‘‘or part E’’ and 

13 inserting ‘‘, part E, or part J’’; and 

14 (2) in clause (ii)— 

15 (A) in the matter preceding subclause (I), 

16 by striking ‘‘or 455(g)’’ and inserting ‘‘, 455(g), 

17 or 499C’’; 

18 (B) by striking ‘‘or’’ at the end of sub19 clause (II); 

20 (C) by redesignating subclause (III) as 

21 subclause (IV); and 

22 (D) by inserting after subclause (II) the 

23 following: 

24 ‘‘(III) a Federal Direct Consoli25 dation Loan or a loan made under 


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1 section 428C, in the case of a loan 

2 made under section 499C; or’’. 

3 (d) MASTER PROMISSORY NOTE.—Section 

4 432(m)(1)(D) of such Act (20 U.S.C. 1082(m)(1)(D)) is 

5 amended— 

6 (1) by striking ‘‘this part and part D’’ each 

7 place it appears and by inserting ‘‘this part, part D, 

8 and part J’’; and 

9 (2) by striking ‘‘this part or part D’’ each place 

10 it appears and by inserting ‘‘this part, part D, or 

11 part J’’. 

12 (e) CONTRACTS.—Section 456 of such Act (20 U.S.C. 

13 1087f) is amended— 

14 (1) in subsection (a)— 

15 (A) in paragraph (2), by striking ‘‘this 

16 part’’ each place it appears and inserting ‘‘this 

17 part or part J’’; and 

18 (B) in paragraph (4), by inserting ‘‘or part 

19 J’’ after ‘‘this part’’; and 

20 (2) in subsection (b)— 

21 (A) in paragraph (1), by inserting ‘‘or the 

22 program under part J’’ after ‘‘(or their par23 ents)’’; 

24 (B) in paragraph (2), by inserting ‘‘or part 

25 J’’ after ‘‘this part’’; 


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1 (C) in paragraph (3), by inserting ‘‘or part 

2 J’’ after ‘‘this part’’; and 

3 (D) in paragraph (4), by inserting ‘‘or the 

4 IDEA Loan Program’’ after ‘‘loan program’’. 

5 (f) FUNDS FOR ADMINISTRATIVE EXPENSES.—Sec6 tion 458(a)(3) of such Act (20 U.S.C. 1087h(a)(3)) is 

7 amended— 

8 (1) by striking ‘‘this part and part B’’ and in9 serting ‘‘this part, part B, and part J’’; and 

10 (2) by inserting before the period at the end the 

11 following: ‘‘and part J’’. 

12 (g) STUDENT ELIGIBILITY.—Section 484 of such Act 

13 (20 U.S.C. 1091) is amended— 

14 (1) in subsection (b)— 

15 (A) in paragraph (3), by striking ‘‘or D’’ 

16 and inserting ‘‘, D, or E’’; and 

17 (B) in paragraph (4)(B), by striking ‘‘or 

18 E’’ and inserting ‘‘E, or J’’; 

19 (2) in subsection (d), by striking ‘‘and E’’ and 

20 inserting ‘‘E, and J’’; 

21 (3) in subsection (f), by striking ‘‘or part E’’ 

22 each place it appears and inserting ‘‘part E, or part 

23 J’’; and 

24 (4) in subsection (m), by striking ‘‘and E’’ and 

25 inserting ‘‘E, and J’’. 


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1 (h) INSTITUTIONAL AND FINANCIAL ASSISTANCE IN2 FORMATION FOR STUDENTS.—Section 485 of such Act 

3 (20 U.S.C. 1092) is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1)(M), by striking ‘‘and 

6 E’’ and inserting ‘‘E, and J’’; and 

7 (B) in paragraph (7)(A)(i), by striking 

8 ‘‘Loan)’’ each place it appears and inserting 

9 ‘‘Loan) or part J’’; 

10 (2) in subsection (b)— 

11 (A) in paragraph (1)(A)— 

12 (i) in the matter preceding clause (i), 

13 by inserting ‘‘or made under part J’’ after 

14 ‘‘part E’’; and 

15 (ii) in clause (vii)— 

16 (I) by inserting ‘‘or an IDEA 

17 Consolidation Loan’’ after ‘‘Federal 

18 Direct Consolidation Loan’’; and 

19 (II) by striking ‘‘and E’’ and in20 serting ‘‘E, and J’’; and 

21 (B) in paragraph (2)(A), by striking ‘‘or 

22 E’’ and inserting ‘‘E, or J’’; and 

23 (3) in subsection (l)(1)— 


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1 (A) in subparagraph (A), in the matter 

2 preceding clause (i), by inserting ‘‘or made 

3 under part J’’ after ‘‘student)’’; and 

4 (B) in subparagraph (B), by striking ‘‘or 

5 D’’ and inserting ‘‘, D, or J’’. 

6 SEC. 5. NATIONAL DIRECTORY OF NEW HIRES. 

7 Section 453(j) of the Social Security Act (42 U.S.C. 

8 653(j)) is amended by adding at the end the following: 

9 ‘‘(12) INFORMATION COMPARISONS AND DIS10 CLOSURE TO ASSIST WITH COLLECTION OF IDEA

11 STUDENT LOANS.— 

12 ‘‘(A) FURNISHING OF INFORMATION BY

13 THE SECRETARY OF EDUCATION.—The Sec14 retary of Education shall furnish to the Sec15 retary, on such periodic basis as determined by 

16 the Secretary of Education in consultation with 

17 the Secretary, information in the custody of the 

18 Secretary of Education for comparison with in19 formation in the National Directory of New 

20 Hires, in order to obtain information in such 

21 Directory with respect to persons who have a 

22 loan made under part J of title IV of the High23 er Education Act of 1965 in repayment status. 

24 ‘‘(B) REQUIREMENT TO SEEK MINIMUM

25 INFORMATION.—The Secretary of Education 


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1 shall seek information pursuant to this section 

2 only to the extent necessary to improve collec3 tion of the debts owed on the loans described in 

4 subparagraph (A). 

5 ‘‘(C) DUTIES OF THE SECRETARY.— 

6 ‘‘(i) INFORMATION DISCLOSURE.—The 

7 Secretary, in cooperation with the Sec8 retary of Education, shall compare infor9 mation in the National Directory of New 

10 Hires with information provided by the 

11 Secretary of Education with respect to per12 sons described in subparagraph (A) and 

13 shall disclose information in such Directory 

14 regarding such persons to the Secretary of 

15 Education in accordance with this para16 graph, for the purposes specified in this 

17 paragraph. 

18 ‘‘(ii) CONDITION ON DISCLOSURE.— 

19 The Secretary shall make disclosures in ac20 cordance with clause (i) only to the extent 

21 that the Secretary determines that such 

22 disclosures do not interfere with the effec23 tive operation of the program under this 

24 part. 


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1 ‘‘(D) PROHIBITION AND UNAUTHORIZED

2 USE.— 

3 ‘‘(i) IN GENERAL.—Individual data 

4 collected under this paragraph shall not be 

5 used for any purpose not specifically au6 thorized by Federal law. 

7 ‘‘(ii) PENALTIES FOR UNAUTHORIZED

8 DISCLOSURE OF DATA.—Any individual 

9 who willfully discloses information provided 

10 under this paragraph, in any manner to an 

11 entity not entitled to receive the informa12 tion, shall be fined under title 18, United 

13 States Code, imprisoned not more than 5 

14 years, or both. 

15 ‘‘(E) USE OR DISCLOSURE OF INFORMA16 TION BY THE SECRETARY OF EDUCATION.—The 

17 Secretary of Education may use or disclose in18 formation provided under this paragraph only 

19 for purposes of collecting the debts owed on the 

20 loans described in subparagraph (A). 

21 ‘‘(F) REIMBURSEMENT OF HHS COSTS.— 

22 The Secretary of Education shall reimburse the 

23 Secretary, in accordance with subsection (k)(3), 

24 for the costs incurred by the Secretary in furVerDate Sep 11 2014 03:22 Oct 15, 2015 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H3752.IH H3752

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1 nishing the information requested under this 

2 paragraph. 

3 ‘‘(G) COMPLIANCE WITH FERPA.—In car4 rying out this paragraph, the Secretary and the 

5 Secretary of Education shall not share any per6 sonally identifiable information and shall act in 

7 accordance with section 444 of the General 

8 Education Provisions Act (20 U.S.C. 1232g, 

9 commonly known as the ‘Family Educational 

10 Rights and Privacy Act of 1974’).’’. 

11 SEC. 6. DISCLOSURE OF RETURN INFORMATION FOR PUR12 POSES OF IDEA LOAN REPAYMENT PRO13 GRAM. 

14 (a) IN GENERAL.—Subsection (l) of section 6103 of 

15 the Internal Revenue Code of 1986 is amended by adding 

16 at the end the following new paragraph: 

17 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

18 TO DEPARTMENT OF EDUCATION FOR PURPOSES OF

19 ADMINISTERING IDEA LOAN REPAYMENT PRO20 GRAM.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall, 

22 upon written request, disclose to the Depart23 ment of Education such return information as 

24 is necessary for purposes of carrying out the 

25 IDEA Loan Repayment Program established 


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1 under subpart 2 of part J of the Higher Edu2 cation Act of 1965. 

3 ‘‘(B) RESTRICTION ON DISCLOSURE.—Re4 turn information disclosed under subparagraph 

5 (A) may be used by officers, employees, and 

6 contractors of the Department of Education 

7 only for purposes of, and to the extent nec8 essary in— 

9 ‘‘(i) determining income-based repay10 ment obligations under the IDEA Loan 

11 Repayment Program, and 

12 ‘‘(ii) determining amounts deducted 

13 and withheld, and amounts paid concur14 rently with quarterly estimated taxes, 

15 under the IDEA Loan Repayment Pro16 gram.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect on the date of the enactment 

19 of this Act. 

20 SEC. 7. SENSE OF CONGRESS. 

21 It is the sense of Congress that any loan repayment 

22 or forgiveness program available under a Federal law out23 side of the Higher Education Act of 1965 (20 U.S.C. 1001 

24 et seq.) to students with loans made under part D of title 

25 IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 


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1 et seq.) should be available to students with loans made 

2 under part J of such title of such Act. 

Æ 


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