I 

114TH CONGRESS 

1ST SESSION H. R. 3695 

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 6, 2015 

Mr. ZELDIN 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 2021. 

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 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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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 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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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 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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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 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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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 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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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 first day of the borrower’s 

10 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 means 

12 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.—The Secretary of the Treasury, 

17 in consultation with the Secretary of Education, shall es18 tablish a program (hereinafter referred to as the ‘IDEA 

19 Loan Repayment Program’) that provides for— 

20 ‘‘(1) repaying loans under this part through vol21 untary wage withholding and quarterly estimated 

22 payments as provided in subsection (b); and 

23 ‘‘(2) transmitting to the Secretary of Edu24 cation— 


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1 ‘‘(A) an account of the amounts collected 

2 under subsection (b) with respect to each indi3 vidual for whom a loan made under this part is 

4 in repayment status; and 

5 ‘‘(B) such tax return information of each 

6 such individual as is necessary to determine the 

7 individual’s income-based repayment obligation 

8 as provided in subsection (c). 

9 ‘‘(b) WAGE WITHHOLDING AND ESTIMATED PAY10 MENTS.— 

11 ‘‘(1) IN GENERAL.—The Secretary of the 

12 Treasury shall, under rules similar to the rules of 

13 chapter 24 of the Internal Revenue Code of 1986, 

14 provide for employers making payment of wages to 

15 deduct and withhold upon such wages amounts de16 termined in accordance with tables or computational 

17 procedures prescribed by the Secretary with respect 

18 to an employee who elects withholding under this 

19 subsection with respect to a loan made under this 

20 part that is in repayment status and, if so elected, 

21 with respect to any such loans of the employee’s 

22 spouse. 

23 ‘‘(2) WITHHOLDING REQUIREMENTS.—The ta24 bles, procedures, and guidance prescribed under 

25 paragraph (1) shall provide— 


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1 ‘‘(A) for the election to have amounts with2 held as provided under this subsection; 

3 ‘‘(B) procedures and forms for an em4 ployee to indicate— 

5 ‘‘(i) whether the employee (and, in the 

6 case of a married individual, whether the 

7 employee’s spouse) has a loan made under 

8 this part that is in repayment status; 

9 ‘‘(ii) in the case of a married indi10 vidual, whether the employee anticipates 

11 filing jointly (and accompanying guidance 

12 explaining that if filing status for the tax13 able year is uncertain the employee should 

14 indicate filing jointly to avoid underwith15 holding); 

16 ‘‘(iii) whether the exemption amount 

17 to which the employee is entitled under 

18 this section should be taken into account 

19 in determining withholding (and accom20 panying guidance explaining that, in order 

21 to avoid underwithholding, the employee 

22 should only take into account the exemp23 tion in the case of the employee’s primary 

24 employer, unless total wages from more 


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1 than one place of employment will not ex2 ceed the exemption amount); 

3 ‘‘(iv) in the case of a married indi4 vidual, whether the exemption amount to 

5 which the employee’s spouse is entitled 

6 under this section should be taken into ac7 count in determining withholding from the 

8 wages of the employee (and accompanying 

9 guidance explaining that, in order to avoid 

10 underwithholding, the employee should 

11 only take into account such exemption if 

12 such spouse is not employed, or if the total 

13 wages from the employee’s job and the 

14 spouse’s employment will not exceed the 

15 exemption amount); 

16 ‘‘(v) the number of dependents of the 

17 employee with respect to whom the em18 ployee is entitled to a deduction under sec19 tion 151(c) of the Internal Revenue Code 

20 of 1986, and, if a different number, in the 

21 case of a married employee, the number of 

22 dependents of the employee’s spouse with 

23 respect to whom such spouse is entitled to 

24 such deduction; and 


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1 ‘‘(vi) an election to have additional 

2 amounts withheld; and 

3 ‘‘(C) for withholding with respect to any 

4 employee in an amount equal to the sum of— 

5 ‘‘(i) in the case of an employee who 

6 has a loan made under this part in repay7 ment status, the percentage of so much of 

8 the employee’s wages that would count to9 wards the employee’s income-based repay10 ment obligation provided in subsection (c) 

11 as exceeds any exemption amount taken 

12 into account with respect to the employee 

13 under subparagraph (A)(iii) (prorated to 

14 the payroll period), plus 

15 ‘‘(ii) in the case of an employee who 

16 indicates that the employee’s spouse has a 

17 loan made under this part in repayment 

18 status, the percentage of so much of the 

19 employee’s wages that would count towards 

20 the employee’s spouse’s income-based re21 payment obligation (as provided in sub22 section (c)) as exceeds any exemption 

23 amount taken into account with respect to 

24 the employee’s spouse under subparagraph 

25 (A)(iv) (prorated to the payroll period). 


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1 ‘‘(3) QUARTERLY ESTIMATED TAX PAY2 MENTS.—In the case of taxpayers who make quar3 terly estimated tax return payments under section 

4 6654 of the Internal Revenue Code of 1986 and who 

5 have a loan made under this part in repayment sta6 tus, the Secretary shall provide similar tables and 

7 procedures for making voluntary repayments of 

8 loans made under this part concurrently with such 

9 quarterly payments. 

10 ‘‘(4) COLLECTION AND PAYMENT.—The 

11 amounts required to be deducted and withheld under 

12 paragraph (1), and amounts required to be paid 

13 under paragraph (3), shall be collected by the Sec14 retary of the Treasury and shall be paid into the 

15 general fund of the Treasury of the United States. 

16 ‘‘(c) DETERMINATION OF INCOME-BASED REPAY17 MENT OBLIGATION.— 

18 ‘‘(1) IN GENERAL.—As soon as practicable 

19 after an individual for whom a loan made under this 

20 part is in repayment status during the taxable year 

21 files an income tax return for such taxable year, the 

22 Secretary of the Treasury shall transmit to the Sec23 retary of Education such tax information as is nec24 essary to determine— 


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1 ‘‘(A) the amount deducted and withheld 

2 under subsection (b)(1), and the amount paid 

3 under subsection (b)(3), for the taxable year 

4 with respect to such individual, and 

5 ‘‘(B) the income-based repayment obliga6 tion for the taxable year for such individual. 

7 ‘‘(2) INCOME-BASED REPAYMENT OBLIGA8 TION.—For purposes of this section: 

9 ‘‘(A) IN GENERAL.—The income-based re10 payment obligation with respect to an individual 

11 for any taxable year is an amount equal to 15 

12 percent of the excess of— 

13 ‘‘(i) the sum of— 

14 ‘‘(I) the wages, salaries, tips, and 

15 other employee compensation of the 

16 taxpayer, but only if such amounts 

17 are includible in gross income for the 

18 taxable year (determined without re19 gard to sections 911, 931, and 933), 

20 ‘‘(II) the amount of the tax21 payer’s net earnings from self-employ22 ment for the taxable year (within the 

23 meaning of section 1402(a)), deter24 mined with regard to the deduction alVerDate Sep 11 2014 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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1 lowed to the taxpayer by section 

2 164(f), plus 

3 ‘‘(III) any other amount included 

4 in total income of the taxpayer for the 

5 taxable year but not described in sub6 clause (I) or (II), over 

7 ‘‘(ii) the sum of— 

8 ‘‘(I) the exemption amount with 

9 respect to such individual, plus 

10 ‘‘(II) the lesser of the amount de11 termined with respect to the taxpayer 

12 under subclauses (II) and (III) of 

13 clause (i), or $3,000. 

14 ‘‘(B) SPECIAL RULES FOR MARRIED INDI15 VIDUALS.— 

16 ‘‘(i) EACH SPOUSE WITH LOAN.—Ex17 cept as provided in clause (ii), in the case 

18 of a joint return of two individuals who 

19 each have a loan made under this part in 

20 repayment status, the income-based repay21 ment obligation with respect to each 

22 spouse shall be an amount determined 

23 under subparagraph (A) by apportioning 

1 24 ⁄2 of the total income on such return to 

25 each spouse. 


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1 ‘‘(ii) SPECIAL RULE FOR FIRST YEAR

2 OF MARRIAGE.—In the case of the first 

3 taxable year for which any two individuals 

4 make a joint return, the income-based re5 payment obligation with respect to such an 

6 individual shall be an amount equal to the 

7 lesser of— 

8 ‘‘(I) the amount determined with 

9 respect to such individual under this 

10 paragraph (determined without regard 

11 to this clause), or 

12 ‘‘(II) the amount determined 

13 with respect to such individual under 

14 this paragraph (determined by allo15 cating to each spouse the amounts de16 scribed in subclauses (I) and (II) of 

17 subparagraph (A)(i) in proportion to 

18 the amounts attributable to each 

spouse, by allocating 1 19 ⁄2 of the amount 

20 described in subparagraph (A)(i)(III) 

21 to each spouse, and without regard to 

22 clause (i)). 

23 ‘‘(C) EXCLUSION OF CERTAIN AMOUNTS

24 PAID ON BEHALF OF INDIVIDUAL.—Any 

25 amount paid on the borrower’s behalf under 


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1 section 499E(5) shall not be taken into account 

2 in determining such borrower’s income-based 

3 repayment obligation. 

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

5 this section: 

6 ‘‘(A) IN GENERAL.—Except as provided in 

7 subparagraph (B), the exemption amount with 

8 respect to an individual shall be an amount 

9 equal to 150 percent of the poverty line for the 

10 individual’s household size (as determined 

11 under section 673(2) of the Community Serv12 ices Block Grant Act (42 U.S.C. 9902(2))) for 

13 the calendar year in which the taxable year 

14 ends. 

15 ‘‘(B) SPECIAL RULE FOR MARRIED INDI16 VIDUALS WHO BOTH HAVE LOANS MADE UNDER

17 THIS PART.—If for any taxable year an indi18 vidual is married, files a joint return, and has 

19 a spouse with a loan made under this part in 

20 repayment status, then the exemption amount 

21 with respect to such individual shall be an 

22 amount equal to the sum of— 

23 ‘‘(i) 150 percent of the poverty line 

24 for a household size of one (as determined 

25 under section 673(2) of the Community 


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1 Services Block Grant Act (42 U.S.C. 

2 9902(2))) for the calendar year in which 

3 the taxable year ends, and 

‘‘(ii) 1 4 ⁄2 of the excess of— 

5 ‘‘(I) 150 percent of the poverty 

6 line for the individual’s household size 

7 minus 1 (as determined under section 

8 673(2) of the Community Services 

9 Block Grant Act (42 U.S.C. 9902(2))) 

10 for the calendar year in which the tax11 able year ends, over 

12 ‘‘(II) the amount determined 

13 under clause (i). 

14 ‘‘(C) HOUSEHOLD SIZE.—For purposes of 

15 this paragraph, an individual’s household size 

16 shall be determined by reference to the indi17 vidual, the number of dependents of the tax18 payer with respect to whom the taxpayer is en19 titled to a deduction under section 151(c) of the 

20 Internal Revenue Code of 1986, and, if married 

21 and filing jointly, such individual’s spouse. 

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

23 ‘‘(A) INDIVIDUALS NOT REQUIRED TO

24 FILE.—The income-based repayment obligation 

25 with respect to an individual not required to file 


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1 a return under section 6012(a)(1) of the Inter2 nal Revenue Code of 1986 shall be treated as 

3 zero. 

4 ‘‘(B) FAILURE TO FILE.—In the case of an 

5 individual who makes an election under sub6 section (b) with respect to a loan made under 

7 this part in repayment status and fails to file 

8 a return under section 6012(a)(1), the Sec9 retary of the Treasury shall transmit to the 

10 Secretary of Education any such tax informa11 tion of the individual as may be necessary to 

12 determine whether such individual is in default 

13 under the terms of such loan. 

14 ‘‘(5) SUBSEQUENT TRANSMISSION OF EM15 PLOYER INFORMATION REPORTING.—As soon as 

16 practicable after receiving from an employer infor17 mation reporting with respect to withholding under 

18 subsection (b)(1) of an individual, the Secretary of 

19 the Treasury shall transmit to the Secretary of Edu20 cation such information as may be useful in 

21 verifying the information with respect to withholding 

22 transmitted under paragraph (1). 

23 ‘‘(d) ADDITIONAL PROGRAM REQUIREMENTS.—The 

24 Secretary of the Treasury shall establish such other poli25 cies, procedures, and guidance as may be necessary to 


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1 carry out the purposes of this section, including measures 

2 to prevent underwithholding, underreporting, and evasion 

3 of repayment or filing. Amounts shall be deducted and 

4 withheld under this section as the Secretary determines 

5 to be most appropriate to carry out the purposes of the 

6 IDEA Loan Repayment Program and to reflect, as accu7 rately as is practicable, an individual’s income-based re8 payment obligation. 

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

10 ‘‘The Secretary shall carry out the following activities 

11 as part of the IDEA Loan Repayment Program estab12 lished under this chapter: 

13 ‘‘(1) CALCULATION OF ANNUAL REPAYMENT

14 AMOUNTS.—The Secretary shall calculate the annual 

15 repayment amounts under 499F(b) for borrowers 

16 with 1 or more loans made under this part in repay17 ment status, including the income-based repayment 

18 obligations of such borrowers in accordance with sec19 tion 499D(c)(2). 

20 ‘‘(2) COMMUNICATION WITH THE SECRETARY

21 OF THE TREASURY.—The Secretary shall transmit 

22 to the Secretary of the Treasury such information as 

23 is necessary for the Secretary of the Treasury to 

24 carry out section 499D. 


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

2 the annual repayment amounts under paragraph (1) 

3 for a taxable year, the Secretary shall provide a 

4 statement, on an annual basis, to each borrower 

5 with a loan made under this part, which lists the fol6 lowing: 

7 ‘‘(A) Total payments made on the bor8 rower’s annual repayment amount for such tax9 able year. 

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

11 amount for such taxable year. 

12 ‘‘(C) In the case of a borrower who, ac13 cording to section 499F(f), has underpaid such 

14 annual repayment amount, the amount of such 

15 underpayment and the process for paying such 

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

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

18 overpayment on such annual repayment 

19 amount, the amount of such overpayment and 

20 the process for requesting a refund of such 

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

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

23 loans made to the borrower under this part. 


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

2 annual repayment amount was calculated under 

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

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

5 enable a borrower to make direct payments on the 

6 borrower’s annual repayment amount for the taxable 

7 year to the Secretary throughout the year, including 

8 by providing a process for the borrower to make 

9 such payments automatically, on a periodic basis, 

10 and in an amount specified by the borrower. 

11 ‘‘(5) PAYMENTS ON A TAXPAYER’S BEHALF.— 

12 The Secretary shall— 

13 ‘‘(A) provide a mechanism for other indi14 viduals or entities to make payments on the an15 nual repayment amount of a borrower for a tax16 able year; and 

17 ‘‘(B) notify the borrower that any pay18 ments made under subparagraph (A) for the 

19 taxable year that exceed the annual repayment 

20 amount for the year shall not be refunded to 

21 the borrower. 

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

23 Secretary shall calculate the interest accrued for the 

24 taxable year as if the borrower’s payments under 

25 wage withholding or quarterly estimated payments 


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1 under section 499D(b) for the taxable year were 

2 made in 12 equal increments throughout the year. 

3 ‘‘(7) MANAGING LOANS.—The Secretary shall 

4 provide, through the Internet, a tool that has an 

5 interface that is consistent for all borrowers with a 

6 loan under this part, which enables each such bor7 rower to— 

8 ‘‘(A) view the outstanding balances on the 

9 borrower’s loans made under this part; 

10 ‘‘(B) make a direct payment on the bor11 rower’s annual repayment amount or indicate 

12 that any overpayment should be refunded or ap13 plied to such loans as a prepayment amount; 

14 ‘‘(C) view prior annual statements for such 

15 loans provided under paragraph (3); 

16 ‘‘(D) view a history of payments made on 

17 such loans (including the method and source of 

18 each payment, such as tax withholding, esti19 mated taxes, direct payment, or payments made 

20 on the borrower’s behalf); 

21 ‘‘(E) view the borrower’s annual repay22 ment amount for that year, the amount already 

23 paid on such annual repayment amount, and 

24 any amount owed by the borrower or due to be 

25 refunded to the borrower; 


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1 ‘‘(F) view the borrower’s loans made under 

2 this part that have been paid off; 

3 ‘‘(G) enable the borrower to initiate an ap4 peal process under paragraph (8); and 

5 ‘‘(H) easily determine whether benefits 

6 under the Servicemembers Civil Relief Act (50 

7 U.S.C. App. 501 et seq.), if applicable, have 

8 been applied to the borrower’s loans made 

9 under this part. 

10 ‘‘(8) APPEALS PROCESS.—The Secretary shall 

11 make available a process through which a borrower 

12 can appeal the calculation of the borrower’s annual 

13 repayment amount, including a worksheet that en14 ables a borrower to calculate the borrower’s annual 

15 repayment amount. 

16 ‘‘(9) DEFAULT FOR FAILURE TO FILE A RE17 TURN.—In a case in which the Secretary receives in18 formation from the Secretary of the Treasury under 

19 section 499D(c)(4) that a borrower with a loan 

20 made under this part in repayment status has failed 

21 to file a return under section 6012(a)(1) of the In22 ternal Revenue Code of 1986 and such borrower was 

23 required to file such a return, the Secretary shall— 

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

25 failure to file such a return; and 


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1 ‘‘(B) if the borrower fails to file such a re2 turn within 90 days of receipt of the notice de3 scribed in subparagraph (A), consider the bor4 rower’s loans made under this part in repay5 ment status to be in default. 

6 ‘‘(10) NATIONAL DIRECTORY OF NEW HIRES.— 

7 The Secretary shall send notices to borrowers under 

8 paragraph (5) of section 435(i) of the Social Secu9 rity Act (42 U.S.C. 653(i)), as added by section 5 

10 of the Earnings Contingent Education Loans Act of 

11 2015. 

12 ‘‘CHAPTER 2—BORROWER REPAYMENT OF 

13 IDEA LOANS AND IDEA CONSOLIDA14 TION LOANS 

15 ‘‘SEC. 499F. BORROWER REPAYMENT. 

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

17 a loan made under this part shall— 

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

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

20 deferment period, or in the case of an IDEA Con21 solidation Loan, on the first day of the first taxable 

22 year that begins after such Consolidation Loan is 

23 disbursed; and 

24 ‘‘(2) continue until the loan is paid in full, ex25 cept that the Secretary may grant a borrower forVerDate Sep 11 2014 06:20 Oct 09, 2015 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H3695.IH H3695

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1 bearance of the borrower’s annual repayment 

2 amount— 

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

4 due to administrative or technical reasons; 

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

6 due to unusual circumstances that disrupt the 

7 borrower’s ability to make timely payments on 

8 the loan; or 

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

10 period not to exceed 3 years, due to docu11 mented extreme economic hardship on the part 

12 of a borrower. 

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

14 repayment amount under this part for a taxable year for 

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

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

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

18 such borrower for such year, as calculated under 

19 section 499E(1); or 

20 ‘‘(2) an amount equal to the sum of the out21 standing balances (equal to the sum of the unpaid 

22 principal, interest, penalties, and fees) that the bor23 rower owes on such loans. 


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1 ‘‘(c) METHODS OF REPAYMENT.—In repaying an an2 nual repayment amount owed by a borrower for a taxable 

3 year, a borrower may— 

4 ‘‘(1) with respect to any wages earned by the 

5 borrower that are subject to Federal income tax 

6 withholding, have amounts withheld upon such 

7 wages under section 499D(b)(2); 

8 ‘‘(2) in the case of a borrower who makes quar9 terly estimated tax return payments under section 

10 6654 of the Internal Revenue Code of 1986 for the 

11 year, pay such annual repayment amount concur12 rently with such quarterly payments under section 

13 499D(b)(3); 

14 ‘‘(3) make direct payments under section 

15 499E(4) on such amount to the Secretary through16 out the year; or 

17 ‘‘(4) have other individuals or entities make 

18 payments under section 499E(5) on the borrower’s 

19 annual repayment amount for the year. 

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

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

22 the method of such payments, first toward penalties due 

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

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


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1 the principal due on the loan with the highest applicable 

2 rate of interest among such loans. 

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

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

5 time and without penalty. Any such prepayment amount 

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

7 order as described in subsection (d). 

8 ‘‘(f) UNDERPAYMENTS.— 

9 ‘‘(1) PENALTIES FOR UNDERPAYMENTS.— 

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (C), if, as of the last day of a taxable 

12 year, a borrower has not paid at least 90 per13 cent of the borrower’s annual repayment 

14 amount for such year, the borrower shall be 

15 charged a penalty in an amount equal to 10 

16 percent of the difference between— 

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

18 the borrower’s annual repayment amount 

19 for such year; and 

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

21 repayment amount as of such day. 

22 ‘‘(B) INCREASE OF ANNUAL REPAYMENT

23 AMOUNT.—A borrower’s annual repayment 

24 amount calculated under subsection (b) for such 

25 year shall be increased by the amount of such 


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1 penalty, but such penalty shall not be treated as 

2 a principal or interest amount for a loan made 

3 under this part. 

4 ‘‘(C) EXCEPTION.—A borrower who has 

5 paid 100 percent of the borrower’s annual re6 payment amount for the taxable year preceding 

7 the taxable year described in subparagraph (A) 

8 shall not be subject to the penalty under this 

9 paragraph for the taxable year described in sub10 paragraph (A). 

11 ‘‘(2) RECONCILING UNDERPAYMENTS.— 

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

13 of a taxable year, the sum of the payments 

14 made on a borrower’s annual repayment 

15 amount for such year is less than the total 

16 amount of the borrower’s annual repayment 

17 amount for such year, the borrower— 

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

19 the borrower has a difference between such 

20 amounts— 

21 ‘‘(I) may request, in such manner 

22 as the Secretary shall require, that 

23 the Secretary reduce the borrower’s 

24 annual repayment amount for such 

25 year to the sum of— 


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1 ‘‘(aa) the payments made, 

2 as of such day, on the borrower’s 

3 annual repayment amount for 

4 such year; and 

5 ‘‘(bb) any penalties cal6 culated under paragraph (1) re7 sulting from such underpayment; 

8 and 

9 ‘‘(II) if the borrower qualifies for 

10 the reduction requested under sub11 clause (I), shall pay the sum cal12 culated under such subclause at such 

13 time and in such manner as required 

14 by the Secretary; 

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

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

17 request such a reduction, shall pay to the 

18 Secretary an amount equal to the dif19 ference between such amounts within the 

20 30-day period beginning on the date of re21 ceipt by the borrower of the borrower’s an22 nual statement described in section 

23 499E(3) for such year; or 

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

25 amount owed by the borrower as calculated 


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

2 shall be charged a penalty equal to 2 per3 cent of such amount for each month (pro4 rated based on the percentage of a month 

5 such penalty is charged) that such amount 

6 is owed or until the borrower defaults on 

7 the loan for which such amount is owed, 

8 whichever occurs first. 

9 ‘‘(B) DEFAULT.—A loan for which an 

10 amount is owed under subparagraph (A) and 

11 that is not paid within 360 days after the date 

12 of receipt by the borrower of the borrower’s an13 nual statement described in subparagraph (A) 

14 shall be considered to be default. 

15 ‘‘(g) OVERPAYMENTS.—If, as of the last day of a tax16 able year, the sum of the payments made on a borrower’s 

17 annual repayment amount for such year is greater than 

18 the total amount of the borrower’s annual repayment 

19 amount for such year, the Secretary shall— 

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

21 borrower notifies the Secretary, within the 90-day 

22 period beginning on the date of receipt of the bor23 rower’s annual statement described in section 

24 499E(3) for such year and in a manner prescribed 


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1 by the Secretary, that the borrower desires to have 

2 the overpayment amount refunded; or 

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

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

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

6 prepayment to the borrower’s loans made under this 

7 part in the same manner as a prepayment author8 ized under subsection (e). 

9 ‘‘(h) EMPLOYER FAILURE TO WITHHOLD PAY10 MENTS.—In the case of a borrower whose employer fails 

11 to withhold amounts under section 499D(b)(2) upon any 

12 wages earned by the borrower that are subject to Federal 

13 income tax withholding and with respect to which the bor14 rower made an election to have amounts withheld under 

15 section 499(b)(2), the Secretary shall— 

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

17 an amount equal to the borrower’s annual repay18 ment amount had wages from such employer been 

19 excluded when calculating the borrower’s annual re20 payment amount; and 

21 ‘‘(2) reduce any penalties for underpayments 

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

23 overpayments on such annual repayment amount, 

24 accordingly.’’. 


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1 SEC. 4. CONFORMING CHANGES TO THE HIGHER EDU2 CATION ACT OF 1965. 

3 (a) LOAN FORGIVENESS AND CANCELLATION FOR

4 TEACHERS.— 

5 (1) LOAN FORGIVENESS FOR TEACHERS.—Sec6 tion 428J of the Higher Education Act of 1965 (20 

7 U.S.C. 1078–10) is amended— 

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

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

10 428H,’’; and 

11 (B) in subsection (c)— 

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

13 an IDEA loan made under part J’’ after 

14 ‘‘or 428H’’; or 

15 (ii) in paragraph (2)— 

16 (I) by striking ‘‘A loan’’ and in17 serting the following: 

18 ‘‘(A) LOANS MADE UNDER SECTION

19 428C.—A loan’’; and 

20 (II) by adding at the end the fol21 lowing new subparagraph: 

22 ‘‘(B) IDEA CONSOLIDATION LOAN.—A 

23 loan amount for an IDEA Consolidation Loan 

24 may be a qualified loan amount for purposes of 

25 this subsection only to the extent that such loan 

26 amount was used to repay a Federal Direct 


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1 Stafford Loan, a Federal Direct Consolidation 

2 Loan, a Federal Direct Unsubsidized Stafford 

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

4 or 428H.’’. 

5 (2) LOAN CANCELLATION FOR TEACHERS.— 

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

7 amended— 

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

9 an IDEA loan made under part J’’ after 

10 ‘‘under this part’’; and 

11 (B) in subsection (c)— 

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

13 Federal Direct Unsubsidized Stafford 

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

15 Unsubsidized Stafford Loan, or an IDEA 

16 loan made under part J’’; and 

17 (ii) in paragraph (2)— 

18 (I) by striking ‘‘A loan’’ and in19 serting the following: 

20 ‘‘(A) FEDERAL DIRECT CONSOLIDATION

21 LOAN.—A loan’’; and 

22 (II) by adding at the end the fol23 lowing new subparagraph: 

24 ‘‘(B) IDEA CONSOLIDATION LOAN.—A 

25 loan amount for an IDEA Consolidation Loan 


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1 may be a qualified loan amount for purposes of 

2 this subsection only to the extent that such loan 

3 amount was used to repay a Federal Direct 

4 Stafford Loan, a Federal Direct Consolidation 

5 Loan, a Federal Direct Unsubsidized Stafford 

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

7 or 428H.’’. 

8 (b) LOAN FORGIVENESS FOR SERVICE IN AREAS OF

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

10 U.S.C. 1078–11(a)(2)) is amended— 

11 (1) by striking ‘‘and’’ at the end of subpara12 graph (A); 

13 (2) by striking the period at the end of sub14 paragraph (B) and inserting ‘‘; and’’; and 

15 (3) by adding at the end the following new sub16 paragraph: 

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

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

19 (c) LOAN REPAYMENT FOR CIVIL LEGAL ASSIST20 ANCE ATTORNEYS.—Section 428L(b)(2)(A) of such Act 

21 (20 U.S.C. 1078–12(b)(2)(A)) is amended— 

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

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

24 (2) in clause (ii)— 


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

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

3 or 499C’’; 

4 (B) by striking ‘‘or’’ at the end of sub5 clause (II); 

6 (C) by redesignating subclause (III) as 

7 subclause (IV); and 

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

9 following: 

10 ‘‘(III) a Federal Direct Consoli11 dation Loan or a loan made under 

12 section 428C, in the case of a loan 

13 made under section 499C; or’’. 

14 (d) MASTER PROMISSORY NOTE.—Section 

15 432(m)(1)(D) of such Act (20 U.S.C. 1082(m)(1)(D)) is 

16 amended— 

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

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

19 and part J’’; and 

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

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

22 part J’’. 

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

24 1087f) is amended— 

25 (1) in subsection (a)— 


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

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

3 part or part J’’; and 

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

5 J’’ after ‘‘this part’’; and 

6 (2) in subsection (b)— 

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

8 program under part J’’ after ‘‘(or their par9 ents)’’; 

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

11 J’’ after ‘‘this part’’; 

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

13 J’’ after ‘‘this part’’; and 

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

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

16 (f) FUNDS FOR ADMINISTRATIVE EXPENSES.—Sec17 tion 458(a)(3) of such Act (20 U.S.C. 1087h(a)(3)) is 

18 amended— 

19 (1) by striking ‘‘this part and part B’’ and in20 serting ‘‘this part, part B, and part J’’; and 

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

22 following: ‘‘and part J’’. 

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

24 (20 U.S.C. 1091) is amended— 

25 (1) in subsection (b)— 


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

2 and inserting ‘‘, D, or E’’; and 

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

4 E’’ and inserting ‘‘E, or J’’; 

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

6 inserting ‘‘E, and J’’; 

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

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

9 J’’; and 

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

11 inserting ‘‘E, and J’’. 

12 (h) INSTITUTIONAL AND FINANCIAL ASSISTANCE IN13 FORMATION FOR STUDENTS.—Section 485 of such Act 

14 (20 U.S.C. 1092) is amended— 

15 (1) in subsection (a)— 

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

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

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

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

20 ‘‘Loan) or part J’’; 

21 (2) in subsection (b)— 

22 (A) in paragraph (1)(A)— 

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

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

25 ‘‘part E’’; and 


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1 (ii) in clause (vii)— 

2 (I) by inserting ‘‘or an IDEA 

3 Consolidation Loan’’ after ‘‘Federal 

4 Direct Consolidation Loan’’; and 

5 (II) by striking ‘‘and E’’ and in6 serting ‘‘E, and J’’; and 

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

8 E’’ and inserting ‘‘E, or J’’; and 

9 (3) in subsection (l)(1)— 

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

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

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

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

14 D’’ and inserting ‘‘, D, or J’’. 

15 SEC. 5. NATIONAL DIRECTORY OF NEW HIRES. 

16 Section 435(i) of the Social Security Act (42 U.S.C. 

17 653(i)) is amended by adding at the end the following new 

18 paragraph: 

19 ‘‘(5) SENDING NOTICE TO BORROWERS OF CER20 TAIN STUDENT LOANS.—The Secretary of Education 

21 shall have access to the information in the National 

22 Directory of New Hires for purposes of, on at least 

23 a monthly basis— 

24 ‘‘(A) determining when individuals with an 

25 IDEA Loan or IDEA Consolidation Loan made 


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1 under part J of title IV of the Higher Edu2 cation Act of 1965 in repayment status are 

3 hired by employers who are making payments 

4 of wages to such individuals; and 

5 ‘‘(B) sending a notice to each such indi6 vidual to remind such individual that— 

7 ‘‘(i) the individual has 1 or more loan 

8 described in subparagraph (A) in repay9 ment status; 

10 ‘‘(ii) the individual is responsible for 

11 providing accurate information to the indi12 vidual’s employer to ensure that the em13 ployer will deduct and withhold upon such 

14 wages amounts to repay such loans in ac15 cordance with section 499D(b) of the 

16 Earnings Contingent Education Loans Act 

17 of 2015; and 

18 ‘‘(iii) failure to provide such accurate 

19 information will likely result in significant 

20 penalties, default, or collections pro21 ceedings.’’. 

22 SEC. 6. WITHHELD AMOUNTS INCLUDED ON W–2. 

23 (a) IN GENERAL.—Subsection (a) of section 6051 of 

24 the Internal Revenue Code of 1986 is amended by striking 

25 ‘‘and’’ at the end of paragraph (13), by striking the period 


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1 at the end of paragraph (14) and inserting ‘‘, and’’, and 

2 by inserting after paragraph (14) the following new para3 graph: 

4 ‘‘(15) the total amount deducted and withheld 

5 under the IDEA Loan Repayment Program estab6 lished under chapter 1 of subpart 2 of part J of title 

7 IV of the Higher Education Act of 1965.’’. 

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

9 this section shall apply to amounts deducted and withheld 

10 after the date of the enactment of this Act. 

11 SEC. 7. 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. 8. 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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