I 

116TH CONGRESS 

1ST SESSION H. R. 3102 

To amend the Higher Education Act of 1965 to improve loans, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2019 

Mr. DEFAZIO introduced the following bill; which was referred to the Committee on Education and Labor, and in addition to the Committees on 

the Judiciary, and 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 amend the Higher Education Act of 1965 to improve 

loans, and for other purposes. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Helping Individuals Get a Higher Education while Re6 ducing Education Debt Act’’ or the ‘‘HIGHER ED Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—REINSTATEMENT OF AUTHORITY TO MAKE FEDERAL 

DIRECT STAFFORD LOANS TO GRADUATE AND PROFESSIONAL 

STUDENTS; DISCHARGING STUDENT LOANS IN BANKRUPTCY 

Sec. 101. Reinstatement of authority to make Federal Direct Stafford Loans 

to graduate and professional students. 

Sec. 102. Discharge student loans in bankruptcy. 

TITLE II—REFINANCING PROGRAMS 

Sec. 201. Program authority. 

Sec. 202. Refinancing program. 

Sec. 203. Income-based repayment. 

TITLE III—LOAN FORGIVENESS 

Sec. 301. Loan forgiveness for adjunct faculty. 

Sec. 302. Amendments to the public service loan forgiveness program. 

Sec. 303. Transition to improved public service loan forgiveness program. 

TITLE IV—INCOME-DRIVEN REPAYMENT PLANS 

Sec. 401. Income-based repayment plan. 

Sec. 402. Termination of certain repayment plan options. 

Sec. 403. Notification and automatic enrollment procedures. 

Sec. 404. Automatic recertification of income. 

Sec. 405. Study and procedures on determining family size. 

Sec. 406. Disclosure of tax return information to carry out certain higher education loan programs. 


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1 TITLE I—REINSTATEMENT OF 

2 AUTHORITY TO MAKE FED3 ERAL DIRECT STAFFORD 

4 LOANS TO GRADUATE AND 

5 PROFESSIONAL STUDENTS; 

6 DISCHARGING STUDENT 

7 LOANS IN BANKRUPTCY 

8 SEC. 101. REINSTATEMENT OF AUTHORITY TO MAKE FED9 ERAL DIRECT STAFFORD LOANS TO GRAD10 UATE AND PROFESSIONAL STUDENTS. 

11 (a) AMENDMENTS.—Section 455(a)(3) of the Higher 

12 Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is amend13 ed— 

14 (1) in the paragraph heading, by inserting 

15 ‘‘TEMPORARY’’ before ‘‘TERMINATION’’; and 

16 (2) in subparagraph (A), in the matter pre17 ceding clause (i), by inserting ‘‘, and ending on or 

18 before June 30, 2019’’ after ‘‘2012’’. 

19 (b) INAPPLICABILITY OF RULEMAKING REQUIRE20 MENTS.—Sections 482(c) and 492 of the Higher Edu21 cation Act of 1965 (20 U.S.C. 1089(c); 1098a) shall not 

22 apply to the regulations under this section. 

23 SEC. 102. DISCHARGE STUDENT LOANS IN BANKRUPTCY. 

24 (a) EXCEPTION TO DISCHARGE.—Section 523(a) of 

25 title 11, United States Code, is amended— 


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1 (1) by striking paragraph (8); and 

2 (2) by redesignating paragraphs (9) through 

3 (14B) as paragraphs (8) through (14A), respec4 tively. 

5 (b) CONFORMING AMENDMENTS.—Title 11, United 

6 States Code, is amended— 

7 (1) in section 704(c)(1)(C)(iv)(I) by striking 

8 ‘‘(14A)’’ and inserting ‘‘(14)’’; 

9 (2) in section 1106(c)(1)(C)(iv)(I) by striking 

10 ‘‘(14A)’’ and inserting ‘‘(14)’’; 

11 (3) in section 1202(c)(1)(C)(iv)(I) by striking 

12 ‘‘(14A)’’ and inserting ‘‘(14)’’; and 

13 (4) in section 1328(a)(2) by striking ‘‘(8), or 

14 (9)’’ and inserting ‘‘or (8)’’. 

15 (c) EFFECTIVE DATE; APPLICATION OF AMEND16 MENTS.— 

17 (1) EFFECTIVE DATE.—Except as provided in 

18 subsection (b), this section and the amendments 

19 made by this section shall take effect on the date of 

20 the enactment of this Act. 

21 (2) APPLICATION OF AMENDMENTS.—The 

22 amendments made by this section shall apply only 

23 with respect to cases commenced under title 11 of 

24 the United States Code on or after the date of the 

25 enactment of this Act. 


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1 TITLE II—REFINANCING 

2 PROGRAMS 

3 SEC. 201. PROGRAM AUTHORITY. 

4 Section 451(a) of the Higher Education Act of 1965 

5 (20 U.S.C. 1087a(a)) is amended— 

6 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

7 and 

8 (2) by inserting ‘‘; and (3) to make loans under 

9 section 460A and section 460B’’ after ‘‘section 

10 459A’’. 

11 SEC. 202. REFINANCING PROGRAM. 

12 Part D of title IV of the Higher Education Act of 

13 1965 (20 U.S.C. 1087a et seq.) is amended by adding at 

14 the end the following: 

15 ‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 

16 LOANS. 

17 ‘‘(a) IN GENERAL.—Beginning not later than 180 

18 days after the date of enactment of the Helping Individ19 uals Get a Higher Education while Reducing Education 

20 Debt Act, the Secretary shall establish a program under 

21 which the Secretary, upon the receipt of an application 

22 from a qualified borrower, makes a loan under this part, 

23 in accordance with the provisions of this section, in order 

24 to permit the borrower to obtain the interest rate provided 

25 under subsection (c). 


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1 ‘‘(b) REFINANCING DIRECT LOANS.— 

2 ‘‘(1) FEDERAL DIRECT LOANS.—Upon applica3 tion of a qualified borrower, the Secretary shall 

4 repay a Federal Direct Stafford Loan, a Federal Di5 rect Unsubsidized Stafford Loan, a Federal Direct 

6 PLUS Loan, or a Federal Direct Consolidation 

7 Loan of the qualified borrower, for which the first 

8 disbursement was made, or the application for the 

9 consolidation loan was received, before July 1, 2019, 

10 with the proceeds of a refinanced Federal Direct 

11 Stafford Loan, a Federal Direct Unsubsidized Staf12 ford Loan, a Federal Direct PLUS Loan, or a Fed13 eral Direct Consolidation Loan, respectively, issued 

14 to the borrower in an amount equal to the sum of 

15 the unpaid principal, accrued unpaid interest, and 

16 late charges of the original loan. 

17 ‘‘(2) REFINANCING FFEL PROGRAM LOANS AS

18 REFINANCED FEDERAL DIRECT LOANS.—Upon ap19 plication of a qualified borrower for any loan that 

20 was made, insured, or guaranteed under part B and 

21 for which the first disbursement was made, or the 

22 application for the consolidation loan was received, 

23 before July 1, 2010, the Secretary shall make a loan 

24 under this part, in an amount equal to the sum of 

25 the unpaid principal, accrued unpaid interest, and 


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1 late charges of the original loan to the borrower in 

2 accordance with the following: 

3 ‘‘(A) The Secretary shall pay the proceeds 

4 of such loan to the eligible lender of the loan 

5 made, insured, or guaranteed under part B, in 

6 order to discharge the borrower from any re7 maining obligation to the lender with respect to 

8 the original loan. 

9 ‘‘(B) A loan made under this section that 

10 was originally— 

11 ‘‘(i) a loan originally made, insured, 

12 or guaranteed under section 428 shall be a 

13 Federal Direct Stafford Loan; 

14 ‘‘(ii) a loan originally made, insured, 

15 or guaranteed under section 428B shall be 

16 a Federal Direct PLUS Loan; 

17 ‘‘(iii) a loan originally made, insured, 

18 or guaranteed under section 428H shall be 

19 a Federal Direct Unsubsidized Stafford 

20 Loan; and 

21 ‘‘(iv) a loan originally made, insured, 

22 or guaranteed under section 428C shall be 

23 a Federal Direct Consolidation Loan. 


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1 ‘‘(C) The interest rate for each loan made 

2 by the Secretary under this paragraph shall be 

3 the rate provided under subsection (c). 

4 ‘‘(c) INTEREST RATES.— 

5 ‘‘(1) IN GENERAL.—The interest rate for the 

6 refinanced Federal Direct Stafford Loans, Federal 

7 Direct Unsubsidized Stafford Loans, Federal Direct 

8 PLUS Loans, and Federal Direct Consolidation 

9 Loans, shall be a rate equal to— 

10 ‘‘(A) in any case where the original loan 

11 was a loan under section 428 or 428H, a Fed12 eral Direct Stafford loan, or a Federal Direct 

13 Unsubsidized Stafford Loan, that was issued to 

14 an undergraduate student, a rate equal to the 

15 rate for Federal Direct Stafford Loans and 

16 Federal Direct Unsubsidized Stafford Loans 

17 issued to undergraduate students for the 12- 

18 month period beginning on July 1, 2016, and 

19 ending on June 30, 2017; 

20 ‘‘(B) in any case where the original loan 

21 was a loan under section 428 or 428H, a Fed22 eral Direct Stafford Loan, or a Federal Direct 

23 Unsubsidized Stafford Loan, that was issued to 

24 a graduate or professional student, a rate equal 

25 to the rate for Federal Direct Unsubsidized 


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1 Stafford Loans issued to graduate or profes2 sional students for the 12-month period begin3 ning on July 1, 2016, and ending on June 30, 

4 2017; 

5 ‘‘(C) in any case where the original loan 

6 was a loan under section 428B or a Federal Di7 rect PLUS Loan, a rate equal to the rate for 

8 Federal Direct PLUS Loans for the 12-month 

9 period beginning on July 1, 2016, and ending 

10 on June 30, 2017; and 

11 ‘‘(D) in any case where the original loan 

12 was a loan under section 428C or a Federal Di13 rect Consolidation Loan, a rate calculated in ac14 cordance with paragraph (2). 

15 ‘‘(2) INTEREST RATES FOR CONSOLIDATION

16 LOANS.— 

17 ‘‘(A) METHOD OF CALCULATION.—In 

18 order to determine the interest rate for any re19 financed Federal Direct Consolidation Loan 

20 under paragraph (1)(D), the Secretary shall— 

21 ‘‘(i) determine each of the component 

22 loans that were originally consolidated in 

23 the loan under section 428C or the Federal 

24 Direct Consolidation Loan, and calculate 

25 the proportion of the unpaid principal balVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 ance of the loan under section 428C or the 

2 Federal Direct Consolidation Loan that 

3 each component loan represents; 

4 ‘‘(ii) use the proportions determined 

5 in accordance with clause (i) and the inter6 est rate applicable for each component 

7 loan, as determined under subparagraph 

8 (B), to calculate the weighted average of 

9 the interest rates on the loans consolidated 

10 into the loan under section 428C or the 

11 Federal Direct Consolidation Loan; and 

12 ‘‘(iii) apply the weighted average cal13 culated under clause (ii) as the interest 

14 rate for the refinanced Federal Direct Con15 solidation Loan. 

16 ‘‘(B) INTEREST RATES FOR COMPONENT

17 LOANS.—The interest rates for the component 

18 loans of a loan made under section 428C or a 

19 Federal Direct Consolidation Loan shall be the 

20 following: 

21 ‘‘(i) The interest rate for any loan 

22 under section 428 or 428H, Federal Direct 

23 Stafford Loan, or Federal Direct Unsub24 sidized Stafford Loan issued to an underVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 graduate student shall be a rate equal to 

2 the lesser of— 

3 ‘‘(I) the rate for Federal Direct 

4 Stafford Loans and Federal Direct 

5 Unsubsidized Stafford Loans issued 

6 to undergraduate students for the 12- 

7 month period beginning on July 1, 

8 2016, and ending on June 30, 2017; 

9 or 

10 ‘‘(II) the original interest rate of 

11 the component loan. 

12 ‘‘(ii) The interest rate for any loan 

13 under section 428 or 428H, Federal Direct 

14 Stafford Loan, or Federal Direct Unsub15 sidized Stafford Loan issued to a graduate 

16 or professional student shall be a rate 

17 equal to the lesser of— 

18 ‘‘(I) the rate for Federal Direct 

19 Unsubsidized Stafford Loans issued 

20 to graduate or professional students 

21 for the 12-month period beginning on 

22 July 1, 2016, and ending on June 30, 

23 2017; or 

24 ‘‘(II) the original interest rate of 

25 the component loan. 


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1 ‘‘(iii) The interest rate for any loan 

2 under section 428B or Federal Direct 

3 PLUS Loan shall be a rate equal to the 

4 lesser of— 

5 ‘‘(I) the rate for Federal Direct 

6 PLUS Loans for the 12-month period 

7 beginning on July 1, 2016, and end8 ing on June 30, 2017; or 

9 ‘‘(II) the original interest rate of 

10 the component loan. 

11 ‘‘(iv) The interest rate for any compo12 nent loan that is a loan under section 

13 428C or a Federal Direct Consolidation 

14 Loan shall be the weighted average of the 

15 interest rates that would apply under this 

16 subparagraph for each loan comprising the 

17 component consolidation loan. 

18 ‘‘(v) The interest rate for any eligible 

19 loan that is a component of a loan made 

20 under section 428C or a Federal Direct 

21 Consolidation Loan and is not described in 

22 clauses (i) through (iv) shall be the inter23 est rate on the original component loan. 

24 ‘‘(3) FIXED RATE.—The applicable rate of in25 terest determined under paragraph (1) for a refiVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 nanced loan under this section shall be fixed for the 

2 period of the loan. 

3 ‘‘(d) TERMS AND CONDITIONS OF LOANS.— 

4 ‘‘(1) IN GENERAL.—A loan that is refinanced 

5 under this section shall have the same terms and 

6 conditions as the original loan, except as otherwise 

7 provided in this section. 

8 ‘‘(2) NO AUTOMATIC EXTENSION OF REPAY9 MENT PERIOD.—Refinancing a loan under this sec10 tion shall not result in the extension of the duration 

11 of the repayment period of the loan, and the bor12 rower shall retain the same repayment term that 

13 was in effect on the original loan. Nothing in this 

14 paragraph shall be construed to prevent a borrower 

15 from electing a different repayment plan at any time 

16 in accordance with section 455(d)(3). 

17 ‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 

18 ‘‘(1) IN GENERAL.—For purposes of this sec19 tion, the term ‘qualified borrower’ means a bor20 rower— 

21 ‘‘(A) of a loan under this part or part B 

22 for which the first disbursement was made, or 

23 the application for a consolidation loan was re24 ceived, before July 1, 2019; and 


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1 ‘‘(B) who meets the eligibility requirements 

2 based on income or debt-to-income ratio estab3 lished by the Secretary. 

4 ‘‘(2) INCOME REQUIREMENTS.—Not later than 

5 180 days after the date of enactment of the Helping 

6 Individuals Get a Higher Education while Reducing 

7 Education Debt Act, the Secretary shall establish 

8 eligibility requirements based on income or debt-to9 income ratio that take into consideration providing 

10 access to refinancing under this section for bor11 rowers with the greatest financial need. 

12 ‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 

13 in coordination with the Director of the Bureau of Con14 sumer Financial Protection, shall undertake a campaign 

15 to alert borrowers of loans that are eligible for refinancing 

16 under this section that the borrowers are eligible to apply 

17 for such refinancing. The campaign shall include the fol18 lowing activities: 

19 ‘‘(1) Developing consumer information mate20 rials about the availability of Federal student loan 

21 refinancing. 

22 ‘‘(2) Requiring servicers of loans under this 

23 part or part B to provide such consumer information 

24 to borrowers in a manner determined appropriate by 


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1 the Secretary, in consultation with the Director of 

2 the Bureau of Consumer Financial Protection. 

3 ‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 

4 PROGRAM. 

5 ‘‘(a) DEFINITIONS.—In this section: 

6 ‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 

7 The term ‘eligible private education loan’ means a 

8 private education loan, as defined in section 140(a) 

9 of the Truth in Lending Act (15 U.S.C. 1650(a)), 

10 that— 

11 ‘‘(A) was disbursed to the borrower before 

12 July 1, 2019; and 

13 ‘‘(B) was for the borrower’s own postsec14 ondary educational expenses for an eligible pro15 gram at an institution of higher education par16 ticipating in the loan program under this part, 

17 as of the date that the loan was disbursed. 

18 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

19 LOAN.—The term ‘Federal Direct Refinanced Pri20 vate Loan’ means a loan issued under subsection 

21 (b)(1). 

22 ‘‘(3) PRIVATE EDUCATIONAL LENDER.—The 

23 term ‘private educational lender’ has the meaning 

24 given the term in section 140(a) of the Truth in 

25 Lending Act (15 U.S.C. 1650(a)). 


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1 ‘‘(4) QUALIFIED BORROWER.—The term ‘quali2 fied borrower’ means an individual who— 

3 ‘‘(A) has an eligible private education loan; 

4 ‘‘(B) has been current on payments on the 

5 eligible private education loan for the 6 months 

6 prior to the date of the qualified borrower’s ap7 plication for refinancing under this section, and 

8 is in good standing on the loan at the time of 

9 such application; 

10 ‘‘(C) is not in default on the eligible pri11 vate education loan or on any loan made, in12 sured, or guaranteed under this part or part B 

13 or E; and 

14 ‘‘(D) meets the eligibility requirements de15 scribed in subsection (b)(2). 

16 ‘‘(b) PROGRAM AUTHORIZED.— 

17 ‘‘(1) IN GENERAL.—The Secretary, in consulta18 tion with the Secretary of the Treasury, shall carry 

19 out a program under which the Secretary, upon ap20 plication by a qualified borrower who has an eligible 

21 private education loan, shall issue such borrower a 

22 loan under this part in accordance with the fol23 lowing: 

24 ‘‘(A) The loan issued under this program 

25 shall be in an amount equal to the sum of the 


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1 unpaid principal, accrued unpaid interest, and 

2 late charges of the private education loan. 

3 ‘‘(B) The Secretary shall pay the proceeds 

4 of the loan issued under this program to the 

5 private educational lender of the private edu6 cation loan, in order to discharge the qualified 

7 borrower from any remaining obligation to the 

8 lender with respect to the original loan. 

9 ‘‘(C) The Secretary shall require that the 

10 qualified borrower undergo loan counseling that 

11 provides all of the information and counseling 

12 required under clauses (i) through (viii) of sec13 tion 485(b)(1)(A) before the loan is refinanced 

14 in accordance with this section, and before the 

15 proceeds of such loan are paid to the private 

16 educational lender. 

17 ‘‘(D) The Secretary shall issue the loan as 

18 a Federal Direct Refinanced Private Loan, 

19 which shall have the same terms, conditions, 

20 and benefits as a Federal Direct Unsubsidized 

21 Stafford Loan, except as otherwise provided in 

22 this section. 

23 ‘‘(2) BORROWER ELIGIBILITY.—Not later than 

24 180 days after the date of enactment of the Helping 

25 Individuals Get a Higher Education while Reducing 


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1 Education Debt Act, the Secretary, in consultation 

2 with the Secretary of the Treasury and the Director 

3 of the Bureau of Consumer Financial Protection, 

4 shall establish eligibility requirements— 

5 ‘‘(A) based on income or debt-to-income 

6 ratio that take into consideration providing ac7 cess to refinancing under this section for bor8 rowers with the greatest financial need; 

9 ‘‘(B) to ensure eligibility only for bor10 rowers in good standing; 

11 ‘‘(C) to minimize inequities between Fed12 eral Direct Refinanced Private Loans and other 

13 Federal student loans; 

14 ‘‘(D) to preclude windfall profits for pri15 vate educational lenders; and 

16 ‘‘(E) to ensure full access to the program 

17 authorized in this subsection for borrowers with 

18 private loans who otherwise meet the criteria 

19 established in accordance with subparagraphs 

20 (A) and (B). 

21 ‘‘(c) INTEREST RATE.— 

22 ‘‘(1) IN GENERAL.—The interest rate for a 

23 Federal Direct Refinanced Private Loan is— 

24 ‘‘(A) in the case of a Federal Direct Refi25 nanced Private Loan for a private education 


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1 loan originally issued for undergraduate post2 secondary educational expenses, a rate equal to 

3 the rate for Federal Direct Stafford Loans and 

4 Federal Direct Unsubsidized Stafford Loans 

5 issued to undergraduate students for the 12- 

6 month period beginning on July 1, 2016, and 

7 ending on June 30, 2017; and 

8 ‘‘(B) in the case of a Federal Direct Refi9 nanced Private Loan for a private education 

10 loan originally issued for graduate or profes11 sional degree postsecondary educational ex12 penses, a rate equal to the rate for Federal Di13 rect Unsubsidized Stafford Loans issued to 

14 graduate or professional students for the 12- 

15 month period beginning on July 1, 2016, and 

16 ending on June 30, 2017. 

17 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD18 UATE STUDY LOANS.—If a Federal Direct Refi19 nanced Private Loan is for a private education loan 

20 originally issued for both undergraduate and grad21 uate or professional postsecondary educational ex22 penses, the interest rate shall be a rate equal to the 

23 rate for Federal Direct PLUS Loans for the 12- 

24 month period beginning on July 1, 2016, and ending 

25 on June 30, 2017. 


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1 ‘‘(3) FIXED RATE.—The applicable rate of in2 terest determined under this subsection for a Fed3 eral Direct Refinanced Private Loan shall be fixed 

4 for the period of the loan. 

5 ‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 

6 amount of a Federal Direct Refinanced Private Loan, or 

7 a Federal Direct Consolidated Loan to the extent such 

8 loan was used to repay a Federal Direct Refinanced Pri9 vate Loan, shall not be included in calculating a bor10 rower’s annual or aggregate loan limits under section 428 

11 or 428H. 

12 ‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE13 PAYMENT.—Notwithstanding sections 428K(a)(2)(A), 

14 428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 

15 Refinanced Private Loan, or any Federal Direct Consoli16 dation Loan to the extent such loan was used to repay 

17 a Federal Direct Refinanced Private Loan, shall not be 

18 eligible for any loan repayment or loan forgiveness pro19 gram under section 428K, 428L, or 460 or for the repay20 ment plan for public service employees under section 

21 455(m). 

22 ‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING

23 REQUIREMENT.— 

24 ‘‘(1) REPORTING REQUIRED.—Not later than 

25 180 days after the date of enactment of the Helping 


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1 Individuals Get a Higher Education while Reducing 

2 Education Debt Act, the Secretary, in consultation 

3 with the Secretary of the Treasury and the Director 

4 of the Bureau of Consumer Financial Protection, 

5 shall establish a requirement that private edu6 cational lenders report the data described in para7 graph (2) to the Secretary, to Congress, to the Sec8 retary of the Treasury, and to the Director of the 

9 Bureau of Consumer Financial Protection, in order 

10 to allow for an assessment of the private education 

11 loan market. 

12 ‘‘(2) CONTENTS OF REPORTING.—The data 

13 that private educational lenders shall report in ac14 cordance with paragraph (1) shall include each of 

15 the following about private education loans (as de16 fined in section 140(a) of the Truth in Lending Act 

17 (15 U.S.C. 1650(a))): 

18 ‘‘(A) The total amount of private education 

19 loan debt the lender holds. 

20 ‘‘(B) The total number of private edu21 cation loan borrowers the lender serves. 

22 ‘‘(C) The average interest rate on the out23 standing private education loan debt held by the 

24 lender. 


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1 ‘‘(D) The proportion of private education 

2 loan borrowers who are in default on a loan 

3 held by the lender. 

4 ‘‘(E) The proportion of the outstanding 

5 private education loan volume held by the lend6 er that is in default. 

7 ‘‘(F) The proportions of outstanding pri8 vate education loan borrowers who are 30, 60, 

9 and 90 days delinquent. 

10 ‘‘(G) The proportions of outstanding pri11 vate education loan volume that is 30, 60, and 

12 90 days delinquent. 

13 ‘‘(g) NOTIFICATION TO BORROWERS.—The Sec14 retary, in coordination with the Secretary of the Treasury 

15 and the Director of the Bureau of Consumer Financial 

16 Protection, shall undertake a campaign to alert borrowers 

17 about the availability of private student loan refinancing 

18 under this section.’’. 

19 SEC. 203. INCOME-BASED REPAYMENT. 

20 Section 493C of the Higher Education Act of 1965 

21 (20 U.S.C. 1098e) is amended by adding at the end the 

22 following: 

23 ‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 

24 ‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL

25 LOANS.—In calculating the period of time during 


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1 which a borrower of a loan that is refinanced under 

2 section 460A has made monthly payments for pur3 poses of subsection (b)(7), the Secretary shall deem 

4 the period to include all monthly payments made for 

5 the original loan, and all monthly payments made 

6 for the refinanced loan, that otherwise meet the re7 quirements of this section. 

8 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

9 LOANS.—In calculating the period of time during 

10 which a borrower of a Federal Direct Refinanced 

11 Private Loan under section 460B has made monthly 

12 payments for purposes of subsection (b)(7), the Sec13 retary shall include only payments— 

14 ‘‘(A) that are made after the date of the 

15 issuance of the Federal Direct Refinanced Pri16 vate Loan; and 

17 ‘‘(B) that otherwise meet the requirements 

18 of this section.’’. 

19 TITLE III—LOAN FORGIVENESS 

20 SEC. 301. LOAN FORGIVENESS FOR ADJUNCT FACULTY. 

21 Section 455(m)(3)(B)(ii) of the Higher Education 

22 Act of 1965 (20 U.S.C. 1087e(m)(3)(B)(ii)) is amended— 

23 (1) by striking ‘‘teaching as’’ and inserting the 

24 following: ‘‘teaching— 

25 ‘‘(I) as’’; 


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1 (2) by striking ‘‘, foreign language faculty, and 

2 part-time faculty at community colleges), as deter3 mined by the Secretary.’’ and inserting ‘‘and foreign 

4 language faculty), as determined by the Secretary; 

5 or’’; and 

6 (3) by adding at the end the following: 

7 ‘‘(II) as a part-time faculty mem8 ber or instructor who— 

9 ‘‘(aa) teaches not less than 

10 1 course at an institution of 

11 higher education (as defined in 

12 section 101(a)), a postsecondary 

13 vocational institution (as defined 

14 in section 102(c)), or a Tribal 

15 College or University (as defined 

16 in section 316(b)); and 

17 ‘‘(bb) is not employed on a 

18 full-time basis by any other em19 ployer.’’. 

20 SEC. 302. AMENDMENTS TO THE PUBLIC SERVICE LOAN 

21 FORGIVENESS PROGRAM. 

22 (a) PUBLIC SERVICE LOAN FORGIVENESS.— 

23 (1) IN GENERAL.—Section 455(m) of the High24 er Education Act of 1965 (20 U.S.C. 1087e(m)) is 

25 amended to read as follows: 


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1 ‘‘(m) LOAN FORGIVENESS FOR FEDERAL STUDENT

2 LOAN BORROWERS EMPLOYED IN PUBLIC SERVICE.— 

3 ‘‘(1) DEFINITIONS.—In this subsection: 

4 ‘‘(A) CERTIFICATION OF EMPLOYMENT.— 

5 The term ‘certification of employment’ means a 

6 certification of employment under paragraph 

7 (4). 

8 ‘‘(B) FULL-TIME.—The term ‘full-time’, 

9 when used with respect to employment, means 

10 employment— 

11 ‘‘(i) with a qualifying employer for not 

12 less than 30 hours per week; or 

13 ‘‘(ii) with 2 or more qualifying em14 ployers for a total of not less than 30 

15 hours per week. 

16 ‘‘(C) QUALIFYING EMPLOYER.—The term 

17 ‘qualifying employer’ means— 

18 ‘‘(i) a Federal, State, local, or Tribal 

19 government organization or instrumen20 tality, including any organization estab21 lished in law as a body politic; 

22 ‘‘(ii) an organization that is described 

23 in section 501(c)(3) of the Internal Rev24 enue Code of 1986, and exempt from taxVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 ation under section 501(a) of such Code; 

2 or 

3 ‘‘(iii) an organization— 

4 ‘‘(I) not described in clause (ii) 

5 that is a not-for-profit organization 

6 under other Federal or State law; 

7 ‘‘(II) that is not a labor organi8 zation or partisan political organiza9 tion; and 

10 ‘‘(III) whose purpose is to di11 rectly provide any of the following 

12 services, as defined in regulations pro13 mulgated by the Secretary: 

14 ‘‘(aa) Emergency manage15 ment and disaster response. 

16 ‘‘(bb) Military service. 

17 ‘‘(cc) Public safety services, 

18 including fire prevention and 

19 suppression, rescue services, haz20 ardous materials response, ambu21 lance services, and emergency 

22 medical services. 

23 ‘‘(dd) Law enforcement. 

24 ‘‘(ee) Public health, includ25 ing service through organizations 


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1 that employ nurses, nurse practi2 tioners, nurses in a clinical set3 ting, or professionals engaged in 

4 health care practitioner occupa5 tions and health care support oc6 cupations, as such terms are de7 fined by the Bureau of Labor 

8 Statistics. 

9 ‘‘(ff) Public education, in10 cluding the provision of edu11 cational enrichment or support 

12 directly to students or their fami13 lies, employment with a Tribal 

14 College or University (as defined 

15 in section 316(b)), and employ16 ment as an adjunct faculty mem17 ber or instructor for an edu18 cational institution. 

19 ‘‘(gg) Public interest law 

20 services, including prosecution or 

21 public defense or legal advocacy 

22 on behalf of low-income commu23 nities at a not-for-profit organi24 zation. 


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1 ‘‘(hh) Early childhood edu2 cation, including licensed or regu3 lated childcare, Head Start pro4 grams, and State funded pre5 kindergarten. 

6 ‘‘(ii) Public service for indi7 viduals with disabilities. 

8 ‘‘(jj) Public service for the 

9 elderly. 

10 ‘‘(kk) Public and school11 based library sciences. 

12 ‘‘(ll) School-based services, 

13 including the provision of non14 educational enrichment or sup15 port directly to students or their 

16 families. 

17 ‘‘(mm) Social work, includ18 ing child or family services. 

19 ‘‘(D) QUALIFYING MONTHLY PAYMENT OB20 LIGATION.—The term ‘qualifying monthly pay21 ment obligation’ means a monthly payment obli22 gation due on a loan under the repayment plan 

23 of the borrower— 


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1 ‘‘(i) that was satisfied by the borrower 

2 through a payment made after October 1, 

3 2007; and 

4 ‘‘(ii) attributable to a period during 

5 which the borrower was employed full-time 

6 by a qualifying employer. 

7 ‘‘(E) LOAN MADE UNDER THIS PART.— 

8 The term ‘loan made under this part’ includes 

9 a Federal Direct Stafford Loan, Federal Direct 

10 PLUS Loan, Federal Direct Unsubsidized Staf11 ford Loan, or Federal Direct Consolidation 

12 Loan refinanced under section 460A. 

13 ‘‘(2) IN GENERAL.—Beginning on July 1, 2019, 

14 the Secretary shall forgive the applicable percentage 

15 described in paragraph (3) of the balance of prin16 cipal and interest due on a loan made under this 

17 part for a borrower who has satisfied 60 or 120 

18 qualifying monthly payment obligations on a loan 

19 made under this part and submitted any certifi20 cation of employment required under this subsection. 

21 ‘‘(3) LOAN FORGIVENESS AFTER 60 PAYMENT

22 OBLIGATIONS AND 120 PAYMENT OBLIGATIONS.— 

23 The applicable percentages under this paragraph 

24 shall be— 


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1 ‘‘(A) in the case of a borrower who satis2 fies 60 qualifying monthly payment obligations 

3 on a loan made under this part that is not in 

4 default (as defined in section 435), 50 percent 

5 of the total amount of the balance of principal 

6 and interest due on such loan as of the date of 

7 the loan forgiveness; and 

8 ‘‘(B) in the case of a borrower who satis9 fies 120 qualifying monthly payment obligations 

10 on a loan made under this part that is not in 

11 default, 100 percent of the balance of principal 

12 and interest due on such loan as of the date of 

13 the loan forgiveness. 

14 ‘‘(4) CERTIFICATION OF EMPLOYMENT RE15 QUIREMENTS.— 

16 ‘‘(A) IN GENERAL.—In order to receive 

17 loan forgiveness under this subsection, a bor18 rower of a loan made under this part shall sub19 mit to the Secretary a certification of employ20 ment. 

21 ‘‘(B) CONTENT OF CERTIFICATION.—The 

22 Secretary shall— 

23 ‘‘(i) develop, and make easily acces24 sible, the certification of employment; and 


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1 ‘‘(ii) ensure that the method of certifi2 cation— 

3 ‘‘(I) allows for the employer to 

4 indicate and certify the dates of the 

5 borrower’s employment; and 

6 ‘‘(II) provides electronic signa7 ture options for the employer and for 

8 the borrower. 

9 ‘‘(C) BORROWER ACCESS.—The Secretary 

10 shall ensure that a borrower may submit a cer11 tification of employment to the Secretary elec12 tronically through any information system 

13 through which the Secretary permits borrowers 

14 to take self-service actions with respect to their 

15 loans. 

16 ‘‘(D) EXCEPTION FOR SELF-CERTIFI17 CATION.—The Secretary shall provide a self18 certification option for the certification of em19 ployment for borrowers who have extenuating 

20 circumstances preventing the borrowers from 

21 obtaining the qualifying employer signature and 

22 certification required under subparagraph 

23 (B)(ii), as determined by the Secretary pursu24 ant to rulemaking and including situations 


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1 where an employer is no longer in existence or 

2 refuses to cooperate. 

3 ‘‘(E) PERIODIC REVIEW OF CERTIFICATION

4 OF EMPLOYMENT.—For each borrower of a loan 

5 made under this part who has submitted a cer6 tification of employment, the Secretary shall— 

7 ‘‘(i) by not later than 30 days after 

8 receipt of the certification of employ9 ment— 

10 ‘‘(I) review the certification of 

11 employment and determine the num12 ber of qualifying monthly payment ob13 ligations satisfied on the loan during 

14 the period of employment covered by 

15 the certification of employment; 

16 ‘‘(II) inform the borrower of the 

17 number of qualifying monthly pay18 ment obligations satisfied; and 

19 ‘‘(III) inform the borrower of the 

20 number of remaining qualifying 

21 monthly payment obligations to be 

22 satisfied in order for the borrower to 

23 receive partial loan forgiveness under 

24 paragraph (3)(A), and such number 


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1 needed to receive full loan forgiveness 

2 under paragraph (3)(B); and 

3 ‘‘(ii) periodically, but not less than 

4 twice annually, notify the borrower, using 

5 the most recent calculation of qualifying 

6 monthly payment obligations, of— 

7 ‘‘(I) the number of qualifying 

8 monthly payment obligations satisfied, 

9 as of the date of the notice; 

10 ‘‘(II) the number of remaining 

11 qualifying monthly payment obliga12 tions to be satisfied in order for the 

13 borrower to receive partial loan for14 giveness under paragraph (3)(A), and 

15 such number needed to receive full 

16 loan forgiveness under paragraph 

17 (3)(B); 

18 ‘‘(III) any steps the borrower can 

19 take to convert non-qualifying month20 ly payment obligations into qualifying 

21 monthly payment obligations, includ22 ing the options to provide payments to 

23 satisfy monthly payment obligations 

24 for past public service under para25 graph (5)(C); and 


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1 ‘‘(IV) the dispute resolution proc2 ess for the Secretary’s determination 

3 of qualifying monthly payment obliga4 tions, as described in paragraph (7). 

5 ‘‘(5) QUALIFYING MONTHLY PAYMENT OBLIGA6 TIONS.— 

7 ‘‘(A) IN GENERAL.—For purposes of this 

8 subsection, the number of qualifying monthly 

9 payment obligations satisfied on a loan is the 

10 number of monthly payments, during the period 

11 of employment and based on the repayment 

12 plan selected by the borrower for such period, 

13 that would be satisfied based on applying the 

14 total amount of payments made by the bor15 rower on the loan at any time during such pe16 riod. 

17 ‘‘(B) ADJUSTMENT OF PAYMENT OBLIGA18 TION STATUS.— 

19 ‘‘(i) HOLD HARMLESS AGAINST RET20 ROACTIVE DETERMINATIONS.—If the Sec21 retary has classified a payment obligation 

22 satisfied by a borrower of a loan made 

23 under this part as a qualifying monthly 

24 payment obligation and later determines 

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1 ify, the Secretary shall deem the payment 

2 obligation to be a qualifying monthly pay3 ment obligation to be counted for purposes 

4 of paragraph (2). 

5 ‘‘(ii) EXPLANATION OF NON-QUALI6 FYING PAYMENT OBLIGATION DETERMINA7 TIONS.—If the Secretary determines that 

8 payments made by a borrower of a loan 

9 made under this part for a period of full10 time employment with a qualifying em11 ployer cannot be applied toward the total 

12 number of qualifying monthly payment ob13 ligations for purposes of paragraph (2), 

14 the Secretary shall provide a borrower with 

15 an explanation and allow the borrower to 

16 correct the reason for such determination, 

17 to the extent possible. Such borrower reme18 diation shall include, at a minimum, pro19 viding a borrower with the opportunity to 

20 reimburse the Secretary for any under21 payment. 

22 ‘‘(C) SATISFYING PREVIOUSLY NON-QUALI23 FYING MONTHLY PAYMENT OBLIGATIONS.— 

24 ‘‘(i) IN GENERAL.—A borrower of a 

25 loan made under this part who has a peVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 riod during which the borrower was em2 ployed full-time with a qualifying employer 

3 but did not satisfy one or more qualifying 

4 monthly payment obligations during such 

5 period, such as a borrower who was in 

6 deferment or forbearance, may satisfy one 

7 or more monthly payment obligations of 

8 that period at a later date by paying the 

9 additional amount needed to satisfy the 

10 qualifying monthly payment obligation, in 

11 accordance with a process established by 

12 the Secretary. 

13 ‘‘(ii) DETERMINATION PROCESS.—The 

14 amount of past monthly payment obliga15 tions satisfied by a payment under this 

16 subparagraph for a period of employment 

17 shall be determined using the amount of 

18 the borrower’s monthly payment, based on 

19 any repayment plan, as selected by the 

20 borrower, that could have been selected by 

21 the borrower during such period. The Sec22 retary may require a borrower wishing to 

23 satisfy past monthly payment obligations 

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1 ditional information necessary to calculate 

2 the amount of the past payments. 

3 ‘‘(iii) LIMIT.—A borrower may not 

4 satisfy more than 36 past monthly pay5 ment obligations under this subparagraph. 

6 ‘‘(D) OVERPAYMENT.—In a case in which 

7 the dispute resolution process under paragraph 

8 (8) delays the date on which a borrower would 

9 have received full loan forgiveness under para10 graph (3)(B), the Secretary shall refund the 

11 borrower the amount of any qualifying monthly 

12 payment obligation the borrower makes in ex13 cess of 120 qualifying payment obligations dur14 ing such process. 

15 ‘‘(6) SPECIAL RULES RELATING TO FEDERAL

16 DIRECT CONSOLIDATION LOANS.— 

17 ‘‘(A) REVIEW OF ANY NEW CONSOLIDA18 TION LOAN APPLICATION.— 

19 ‘‘(i) PUBLIC SERVICE LOAN FORGIVE20 NESS OPTION ON CONSOLIDATION APPLICA21 TION.—Beginning on July 1, 2019, the 

22 Secretary shall include, in any application 

23 for a Federal Direct Consolidation Loan, 

24 the option for the borrower to indicate that 

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1 pose of using the public service loan for2 giveness program under this subsection. 

3 ‘‘(ii) REVIEW.—Beginning on July 1, 

4 2019, the Secretary shall, after issuing any 

5 Federal Direct Consolidation Loan to a 

6 borrower who indicated an interest in the 

7 public service loan forgiveness program on 

8 the loan application— 

9 ‘‘(I) request that the borrower 

10 submit a certification of employment; 

11 and 

12 ‘‘(II) after receiving a complete 

13 certification of employment, review 

14 the borrower’s past payments on all 

15 component loans comprising the Fed16 eral Direct Consolidation Loan and 

17 inform the borrower— 

18 ‘‘(aa) of the number of 

19 monthly payment obligations sat20 isfied by the borrower before the 

21 date of consolidation that are 

22 qualifying monthly payment obli23 gations, in accordance with sub24 paragraph (B); or 


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1 ‘‘(bb) if no payment obliga2 tions are satisfied, that the bor3 rower will not receive any credit 

4 towards public service loan for5 giveness under this subsection for 

6 the Federal Direct Consolidation 

7 Loan. 

8 ‘‘(B) QUALIFYING PAYMENT OBLIGATIONS

9 ON ALL COMPONENT LOANS AND LOAN TYPES

10 THROUGH CONSOLIDATION.—In the case of a 

11 borrower of one or more loans eligible for con12 solidation, including loans made under part B, 

13 who applies for, and receives, a Federal Direct 

14 Consolidation Loan, the Secretary shall request 

15 the borrower submit a certification of employ16 ment for any qualifying employment and, after 

17 receiving the certification of employment, 

18 shall— 

19 ‘‘(i) review the borrower’s payment 

20 history on each of the component loans 

21 comprising the Federal Direct Consolida22 tion Loan, including each loan made under 

23 part B; and 

24 ‘‘(ii) for each component loan— 


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1 ‘‘(I) calculate the weighted factor 

2 of the component loan, which shall be 

3 the factor that represents the ratio 

4 between the amount of the component 

5 loan and the amount of the Federal 

6 Direct Consolidation Loan, as deter7 mined by the Secretary; 

8 ‘‘(II) determine the number of 

9 equivalent monthly payment obliga10 tions toward the Federal Direct Con11 solidation Loan satisfied on the com12 ponent loan by multiplying the weight13 ed factor for the component loan by 

14 the number of qualifying monthly pay15 ment obligations that the borrower 

16 satisfied on the component loan; and 

17 ‘‘(III) after rounding the number 

18 determined under subclause (II) to 

19 the nearest whole number, deem that 

20 number of equivalent monthly pay21 ment obligations to be qualifying 

22 monthly payment obligations on the 

23 Federal Direct Consolidation Loan. 

24 ‘‘(C) APPLICABILITY OF BORROWER PRO25 TECTIONS AND RIGHTS.—A borrower of one or 


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1 more loans eligible for consolidation, including 

2 loans made under part B, who applies for and 

3 receives a Federal Direct Consolidation Loan 

4 shall receive all the protections and rights pro5 vided under subparagraphs (B) and (C) of 

6 paragraph (5) for the loan, and for any compo7 nent loan, in the same manner as provided to 

8 any other borrower of a loan made under this 

9 part. 

10 ‘‘(D) TREATMENT OF CERTAIN CONSOLI11 DATION LOAN PAYMENTS.—In a case in which 

12 a borrower makes a qualifying monthly pay13 ment obligation for purposes of paragraph (2) 

14 on a Federal Direct Consolidation Loan that 

15 was used to repay a Federal Direct Stafford 

16 Loan, Federal Direct PLUS Loan, Federal Di17 rect Unsubsidized Stafford Loan, or Federal 

18 Direct Consolidation Loan refinanced under 

19 section 460A for which at least one qualifying 

20 monthly payment obligation for such purposes 

21 has been made prior to the consolidation, the 

22 qualifying monthly payment obligation on such 

23 Federal Direct Consolidation Loan shall be 

24 treated as a qualifying monthly payment obliga25 tion for purposes of paragraph (2) on such FedVerDate Sep 11 2014 21:08 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H3102.IH H3102

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1 eral Direct Stafford Loan, Federal Direct 

2 PLUS Loan, Federal Direct Unsubsidized Staf3 ford Loan, or Federal Direct Consolidation 

4 Loan. 

5 ‘‘(7) NOTICE OF QUALIFYING PAYMENT OBLIGA6 TIONS.— 

7 ‘‘(A) INITIAL NOTICE.—Upon receiving 

8 any verbal or written contact by a borrower on 

9 or after July 1, 2019, expressing interest in the 

10 public service loan forgiveness program under 

11 this subsection, the Secretary, or an eligible 

12 lender or guaranty agency under part B, shall 

13 provide the borrower, by not later than 30 days 

14 after the contract, with a notice that— 

15 ‘‘(i) explains the requirements of the 

16 program, including whether the borrower 

17 needs to consolidate some or all of the bor18 rower’s loans to receive forgiveness under 

19 this subsection; 

20 ‘‘(ii) includes a copy of, or a link to, 

21 information about the certification of em22 ployment process described in paragraph 

23 (4); 

24 ‘‘(iii) includes an estimate of the 

25 qualifying monthly payment obligations 


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1 that would be satisfied by the borrower 

2 based on the borrower’s payment history, 

3 as of the date of notice, if the borrower 

4 was a full-time employee of a qualifying 

5 employer and met the requirements of 

6 paragraph (2); and 

7 ‘‘(iv) includes an estimate of the num8 ber of remaining qualifying monthly pay9 ment obligations to be satisfied in order 

10 for the borrower to receive partial loan for11 giveness under paragraph (3)(A), and such 

12 number needed to receive full loan forgive13 ness under paragraph (3)(B). 

14 ‘‘(B) SUBSEQUENT NOTICES.—After pro15 viding an initial notice under subparagraph (A), 

16 the Secretary, or an eligible lender or guaranty 

17 agency under part B, shall annually provide the 

18 borrower with a notice containing the informa19 tion described in such subparagraph for each 

20 subsequent year that the borrower has an out21 standing loan, unless the borrower receives no22 tices under paragraph (4)(E)(ii) or requests 

23 that the notices be discontinued. 

24 ‘‘(8) DISPUTE RESOLUTION PROCESS.—By not 

25 later than July 1, 2019, the Secretary shall establish 


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1 a process for borrowers to dispute the calculation of 

2 qualifying monthly payment obligations, or the de3 termination of full or partial loan forgiveness under 

4 paragraph (2), following the submission of a certifi5 cation of employment or application for forgiveness 

6 or any successor certification or application. 

7 ‘‘(9) SPECIAL RULES FOR SECTION 460A

8 LOANS.— 

9 ‘‘(A) REFINANCED FEDERAL DIRECT

10 LOANS.—Notwithstanding paragraph (2), in de11 termining the number of monthly payments 

12 that meet the requirements of such paragraph 

13 for an eligible Federal Direct Loan refinanced 

14 under section 460A that was originally a loan 

15 under this part, the Secretary shall include all 

16 monthly payments made on the original loan 

17 that meet the requirements of such paragraph. 

18 ‘‘(B) REFINANCED FFEL LOANS.—In the 

19 case of an eligible Federal Direct Loan refi20 nanced under section 460A that was originally 

21 a loan under part B, only monthly payments 

22 made after the date on which the loan was refi23 nanced may be included for purposes of para24 graph (2). 

25 ‘‘(10) INELIGIBILITY.— 


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1 ‘‘(A) NO DOUBLE BENEFITS.—No bor2 rower may, for the same service, receive a re3 duction of loan obligations under both this sub4 section and section 428J, 428K, 428L, or 460. 

5 ‘‘(B) FEDERAL ELECTED SERVICE EX6 CLUDED.—No borrower may receive loan for7 giveness under this subsection for service as a 

8 Member of Congress or President or Vice Presi9 dent of the United States.’’. 

10 (2) FFEL PROGRAM AMENDMENTS.—Part B of 

11 the Higher Education Act of 1965 (20 U.S.C. 1071 

12 et seq.) is amended— 

13 (A) in section 428 (20 U.S.C. 1078), by 

14 adding at the end the following: 

15 ‘‘(p) REPAYMENT HISTORY INFORMATION AND PUB16 LIC SERVICE LOAN FORGIVENESS INFORMATION.—A 

17 guaranty agency shall— 

18 ‘‘(1) provide, in a timely manner, any necessary 

19 borrower repayment history information that the 

20 Secretary requests in order to determine the bor21 rower’s eligibility for the public service loan forgive22 ness program under section 455(m), or the number 

23 of qualifying monthly payment obligations satisfied 

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1 mation from all servicers involved in servicing the 

2 borrower’s loan; and 

3 ‘‘(2) carry out the requirements of section 

4 455(m)(7) upon receiving any verbal or written con5 tact by a borrower on or after July 1, 2019, express6 ing interest in the public service loan forgiveness 

7 program under section 455(m).’’; and 

8 (B) in section 433 (20 U.S.C. 1083)— 

9 (i) by redesignating subsection (f) as 

10 subsection (g); and 

11 (ii) by inserting after subsection (e) 

12 the following: 

13 ‘‘(f) REPAYMENT HISTORY INFORMATION.—An eligi14 ble lender shall— 

15 ‘‘(1) provide, in a timely manner, any necessary 

16 borrower repayment history information that the 

17 Secretary requests in order to determine the bor18 rower’s eligibility for the public service loan forgive19 ness program under section 455(m), or the number 

20 of qualifying monthly payment obligations satisfied 

21 for purposes of the public service loan forgiveness 

22 program under section 455(m), including such infor23 mation from all servicers involved in servicing the 

24 borrower’s loan; and 


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1 ‘‘(2) carry out the requirements of section 

2 455(m)(7) upon receiving any verbal or written con3 tact by a borrower on or after July 1, 2019, express4 ing interest in the public service loan forgiveness 

5 program under section 455(m).’’. 

6 (b) NOTIFICATION TO DIRECT LOAN BORROWERS

7 REGARDING ALL OPTIONS FOR LOAN FORGIVENESS.— 

8 Section 455 of the Higher Education Act of 1965 (20 

9 U.S.C. 1087e) is amended by adding at the end the fol10 lowing: 

11 ‘‘(r) ANNUAL NOTICE REGARDING LOAN FORGIVE12 NESS OPTIONS.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall annu14 ally provide a written or electronic disclosure to each 

15 borrower of a loan under this part— 

16 ‘‘(A) notifying the borrower— 

17 ‘‘(i) of any loan forgiveness option 

18 available under this title that might apply 

19 to a loan under this part held by the bor20 rower, including the public service loan for21 giveness program under subsection (m); 

22 and 

23 ‘‘(ii) in the case of a borrower who is 

24 a full-time employee of a Federal agency 

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1 mitted a certification of employment for 

2 the public service loan forgiveness pro3 gram— 

4 ‘‘(I) that the borrower is em5 ployed by a qualifying employer; 

6 ‘‘(II) the number of payment ob7 ligations satisfied by the borrower 

8 that the Secretary has determined 

9 could be qualifying monthly payment 

10 obligations on eligible Federal Direct 

11 Loan for purposes of the public serv12 ice loan forgiveness program; and 

13 ‘‘(III) the steps necessary for the 

14 borrower to submit a certification of 

15 employment and to obtain forgiveness 

16 under subsection (m)(2); 

17 ‘‘(B) informing the borrower that the loan 

18 forgiveness options described in subparagraph 

19 (A) are provided free of charge; and 

20 ‘‘(C) including, for each loan forgiveness 

21 option, information regarding how the borrower 

22 should proceed, including contact information, 

23 if the borrower wishes to pursue such loan for24 giveness option. 


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1 ‘‘(2) EXCLUSIONS.—Notwithstanding para2 graph (1), the Secretary shall not provide a notifica3 tion under this subsection to a borrower of a loan 

4 under this part if— 

5 ‘‘(A) the borrower is also receiving a notifi6 cation under subsection (m)(7); or 

7 ‘‘(B) the borrower has requested that the 

8 Secretary no longer provide the notifications 

9 under this subsection.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect on July 1, 2019. 

12 SEC. 303. TRANSITION TO IMPROVED PUBLIC SERVICE 

13 LOAN FORGIVENESS PROGRAM. 

14 (a) REVIEW OF BORROWERS CURRENTLY PARTICI15 PATING IN PUBLIC SERVICE LOAN FORGIVENESS.— 

16 (1) CALCULATING THE NUMBER OF QUALI17 FYING PAYMENT OBLIGATIONS FOR CURRENT PUB18 LIC SERVICE LOAN FORGIVENESS PROGRAM PARTICI19 PANTS.—By not later than July 1, 2019, the Sec20 retary shall, for each borrower that has submitted a 

21 certification of employment under the public service 

22 loan forgiveness program under section 455(m) of 

23 the Higher Education Act of 1965 (20 U.S.C. 

24 1087e) before July 1, 2019— 


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1 (A) calculate the number of qualifying pay2 ment obligations under such section satisfied by 

3 the borrower, using the criteria of such section 

4 as in effect on July 1, 2019; and 

5 (B) inform the borrower of the changes in 

6 the public service loan forgiveness program and 

7 the number of qualifying payment obligations 

8 that the borrower will have satisfied for pur9 poses of the program, beginning on July 1, 

10 2019. 

11 (2) RETROACTIVE PARTIAL LOAN FORGIVE12 NESS.—By not later than July 1, 2019, the Sec13 retary shall take such steps as are necessary to pro14 vide partial loan forgiveness under section 

15 455(m)(3)(A)(i) of the Higher Education Act of 

16 1965 (20 U.S.C. 1087e(m)(3)(A)(i)), as in effect on 

17 such date, to borrowers with outstanding balance of 

18 principal and interest on a loan made under this 

19 part who met the criteria for partial loan forgiveness 

20 under such section, as in effect on July 1, 2019, be21 fore such date but on or after October 1, 2007. 

22 (3) APPLICABILITY OF OTHER PROVISIONS.—In 

23 carrying out paragraphs (1) and (2), and in any 

24 other case where the Secretary is applying the loan 

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1 er Education Act of 1965 (20 U.S.C. 1087e(m)), as 

2 in effect on July 1, 2019, to a borrower for whom 

3 one or more payment obligations were satisfied be4 fore July 1, 2019, the Secretary shall determine the 

5 number of payment obligations satisfied by applying 

6 all of the provisions of such section as in effect on 

7 July 1, 2019, including the calculation of payment 

8 obligations under section 455(m)(5) of such Act and 

9 the inclusion of payment obligations satisfied 

10 through the component loans of a Federal Direct 

11 Consolidation Loan under section 455(m)(6), with12 out regard as to the date on which the payment obli13 gation was satisfied. 

14 (b) SPECIAL PSLF PROGRAM FUNDS.— 

15 (1) DEFINITION OF SPECIAL PSLF PROGRAM

16 FUNDS.—In this section, the term ‘‘special PSLF 

17 program funds’’ means the amounts appropriated 

18 for public service loan forgiveness under section 315 

19 of division H of the Consolidated Appropriations 

20 Act, 2018 (Public Law 115–141; March 23, 2018) 

21 or under section 313 of division B of the Depart22 ment of Defense and Labor, Health and Human 

23 Services, and Education Appropriations Act, 2019 

24 and Continuing Appropriations Act, 2019 (Public 

25 Law 115–245; September 28, 2018). 


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1 (2) RESCISSION.—Upon the effective date de2 scribed in section 2(c), all special PSLF program 

3 funds that remain unexpended on such date shall be 

4 rescinded. 

5 (3) TRANSITION.—The Secretary of Education 

6 shall establish a process through which the Secretary 

7 shall— 

8 (A) review the applications of borrowers 

9 who applied for the loan forgiveness program 

10 carried out with special PSLF program funds 

11 but had not received loan forgiveness through 

12 such program before July 1, 2019; and 

13 (B) assist such borrowers in pursuing loan 

14 forgiveness under section 455(m) of the Higher 

15 Education Act of 1965 (20 U.S.C. 1087e(m)), 

16 as in effect on July 1, 2019. 

17 TITLE IV—INCOME-DRIVEN 

18 REPAYMENT PLANS 

19 SEC. 401. INCOME-BASED REPAYMENT PLAN. 

20 Section 493C of the Higher Education Act of 1965 

21 (20 U.S.C. 1098e) is amended— 

22 (1) in subsection (b)— 

23 (A) in paragraph (8), by striking ‘‘and’’ 

24 after the semicolon; 


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1 (B) in paragraph (9), by striking the pe2 riod at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(10) a borrower who is repaying a loan made 

5 under part B or D pursuant to this section may 

6 repay such loan in full at any time without pen7 alty.’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(f) INCOME-BASED REPAYMENT FOR NEW LOANS

10 ON AND AFTER JULY 1, 2019, AND FOR BORROWERS

11 WHO ENTER IBR AFTER JULY 1, 2019.— 

12 ‘‘(1) IN GENERAL.—The income-based repay13 ment plan shall be carried out in accordance with 

14 this section, except as otherwise specified in this 

15 subsection (including through the special terms de16 scribed in paragraph (2))— 

17 ‘‘(A) with respect to any loan issued on or 

18 after July 1, 2019, if such borrower elects the 

19 income-based repayment plan for that loan; and 

20 ‘‘(B) with respect to any borrower who is 

21 repaying a loan made, insured, or guaranteed 

22 under part B or D, if such borrower elects to 

23 repay the loan under the income-based repay24 ment plan on or after July 1, 2019. 


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1 ‘‘(2) SPECIAL TERMS.—Notwithstanding any 

2 other provision of this section, with respect to a loan 

3 described under paragraph (1), the following terms 

4 shall apply to the income-based repayment plan: 

5 ‘‘(A)(i) Notwithstanding subsection 

6 (a)(3)(B), the repayment amount under this 

7 subsection shall be an amount equal to 10 per8 cent of the result obtained by calculating, on at 

9 least an annual basis, the amount by which— 

10 ‘‘(I) the borrower’s, and the bor11 rower’s spouse (if applicable), adjusted 

12 gross income; exceeds 

13 ‘‘(II) the applicable percentage of the 

14 poverty line in accordance with clause (ii) 

15 that is applicable to the borrower’s family 

16 size as determined under section 673(2) of 

17 the Community Services Block Grant Act 

18 (42 U.S.C. 9902(2)). 

19 ‘‘(ii) For purposes of clause (i), the term 

20 ‘applicable percentage’ means 150 percent re21 duced by 1 percentage point for each $1,000 by 

22 which the borrower’s adjusted gross income ex23 ceeds $100,000. 

24 ‘‘(B) A borrower may elect— 


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1 ‘‘(i) during any period during which 

2 the borrower’s (and the borrower’s spouse, 

3 if applicable) adjusted gross income is 

4 equal to or less than 225 percent of the 

5 poverty line applicable to the borrower’s 

6 family size as determined under section 

7 673(2) of the Community Services Block 

8 Grant Act (42 U.S.C. 9902(2)), to have 

9 the borrower’s aggregate monthly payment 

10 for all such loans equal to $0; and 

11 ‘‘(ii) during any period during which 

12 the borrower’s (and the borrower’s spouse, 

13 if applicable) adjusted gross income ex14 ceeds 225 percent of such poverty line, to 

15 have the borrower’s aggregate monthly 

16 payment for all such loans not exceed, the 

17 lesser of— 

18 ‘‘(I) the result described in sub19 paragraph (A) divided by 12; or 

20 ‘‘(II) the monthly amount cal21 culated under section 455(d)(1)(A), 

22 based on a 10-year repayment period, 

23 when the borrower first made the elec24 tion described in this subsection. 


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1 ‘‘(C) With respect to any loan for which 

2 payments may be made under subparagraph 

3 (B), be paid, or be treated as if no interest has 

4 accrued, by the Secretary— 

5 ‘‘(i) for any period described in sub6 paragraph (B)(i); and 

7 ‘‘(ii) for the 6-month period after the 

8 date the borrower ceases to carry at least 

9 one-half the normal full-time academic 

10 workload at an institution of higher edu11 cation, as determined by the institution, 

12 and during which the borrower is not earn13 ing any income. 

14 ‘‘(D) Subsection (b)(7)(B) shall be applied 

15 by substituting ‘20 years’ for ‘25 years’. 

16 ‘‘(E) A borrower of such a loan shall not 

17 be required to have a partial financial hardship 

18 and may elect, and remain enrolled in, the in19 come-based repayment plan under this sub20 section regardless of income level. 

21 ‘‘(F) Subparagraph (A) of subsection 

22 (b)(6) shall not apply and a borrower’s monthly 

23 payment shall be determined in accordance with 

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1 ceed the monthly repayment amount under a 

2 standard 10-year repayment plan. 

3 ‘‘(G) Subparagraph (B) of subsection 

4 (b)(3) shall not apply. 

5 ‘‘(3) ADDITIONAL SPECIAL TERMS FOR CER6 TAIN BORROWERS.—A borrower described in para7 graph (1)(B)— 

8 ‘‘(A) may choose to retain the repayment 

9 plan in which the borrower is enrolled on June 

10 30, 2019; 

11 ‘‘(B) may elect to— 

12 ‘‘(i) leave the repayment plan de13 scribed in subparagraph (A) and enter the 

14 income-based repayment plan under this 

15 subsection; 

16 ‘‘(ii) leave the repayment plan de17 scribed in subparagraph (A) and enter a 

18 standard 10-year repayment plan under 

19 section 455(d)(A)(A); or 

20 ‘‘(iii) not more than once per calendar 

21 year, switch between the repayment plans 

22 described in clauses (i) and (ii); 

23 ‘‘(C) after electing to leave a repayment 

24 plan other than an income-based repayment 

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1 ard 10-year repayment plan under section 

2 455(d)(A)(A), shall not be permitted to re-elect 

3 a repayment plan that is not an income-based 

4 repayment plan under this subsection or such 

5 standard 10-year repayment plan; and 

6 ‘‘(D) shall retain, for purposes of repay7 ment or cancellation of any outstanding balance 

8 of principal and interest due on a loan (as de9 scribed in subsection (b)(7)) any years of repay10 ment under another income-based or income11 contingent repayment plan under this title. 

12 ‘‘(4) CAP ON INTEREST ACCRUAL.—Notwith13 standing any other provision of this Act, the total 

14 amount of interest that accrues during a borrower’s 

15 grace period and the time that a borrower is in re16 payment under this subsection shall not exceed 50 

17 percent of the original principal amount of the 

18 loan.’’. 

19 SEC. 402. TERMINATION OF CERTAIN REPAYMENT PLAN 

20 OPTIONS. 

21 (a) EFFECTIVE DATE; RULEMAKING REGARDING

22 TERMINATION OF CERTAIN REPAYMENT PLANS.— 

23 (1) EFFECTIVE DATE.—The amendments made 

24 by this section shall take effect on July 1, 2019. 


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1 (2) REGULATIONS.—Before the effective date 

2 described in paragraph (1), the Secretary of Edu3 cation shall carry out a plan to end all eligibility for 

4 repayment plans other than a standard repayment 

5 plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) 

6 with a repayment period of 10 years and an income7 based repayment plan described under section 

8 493C(f) for loans made under part B or D of title 

9 IV of the Higher Education Act of 1965, unless the 

10 borrower is enrolled in another repayment plan be11 fore such effective date, in accordance with the 

12 amendments made by this Act. 

13 (b) CHANGES TO CURRENT LAW.— 

14 (1) Section 428(b) of the Higher Education Act 

15 of 1965 (20 U.S.C. 1078(b)) is amended— 

16 (A) in paragraph (1)— 

17 (i) in subparagraph (D)— 

18 (I) in clause (ii), by striking 

19 ‘‘may annually change the selection of 

20 a repayment plan under this part,’’ 

21 and inserting ‘‘may at any time after 

22 July 1, 2019, and not more frequently 

23 than once per calendar year there24 after, change the selection of a repay25 ment plan under this part to one of 


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1 the 2 repayment plans described in 

2 paragraph (9)(C),’’; and 

3 (II) in clause (iii), by striking 

4 ‘‘be subject to income-contingent re5 payment in accordance with sub6 section (m);’’ and inserting ‘‘be sub7 ject to income-based repayment in ac8 cordance with section 493C(f);’’; and 

9 (ii) in subparagraph (E)(i), by strik10 ing ‘‘the option of repaying the loan in ac11 cordance with a standard, graduated, in12 come-sensitive, or extended repayment 

13 schedule (as described in paragraph (9)) 

14 established by the lender in accordance 

15 with regulations of the Secretary; and’’ 

16 and inserting ‘‘the option of repaying the 

17 loan in accordance with a repayment plan 

18 described in paragraph (9)(C) established 

19 by the lender in accordance with regula20 tions of the Secretary; and’’; and 

21 (B) in paragraph (9), by adding at the end 

22 the following: 

23 ‘‘(C) SELECTION OF REPAYMENT PLANS

24 ON AND AFTER JULY 1, 2019.— 


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1 ‘‘(i) OPPORTUNITY TO CHANGE RE2 PAYMENT PLANS.—Notwithstanding any 

3 other provision of this paragraph, or any 

4 other provision of law, and in accordance 

5 with regulations, beginning on July 1, 

6 2019, the lender shall offer a borrower of 

7 a loan made, insured, or guaranteed under 

8 this part the opportunity to change repay9 ment plans not more than once per cal10 endar year, and to enroll in one of the fol11 lowing repayment plans: 

12 ‘‘(I) A standard repayment plan 

13 under section 428(b)(9)(A)(i) with a 

14 repayment period of 10 years. 

15 ‘‘(II) The income-based repay16 ment plan under section 493C(f).’’; 

17 (2) in section 455(d)— 

18 (A) by redesignating paragraphs (2) 

19 through (5) as paragraphs (3) through (6), re20 spectively; and 

21 (B) by inserting after paragraph (1), the 

22 following: 

23 ‘‘(2) DESIGN AND SELECTION ON AND AFTER

24 JULY 1, 2019.— 


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1 ‘‘(A) IN GENERAL.—Notwithstanding para2 graph (1), for the borrower of a loan made on 

3 or after July 1, 2019, and for other borrowers 

4 subject to paragraph (7), the Secretary shall 

5 offer a borrower of a loan made under this part 

6 2 plans for repayment of such loan, including 

7 principal and interest on the loan. The borrower 

8 shall be entitled to accelerate, without penalty, 

9 repayment on the borrower’s loans under this 

10 part. The borrower may choose— 

11 ‘‘(i) a standard repayment plan under 

12 section 455(d)(1)(A) with a repayment pe13 riod of 10 years; or 

14 ‘‘(ii) the income-based repayment plan 

15 under section 493C(f). 

16 ‘‘(B) SELECTION BY THE SECRETARY.—If 

17 a borrower of a loan made under this part on 

18 or after July 1, 2019, does not select a repay19 ment plan described in subparagraph (A), the 

20 Secretary may provide the borrower with a 

21 standard repayment plan under section 

22 455(d)(1)(A) with a repayment period of 10 

23 years. 

24 ‘‘(C) CHANGES IN SELECTIONS.—Begin25 ning on July 1, 2019, a borrower of a loan 


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1 made under this part may change the bor2 rower’s selection of a repayment plan in accord3 ance with paragraph (7) and under such terms 

4 and conditions as may be established by the 

5 Secretary. 

6 ‘‘(D) BORROWER IN DEFAULT.—Beginning 

7 on July 1, 2019, the Secretary may require any 

8 borrower who has defaulted on a loan made 

9 under this part to— 

10 ‘‘(i) pay all reasonable collection costs 

11 associated with such loan; and 

12 ‘‘(ii) repay the loan pursuant to an in13 come-based repayment plan under section 

14 493C(f).’’; and 

15 (3) by adding at the end the following: 

16 ‘‘(7) BORROWERS OF LOANS MADE BEFORE

17 JULY 1, 2019.—A borrower who is in repayment on 

18 a loan made under part B or part D before July 1, 

19 2019— 

20 ‘‘(A) may choose to retain the repayment 

21 plan that the borrower was enrolled in on the 

22 day before such date; 

23 ‘‘(B) may elect to— 

24 ‘‘(i) enter the income-based repayment 

25 plan under section 493C(f); 


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1 ‘‘(ii) enter a standard repayment plan 

2 under section 455(d)(1)(A) with a repay3 ment period of 10 years; or 

4 ‘‘(iii) switch between the repayment 

5 plans described in clauses (i) and (ii) not 

6 more than once during a calendar year; 

7 ‘‘(C) after electing to leave a repayment 

8 plan other than an income-based repayment 

9 plan described under this subsection or a stand10 ard repayment plan under section 455(d)(1)(A), 

11 shall not be permitted to re-elect a repayment 

12 plan that is not an income-based repayment 

13 plan under this subsection or a standard repay14 ment plan under section 455(d)(1)(A); and 

15 ‘‘(D) shall retain, for purposes of repay16 ment or cancellation of any outstanding balance 

17 of principal and interest due on a loan (as de18 scribed in section 493C(b)(7)) any years of re19 payment under another income-based or in20 come-contingent repayment plan under this 

21 title.’’. 

22 SEC. 403. NOTIFICATION AND AUTOMATIC ENROLLMENT 

23 PROCEDURES. 

24 (a) INCOME-CONTINGENT REPAYMENT.—Section 

25 455(d) of the Higher Education Act of 1965 (20 U.S.C. 


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1 1087e(d)) is further amended by adding at the end the 

2 following: 

3 ‘‘(8) NOTIFICATION AND AUTOMATIC ENROLL4 MENT PROCEDURES FOR BORROWERS WHO ARE DE5 LINQUENT ON LOANS.— 

6 ‘‘(A) AUTHORITY TO OBTAIN INCOME IN7 FORMATION.— 

8 ‘‘(i) IN GENERAL.—In the case of any 

9 borrower who is at least 60 days delin10 quent on a covered loan, the Secretary may 

11 obtain such information as is reasonably 

12 necessary regarding the income and family 

13 size of the borrower (and the borrower’s 

14 spouse, if applicable). 

15 ‘‘(ii) AVAILABILITY OF RETURNS AND

16 RETURN INFORMATION.—Returns and re17 turn information (as defined in section 

18 6103 of the Internal Revenue Code of 

19 1986) may be obtained under this subpara20 graph only to the extent authorized by sec21 tion 6103(l)(13) of such Code. 

22 ‘‘(B) BORROWER NOTIFICATION.—With re23 spect to each borrower of a covered loan who is 

24 at least 60 days delinquent on such loan and 

25 who has not been subject to the procedures 


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1 under this paragraph for such loan in the pre2 ceding 120 days, the Secretary shall, as soon as 

3 practicable after such 60-day delinquency, pro4 vide to the borrower the following: 

5 ‘‘(i) Notification that the borrower is 

6 at least 60 days delinquent on at least 1 

7 covered loan, and a description of all delin8 quent covered loans, nondelinquent covered 

9 loans, and noncovered loans of the bor10 rower. 

11 ‘‘(ii) A brief description of the repay12 ment plans for which the borrower is eligi13 ble and the covered loans and noncovered 

14 loans of the borrower that may be eligible 

15 for such plans, based on information avail16 able to the Secretary. 

17 ‘‘(iii) Clear and simple instructions on 

18 how to select the repayment plans. 

19 ‘‘(iv) The amount of monthly pay20 ments for the covered and noncovered 

21 loans under the repayment plans for which 

22 the borrower is eligible, based on informa23 tion available to the Secretary, including, if 

24 the income information of the borrower is 


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1 available to the Secretary under subpara2 graph (A)— 

3 ‘‘(I) the amount of the monthly 

4 payment under each income-driven re5 payment plan for which the borrower 

6 is eligible for the borrower’s covered 

7 and noncovered loans, based on such 

8 income information; and 

9 ‘‘(II) the income, family size, tax 

10 filing status, and tax year information 

11 on which each monthly payment is 

12 based. 

13 ‘‘(v) An explanation that in the case 

14 of a borrower for whom adjusted gross in15 come is unavailable— 

16 ‘‘(I) if the borrower selects to 

17 repay the covered loans of such bor18 rower pursuant to an income-driven 

19 repayment plan that defines discre20 tionary income in such a manner that 

21 an individual not required under sec22 tion 6012(a)(1) of the Internal Rev23 enue Code of 1986 to file a return 

24 with respect to income taxes imposed 

25 by subtitle A of such Code may have 


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1 a calculated monthly payment greater 

2 than $0, the borrower will be required 

3 to provide the Secretary with other 

4 documentation of income satisfactory 

5 to the Secretary, which documentation 

6 the Secretary may use to determine 

7 an appropriate repayment schedule; 

8 and 

9 ‘‘(II) if the borrower selects to 

10 repay such loans pursuant to an in11 come-driven repayment plan that is 

12 not described in subclause (I), the 

13 borrower will not be required to pro14 vide the Secretary with such other 

15 documentation of income, and the bor16 rower will have a calculated monthly 

17 payment of $0. 

18 ‘‘(vi) An explanation that the Sec19 retary shall take the actions under sub20 paragraph (C) with respect to such bor21 rower, if— 

22 ‘‘(I) the borrower is 120 days de23 linquent on one or more covered loans 

24 and has not selected a new repayment 


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1 plan for the covered loans of the bor2 rower; and 

3 ‘‘(II) in the case of such a bor4 rower whose repayment plan for the 

5 covered loans of the borrower is not 

6 an income-driven repayment plan, the 

7 monthly payments under such repay8 ment plan are higher than such 

9 monthly payments would be under an 

10 income-driven repayment plan for 

11 such loans. 

12 ‘‘(vii) Instructions on updating the in13 formation of the borrower obtained under 

14 subparagraph (A). 

15 ‘‘(C) SECRETARY’S INITIAL SELECTION OF

16 PLAN.—With respect to each borrower de17 scribed in subparagraph (B) who has a repay18 ment plan for the covered loans of the borrower 

19 that meets the requirements of clause (vi)(II) of 

20 subparagraph (B) and has not selected a new 

21 repayment plan for such loans in accordance 

22 with the notice received under such subpara23 graph, and who is at least 120 days delinquent 

24 on such a loan, the Secretary shall, as soon as 

25 practicable— 


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1 ‘‘(i) in a case in which any of the bor2 rower’s covered loans are eligible for an in3 come-driven repayment plan— 

4 ‘‘(I)(aa) provide the borrower 

5 with the income-driven repayment 

6 plan that requires the lowest monthly 

7 payment amount for each covered loan 

8 of the borrower, compared to any 

9 other such plan for which the bor10 rower is eligible; or 

11 ‘‘(bb) if more than one income12 driven repayment plan would offer the 

13 borrower the same lowest monthly 

14 payment amount, provide the bor15 rower with the income-driven repay16 ment plan that has the most favorable 

17 terms for the borrower; 

18 ‘‘(II) if the plan selected under 

19 subclause (I) is not the income-driven 

20 repayment plan that would have the 

21 lowest monthly payment amount if the 

22 borrower were eligible for such plan 

23 for the borrower’s covered loans and 

24 noncovered loans, notify the borrower 

25 of the actions, if any, the borrower 


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1 may take to become eligible for such 

2 income-driven repayment plan; and 

3 ‘‘(III) authorize the borrower to 

4 change the Secretary’s selection of a 

5 plan under this clause to any plan de6 scribed in paragraph (1) for which the 

7 borrower is eligible; and 

8 ‘‘(ii) in a case in which none of the 

9 borrower’s covered loans are eligible for an 

10 income-driven repayment plan, notify the 

11 borrower of the actions, if any, the bor12 rower may take for such loans to become 

13 eligible for such a plan. 

14 ‘‘(D) SECRETARY’S ADDITIONAL SELEC15 TION OF PLAN.— 

16 ‘‘(i) IN GENERAL.—With respect to 

17 each borrower of a covered loan who se18 lects a new repayment plan in accordance 

19 with the notice received under subpara20 graph (B) and who continues to be delin21 quent on such loan for a period described 

22 in clause (ii), the Secretary shall, as soon 

23 as practicable after such period, carry out 

24 the procedures described in clauses (i) and 

25 (ii) of subparagraph (C) for the covered 


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1 loans of the borrower, if such procedures 

2 would result in lower monthly repayment 

3 amounts on such loan. 

4 ‘‘(ii) DESCRIPTION OF PERIOD.—The 

5 duration of the period described in clause 

6 (i) shall be the amount of time that the 

7 Secretary determines is sufficient to indi8 cate that the borrower may benefit from 

9 repaying such loan under a new repayment 

10 plan, but in no case shall such period be 

11 less than 60 days. 

12 ‘‘(E) OPT-OUT.—A borrower of a covered 

13 loan shall have the right to opt-out of the pro14 cedures under this paragraph. 

15 ‘‘(9) DEFINITIONS.—In this subsection: 

16 ‘‘(A) COVERED LOAN.—The term ‘covered 

17 loan’ means— 

18 ‘‘(i) a loan made under this part; 

19 ‘‘(ii) a loan purchased under section 

20 459A; or 

21 ‘‘(iii) a loan that has been assigned to 

22 the Secretary under section 428(c)(8) or 

23 part E. 


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1 ‘‘(B) INCOME-DRIVEN REPAYMENT

2 PLAN.—The term ‘income-driven repayment 

3 plan’ means— 

4 ‘‘(i) in the case of a covered loan 

5 made under this part, purchased under 

6 section 459A, or assigned to the Secretary 

7 before July 1, 2019, a plan described in 

8 subparagraph (D) or (E) of paragraph (1); 

9 and 

10 ‘‘(ii) in the case of a covered loan 

11 made under this part, purchased under 

12 section 459A, or assigned to the Secretary 

13 before July 1, 2019, the income-based re14 payment plan under section 493C(f). 

15 ‘‘(C) NONCOVERED LOAN.—The term 

16 ‘noncovered loan’ means a loan made, insured, 

17 or guaranteed under this title that is not a cov18 ered loan.’’. 

19 (b) CHANGING PLANS.—Section 493C(b)(8) of the 

20 Higher Education Act of 1965 (20 U.S.C. 1098e(b)(8)) 

21 is amended to read as follows: 

22 ‘‘(8) a borrower who is repaying a loan made, 

23 insured, or guaranteed under part B or D pursuant 

24 to income-based repayment may elect, at any time, 

25 to terminate repayment pursuant to income-based 


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1 repayment and repay such loan under any repay2 ment plan for which the loan is eligible in accord3 ance with the requirements of part B or part D, re4 spectively; and’’. 

5 (c) EFFECTIVE DATE; APPLICATION.— 

6 (1) AUTOMATIC ENROLLMENT.—The amend7 ments made by subsection (a) shall— 

8 (A) take effect as soon as the Secretary of 

9 Education determines practicable after the Sec10 retary finalizes the procedures under section 

11 405, but not later than 2 years after the date 

12 of enactment of this Act; and 

13 (B) apply to all borrowers of covered loans 

14 (as defined in section 455(d)(9) of the Higher 

15 Education Act of 1965, as added by subsection 

16 (a)). 

17 (2) CHANGING PLANS.—The amendment made 

18 by subsection (b) shall take effect on the date of en19 actment of this Act. 

20 SEC. 404. AUTOMATIC RECERTIFICATION OF INCOME. 

21 (a) INCOME-CONTINGENT REPAYMENT.—Section 

22 455(e) of the Higher Education Act of 1965 (20 U.S.C. 

23 1087e(e)) is amended— 

24 (1) in paragraph (3)— 


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1 (A) by striking ‘‘does not reasonably re2 flect the borrower’s current income’’ and insert3 ing ‘‘whose income has decreased relative to the 

4 adjusted gross income available to the Sec5 retary’’; and 

6 (B) by inserting ‘‘, consistent with the pro7 cedures established under paragraph 

8 (8)(B)(iv)’’ before the period at the end; and 

9 (2) by adding at the end the following: 

10 ‘‘(8) AUTOMATIC RECERTIFICATION.— 

11 ‘‘(A) DEFINITION.—In this paragraph, the 

12 term ‘covered loan’ has the meaning given the 

13 term in subsection (d)(9). 

14 ‘‘(B) IN GENERAL.—Beginning as soon as 

15 the Secretary determines practicable after the 

16 Secretary finalizes the procedures under section 

17 405 of the Helping Individuals Get a Higher 

18 Education while Reducing Education Debt Act, 

19 but not later than 2 years after the date of en20 actment of such Act, the Secretary shall estab21 lish and implement, with respect to any bor22 rower described in subparagraph (C), proce23 dures to— 

24 ‘‘(i) obtain (for each year of repay25 ment and without further action by the 


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1 borrower) such information as is reason2 ably necessary regarding the income of 

3 such borrower (and the borrower’s spouse, 

4 if applicable), for the purpose of deter5 mining the repayment obligation of the 

6 borrower for such year, including informa7 tion with respect to the borrower’s family 

8 size in accordance with the procedures 

9 under section 405 of the Helping Individ10 uals Get a Higher Education while Reduc11 ing Education Debt Act, subject to clause 

12 (ii); 

13 ‘‘(ii) allow the borrower, at any time, 

14 to opt-out of clause (i) and prevent the 

15 Secretary from obtaining information 

16 under such clause without further action 

17 by the borrower; 

18 ‘‘(iii) provide the borrower with an op19 portunity to update the information ob20 tained under clause (i) before the deter21 mination of the annual repayment obliga22 tion of the borrower; and 

23 ‘‘(iv) in the case of a borrower for 

24 whom adjusted gross income is unavail25 able— 


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1 ‘‘(I) if the borrower has selected 

2 to repay the covered loans of such 

3 borrower pursuant to an income-con4 tingent repayment plan that defines 

5 discretionary income in such a man6 ner that an individual not required 

7 under section 6012(a)(1) of the Inter8 nal Revenue Code of 1986 to file a re9 turn with respect to income taxes im10 posed by subtitle A of such Code may 

11 have a calculated monthly payment 

12 greater than $0, the borrower will be 

13 required to provide the Secretary with 

14 other documentation of income satis15 factory to the Secretary, which docu16 mentation the Secretary may use to 

17 determine an appropriate repayment 

18 schedule; or 

19 ‘‘(II) if the borrower has selected 

20 to repay such loans pursuant to an in21 come-contingent repayment that is not 

22 described in subclause (I), the bor23 rower will not be required to provide 

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1 rower will have a calculated monthly 

2 payment of $0. 

3 ‘‘(C) APPLICABILITY.—Subparagraph (B) 

4 shall apply to each borrower of a covered loan 

5 who, on or after the date on which the Sec6 retary establishes procedures under such sub7 paragraph— 

8 ‘‘(i) selects, or for whom the Secretary 

9 selects under subparagraph (C) or (D) of 

10 paragraph (8) of subsection (d), or section 

11 428(m)(1), an income-contingent repay12 ment plan; or 

13 ‘‘(ii) recertifies income and family size 

14 under such plan. 

15 ‘‘(D) AVAILABILITY OF RETURNS AND RE16 TURN INFORMATION.—Returns and return in17 formation (as defined in section 6103 of the In18 ternal Revenue Code of 1986) may be obtained 

19 under subparagraph (B)(i) only to the extent 

20 authorized by section 6103(l)(13) of such Code. 

21 ‘‘(E) OTHER REQUIREMENTS.—The proce22 dures established by the Secretary under this 

23 paragraph shall be consistent with the require24 ments of paragraphs (1) through (7), except as 

25 otherwise provided in this paragraph.’’. 


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1 (b) INCOME-BASED REPAYMENT.—Section 493C(c) 

2 of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) 

3 is amended— 

4 (1) by striking ‘‘The Secretary shall establish’’ 

5 and inserting the following: 

6 ‘‘(1) IN GENERAL.—The Secretary shall estab7 lish’’; 

8 (2) by striking ‘‘The Secretary shall consider’’ 

9 and inserting the following: 

10 ‘‘(2) PROCEDURES FOR ELIGIBILITY.—The Sec11 retary shall— 

12 ‘‘(A) consider’’; and 

13 (3) by striking ‘‘428C(b)(1)(E).’’ and inserting 

14 the following: ‘‘428C(b)(1)(E); and 

15 ‘‘(B) beginning as soon as the Secretary 

16 determines practicable after the Secretary final17 izes the procedures under section 405 of the 

18 Helping Individuals Get a Higher Education 

19 while Reducing Education Debt Act, but not 

20 later than 2 years after the date of enactment 

21 of such Act, carry out, with respect to bor22 rowers of any covered loan (as defined in sec23 tion 455(d)(9)), procedures for income-based 

24 repayment plans that are equivalent to the pro25 cedures carried out under section 455(e)(8) 


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1 with respect to income-contingent repayment 

2 plans.’’. 

3 SEC. 405. STUDY AND PROCEDURES ON DETERMINING FAM4 ILY SIZE. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, the Secretary of Education 

7 shall— 

8 (1) jointly with the Secretary of the Treasury, 

9 conduct a study, which meets the specifications de10 scribed in subsection (b), on the effect of using data 

11 from the Internal Revenue Service on the deduction 

12 for personal exemptions provided by section 151 of 

13 the Internal Revenue Code of 1986 for a proxy for 

14 family size in an income-driven repayment plan, and 

15 publish such study in the Federal Register; 

16 (2) use the results of the study conducted under 

17 paragraph (1) to develop procedures for determining 

18 family size for the automatic recertification of in19 come for an income-driven repayment plan in a man20 ner that minimizes burdens and unintended harm to 

21 borrowers; 

22 (3) publish the procedures developed under 

23 paragraph (2) in the Federal Register; and 


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1 (4) after a notice and comment period on such 

2 procedures, use such comments to finalize the proce3 dures. 

4 (b) SPECIFICATIONS.—The study conducted under 

5 subsection (a)(1) shall— 

6 (1) determine how closely such personal exemp7 tions match the family size that borrowers report on 

8 their income-driven repayment plan request form; 

9 (2) compare the borrower’s actual monthly pay10 ment amount with the monthly payment amount 

11 borrowers would have using family size information 

12 derived from tax returns; and 

13 (3) use data from more than one year, where 

14 possible, to analyze how much family size changes 

15 over time. 

16 (c) DEFINITION.—The term ‘‘income-driven repay17 ment plan’’ has the meaning given the term in section 

18 455(d)(9) of the Higher Education Act of 1965, as 

19 amended by this Act. 

20 SEC. 406. DISCLOSURE OF TAX RETURN INFORMATION TO 

21 CARRY OUT CERTAIN HIGHER EDUCATION 

22 LOAN PROGRAMS. 

23 (a) IN GENERAL.—Paragraph (13) of section 6103(l) 

24 of the Internal Revenue Code of 1986 is amended to read 

25 as follows: 


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1 ‘‘(13) DISCLOSURE OF RETURNS AND RETURN

2 INFORMATION FOR PURPOSES OF STUDENT LOAN

3 ADMINISTRATION.— 

4 ‘‘(A) IN GENERAL.—The Secretary, subject 

5 to such requirements and conditions as the Sec6 retary may prescribe, shall upon written request 

7 from the Secretary of Education disclose to offi8 cers and employees of the Department of Edu9 cation returns and return information with re10 spect to a taxpayer who has received an appli11 cable student loan. 

12 ‘‘(B) RESTRICTION ON USE OF DISCLOSED

13 INFORMATION.—Return information disclosed 

14 under subparagraph (A) may be used by offi15 cers and employees of the Department of Edu16 cation only for the purposes of, and to the ex17 tent necessary for purposes of— 

18 ‘‘(i) establishing the appropriate in19 come-contingent repayment amount in con20 nection with an applicable student loan, 

21 ‘‘(ii) establishing the appropriate re22 payment amount under an applicable in23 come-driven repayment plan (as defined in 

24 section 455(d)(9) of such Act (20 U.S.C. 


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1 1087e(d))) in connection with an applica2 ble student loan for— 

3 ‘‘(I) borrowers who have selected 

4 such a plan, and 

5 ‘‘(II) in the case of any recertifi6 cation under section 455(e)(8) or 

7 493C(c)(2)(B) of the Higher Edu8 cation Act of 1965 (20 U.S.C. 

9 1087e(e); 1098e(c)), borrowers who 

10 are enrolled in such a plan, and 

11 ‘‘(iii) in the case of borrowers who are 

12 at least 60 days delinquent on an applica13 ble student loan— 

14 ‘‘(I) providing notice of eligibility 

15 for an income-driven repayment plan 

16 (as so defined) pursuant to section 

17 455(d)(8)(B) of the Higher Education 

18 Act of 1965 (20 U.S.C. 1087e(d)), 

19 and 

20 ‘‘(II) automatic enrollment in 

21 such an income-driven repayment plan 

22 after such borrowers are at least 120 

23 days delinquent on such a loan pursu24 ant to section 455(d)(8)(C) of such 

25 Act (20 U.S.C. 1087e(d)). 


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1 ‘‘(C) DISCLOSURE TO CERTAIN CONTRAC2 TORS.—Officers and employees of the Depart3 ment of Education may disclose the information 

4 described in subparagraph (A) to persons 

5 awarded contracts by the Secretary of Edu6 cation under section 456 of the Higher Edu7 cation Act of 1965 (20 U.S.C. 1087f) to the ex8 tent necessary for the purposes described in 

9 subparagraph (B). 

10 ‘‘(D) SPOUSAL INFORMATION FOR MAR11 RIED INDIVIDUALS FILING SEPARATE RE12 TURNS.—For purposes of this paragraph, in the 

13 case of a married individual filing a separate re14 turn, the term ‘taxpayer’ includes the spouse of 

15 that individual if the Secretary of Education re16 quests information from the spouse of that indi17 vidual and the individual and the spouse have 

18 consented in writing. 

19 ‘‘(E) APPLICABLE STUDENT LOAN.—For 

20 purposes of this paragraph, the term ‘applicable 

21 student loan’ means— 

22 ‘‘(i) any loan which is made, insured, 

23 or guaranteed under a program authorized 

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1 er Education Act of 1965 (20 U.S.C. 1071 

2 et seq.; 1087a et seq.), and 

3 ‘‘(ii) any loan which is made under 

4 part E of such title IV (20 U.S.C. 1087aa 

5 et seq.) which is in default and has been 

6 assigned to the Department of Edu7 cation.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 6103(a)(3) of such Code is amended 

10 by inserting ‘‘(13),’’ after ‘‘(12),’’. 

11 (2) Section 6103(p)(4) of such Code is amend12 ed by inserting ‘‘(13),’’ after ‘‘(l)(10),’’ each place it 

13 occurs. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to disclosures made after the date 

16 of enactment of this Act. 

Æ 


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