I 

116TH CONGRESS 

1ST SESSION H. R. 2065 

To amend the Higher Education Act of 1965 in order to increase usage 

of the Federal student loan income-based repayment plan and improve 

repayment options for borrowers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 3, 2019 

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

Ways and Means, and Financial Services, 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 in order to 

increase usage of the Federal student loan income-based 

repayment plan and improve repayment options for borrowers, 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 ‘‘Affordable Loans for Any Student Act’’. 

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

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. References in Act. 

TITLE I—SIMPLIFYING REPAYMENT PLANS 

Sec. 101. Income-based repayment plan. 

Sec. 102. Fixed repayment plan. 

Sec. 103. Termination of certain repayment plan options. 

Sec. 104. Providing incentives to switch into simplified repayment plans. 

Sec. 105. Automatic recertification of income. 

Sec. 106. Disclosure of tax return information to carry out certain higher education loan programs. 

Sec. 107. Study and procedures on determining family size. 

TITLE II—ENDING INTEREST CAPITALIZATION AND ORIGINATION 

FEES 

Sec. 201. Ending interest capitalization for Federal Direct Loans. 

Sec. 202. Elimination of origination fees for Federal Direct Loans. 

TITLE III—PROVIDING ASSISTANCE IN SITUATIONS OF 

BORROWER DISTRESS 

Sec. 301. Limits on seizing income for debt relating to Federal student loans. 

Sec. 302. Allowing for multiple loan rehabilitations. 

Sec. 303. Pause payment process. 

Sec. 304. Automatic enrollment into income-based repayment for borrowers 

who are delinquent on loans and for borrowers who rehabilitate 

defaulted loans. 

Sec. 305. Separating joint consolidation loans. 

Sec. 306. Removing the collection cost requirement. 

TITLE IV—IMPROVING LOAN INFORMATION AND COUNSELING 

Sec. 401. Student loan contract; simplifying loan disclosures. 

Sec. 402. Annual and pre-loan information and counseling requirements. 

Sec. 403. Exit counseling. 

Sec. 404. Online counseling tools. 

Sec. 405. Private education loan certification and information. 

TITLE V—EFFECTIVE DATE; TRANSITION 

Sec. 501. Effective date; rulemaking regarding termination of certain repayment plans. 

1 SEC. 2. REFERENCES IN ACT. 

2 Except as otherwise expressly provided in this Act, 

3 wherever an amendment or repeal is expressed in terms 

4 of an amendment to or repeal of a section or other provi5 sion, the reference shall be considered to be made to that 


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1 section or other provision of the Higher Education Act of 

2 1965 (20 U.S.C. 1001 et seq.). 

3 TITLE I—SIMPLIFYING 

4 REPAYMENT PLANS 

5 SEC. 101. INCOME-BASED REPAYMENT PLAN. 

6 (a) SIMPLIFYING THE INCOME-BASED REPAYMENT

7 PLAN.—Section 493C (20 U.S.C. 1098e) is amended— 

8 (1) in subsection (b)— 

9 (A) by striking ‘‘INCOME-BASED REPAY10 MENT PROGRAM AUTHORIZED.—’’ and insert11 ing the following: ‘‘INCOME-BASED REPAYMENT

12 PROGRAM FOR BORROWERS WHO ENTER IN13 COME-BASED REPAYMENT BEFORE JULY 1, 

14 2020.—’’; 

15 (B) in paragraph (3)(A), by striking ‘‘ex16 cept that’’ and all that follows through ‘‘section 

17 435(o)’’; and 

18 (C) in paragraph (8), by striking ‘‘the 

19 standard repayment plan;’’ and inserting ‘‘the 

20 fixed repayment plan under section 493E;’’; 

21 and 

22 (2) by striking subsection (c) and inserting the 

23 following: 

24 ‘‘(c) INCOME-BASED REPAYMENT PROGRAM FOR

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1 ROWERS WHO ENTER INCOME-BASED REPAYMENT

2 AFTER JULY 1, 2020.— 

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

4 provision of this section, the provisions of this sub5 section shall apply— 

6 ‘‘(A) with respect to any loan made, in7 sured, or guaranteed under part B or D on or 

8 after July 1, 2020, for which the borrower 

9 elects the income-based repayment plan under 

10 this section; and 

11 ‘‘(B) with respect to any loan made, in12 sured, or guaranteed under part B or D before 

13 July 1, 2020, if such borrower elects to repay 

14 the loan under the income-based repayment 

15 plan on or after July 1, 2020, in accordance 

16 with paragraph (3) and section 428(b)(1)(D)(ii) 

17 or 455(d)(7), as applicable. 

18 ‘‘(2) SPECIAL TERMS.—With respect to a loan 

19 described in paragraph (1), the following terms shall 

20 apply to the income-based repayment plan carried 

21 out under this section: 

22 ‘‘(A)(i) Notwithstanding subsection 

23 (a)(3)(B), (b), or (e)— 

24 ‘‘(I) the annual repayment amount 

25 under this subsection shall be an amount 


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1 equal to 10 percent of the result obtained 

2 by calculating, on at least an annual basis, 

3 the amount by which— 

4 ‘‘(aa) the borrower’s, and the 

5 borrower’s spouse’s (if applicable), ad6 justed gross income; exceeds 

7 ‘‘(bb) the applicable percentage 

8 of the poverty line in accordance with 

9 clause (ii) that is applicable to the 

10 borrower’s family size as determined 

11 under section 673(2) of the Commu12 nity Services Block Grant Act (42 

13 U.S.C. 9902(2)); and 

14 ‘‘(II) a borrower’s monthly payment 

15 shall be determined in accordance with 

16 subclause (I) divided by 12, which amount 

17 may exceed the monthly repayment 

18 amount under a standard 10-year repay19 ment plan or a fixed repayment plan de20 scribed in section 493E. 

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

22 ‘applicable percentage’ means 250 percent re23 duced by 5 percentage points for each $1,000 

24 by which the borrower’s adjusted gross income 

25 exceeds $120,000. 


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1 ‘‘(B) Notwithstanding subsection (e)(2), 

2 subsection (b)(7)(B) shall be applied by sub3 stituting ‘20 years’ for ‘25 years’. 

4 ‘‘(C) Notwithstanding subparagraph (A) of 

5 subsection (b)(6), a borrower of such a loan 

6 shall not be required to have a partial financial 

7 hardship and may elect, and remain enrolled in, 

8 the income-based repayment plan under this 

9 section regardless of income level, with the re10 payment amount calculated under subpara11 graph (A). 

12 ‘‘(D) Notwithstanding subsection (b), a 

13 borrower of an excepted PLUS loan or excepted 

14 consolidation loan may elect the income-based 

15 repayment plan under this subsection for the 

16 excepted PLUS loan or excepted consolidation 

17 loan, and the Secretary shall treat such loan for 

18 purposes only of the repayment terms as a Fed19 eral Direct PLUS Loan issued to a student 

20 borrower. The Secretary may issue rules and 

21 regulations, as the Secretary determines nec22 essary, regarding the treatment of excepted 

23 PLUS loans or excepted consolidation loans 

24 that are to be repaid under an income-based re25 payment plan under this subsection. 


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1 ‘‘(3) RULE FOR BORROWERS IN INCOME-BASED

2 REPAYMENT BEFORE JULY 1, 2020.—A borrower of 

3 a loan made, insured, or guaranteed under part B 

4 or D who enrolled in the income-based repayment 

5 plan under subsection (b), as such plan was in effect 

6 on July 1, 2020, may choose to retain such repay7 ment plan or elect to enter an income-based repay8 ment plan under this subsection or a fixed repay9 ment plan described in section 493E, as provided in 

10 section 428(b)(1)(D)(ii) or 455(d)(7) (as applicable). 

11 ‘‘(4) INTEREST PAYMENTS AND ACCRUAL.— 

12 Notwithstanding any other provision of this Act, if 

13 a borrower’s monthly payment for a loan under an 

14 income-based repayment plan under this subsection 

15 is insufficient to pay the accrued interest on the bor16 rower’s loan for such month— 

17 ‘‘(A) in the case of a subsidized loan (in18 cluding the portion of a consolidated loan that 

19 is a subsidized loan), any interest due and not 

20 paid under subsection (b)(2) on the subsidized 

21 loan for that month shall be paid or forgiven by 

22 the Secretary, except that a borrower of a sub23 sidized loan shall only receive the benefits of 

24 this subparagraph for such loan for 36 months 

25 of payments under the income-based repayment 


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1 plan, excluding any period of pause payment 

2 under section 460B; and 

3 ‘‘(B) in the case of an unsubsidized loan or 

4 a subsidized loan that no longer qualifies under 

5 subparagraph (A), 50 percent of the interest 

6 not covered by the borrower’s monthly payment 

7 shall be paid or forgiven by the Secretary and 

8 the amount of the remaining interest shall be 

9 added to the balance of interest due on the 

10 loan, but shall not be capitalized. 

11 ‘‘(5) WRITTEN, ELECTRONIC, OR VERBAL EN12 ROLLMENT IN INCOME-BASED REPAYMENT.— 

13 ‘‘(A) IN GENERAL.—A borrower of a loan 

14 made under this part may elect to repay such 

15 loan under the income-based repayment plan 

16 under this subsection by providing written, elec17 tronic, or verbal notice to the Secretary of the 

18 borrower’s desire to make such election, subject 

19 to subparagraph (C). 

20 ‘‘(B) USE OF INFORMATION.— 

21 ‘‘(i) IN GENERAL.—The estimated 

22 monthly payment amount under this sec23 tion for a loan for a borrower who makes 

24 an election described in subparagraph (A) 

25 shall be immediately calculated using the 


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1 income and family size information pro2 vided through the borrower’s written, elec3 tronic, or verbal statement. 

4 ‘‘(ii) VERIFICATION.—The informa5 tion described in clause (i) shall be verified 

6 by the Secretary not later than 90 days 

7 after the date the borrower states such in8 come and family size information. If the 

9 Secretary is unable to verify the informa10 tion by the end of the 90-day period, the 

11 borrower’s payment after such 90-day pe12 riod will be the amount applicable under 

13 the fixed repayment plan under section 

14 493E. 

15 ‘‘(iii) ADJUSTMENT IF NECESSARY.— 

16 Upon verification by the Secretary under 

17 clause (ii), the Secretary shall adjust the 

18 estimated monthly payment described in 

19 clause (i) based on the verified income and 

20 family size information of the borrower, if 

21 necessary. Any adjusted monthly payment 

22 shall take effect beginning with the pay23 ment due not less than 60 days after the 

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1 sider any payments made prior to the ad2 justed monthly payment as having satisfied 

3 the amount due to qualify toward loan can4 cellation or forgiveness options under this 

5 title. 

6 ‘‘(C) LIMITATION.—The Secretary shall 

7 permit a borrower to make an election of in8 come-based repayment in the written, elec9 tronic, or verbal manner described in subpara10 graph (A) only in connection with the first in11 stance of each of the following: 

12 ‘‘(i) The borrower’s selection of a re13 payment plan during the grace period for 

14 such loan. 

15 ‘‘(ii) The borrower changing from the 

16 fixed repayment plan under section 493E 

17 to income-based repayment. 

18 ‘‘(iii) The borrower’s failure to com19 plete the verification process described in 

20 subparagraph (B)(ii). 

21 ‘‘(iv) The borrower’s failure to recer22 tify enrollment in income-based repayment 

23 under this subsection.’’. 


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1 (b) INCLUDING INCOME OF SPOUSES.—Subsection 

2 (d) of section 493C (20 U.S.C. 1098e(d)) is amended to 

3 read as follows: 

4 ‘‘(d) CALCULATION OF ADJUSTED GROSS INCOME

5 FOR MARRIED BORROWERS.—The Secretary shall cal6 culate the adjusted gross income of a married borrower 

7 under this section— 

8 ‘‘(1) in the case of a married borrower and 

9 spouse who jointly file a Federal income tax return, 

10 based on the adjusted gross income of the borrower 

11 and spouse as reported on the Federal income tax 

12 return; and 

13 ‘‘(2) in the case of a married borrower who files 

14 a Federal income tax return separately from the 

15 borrower’s spouse, based on the sum of the adjusted 

16 gross income of the borrower and the spouse, as re17 ported on the applicable Federal income tax returns, 

18 unless the borrower certifies, on a form approved by 

19 the Secretary, that the borrower is— 

20 ‘‘(A) separated from the borrower’s spouse; 

21 or 

22 ‘‘(B) unable to reasonably access the in23 come information of the borrower’s spouse.’’. 


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1 SEC. 102. FIXED REPAYMENT PLAN. 

2 Part G of title IV (20 U.S.C. 1088 et seq.) is amend3 ed by adding at the end the following: 

4 ‘‘SEC. 493E. FIXED REPAYMENT PLAN. 

5 ‘‘(a) IN GENERAL.—A borrower of a loan made under 

6 part D on or after July 1, 2020, and a borrower who is 

7 in repayment on a loan made, insured, or guaranteed 

8 under part B or D before July 1, 2020, may elect to repay 

9 such loan under the fixed repayment plan described in this 

10 section. 

11 ‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re12 payment plan, a borrower shall repay each loan described 

13 in subsection (a) with a fixed monthly repayment amount 

14 paid over a period of 10 years, subject to subsection (c). 

15 ‘‘(c) SPECIAL RULES.— 

16 ‘‘(1) MINIMUM.—If a borrower’s monthly pay17 ment under this section (except for the final pay18 ment on the loan) is less than $25, the Secretary 

19 shall establish the borrower’s monthly payment as 

20 $25. 

21 ‘‘(2) ALTERNATIVE MINIMUM PAYMENTS.—Not22 withstanding paragraph (1), the Secretary may ac23 cept an alternative minimum payment amount, 

24 which may include an amount of less than $25, to 

25 account for a borrower’s exceptional cir26 cumstances.’’. 


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1 SEC. 103. TERMINATION OF CERTAIN REPAYMENT PLAN 

2 OPTIONS. 

3 (a) FFEL PROGRAM REPAYMENT PLAN OPTIONS.— 

4 Section 428(b) (20 U.S.C. 1078(b)) is amended— 

5 (1) in paragraph (1)— 

6 (A) in subparagraph (D)— 

7 (i) in clause (ii), by striking ‘‘may an8 nually change the selection of a repayment 

9 plan under this part,’’ and inserting ‘‘may 

10 at any time after July 1, 2020, change the 

11 selection of a repayment plan under this 

12 part or part G to one of the 2 repayment 

13 plans described in paragraph (9)(C),’’; and 

14 (ii) in clause (iii), by inserting ‘‘or, in 

15 the case of a default that occurs after July 

16 1, 2020, be subject to income-based repay17 ment in accordance with section 493C(c)’’ 

18 before the semicolon at the end; 

19 (B) in subparagraph (E)(i), by striking 

20 ‘‘the option of repaying the loan in accordance 

21 with a standard, graduated, income-sensitive, or 

22 extended repayment schedule (as described in 

23 paragraph (9)) established by the lender in ac24 cordance with regulations of the Secretary; 

25 and’’ and inserting ‘‘the option of repaying the 


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1 loan in accordance with an applicable repay2 ment plan described in paragraph (9)(C)’’; and 

3 (C) by striking subparagraph (L); and 

4 (2) in paragraph (9)— 

5 (A) in subparagraph (A)— 

6 (i) in the subparagraph heading, by 

7 inserting ‘‘BEFORE JULY 1, 2020’’ after 

8 ‘‘SELECTION’’; and 

9 (ii) in the matter preceding clause 

10 (i)— 

11 (I) by inserting ‘‘or subparagraph 

12 (C), as applicable,’’ after ‘‘this sub13 paragraph’’; and 

14 (II) by striking ‘‘The borrower’’ 

15 and inserting ‘‘Before July 1, 2020, 

16 the borrower’’; 

17 (B) in subparagraph (B), by inserting be18 fore the period at the end ‘‘or, for a borrower 

19 entering repayment after July 1, 2020, the 

20 lender shall provide the borrower with the fixed 

21 repayment plan described in section 493E’’; 

22 and 

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

24 ‘‘(C) SELECTION OF REPAYMENT PLANS

25 ON AND AFTER JULY 1, 2020.—Notwithstanding 


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1 any other provision of law, and in accordance 

2 with regulations promulgated, beginning on 

3 July 1, 2020, a lender shall offer a borrower of 

4 a loan made, insured, or guaranteed under this 

5 part the opportunity to change repayment plans 

6 at any time after July 1, 2020, and then not 

7 more than once per calendar year thereafter. 

8 The borrower may choose between the following 

9 repayment plans: 

10 ‘‘(i) A fixed repayment plan described 

11 in section 493E. 

12 ‘‘(ii) The income-based repayment 

13 plan under section 493C(c).’’. 

14 (b) FEDERAL DIRECT LOAN PROGRAM REPAYMENT

15 PLAN OPTIONS.—Section 455(d) (20 U.S.C. 1087e(d)) is 

16 amended— 

17 (1) by redesignating paragraphs (2) through 

18 (5) as paragraphs (3) through (6), respectively; 

19 (2) in paragraph (1)— 

20 (A) in the paragraph heading, by inserting 

21 ‘‘BEFORE JULY 1, 2020’’ after ‘‘SELECTION’’; 

22 and 

23 (B) in the matter preceding subparagraph 

24 (A), by inserting ‘‘that enters repayment before 

25 July 1, 2020,’’ before ‘‘a variety’’; 


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1 (3) by inserting after paragraph (1) the fol2 lowing: 

3 ‘‘(2) DESIGN AND SELECTION BEGINNING JULY

4 1, 2020.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding para6 graph (1), for any borrower of a loan made 

7 under this part that enters repayment on or 

8 after July 1, 2020, and for any borrower sub9 ject to paragraph (7), the Secretary shall offer 

10 the borrower a choice between the following 2 

11 plans for repayment of such loan, including 

12 principal and interest on the loan. The borrower 

13 may choose— 

14 ‘‘(i) a fixed repayment plan described 

15 in section 493E; or 

16 ‘‘(ii) an income-based repayment plan 

17 under section 493C(c). 

18 ‘‘(B) ACCELERATION.—A borrower in re19 payment shall be entitled to accelerate, without 

20 penalty, repayment on the borrower’s loans 

21 under this part. 

22 ‘‘(C) SELECTION BY THE SECRETARY.—If 

23 a borrower of a loan made under this part that 

24 enters repayment on or after July 1, 2020, does 

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1 paragraph (A) before the first payment on such 

2 loan is due, the Secretary shall provide the bor3 rower with a fixed repayment plan described in 

4 section 493E. 

5 ‘‘(D) CHANGES IN SELECTIONS.—A bor6 rower of a loan made under this part that en7 ters repayment or on after July 1, 2020, may 

8 change the borrower’s selection of a repayment 

9 plan in accordance with subparagraphs (B) and 

10 (C) of paragraph (7). 

11 ‘‘(E) BORROWER IN DEFAULT.—Beginning 

12 on July 1, 2020, in lieu of the requirements of 

13 paragraph (6), the Secretary may require any 

14 borrower who has defaulted on a loan made 

15 under this part on or after July 1, 2020, to 

16 repay the loan pursuant to an income-based re17 payment plan under section 493C(c).’’; and 

18 (4) by adding at the end the following: 

19 ‘‘(7) BORROWERS OF LOANS MADE BEFORE

20 JULY 1, 2020.—A borrower who is in repayment on 

21 a loan made under this part before July 1, 2020— 

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

23 plan that the borrower was enrolled in on the 

24 day before such date; 

25 ‘‘(B) may elect to— 


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1 ‘‘(i) enter an income-based repayment 

2 plan under section 493C(c); 

3 ‘‘(ii) enter a fixed repayment plan de4 scribed in section 493E; or 

5 ‘‘(iii) switch between the repayment 

6 plans described in clauses (i) and (ii); 

7 ‘‘(C) after switching to a repayment plan 

8 described in clause (i) or (ii) of subparagraph 

9 (B), shall not be permitted to select a repay10 ment plan not described in subparagraph (B) 

11 for the loan; and 

12 ‘‘(D) shall retain, for purposes of repay13 ment or cancellation of any outstanding balance 

14 of principal and interest due on a loan (as de15 scribed in section 493C(b)(7)), any payments 

16 on such loan under another income-based or in17 come-contingent repayment plan under this title 

18 that would otherwise be qualifying.’’. 

19 (c) CONFORMING AMENDMENT.—Section 

20 433(b)(7)(B) (20 U.S.C. 1083(b)(7)(B)) is amended by 

21 striking ‘‘on a standard repayment plan’’ and inserting ‘‘, 

22 in the case of a borrower who has not selected a repayment 

23 plan, on the repayment plan designated under subpara24 graph (B) of section 428(b)(9)’’. 


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1 SEC. 104. PROVIDING INCENTIVES TO SWITCH INTO SIM2 PLIFIED REPAYMENT PLANS. 

3 (a) ENABLING CONSOLIDATION IN ORDER TO SIM4 PLIFY REPAYMENT.—Section 455(g) (20 U.S.C. 

5 1087e(g)) is amended— 

6 (1) by striking ‘‘LOANS.—’’ and all that follows 

7 through ‘‘A borrower of’’ and inserting the following: 

8 ‘‘LOANS.— 

9 ‘‘(1) IN GENERAL.—A borrower of’’; 

10 (2) by striking the second sentence; and 

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

12 ‘‘(2) ELIGIBILITY.—To be eligible for a Federal 

13 Direct Consolidation Loan under this part, a bor14 rower shall meet the eligibility criteria set forth in 

15 section 428C(a)(3), except that, notwithstanding 

16 section 428C(a)(3)(B), a borrower may obtain a 

17 Federal Direct Consolidation Loan if the borrower— 

18 ‘‘(A) obtains the Federal Direct Consolida19 tion Loan for the purpose of— 

20 ‘‘(i) selecting the income-based repay21 ment plan under section 493C(c) or fixed22 income repayment plan under section 

23 495E; or 

24 ‘‘(ii) participating in the pause pay25 ment process under section 460B; and 


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1 ‘‘(B) meets the requirements of section 

2 428C(a)(3)(A).’’. 

3 (b) INCENTIVES FOR SIMPLIFIED REPAYMENT

4 PLANS.—Part G of title IV (20 U.S.C. 1088 et seq.), as 

5 amended by section 102, is further amended by adding 

6 at the end the following: 

7 ‘‘SEC. 493F. INCENTIVES FOR SIMPLIFIED REPAYMENT 

8 PLANS. 

9 ‘‘(a) IN GENERAL.—To facilitate the transition of 

10 borrowers to simplified repayment plan options, the Sec11 retary shall reduce the interest rate applicable under sec12 tion 455(b) or 427A to a loan under part B or D held 

13 by a borrower as of July 1, 2020, by 100 basis points 

14 (or the equivalent), if the borrower of the loan, after the 

15 effective date of the Affordable Loans for Any Student 

16 Act— 

17 ‘‘(1) changes from a repayment plan described 

18 in subparagraphs (A) through (E) of section 

19 455(d)(1) for such loan to an income-based repay20 ment plan under section 493C(c) or a fixed repay21 ment plan under section 493E; or 

22 ‘‘(2) consolidates 1 or more loans under this 

23 title, or described in section 428C(a)(4), that were 

24 under a repayment plan described in subparagraphs 

25 (A) through (E) of section 455(d)(1), or clauses (i) 


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1 through (v) of section 428(b)(9), into a Federal Di2 rect Consolidation Loan and selects an income-based 

3 repayment plan under section 493C(c) or a fixed re4 payment plan under section 493E for the loan. 

5 ‘‘(b) LIMITATION.—The interest rate for a loan eligi6 ble for the incentive under subsection (a) may be reduced 

7 only once under this section. 

8 ‘‘(c) REGULATIONS.—The Secretary shall promulgate 

9 rules carrying out the incentive program established under 

10 this section.’’. 

11 SEC. 105. AUTOMATIC RECERTIFICATION OF INCOME. 

12 (a) INCOME-BASED REPAYMENT.—Section 493C of 

13 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

14 amended by adding at the end the following: 

15 ‘‘(f) ELIGIBILITY DETERMINATIONS AND AUTOMATIC

16 RECERTIFICATION.— 

17 ‘‘(1) IN GENERAL.—Beginning as soon as the 

18 Secretary determines practicable after the Secretary 

19 finalizes the procedures under section 107 of the Af20 fordable Loans for Any Student Act, the Secretary 

21 shall establish and implement, with respect to any 

22 borrower described in paragraph (2), procedures 

23 to— 

24 ‘‘(A) obtain (for each year of repayment 

25 and without further action by the borrower) 


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1 such information as is reasonably necessary re2 garding the income of such borrower (and the 

3 borrower’s spouse, if applicable), for the pur4 pose of determining the repayment obligation of 

5 the borrower for such year, including informa6 tion with respect to the borrower’s family size 

7 in accordance with the procedures under such 

8 section 107, subject to subparagraph (B); 

9 ‘‘(B) allow the borrower, at any time, to 

10 opt out of subparagraph (A) and prevent the 

11 Secretary from obtaining information under 

12 such subparagraph without further action by 

13 the borrower; 

14 ‘‘(C) provide the borrower with an oppor15 tunity to update the information obtained under 

16 subparagraph (A) before the determination of 

17 the annual repayment obligation of the bor18 rower; and 

19 ‘‘(D) in the case of a borrower for whom 

20 adjusted gross income is unavailable (except as 

21 provided in paragraph (2)(B)), ensure that the 

22 borrower will not be required to provide the 

23 Secretary with other documentation of income 

24 and provide the borrower with a calculated 

25 monthly payment of $0. 


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1 ‘‘(2) APPLICABILITY.— 

2 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

3 apply to each borrower of a loan made under 

4 this part who, on or after the date on which the 

5 Secretary establishes procedures under such 

6 paragraph— 

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

8 selected under subparagraphs (C) or (D) 

9 of paragraph (8), or paragraph (9), of sub10 section (d), or section 428(m)(1), an in11 come-based repayment plan; or 

12 ‘‘(ii) recertifies income and family size 

13 under such plan. 

14 ‘‘(B) ELIGIBILITY EXCEPTION.—A bor15 rower for whom adjusted gross income is un16 available because the borrower has been granted 

17 an extension on filing the borrower’s income 

18 taxes or is undergoing an audit or examination 

19 by the Internal Revenue Service shall not auto20 matically be eligible for the calculated monthly 

21 payment of $0 in accordance with paragraph 

22 (1)(D) during such period. When the extension, 

23 audit, or examination is completed, the Sec24 retary shall resume consideration of the bor25 rower for automatic recertification under the 


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1 procedures described in paragraph (1), includ2 ing subparagraph (D) of such paragraph (if ap3 plicable). 

4 ‘‘(3) AVAILABILITY OF RETURNS AND RETURN

5 INFORMATION.—Returns and return information (as 

6 defined in section 6103 of the Internal Revenue 

7 Code of 1986) may be obtained under paragraph 

8 (1)(A) only to the extent authorized by section 

9 6103(l)(13) of such Code.’’. 

10 (b) INCOME-CONTINGENT REPAYMENT.—Section 

11 455(e) of the Higher Education Act of 1965 (20 U.S.C. 

12 1087e(e)) is amended— 

13 (1) in paragraph (3), by inserting ‘‘, consistent 

14 with the procedures established under paragraph 

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

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

17 ‘‘(8) AUTOMATIC RECERTIFICATION.— 

18 ‘‘(A) IN GENERAL.—Beginning as soon as 

19 the Secretary determines practicable after the 

20 Secretary finalizes the procedures under section 

21 107 of the Affordable Loans for Any Student 

22 Act, the Secretary shall establish and imple23 ment procedures that allow the automatic recer24 tification of income with respect to borrowers 

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1 dures shall, to the extent practicable, be the 

2 same procedures described in section 493C(f). 

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

4 shall apply to each borrower of a loan made 

5 under this part— 

6 ‘‘(i) who, on or after the date on 

7 which the Secretary establishes procedures 

8 under such subparagraph, applies to recer9 tify income and family size under such 

10 plan; or 

11 ‘‘(ii) for whom the Secretary selected 

12 an income-contingent repayment plan 

13 under section 428(m)(1). 

14 ‘‘(C) AVAILABILITY OF RETURNS AND RE15 TURN INFORMATION.—Returns and return in16 formation (as defined in section 6103 of the In17 ternal Revenue Code of 1986) may be obtained 

18 under subparagraph (A) only to the extent au19 thorized by section 6103(l)(13) of such Code. 

20 ‘‘(D) OTHER REQUIREMENTS.—The proce21 dures established by the Secretary under this 

22 paragraph shall be consistent with the require23 ments of paragraphs (1) through (7), except as 

24 otherwise provided in this paragraph.’’. 


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1 SEC. 106. DISCLOSURE OF TAX RETURN INFORMATION TO 

2 CARRY OUT CERTAIN HIGHER EDUCATION 

3 LOAN PROGRAMS. 

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

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

6 as follows: 

7 ‘‘(13) DISCLOSURE OF RETURN INFORMATION

8 TO CARRY OUT THE HIGHER EDUCATION ACT OF

9 1965.— 

10 ‘‘(A) INCOME-CONTINGENT OR INCOME11 BASED REPAYMENT AND TOTAL AND PERMA12 NENT DISABILITY DISCHARGE.—The Secretary 

13 shall, upon written request from the Secretary 

14 of Education, disclose to officers, employees, 

15 and contractors of the Department of Edu16 cation, as specifically authorized and designated 

17 by the Secretary of Education, only for the pur18 pose of (and to the extent necessary in) estab19 lishing, renewing, administering, and con20 ducting analyses and forecasts for estimating 

21 costs related to income-contingent or income22 based repayment programs, and the discharge 

23 of loans based on a total and permanent dis24 ability (within the meaning of section 437(a) of 

25 the Higher Education Act of 1965), under title 

26 IV of the Higher Education Act of 1965, the 


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1 following return information (as defined in sub2 section (b)(2)) with respect to taxpayers identi3 fied by the Secretary of Education as partici4 pating in the loan programs under title IV of 

5 such Act, for taxable years specified by such 

6 Secretary: 

7 ‘‘(i) Taxpayer identity information 

8 with respect to such taxpayer. 

9 ‘‘(ii) The filing status of such tax10 payer. 

11 ‘‘(iii) Type of tax return from which 

12 the return information is provided. 

13 ‘‘(iv) The adjusted gross income of 

14 such taxpayer. 

15 ‘‘(v) Total number of exemptions 

16 claimed, or total number of individuals and 

17 dependents claimed, as applicable, on the 

18 return. 

19 ‘‘(vi) Number of children with respect 

20 to which tax credits under section 24 are 

21 claimed on the return. 

22 ‘‘(vii) Other information determined 

23 to be necessary by agreement between the 

24 Secretary and the Secretary of Education 

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1 grams as required by the Higher Edu2 cation Act of 1965. 

3 ‘‘(B) FEDERAL STUDENT FINANCIAL

4 AID.—The Secretary shall, upon written request 

5 from the Secretary of Education, disclose to of6 ficers, employees, and contractors of the De7 partment of Education, as specifically author8 ized and designated by the Secretary of Edu9 cation, only for the purpose of (and to the ex10 tent necessary in) determining eligibility for, 

11 and amount of, Federal student financial aid 

12 under programs authorized by title IV of the 

13 Higher Education Act of 1965 and conducting 

14 analyses and forecasts for estimating costs re15 lated to such programs, the following return in16 formation (as defined in subsection (b)(2)) with 

17 respect to taxpayers identified by the Secretary 

18 of Education as applicants for Federal student 

19 financial aid under title IV of such Act, for tax20 able years specified by such Secretary: 

21 ‘‘(i) Taxpayer identity information 

22 with respect to such taxpayer. 

23 ‘‘(ii) The filing status of such tax24 payer. 


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1 ‘‘(iii) Type of tax return from which 

2 the return information is provided. 

3 ‘‘(iv) The adjusted gross income of 

4 such taxpayer. 

5 ‘‘(v) The amount of any net earnings 

6 from self-employment (as defined in sec7 tion 1402), wages (as defined in section 

8 3121(a) or 3401(a)), and taxable income 

9 from a farming business (as defined in sec10 tion 236A(e)(4)) for the period reported on 

11 the return. 

12 ‘‘(vi) The total income tax of such 

13 taxpayer. 

14 ‘‘(vii) Total number of exemptions 

15 claimed, or total number of individuals and 

16 dependents claimed, as applicable, on the 

17 return. 

18 ‘‘(viii) Number of children with re19 spect to which tax credits under section 24 

20 are claimed on the return. 

21 ‘‘(ix) Amount of any credit claimed 

22 under section 25A for the taxable year. 

23 ‘‘(x) Amount of individual retirement 

24 account distributions not included in ad25 justed gross income for the taxable year. 


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1 ‘‘(xi) Amount of individual retirement 

2 account contributions and payments to 

3 self-employed SEP, Keogh, and other 

4 qualified plans which were deducted from 

5 income for the taxable year. 

6 ‘‘(xii) The amount of tax-exempt in7 terest. 

8 ‘‘(xiii) Amounts from retirement pen9 sions and annuities not included in ad10 justed gross income for the taxable year. 

11 ‘‘(xiv) If applicable, the fact that 

12 there is no return filed for such taxpayer 

13 for the applicable year. 

14 ‘‘(xv) Other information determined to 

15 be necessary by agreement between the 

16 Secretary and the Secretary of Education 

17 to administer the Federal financial aid pro18 grams as required by the Higher Edu19 cation Act of 1965. 

20 ‘‘(C) RESTRICTION ON USE OF DISCLOSED

21 INFORMATION.— 

22 ‘‘(i) IN GENERAL.—Return informa23 tion disclosed under subparagraphs (A) 

24 and (B) may be used by officers, employ25 ees, and contractors of the Department of 


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1 Education, as specifically authorized and 

2 designated by the Secretary of Education, 

3 only for the purposes and to the extent 

4 necessary described in such subparagraphs 

5 and for mitigating risks (as defined in 

6 clause (ii)) relating to the programs de7 scribed in such subparagraphs. 

8 ‘‘(ii) MITIGATING RISKS.—For pur9 poses of this subparagraph, the term ‘miti10 gating risks’ means, with respect to the 

11 programs described in subparagraphs (A) 

12 and (B)— 

13 ‘‘(I) analyzing or estimating costs 

14 associated with potential changes to 

15 the need-analysis formula, 

16 ‘‘(II) oversight activities by the 

17 Office of Inspector General of the De18 partment of Education as authorized 

19 by the Inspector General Act of 1978, 

20 as amended, 

21 ‘‘(III) developing or admin22 istering statistical models that inform 

23 support to populations of Federal stu24 dent loan borrowers who are at risk of 

25 default or delinquency, 


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1 ‘‘(IV) reducing the net cost of 

2 improper payments to Federal finan3 cial aid recipients, and 

4 ‘‘(V) producing aggregate statis5 tics for reporting, research, or con6 sumer information on the performance 

7 of programs or institutions of higher 

8 education participating in the pro9 grams under title IV of the Higher 

10 Education Act of 1965. 

11 Such term does not include the conduct of 

12 criminal investigations or prosecutions. 

13 ‘‘(iii) REDISCLOSURE TO INSTITU14 TIONS OF HIGHER EDUCATION, STATE

15 HIGHER EDUCATION AGENCIES, AND DES16 IGNATED SCHOLARSHIP ORGANIZATIONS.— 

17 The Secretary of Education, and officers, 

18 employees, and contractors of the Depart19 ment of Education, may disclose return in20 formation received under subparagraph 

21 (B), solely for the use in the application, 

22 award, and administration of Federal stu23 dent financial aid, State aid, or aid award24 ed by eligible institutions or such entities 


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1 as the Secretary of Education may des2 ignate, to the following persons: 

3 ‘‘(I) An institution of higher edu4 cation with which the Secretary of 

5 Education has an agreement under 

6 subpart 1 of part A, or part D or E, 

7 of title IV of the Higher Education 

8 Act of 1965. 

9 ‘‘(II) A State higher education 

10 agency. 

11 ‘‘(III) A scholarship organization 

12 which is designated by the Secretary 

13 of Education as of the effective date 

14 of the Affordable Loans for Any Stu15 dent Act as an organization eligible to 

16 receive the information provided 

17 under this clause. 

18 The preceding sentence shall only apply to 

19 the extent that the taxpayer with respect 

20 to whom the return information relates 

21 provides consent for such disclosure to the 

22 Secretary of Education as part of the ap23 plication for Federal student financial aid 

24 under title IV of the Higher Education Act 

25 of 1965. 


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1 ‘‘(D) REQUIRED NOTIFICATION PERI2 ODS.— 

3 ‘‘(i) NOTIFICATION TO CONGRESS.— 

4 The Secretary and the Secretary of Edu5 cation shall issue joint notifications to the 

6 Committees on Finance and Health, Edu7 cation, Labor, and Pensions of the Senate 

8 and the Committees on Ways and Means 

9 and Education and Labor of the House of 

10 Representatives not less than 120 days 

11 prior to the first disclosure of any type of 

12 return information under subparagraph 

13 (A)(vii) or (B)(xv) with respect to which 

14 such a notification has not been previously 

15 made. 

16 ‘‘(ii) PUBLIC NOTICE AND COM17 MENT.—There shall be a public notice and 

18 comment period beginning not less than 60 

19 days prior to the first disclosure of any 

20 type of return information under subpara21 graph (A)(vii) or (B)(xv) with respect to 

22 which such a notification has not been pre23 viously made, subsequent to the period al24 lotted for Congressional comment under 

25 clause (i).’’. 


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1 (b) CONFIDENTIALITY OF RETURN INFORMATION.— 

2 Section 6103(a)(3) of such Code is amended by inserting 

3 ‘‘, (13)(A), (13)(B)’’ after ‘‘(12)’’. 

4 (c) CONFORMING AMENDMENTS.—Section 

5 6103(p)(4) of such Code is amended— 

6 (1) by inserting ‘‘(A), (13)(B)’’ after ‘‘(13)’’ 

7 each place it occurs, and 

8 (2) by inserting ‘‘, (13)(A), (13)(B)’’ after 

9 ‘‘(l)(10)’’ each place it occurs. 

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

11 this section shall apply to disclosures made under section 

12 6103(l)(13) of the Internal Revenue Code of 1986 (as 

13 amended by this section) after the date of the enactment 

14 of this Act. 

15 (e) IN GENERAL.—Part G of title IV of the Higher 

16 Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend17 ed by adding at the end the following: 

18 ‘‘SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN 

19 INFORMATION. 

20 ‘‘The Secretary shall advise students and borrowers 

21 who submit an application for Federal student financial 

22 aid under this title or for the discharge of a loan based 

23 on permanent and total disability, as described in section 

24 437(a), or who request an income-contingent or income25 based repayment plan on their loan (as well as parents 


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1 and spouses who sign such an application or request or 

2 a Master Promissory Note on behalf of those students and 

3 borrowers) that the Secretary has the authority to request 

4 that the Internal Revenue Service disclose their tax return 

5 information (as well as that of parents and spouses who 

6 sign such an application or request or a Master Promis7 sory Note on behalf of those students and borrowers) to 

8 officers, employees, and contractors of the Department of 

9 Education as authorized under section 6103(1)(13) of the 

10 Internal Revenue Code of 1986, to the extent necessary 

11 for the Secretary to carry out this title.’’. 

12 (f) CONFORMING AMENDMENT.—Section 484(q) of 

13 the Higher Education Act of 1965 (20 U.S.C. 1091(q)) 

14 is amended to read as follows: 

15 ø‘‘(q) reserved’’.¿ 

16 (g) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to disclosures made after the date 

18 of enactment of this Act. 

19 SEC. 107. STUDY AND PROCEDURES ON DETERMINING FAM20 ILY SIZE. 

21 (a) IN GENERAL.—The Secretary of Education, act22 ing jointly with the Secretary of the Treasury, shall— 

23 (1) not later than 1 year after the date of en24 actment of this Act, publish, in the Federal Register, 

25 notice of the Secretary’s intent to conduct a study 


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1 on the effect of using data from the Internal Rev2 enue Service such as personal exemptions, filing sta3 tus, or child tax credits, as proxies for family size 

4 in an income-driven repayment plan, and invite pub5 lic comment regarding the study; 

6 (2) after reviewing any public comments pro7 vided under paragraph (1), conduct the study and 

8 publish the results of the study in the Federal Reg9 ister; 

10 (3) use the results of the study conducted under 

11 paragraph (1) to develop procedures for determining 

12 family size for the automatic recertification of in13 come for an income-driven repayment plan in a man14 ner that minimizes burdens and unintended harm to 

15 borrowers; 

16 (4) publish the procedures developed under 

17 paragraph (3) in the Federal Register; and 

18 (5) after a notice and comment period on such 

19 procedures, use such comments to finalize the proce20 dures. 

21 (b) SPECIFICATIONS.—The study conducted under 

22 subsection (a) shall— 

23 (1) be completed, with the results published 

24 pursuant to subsection (a)(2), not later than 3 years 

25 after the date of enactment of this Act; 


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1 (2) determine how closely personal exemptions, 

2 filing status, or child tax credits match the family 

3 size that borrowers report on their income-driven re4 payment plan request form; 

5 (3) compare the borrower’s actual monthly pay6 ment amount with the monthly payment amount 

7 borrowers would have using family size information 

8 derived from tax returns; 

9 (4) include data from tax year 2018 or later tax 

10 years; and 

11 (5) use data from more than one year, where 

12 possible, to analyze how much family size changes 

13 over time. 

14 (c) DEFINITION.—The term ‘‘income-driven repay15 ment plan’’ has the meaning given the term in section 

16 6103(l)(13)(F) of the Internal Revenue Code of 1986, as 

17 amended by section 106. 

18 TITLE II—ENDING INTEREST 

19 CAPITALIZATION AND ORIGI20 NATION FEES 

21 SEC. 201. ENDING INTEREST CAPITALIZATION FOR FED22 ERAL DIRECT LOANS. 

23 (a) IN GENERAL.—Section 455 (20 U.S.C. 1087e) is 

24 amended— 

25 (1) in subsection (b)— 


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1 (A) in the subsection heading, by inserting 

2 ‘‘AND PRACTICES’’ after ‘‘RATE’’; and 

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

4 ‘‘(11) INTEREST PRACTICES.— 

5 ‘‘(A) IN GENERAL.—Beginning on the ef6 fective date of the Affordable Loans for Any 

7 Student Act, interest on a loan made under this 

8 part shall accrue and only be added to the bal9 ance of interest due on the loan, and shall not 

10 ever be capitalized. 

11 ‘‘(B) NO CAPITALIZATION OF INTEREST

12 DURING IN-SCHOOL OR GRACE PERIODS.— 

13 ‘‘(i) IN GENERAL.—Beginning on the 

14 effective date of the Affordable Loans for 

15 Any Student Act, interest on loans made 

16 under this part for which payments of 

17 principal are not required during the in18 school and grace periods or for which pay19 ments are deferred in accordance with sec20 tions 427(a)(2)(C) and 428(b)(1)(M) shall 

21 accrue and be added to the balance of in22 terest due from the borrower when the 

23 loan enters repayment, but shall not ever 

24 be capitalized. 


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1 ‘‘(ii) NOTICE REQUIREMENT.—The 

2 Secretary shall adjust any forbearance no3 tice required in accordance with section 

4 428(a)(3)(A)(iii) to reflect the availability 

5 of the pause payment process pursuant to 

6 section 460B and the treatment of interest 

7 under such section. 

8 ‘‘(C) LIMITED RETROACTIVITY.—For a 

9 borrower of a loan made under this part on or 

10 before the effective date of the Affordable 

11 Loans for Any Student Act that is in a status, 

12 on the day before such effective date, that in13 volves interest capitalization, such loan shall 

14 have capitalization pro-rated to the effective 

15 date of such Act, but shall not be subject to 

16 further capitalization after the effective date of 

17 such Act.’’; 

18 (2) in subsection (e)(5)— 

19 (A) by inserting ‘‘(which, beginning after 

20 the effective date of the Affordable Loans for 

21 Any Student Act, shall not be capitalized)’’ 

22 after ‘‘accrued interest’’; and 

23 (B) by striking the second sentence; and 

24 (3) in subsection (q)(2), by striking the second 

25 sentence and inserting the following: ‘‘Such interest 


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1 shall be paid or shall accrue but not be capitalized 

2 in accordance with subsection (b)(11)(B).’’. 

3 (b) INCOME-BASED REPAYMENT PLANS.—Para4 graph (3)(B) of section 493C(b) (20 U.S.C. 

5 1098e(b)(3)(B)) is amended to read as follows: 

6 ‘‘(B)(i) beginning on the effective date of 

7 the Affordable Loans for Any Student Act, for 

8 an eligible loan issued under part D or not oth9 erwise described in clause (ii), shall not be cap10 italized and shall be added to the balance of in11 terest due for the loan; and 

12 ‘‘(ii) for an eligible loan made, insured, or 

13 guaranteed under part B and held by a private 

14 lender, shall be added to the principal amount 

15 and capitalized at the time the borrower— 

16 ‘‘(I) ends the election to make income17 based repayment under this subsection; or 

18 ‘‘(II) begins making payments of not 

19 less than the amount specified in para20 graph (6)(A);’’. 

21 SEC. 202. ELIMINATION OF ORIGINATION FEES FOR FED22 ERAL DIRECT LOANS. 

23 (a) REPEAL OF ORIGINATION FEES.—Subsection (c) 

24 of section 455 (20 U.S.C. 1087e(c)) is repealed. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply with respect to loans made 

3 under part D of title IV of the Higher Education Act of 

4 1965 (20 U.S.C. 1087a et seq.) for which the first dis5 bursement of principal is made, or, in the case of a Fed6 eral Direct Consolidation Loan, the application is received, 

7 on or after July 1, 2020. 

8 TITLE III—PROVIDING ASSIST9 ANCE IN SITUATIONS OF BOR10 ROWER DISTRESS 

11 SEC. 301. LIMITS ON SEIZING INCOME FOR DEBT RELATING 

12 TO FEDERAL STUDENT LOANS. 

13 Part D of title IV (20 U.S.C. 1087a et seq.) is 

14 amended by adding at the end the following: 

15 ‘‘SEC. 460A. LIMITS ON SEIZING INCOME FOR DEBT RELAT16 ING TO FEDERAL STUDENT LOANS. 

17 ‘‘(a) DEFINITIONS.—In this section— 

18 ‘‘(1) the term ‘adjusted gross income’ has the 

19 meaning given the term in section 62 of the Internal 

20 Revenue Code of 1986; and 

21 ‘‘(2) the term ‘poverty line’ means the poverty 

22 line (as defined by the Office of Management and 

23 Budget and revised annually in accordance with sec24 tion 673(2) of the Community Services Block Grant 


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1 Act (42 U.S.C. 9902(2))) applicable to a family of 

2 the size involved. 

3 ‘‘(b) LIMITATION ON COLLECTION.— 

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

5 provision of law, any entity engaged in the collection 

6 of debts relating to loans made under this title may 

7 not take any action to cause, or seek to cause, the 

8 collection of such a debt that is taken from the 

9 wages, Federal benefits, or other amounts due to a 

10 borrower through garnishment, deduction, offset, or 

11 seizure in an amount on a monthly basis that is 

12 more than the amount described in paragraph (2). 

13 ‘‘(2) CALCULATION.—The amount described in 

14 this paragraph is the amount obtained by calculating 

15 what the monthly repayment amount would be for 

16 loans made under this title, with respect to the bor17 rower, under the income-based repayment plan 

18 under section 493C(c). 

19 ‘‘(3) PRESUMPTION.—For purposes of this sec20 tion, if an entity described in paragraph (1) is un21 able to determine the family size of a borrower after 

22 taking reasonable steps to collect the information 

23 necessary to do so, that person shall presume that 

24 the family size of the borrower is 1 individual. 


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1 ‘‘(c) COMMUNICATIONS.—Any communication by an 

2 entity described in subsection (b)(1) that is for the pur3 pose of seizing income of a consumer for debt that relates 

4 to a loan made under this title shall— 

5 ‘‘(1) be considered— 

6 ‘‘(A) an attempt to collect a debt; and 

7 ‘‘(B) conduct in connection with the collec8 tion of a debt for the purposes of this title; and 

9 ‘‘(2) contain a notice to the borrower that, con10 sistent with the procedures for rehabilitating a loan 

11 pursuant to section 428F(a) or consolidating loans 

12 out of default as described in section 

13 428C(a)(3)(B)(i)(V), the borrower may exit default 

14 and reenter current repayment status (as defined in 

15 section 428(l)(2)(C)) with a similar monthly pay16 ment amount on an income-based repayment plan 

17 under section 493C(c) and thereby obtain the full 

18 flexibility and benefits of such status, including the 

19 ability to adjust family size and make qualifying 

20 payments for purposes of repayment or cancellation 

21 of any outstanding balance of principal and interest 

22 due on a loan (as described in section 493C(b)(7)). 

23 ‘‘(d) REMEDIES.— 

24 ‘‘(1) FIRST TIER.—The Secretary may impose a 

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1 tion not to exceed $5,000 for each day during which 

2 such violation continues. 

3 ‘‘(2) SECOND TIER.—Notwithstanding para4 graph (1), the Secretary may impose a civil penalty 

5 on an entity that recklessly engages in a violation of 

6 this section not to exceed $25,000 for each day dur7 ing which such violation continues. 

8 ‘‘(3) THIRD TIER.—Notwithstanding para9 graphs (1) and (2), the Secretary may impose a civil 

10 penalty on an entity that knowingly violates this sec11 tion not to exceed $1,000,000 for each day during 

12 which such violation continues. 

13 ‘‘(4) NO EXEMPLARY OR PUNITIVE DAMAGES.— 

14 Nothing in this subsection shall be construed as au15 thorizing the imposition of exemplary or punitive 

16 damages. 

17 ‘‘(5) ENTITIES SUBJECT TO PENALTY.—An en18 tity subject to a penalty under this subsection may 

19 include a contractor or agent of the Department.’’. 

20 SEC. 302. ALLOWING FOR MULTIPLE LOAN REHABILI21 TATIONS. 

22 (a) FFEL LOANS.—Section 428F(a)(5) (20 U.S.C. 

23 1078–6(a)(5)) is amended by striking ‘‘one time per loan’’ 

24 and inserting ‘‘2 times per loan’’. 


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1 (b) DIRECT LOANS.—Section 455(d) (20 U.S.C. 

2 1087e(d)), as amended by section 103, is further amended 

3 by adding at the end the following: 

4 ‘‘(8) LOAN REHABILITATION.—In carrying out 

5 the process for loan rehabilitation described in sec6 tion 428F(a)(5) with respect to loans made under 

7 this part and in accordance with subsection (a), the 

8 Secretary shall allow a borrower to obtain the bene9 fits available under such section not more than 2 

10 times per loan.’’. 

11 SEC. 303. PAUSE PAYMENT PROCESS. 

12 (a) ESTABLISHMENT OF PAUSE PAYMENT PROC13 ESS.—Part D of title IV (20 U.S.C. 1087a et seq.), as 

14 amended by section 301, is further amended by adding 

15 at the end the following: 

16 ‘‘SEC. 460B. PAUSE PAYMENT PROCESS. 

17 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

18 single, streamlined pause payment process available in a 

19 single application with respect to loans made under this 

20 part that replaces the deferment and forbearance options 

21 and their respective applications that are available to bor22 rowers before the effective date of the Affordable Loans 

23 for Any Student Act and provides temporary relief from 

24 repayment of such loans in accordance with this section. 


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1 ‘‘(b) APPLICATION FOR RELIEF.—Notwithstanding 

2 any other provision of this Act, a borrower of a loan made 

3 under this part that desires to receive temporary relief 

4 from repayment with respect to such loan shall request 

5 relief in accordance with the pause payment process estab6 lished by the Secretary under subsection (a), which shall 

7 include the options to select a temporary cessation of pay8 ments and to make smaller payments than the monthly 

9 payments required under the borrower’s repayment plan. 

10 ‘‘(c) PAUSE PAYMENT.— 

11 ‘‘(1) IN GENERAL.—A borrower of a loan made 

12 under this part who meets the requirements de13 scribed in paragraph (2) shall be eligible for a pause 

14 payment, during which periodic installments of prin15 cipal need not be paid, and interest— 

16 ‘‘(A) shall not accrue, in the case of a— 

17 ‘‘(i) Federal Direct Stafford Loan; or 

18 ‘‘(ii) a Federal Direct Consolidation 

19 Loan that consolidated only Federal Direct 

20 Stafford Loans, or a combination of such 

21 loans and Federal Stafford Loans for 

22 which the student borrower received an in23 terest subsidy under section 428; or 

24 ‘‘(B) shall accrue and be added to the bal25 ance of interest due but not be capitalized, or 


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1 be paid by the borrower, in the case of a Fed2 eral Direct PLUS Loan, a Federal Direct Un3 subsidized Stafford Loan, or a Federal Direct 

4 Consolidation Loan not described in subpara5 graph (A)(ii). 

6 ‘‘(2) ELIGIBILITY.—A borrower of a loan made 

7 under this part shall be eligible for a pause payment 

8 during any period— 

9 ‘‘(A) during which— 

10 ‘‘(i) the borrower is carrying at least 

11 one-half the normal full-time work load for 

12 the course of study that the borrower is 

13 pursuing, as determined by the eligible in14 stitution (as such term is defined in sec15 tion 435(a)) the student is attending; or 

16 ‘‘(ii) in the case of a parent borrower, 

17 the borrower or the student on whose be18 half the loan was borrowed is carrying at 

19 least one-half the normal full-time work 

20 load, in accordance with clause (i); 

21 ‘‘(B) during which the borrower is pur22 suing a course of study pursuant to a graduate 

23 fellowship program approved by the Secretary; 


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1 ‘‘(C) during which the borrower is serving 

2 in a medical or dental internship or residency 

3 program; 

4 ‘‘(D) during which the borrower is in a re5 habilitation training program for individuals 

6 with disabilities approved by the Secretary; 

7 ‘‘(E) during which the borrower— 

8 ‘‘(i) is serving on active duty during a 

9 war or other military operation or national 

10 emergency and for the 180-day period fol11 lowing the demobilization date for the serv12 ice; or 

13 ‘‘(ii) qualifies for partial repayment of 

14 the borrower’s loans under a provision of 

15 chapter 109 or 1609 of title 10, United 

16 States Code; 

17 ‘‘(F) during which the borrower is per18 forming qualifying National Guard duty during 

19 a war or other military operation or national 

20 emergency and for the 180-day period following 

21 the demobilization date for the service; 

22 ‘‘(G) during which the borrower is serving 

23 in— 

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1 tional and Community Service Act of 1990 

2 (42 U.S.C. 12511)) in an Americorps pro3 gram (defined for purposes of this sub4 paragraph as a program carried out under 

5 subtitle C or E of title I of the National 

6 and Community Service Act of 1990 (42 

7 U.S.C. 12571 et seq., 12611 et seq.) or 

8 title I of the Domestic Volunteer Service 

9 Act of 1973 (42 U.S.C. 4951 et seq.)); 

10 ‘‘(ii) in the Peace Corps; or 

11 ‘‘(iii) in a teaching position that would 

12 qualify for teacher loan forgiveness under 

13 section 428J; 

14 ‘‘(H) not in excess of 3 years during which 

15 the Secretary determines, in accordance with 

16 regulations prescribed under section 435(o), 

17 that the borrower has experienced or will expe18 rience an economic hardship, such as experi19 encing financial difficulties, having unexpected 

20 or significant medical expenses, or being unable 

21 to find full-time employment; 

22 ‘‘(I) during which a borrower’s ability to 

23 make payments, as determined by the Sec24 retary, has been adversely affected by— 


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1 ‘‘(i) any major disaster or emergency 

2 declared by the President under section 

3 401 or 501, respectively, of the Robert T. 

4 Stafford Disaster Relief and Emergency 

5 Assistance Act (42 U.S.C. 5170, 5191); 

6 ‘‘(ii) a local emergency, as declared by 

7 the appropriate government agency; or 

8 ‘‘(iii) a military mobilization; 

9 ‘‘(J) during which the borrower is awaiting 

10 a determination by the Secretary of the bor11 rower’s request for a pause payment, change in 

12 repayment plan, loan forgiveness or cancella13 tion, or consolidation loan; or 

14 ‘‘(K) during which the borrower is experi15 encing other exceptional circumstances for 

16 which pause payment under this section is in 

17 the best interest of the borrower, as determined 

18 by the Secretary through regulation.’’. 

19 (b) CONFORMING AMENDMENTS.—Section 455 (20 

20 U.S.C. 1087e) is amended— 

21 (1) in subsection (e)(7)(B)(i), by striking ‘‘is in 

22 deferment’’ and inserting ‘‘is under pause payment 

23 pursuant to section 460B’’; 

24 (2) by striking subsection (f) and inserting the 

25 following: 


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1 ‘‘(f) øreserved¿’’; and 

2 (3) in subsection (l)— 

3 (A) by striking ‘‘PROGRAM.—’’ and all that 

4 follows through ‘‘Using funds’’ and inserting 

5 the following: ‘‘PROGRAM.—Using funds’’; and 

6 (B) by striking paragraph (2). 

7 SEC. 304. AUTOMATIC ENROLLMENT INTO INCOME-BASED 

8 REPAYMENT FOR BORROWERS WHO ARE DE9 LINQUENT ON LOANS AND FOR BORROWERS 

10 WHO REHABILITATE DEFAULTED LOANS. 

11 (a) NOTIFICATION AND AUTOMATIC ENROLLMENT

12 PROCEDURES.—Section 455(d) (20 U.S.C. 1087e(d)), as 

13 amended by sections 103 and 302, is further amended by 

14 adding at the end the following: 

15 ‘‘(9) NOTIFICATION AND AUTOMATIC ENROLL16 MENT PROCEDURES FOR BORROWERS WHO ARE DE17 LINQUENT ON LOANS.— 

18 ‘‘(A) AUTHORITY TO OBTAIN INCOME IN19 FORMATION.— 

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

21 borrower who is at least 60 days delin22 quent on a loan made under this part, the 

23 Secretary may obtain such information as 

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1 come and family size of the borrower (and 

2 the borrower’s spouse, if applicable). 

3 ‘‘(ii) AVAILABILITY OF RETURNS AND

4 RETURN INFORMATION.—Returns and re5 turn information (as defined in section 

6 6103 of the Internal Revenue Code of 

7 1986) may be obtained under this subpara8 graph only to the extent authorized by sec9 tion 6103(l)(13) of such Code. 

10 ‘‘(B) BORROWER NOTIFICATION.—With re11 spect to each borrower of a loan made under 

12 this part who is at least 60 days delinquent on 

13 such loan and who has not been subject to the 

14 procedures under this paragraph for such loan 

15 in the preceding 120 days, the Secretary shall, 

16 as soon as practicable after such 60-day delin17 quency, provide to the borrower the following: 

18 ‘‘(i) Notification that the borrower is 

19 at least 60 days delinquent on at least 1 

20 loan under this part, and a description of 

21 all delinquent loans under this part, and 

22 nondelinquent loans under this part, of the 

23 borrower. 

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1 ble and the borrower’s loans made under 

2 this part, and loans made, insured, or 

3 guaranteed under part B or E, that may 

4 be eligible for such plans, based on infor5 mation available to the Secretary. 

6 ‘‘(iii) Clear and simple instructions on 

7 how to select the repayment plans. 

8 ‘‘(iv) The amount of monthly pay9 ments for the loans made under this part, 

10 and any loans made, insured, or guaran11 teed under part B or E, under the repay12 ment plans for which the borrower is eligi13 ble, based on information available to the 

14 Secretary, including, if the income infor15 mation of the borrower is available to the 

16 Secretary under subparagraph (A)— 

17 ‘‘(I) the amount of the monthly 

18 payment under the income-based re19 payment plan under section 493C(c) 

20 for which the borrower is eligible for 

21 the borrower’s loans made under this 

22 part, based on such income informa23 tion; and 

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

25 filing status, and tax year information 


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1 on which each the monthly payment is 

2 based. 

3 ‘‘(v) An explanation that the Sec4 retary shall take the actions under sub5 paragraph (C) with respect to such bor6 rower, if— 

7 ‘‘(I) the borrower is 120 days de8 linquent on one or more loans under 

9 this part and has not selected a new 

10 repayment plan for the borrower’s 

11 loans under this part; and 

12 ‘‘(II) in the case of such a bor13 rower whose repayment plan for any 

14 loans made under this part is not an 

15 income-based repayment plan under 

16 section 493C(c), the monthly pay17 ments under such repayment plan are 

18 higher than such monthly payments 

19 would be under an income-based re20 payment plan for such loans. 

21 ‘‘(vi) Instructions on updating the in22 formation of the borrower obtained under 

23 subparagraph (A). 

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

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1 scribed in subparagraph (B) who has a repay2 ment plan for loans made under this part that 

3 meets the requirements of clause (v)(II) of sub4 paragraph (B), who has not selected a new re5 payment plan for such loans in accordance with 

6 the notice received under such subparagraph, 

7 and who is at least 120 days delinquent on such 

8 a loan, the Secretary shall, as soon as prac9 ticable— 

10 ‘‘(i) in a case in which any of the bor11 rower’s loans made under part B or E are 

12 eligible for an income-based repayment 

13 plan under section 493C(c), provide the 

14 borrower with the income-based repayment 

15 plan; and 

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

17 borrower’s loans made under part B or E 

18 are eligible for an income-based repayment 

19 plan under section 493C(c), notify the bor20 rower of the actions, if any, the borrower 

21 may take for such loans to become eligible 

22 for such a plan. 

23 ‘‘(D) SECRETARY’S ADDITIONAL SELEC24 TION OF PLAN.— 


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1 ‘‘(i) IN GENERAL.—With respect to 

2 each borrower of a loan made under this 

3 part who selects a new repayment plan in 

4 accordance with the notice received under 

5 subparagraph (B) and who continues to be 

6 delinquent on such loan for a period de7 scribed in clause (ii), the Secretary shall, 

8 as soon as practicable after such period, 

9 carry out the procedures described in sub10 paragraph (C) for the borrower’s loans 

11 made under this part, if such procedures 

12 would result in lower monthly repayment 

13 amounts on such loan. 

14 ‘‘(ii) DESCRIPTION OF PERIOD.—The 

15 duration of the period described in clause 

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

17 Secretary determines is sufficient to indi18 cate that the borrower may benefit from 

19 repaying such loan under a new repayment 

20 plan, but in no case shall such period be 

21 less than 60 days. 

22 ‘‘(E) OPT-OUT.—A borrower of a loan 

23 made under this part shall have the right to opt 

24 out of the procedures under this paragraph. 


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1 ‘‘(F) PROCEDURES.—The Secretary shall 

2 establish procedures as are necessary to effec3 tively implement this paragraph. 

4 ‘‘(10) NOTIFICATION AND AUTOMATIC ENROLL5 MENT PROCEDURES FOR BORROWERS WHO ARE RE6 HABILITATING DEFAULTED LOANS.— 

7 ‘‘(A) AUTHORITY TO OBTAIN INCOME IN8 FORMATION.— 

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

10 borrower who is rehabilitating a loan made 

11 under this part pursuant to section 

12 428F(a), the Secretary may obtain such 

13 information as is reasonably necessary re14 garding the income and family size of the 

15 borrower (and the borrower’s spouse, if ap16 plicable). 

17 ‘‘(ii) AVAILABILITY OF RETURNS AND

18 RETURN INFORMATION.—Returns and re19 turn information (as defined in section 

20 6103 of the Internal Revenue Code of 

21 1986) may be obtained under this subpara22 graph only to the extent authorized by sec23 tion 6103(l)(13) of such Code. 

24 ‘‘(B) BORROWER NOTIFICATION.—Not 

25 later than 30 days after a borrower makes the 


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1 6th payment required for the loan rehabilitation 

2 described in subparagraph (A), the Secretary 

3 shall notify the borrower of the process under 

4 subparagraph (C) with respect to such loan. 

5 ‘‘(C) SECRETARY’S AUTOMATIC ENROLL6 MENT.—With respect to each borrower who has 

7 made the 9th payment required for the loan re8 habilitation described in subparagraph (A) and 

9 is eligible for the income-based repayment plan 

10 under section 493C(c), the Secretary shall, as 

11 soon as practicable after such payment, provide 

12 the borrower with the income-based repayment 

13 plan. 

14 ‘‘(D) OPT-OUT.—A borrower of a loan 

15 made under this part shall have the right to opt 

16 out of the procedures under this paragraph. 

17 ‘‘(E) PROCEDURES.—The Secretary shall 

18 establish procedures as are necessary to effec19 tively implement this paragraph.’’. 

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

21 subsection (a) shall— 

22 (1) take effect as soon as the Secretary of Edu23 cation determines practicable after the Secretary fi24 nalizes the procedures under section 107; and 


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1 (2) apply to all borrowers of loans made under 

2 part D of title IV of the Higher Education Act of 

3 1965 (20 U.S.C. 1087a et seq.). 

4 SEC. 305. SEPARATING JOINT CONSOLIDATION LOANS. 

5 (a) IN GENERAL.—Section 455(g) (20 U.S.C. 

6 1087e(g)), as amended by section 104, is further amended 

7 by adding at the end the following: 

8 ‘‘(3) SEPARATING JOINT CONSOLIDATION

9 LOANS.— 

10 ‘‘(A) IN GENERAL.—A married couple, or 

11 2 individuals who were previously a married 

12 couple, and who received a joint consolidation 

13 loan as such married couple under subpara14 graph (C) of section 428C(a)(3) (as such sub15 paragraph was in effect on or before June 30, 

16 2006), may apply to the Secretary for each in17 dividual borrower in the married couple (or pre18 viously married couple) to receive a separate 

19 Federal Direct Consolidation Loan under this 

20 part— 

21 ‘‘(i) that shall— 

22 ‘‘(I) unless the Secretary receives 

23 notice of an agreement described in 

24 subclause (II)(aa), be equal to the 

25 sum of— 


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1 ‘‘(aa) the unpaid principal 

2 and accrued unpaid interest of 

3 the percentage of the joint con4 solidation loan that, as of the day 

5 before such joint consolidation 

6 loan was made, was attributable 

7 to the loans of the individual bor8 rower for whom such separate 

9 consolidation loan is being made; 

10 and 

11 ‘‘(bb) any other loans de12 scribed in section 428C(a)(4) 

13 that such individual borrower se14 lects for consolidation under this 

15 part; or 

16 ‘‘(II) be equal to the sum of— 

17 ‘‘(aa) the unpaid principal 

18 and accrued unpaid interest of 

19 the percentage of the joint con20 solidation loan that, as of the 

21 date of application under this 

22 paragraph, the married couple 

23 (or previously married couple) 

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1 vidual borrower for whom such 

2 separate consolidation loan is 

3 being made; and 

4 ‘‘(bb) any other loans de5 scribed in section 428C(a)(4) 

6 that such individual borrower se7 lects for consolidation under this 

8 part; 

9 ‘‘(ii) the proceeds of which shall be 

10 paid by the Secretary to the holder or 

11 holders— 

12 ‘‘(I) of the joint consolidation 

13 loan for the purpose of discharging 

14 the liability on the percentage of such 

15 joint consolidation loan described in 

16 subclause (I)(aa) or (II)(aa) of clause 

17 (i); and 

18 ‘‘(II) of the loans selected for 

19 consolidation under subclause (I)(bb) 

20 or (II)(bb) of clause (i) for the pur21 pose of discharging the liability on 

22 such loans; 

23 ‘‘(iii) except as otherwise provided in 

24 this paragraph, that has the same terms 


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1 and conditions, and rate of interest as the 

2 joint consolidation loan; 

3 ‘‘(iv) for which any payment made 

4 under subsection (m)(1)(A) on the joint 

5 consolidation loan during a period in which 

6 the individual borrower for whom such sep7 arate consolidation loan is being made was 

8 employed in a public service job described 

9 in subsection (m)(1)(B) shall be treated as 

10 if such payment were made on such sepa11 rate consolidation loan; and 

12 ‘‘(v) for which any payment made 

13 under an income-contingent repayment 

14 plan under subsection (d)(1)(D), or an in15 come-based repayment plan under para16 graph (1)(E) or (2)(A)(ii) of subsection 

17 (d), on the joint consolidation loan shall be 

18 treated as if such payment were made on 

19 such separate consolidation loan. 

20 ‘‘(B) APPLICATION FOR SEPARATE DIRECT

21 CONSOLIDATION LOANS.— 

22 ‘‘(i) JOINT APPLICATION.—Except as 

23 provided in clause (ii), to receive separate 

24 consolidation loans under subparagraph 

25 (A), both individual borrowers in a married 


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1 couple (or previously married couple) shall 

2 jointly apply under such subparagraph. 

3 ‘‘(ii) SEPARATE APPLICATION.—An 

4 individual borrower in a married couple (or 

5 previously married couple) may apply for a 

6 separate consolidation loan under subpara7 graph (A) separately and without regard to 

8 whether or when the other individual bor9 rower in the married couple (or previously 

10 married couple) applies under such sub11 paragraph, in a case in which— 

12 ‘‘(I) the individual borrower has 

13 experienced from the other individual 

14 borrower— 

15 ‘‘(aa) domestic violence (as 

16 defined in section 40002(a) of 

17 the Violence Against Women Act 

18 of 1994 (42 U.S.C. 13925(a))); 

19 ‘‘(bb) economic abuse (in20 cluding behaviors that control 

21 such borrower’s ability to ac22 quire, use, and maintain access 

23 to money, credit, or the joint fi24 nancial obligations of both bor25 rowers); or 


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1 ‘‘(cc) other exceptional cir2 cumstances, as determined by the 

3 Secretary; and 

4 ‘‘(II) the Secretary determines 

5 that authorizing each individual bor6 rower to apply separately under sub7 paragraph (A) would be in the best 

8 fiscal interests of the Federal Govern9 ment, including by reducing the risk 

10 of delinquency or default. 

11 ‘‘(C) BORROWER ELIGIBILITY.—Notwith12 standing section 428C(a)(3)(A), the Secretary 

13 shall provide a consolidation loan under this 

14 part to each borrower who— 

15 ‘‘(i) applies for such loan under sub16 paragraph (A); and 

17 ‘‘(ii) meets the requirements of sub18 paragraphs (A) and (B). 

19 ‘‘(D) SPECIAL RULE.—Notwithstanding 

20 any other provision of this title, an individual 

21 who has a joint consolidation loan and wishes 

22 for the Secretary to discharge the loans due to 

23 total and permanent disability pursuant to sec24 tion 437(a), shall first separate the joint con25 solidation loan in accordance with this section 


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1 before the Secretary may discharge any portion 

2 of the loan.’’. 

3 (b) CONFORMING AMENDMENT.—Section 

4 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078–3(3)(B)(i)(V)) is 

5 amended— 

6 (1) by striking ‘‘or’’ at the end of item (bb); 

7 (2) by striking the period at the end of item 

8 (cc) and inserting ‘‘; or’’; and 

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

10 ‘‘(dd) for the purpose of sepa11 rating a joint consolidation loan into 2 

12 separate Federal Direct Consolidation 

13 Loans under section 455(g)(3).’’. 

14 SEC. 306. REMOVING THE COLLECTION COST REQUIRE15 MENT. 

16 (a) REMOVAL OF REQUIREMENT.—Section 

17 484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by strik18 ing ‘‘shall be required to pay, in addition to other charges 

19 specified in this title, reasonable collection costs’’ and in20 serting ‘‘shall not be required to pay collection costs’’. 

21 (b) REPAYMENT AFTER DEFAULT.—Section 

22 455(d)(6) (20 U.S.C. 1087e(d)(6)), as redesignated under 

23 section 103(b), is amended by striking ‘‘to—’’ and all that 

24 follows through the period at the end and inserting ‘‘to 


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1 repay the loan pursuant to an income-based repayment 

2 plan under section 493C(c).’’. 

3 TITLE IV—IMPROVING LOAN IN4 FORMATION AND COUN5 SELING 

6 SEC. 401. STUDENT LOAN CONTRACT; SIMPLIFYING LOAN 

7 DISCLOSURES. 

8 (a) STUDENT LOAN CONTRACT.—Section 455 (20 

9 U.S.C. 1087e), as amended by section 202, is further 

10 amended by inserting after subsection (b) the following: 

11 ‘‘(c) STUDENT LOAN CONTRACT; SIMPLIFYING LOAN

12 DISCLOSURES.— 

13 ‘‘(1) STUDENT LOAN CONTRACT.— 

14 ‘‘(A) IN GENERAL.—Any master promis15 sory note form described in section 

16 432(m)(1)(D) that is developed or used for cov17 ered loans shall be referred to as a ‘student 

18 loan contract’. 

19 ‘‘(B) CLARIFICATION ON USE.—Notwith20 standing section 432(m)(1)(D)(i), each student 

21 loan contract for a covered loan shall— 

22 ‘‘(i) not be entered into by a student 

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1 cluding counseling required under section 

2 485(l); 

3 ‘‘(ii) be signed by the student entering 

4 such student loan contract after completion 

5 of such counseling; 

6 ‘‘(iii) be used only for the academic 

7 year for which the initial loans are made 

8 under the contract and shall be valid for 

9 additional loans within an academic year; 

10 and 

11 ‘‘(iv) include options for the student 

12 to enter both the student’s current contact 

13 information and permanent contact infor14 mation that is likely to remain valid upon 

15 the student’s exit from the institution. 

16 ‘‘(C) COVERED LOAN.— 

17 ‘‘(i) IN GENERAL.—In this subsection, 

18 the term ‘covered loan’ means a loan made 

19 under this part on or after the effective 

20 date of the Affordable Loans for Any Stu21 dent Act, except with respect to a borrower 

22 described in clause (ii). 

23 ‘‘(ii) EXCEPTION.—A borrower is de24 scribed in this clause if the loan made 

25 under this part on or after the effective 


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1 date of the Affordable Loans for Any Stu2 dent Act with respect to such borrower is 

3 for the 2020–2021 academic year and the 

4 borrower has already taken out a loan 

5 under this part (other than a Federal Di6 rect Consolidation Loan) for such aca7 demic year (including any such loan for at8 tendance at another institution from which 

9 the student transferred or in which the 

10 student had previously enrolled). 

11 ‘‘(2) LOAN DISCLOSURES.—For loans made 

12 under this part for periods of enrollment beginning 

13 on or after the effective date of the Affordable 

14 Loans for Any Student Act, the Secretary shall take 

15 such steps as are necessary to streamline the stu16 dent loan disclosure requirements under this Act. 

17 The Secretary shall ensure that information required 

18 to be disclosed to a student who is applying for, re19 ceiving, or preparing to repay a loan under this part 

20 shall be consumer-tested and delivered in a manner 

21 that— 

22 ‘‘(A) reduces and simplifies the paperwork 

23 students are required to complete; 

24 ‘‘(B) limits the number of times a student 

25 is presented with disclosures by incorporating 


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1 the streamlined disclosures into required stu2 dent loan counseling under section 485(l), the 

3 student loan contract under this subsection, or 

4 both; and 

5 ‘‘(C) is effective in helping the student un6 derstand the student’s rights and obligations as 

7 a Federal student loan borrower. 

8 ‘‘(3) ANNUAL LOAN ACCEPTANCE.—Prior to 

9 making the first disbursement of a covered loan 

10 (other than a Federal Direct Consolidation Loan) to 

11 a borrower for an academic year, the eligible institu12 tion shall ensure that the borrower— 

13 ‘‘(A) has completed the applicable coun14 seling under paragraph (2) or (3) of section 

15 485(l); and 

16 ‘‘(B) after completing such counseling, ac17 cepts the loan for such academic year by— 

18 ‘‘(i) signing and returning to the insti19 tution the student loan contract described 

20 in section 455(c)(1) that affirmatively 

21 states that the borrower accepts the loan; 

22 or 

23 ‘‘(ii) electronically signing an elec24 tronic version of such student loan con25 tract, which may be done through the onVerDate Sep 11 2014 02:22 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H2065.IH H2065

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1 line counseling tool in accordance with sec2 tion 485(n)(1)(B).’’. 

3 (b) CONFORMING AMENDMENT.—Section 487(a)(7) 

4 (20 U.S.C. 1094(a)(7)) is amended by striking ‘‘section 

5 485’’ and inserting ‘‘sections 455(c)(3) and 485’’. 

6 SEC. 402. ANNUAL AND PRE-LOAN INFORMATION AND 

7 COUNSELING REQUIREMENTS. 

8 Section 485(l) (20 U.S.C. 1092(l)) is amended to 

9 read as follows: 

10 ‘‘(l) ANNUAL STUDENT LOAN COUNSELING FOR

11 BORROWERS.— 

12 ‘‘(1) ANNUAL COUNSELING REQUIREMENT FOR

13 INSTITUTIONS.— 

14 ‘‘(A) IN GENERAL.—Each eligible institu15 tion shall ensure that each individual for whom 

16 the institution has knowledge that the student 

17 has accepted, or will accept, 1 or more student 

18 loans under part D (including any such loans 

19 for attendance at another institution from 

20 which the student transferred or in which the 

21 student had previously enrolled, other than a 

22 Federal Direct Consolidation Loan) for an aca23 demic year, receives comprehensive information 

24 on the terms and conditions of such loans and 

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1 spect to such loans. Such information shall be 

2 provided, for each academic year for which the 

3 individual receives such loans, in a simple, un4 derstandable, and consumer-friendly manner— 

5 ‘‘(i) during a counseling session con6 ducted in person; 

7 ‘‘(ii) online, with the individual ac8 knowledging receipt of the information; or 

9 ‘‘(iii) through the use of the online 

10 counseling tool described in subsection 

11 (n)(1)(B). 

12 ‘‘(B) USE OF INTERACTIVE PROGRAMS.— 

13 In the case of institutions not using the online 

14 counseling tool described in subsection 

15 (n)(1)(B), the Secretary shall require such in16 stitutions to carry out the requirements of sub17 paragraph (A) through the use of interactive 

18 programs, during an annual counseling session 

19 that is in-person or online, that test the individ20 ual’s understanding of the terms and conditions 

21 of the loan awarded to the individual, using 

22 simple and understandable language and clear 

23 formatting. 

24 ‘‘(2) ANNUAL LOAN COUNSELING FOR BOR25 ROWERS RECEIVING LOANS MADE UNDER PART D


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1 (OTHER THAN PARENT PLUS LOANS).—The informa2 tion to be provided under paragraph (1)(A) to a bor3 rower of a loan made under part D (other than a 

4 Federal Direct PLUS Loan made on behalf of a de5 pendent student) shall include the following: 

6 ‘‘(A) A notification that some students 

7 may qualify for other financial aid that does not 

8 need to be repaid, and an explanation that the 

9 borrower should consider accepting any such 

10 grant, scholarship, military tuition assistance, 

11 veterans benefits, Federal or State work-study 

12 jobs, or other programs for which the borrower 

13 is eligible, prior to accepting student loans. 

14 ‘‘(B) Information on the total outstanding 

15 student loan debt that the institution is aware 

16 that the student has borrowed, disaggregated 

17 by type of loan, including loans issued under 

18 this title, private education loans (as defined in 

19 section 140 of the Truth in Lending Act (15 

20 U.S.C. 1650)) that the institution has certified 

21 in accordance with section 487(a)(28), and edu22 cation loans from the institution, as applicable. 

23 ‘‘(C) The student’s estimated monthly pay24 ment amounts for loans made, insured, or guar25 anteed under this title based on— 


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1 ‘‘(i) the fixed repayment plan de2 scribed under section 493E for loans 

3 issued under part B or D; and 

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

5 under section 493C(c), utilizing individual6 ized data applicable to the borrower as de7 scribed in paragraph (4). 

8 ‘‘(D) A statement that the monthly 

9 amount described in subparagraph (C) does not 

10 include any amounts that the student may be 

11 required to repay for non-Federal education 

12 loans, including private education loans or insti13 tutional education loans. 

14 ‘‘(E) An explanation of the use of the stu15 dent loan contract referred to in section 455(c). 

16 ‘‘(F) A recommendation to the borrower to 

17 exhaust the borrower’s Federal student loan op18 tions prior to taking out private education 

19 loans, an explanation that Federal student 

20 loans typically offer better terms and conditions 

21 than private education loans, an explanation 

22 that Federal student loans offer consumer pro23 tections typically not available in the private 

24 education loan market, an explanation of treat25 ment of loans made under part D and private 


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1 education loans in bankruptcy, and an expla2 nation that if a borrower decides to take out a 

3 private education loan— 

4 ‘‘(i) the borrower has the ability to se5 lect a private educational lender of the bor6 rower’s choice; 

7 ‘‘(ii) the proposed private education 

8 loan may impact the borrower’s potential 

9 eligibility for other financial assistance, in10 cluding Federal financial assistance under 

11 this title; and 

12 ‘‘(iii) the borrower has a right— 

13 ‘‘(I) to accept the terms of the 

14 private education loan within 30 cal15 endar days following the date on 

16 which the application for such loan is 

17 approved and the borrower receives 

18 the required disclosure documents, 

19 pursuant to section 128(e) of the 

20 Truth in Lending Act (15 U.S.C. 

21 1638(e)); and 

22 ‘‘(II) to cancel such loan within 3 

23 business days of the date on which the 

24 loan is consummated, pursuant to secVerDate Sep 11 2014 02:22 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H2065.IH H2065

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1 tion 128(e)(7) of such Act (15 U.S.C. 

2 1638(e)(7)). 

3 ‘‘(G) An explanation of the importance of 

4 contacting the appropriate offices at the institu5 tion of higher education if the borrower with6 draws prior to completing the borrower’s pro7 gram of study so that the institution can pro8 vide exit counseling, including information re9 garding the borrower’s repayment options and 

10 loan consolidation. 

11 ‘‘(H) An explanation of the obligation of 

12 the borrower to repay the full amount of the 

13 loan, regardless of whether the borrower com14 pletes or does not complete the program in 

15 which the borrower is enrolled within the reg16 ular time for program completion. 

17 ‘‘(I) A general description of the terms and 

18 conditions under which the student may obtain 

19 forgiveness or cancellation of any principal and 

20 interest of a loan issued under this title. 

21 ‘‘(J) Information as to how the student 

22 can access the loan records of the student and 

23 the contact information for inquiries regarding 

24 repaying the loan. 


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1 ‘‘(K) The contact information for the fi2 nancial aid office, or other appropriate office, at 

3 the institution that the borrower may contact if 

4 the borrower has any questions about the bor5 rower’s rights and responsibilities or the terms 

6 and conditions of the loan. 

7 ‘‘(L) An explanation that the student has 

8 the right to annually request a copy of the cred9 it report of the student from a consumer re10 porting agency pursuant to section 612(a) of 

11 the Fair Credit Reporting Act (15 U.S.C. 

12 1681j(a)). 

13 ‘‘(M) For a first-time borrower, in addition 

14 to all the information described in subpara15 graphs (A) through (L)— 

16 ‘‘(i) the anticipated balance on the 

17 loan for which the borrower is receiving 

18 counseling under this subsection; and 

19 ‘‘(ii) information on the annual and 

20 aggregate loan limits for Federal Direct 

21 Stafford Loans and Federal Direct Unsub22 sidized Stafford Loans as it pertains to the 

23 loan for which the borrower is receiving 

24 counseling, and a statement that such ag25 gregate borrowing limit may change based 


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1 on the borrower’s student status (whether 

2 undergraduate or graduate) or if there is a 

3 change in the borrower’s dependency sta4 tus. 

5 ‘‘(N) For a borrower with an outstanding 

6 balance of principal or interest due on a loan 

7 made under this title, including loans made 

8 under part B, in addition to all the information 

9 described in subparagraphs (A) through (L), 

10 the percentage of the total aggregate borrowing 

11 limit that the student has reached, as of the 

12 date of the counseling, and a statement that 

13 such aggregate borrowing limit may change 

14 based on the borrower’s student status (whether 

15 undergraduate or graduate) or if there is a 

16 change in the borrower’s dependency status. 

17 ‘‘(3) BORROWERS RECEIVING PARENT PLUS

18 LOANS FOR DEPENDENT STUDENTS.—The informa19 tion to be provided under paragraph (1)(A) to a bor20 rower of a Federal Direct PLUS Loan made on be21 half of a dependent student shall include the fol22 lowing: 

23 ‘‘(A) A notification that some students 

24 may qualify for other financial aid and an ex25 planation that the student for whom the borVerDate Sep 11 2014 02:22 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H2065.IH H2065

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1 rower is taking out the loan should consider ac2 cepting any such grant, scholarship, military 

3 tuition assistance, veterans benefits, Federal or 

4 State work-study jobs, or other programs for 

5 which the student for whom the borrower is 

6 taking out the loan is eligible, prior to bor7 rowing any Federal Direct PLUS Loan on be8 half of a dependent student. 

9 ‘‘(B) The information described in sub10 paragraphs (B) through (L) of paragraph (2), 

11 as applicable. 

12 ‘‘(C) The option of the borrower to pay the 

13 interest on the loan while the loan is under 

14 pause payment. 

15 ‘‘(D) An explanation that the borrower has 

16 the options to prepay each loan, pay each loan 

17 on a shorter schedule, and change repayment 

18 plans. 

19 ‘‘(E) For each Federal Direct PLUS Loan 

20 made on behalf of a dependent student for 

21 which the borrower is receiving counseling 

22 under this subsection, the contact information 

23 for the loan servicer of the loan and a link to 

24 such servicer’s website. 


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1 ‘‘(F) For a first-time borrower of such 

2 loan— 

3 ‘‘(i) the anticipated balance on the 

4 loan for which the borrower is receiving 

5 counseling under this paragraph; and 

6 ‘‘(ii) the estimated monthly payment 

7 amounts for such loan based on— 

8 ‘‘(I) the fixed repayment plan de9 scribed in section 493E for the loan; 

10 and 

11 ‘‘(II) the income-based repay12 ment plan under section 493C(c), uti13 lizing individualized data applicable to 

14 the borrower as described in para15 graph (4). 

16 ‘‘(G) For a borrower undergoing coun17 seling that already has an outstanding balance 

18 of principal or interest due on a Federal Direct 

19 PLUS Loan made on behalf of a dependent 

20 student— 

21 ‘‘(i) the anticipated balance of all 

22 Federal Direct PLUS Loans held by the 

23 borrower (including the one for which 

24 counseling is provided); and 


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1 ‘‘(ii) the estimated monthly payment 

2 amounts for all such loans based on— 

3 ‘‘(I) the fixed repayment plan de4 scribed in section 493E for loans 

5 issued under part B or D; and 

6 ‘‘(II) the income-based repay7 ment plan under section 493C(c), uti8 lizing individualized data applicable to 

9 the borrower as described in para10 graph (4). 

11 ‘‘(4) ESTIMATED REPAYMENT INFORMATION.— 

12 In providing estimated payments for income-based 

13 repayment plans under section 493C(c) for purposes 

14 of this section, the Secretary shall develop and im15 plement a database to generate repayment estimate 

16 for borrowers by— 

17 ‘‘(A) enabling each institution to enter rel18 evant loan, program cost, and average indebted19 ness at graduation information electronically; 

20 ‘‘(B) integrating applicable data on Fed21 eral loans made, insured, or guaranteed under 

22 this title from the National Student Loan Data 

23 System or a successor system; 


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1 ‘‘(C) integrating available data on occupa2 tional earnings reasonably related to the stu3 dent’s program of study; 

4 ‘‘(D) using a hypothetical family size of 1; 

5 and 

6 ‘‘(E) providing a borrower the option to 

7 adjust these data elements and observe the cor8 responding change in estimated monthly pay9 ment amounts.’’. 

10 SEC. 403. EXIT COUNSELING. 

11 Section 485(b) (20 U.S.C. 1092(b)) is amended— 

12 (1) in paragraph (1)— 

13 (A) in subparagraph (A)— 

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

15 striking ‘‘through financial aid offices or 

16 otherwise’’ and inserting ‘‘through the use 

17 of an interactive program, during an exit 

18 counseling session that is in-person or on19 line, or through the use of the online coun20 seling tool described in subsection 

21 (n)(1)(A)’’; 

22 (ii) by redesignating clauses (i) 

23 through (ix) as clauses (v) through (xiii), 

24 respectively; 


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1 (iii) by inserting before clause (v), as 

2 redesignated by clause (ii), the following: 

3 ‘‘(i) a summary of the outstanding 

4 balance of principal and interest due on 

5 the loans made to the borrower under part 

6 B, D, or E; 

7 ‘‘(ii) an explanation of the grace pe8 riod preceding repayment and the expected 

9 date that the borrower will enter repay10 ment; 

11 ‘‘(iii) an explanation that the borrower 

12 has the option to pay any interest that has 

13 accrued while the borrower was in school 

14 or that may accrue during the grace period 

15 preceding repayment or during an author16 ized period of pause payment; 

17 ‘‘(iv) an explanation that the borrower 

18 may be approached during the repayment 

19 process by third-party student debt relief 

20 companies, that the borrower should use 

21 caution in any such dealings, and that the 

22 typical services provided by these compa23 nies are already offered to borrowers free 

24 of charge through the Department or its 

25 contractors;’’; 


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1 (iv) in clause (v), as redesignated by 

2 clause (ii)— 

3 (I) by striking ‘‘sample informa4 tion showing the average’’ and insert5 ing ‘‘information, based on the bor6 rower’s outstanding balance described 

7 in clause (i), showing the borrower’s’’; 

8 and 

9 (II) by striking ‘‘of each plan’’ 

10 and inserting ‘‘of the fixed repayment 

11 plan described in section 493E and 

12 the income-based repayment plan 

13 under section 493C(c), and any other 

14 repayment plan for which each loan 

15 may be eligible’’; 

16 (v) in clause (x), as redesignated by 

17 clause (ii)— 

18 (I) by inserting ‘‘decreased credit 

19 score,’’ after ‘‘credit reports,’’; and 

20 (II) by inserting ‘‘reduced ability 

21 to rent or purchase a home or car, po22 tential difficulty in securing employ23 ment,’’ after ‘‘Federal law,’’; 

24 (vi) in the matter preceding subclause 

25 (I) of clause (xi), as redesignated by clause 


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1 (ii), by striking ‘‘consolidation loan under 

2 section 428C or a’’; 

3 (vii) in each of clauses (xii) and (xiii), 

4 as redesignated by clause (ii), by striking 

5 ‘‘and’’ at the end; and 

6 (viii) by adding at the end the fol7 lowing: 

8 ‘‘(xiv) for each of the borrower’s loans 

9 made under part B, D, or E for which the 

10 borrower is receiving counseling under this 

11 subsection, the contact information for the 

12 loan servicer of the loan and a link to such 

13 servicer’s website; and 

14 ‘‘(xv) an explanation that an indi15 vidual has a right to annually request a 

16 disclosure of information collected by a 

17 consumer reporting agency pursuant to 

18 section 612(a) of the Fair Credit Report19 ing Act (15 U.S.C. 1681j(a)).’’; and 

20 (B) in subparagraph (B), by striking ‘‘in 

21 writing’’ and inserting ‘‘online or in writing, ex22 cept that in the case of an institution using the 

23 online counseling tool described in subsection 

24 (n)(1)(A), the Secretary shall attempt to proVerDate Sep 11 2014 02:22 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\H2065.IH H2065

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1 vide such information to the student in the 

2 manner described in subsection (n)(3)(C)’’; and 

3 (2) in paragraph (2)(C), by inserting ‘‘, such as 

4 the online counseling tool described in subsection 

5 (n)(1)(A),’’ after ‘‘electronic means’’. 

6 SEC. 404. ONLINE COUNSELING TOOLS. 

7 Section 485 (20 U.S.C. 1092) is amended by adding 

8 at the end the following: 

9 ‘‘(n) ONLINE COUNSELING TOOLS.— 

10 ‘‘(1) IN GENERAL.—Beginning not later than 1 

11 year after the date of enactment of the Affordable 

12 Loans for Any Student Act, the Secretary shall 

13 maintain— 

14 ‘‘(A) an online counseling tool that pro15 vides the exit counseling required under sub16 section (b) and meets the applicable require17 ments of this subsection; and 

18 ‘‘(B) an online counseling tool that pro19 vides the annual counseling required under sub20 section (l), enables a borrower to electronically 

21 sign and accept the borrower’s student loan 

22 contract for the upcoming academic year under 

23 section 455(c)(3)(B)(ii), and meets the applica24 ble requirements of this subsection. 


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1 ‘‘(2) REQUIREMENTS OF TOOLS.—In maintain2 ing the online counseling tools described in para3 graph (1), the Secretary shall ensure that each such 

4 tool, and its underlying content— 

5 ‘‘(A) are consumer tested, in consultation 

6 with other relevant Federal agencies, students, 

7 borrowers, institutions of higher education, sec8 ondary school and postsecondary counselors, 

9 and consumer advocacy organizations, to ensure 

10 that the tool is effective in helping individuals 

11 understand their rights and obligations with re12 spect to borrowing a loan made under part D; 

13 ‘‘(B) are understandable to borrowers of 

14 loans made under part D; 

15 ‘‘(C) freely available to all eligible institu16 tions; and 

17 ‘‘(D) integrate applicable loan data from 

18 the National Student Loan Data System or a 

19 successor system, including data regarding 

20 loans made, insured, or guaranteed under this 

21 title and data regarding private education 

22 loans, pursuant to section 485B(i). 

23 ‘‘(3) RECORD OF COUNSELING COMPLETION.— 

24 The Secretary shall— 


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1 ‘‘(A) use each online counseling tool de2 scribed in paragraph (1) to keep a record of 

3 which individuals have received counseling using 

4 the tool and notify the applicable institutions of 

5 the individual’s completion of such counseling; 

6 ‘‘(B) in the case of a borrower who re7 ceives annual counseling for a loan made under 

8 part D using the tool described in paragraph 

9 (1)(B)— 

10 ‘‘(i) enable the borrower to accept and 

11 electronically sign the student loan con12 tract as required under section 

13 455(c)(3)(B)(ii) and notify the applicable 

14 institutions that the individual completed 

15 the counseling and electronically signed the 

16 contract; and 

17 ‘‘(ii) if the borrower chooses not to 

18 sign the student loan contract through the 

19 online counseling— 

20 ‘‘(I) inform the borrower, 

21 through the online counseling tool, of 

22 the date by when the borrower should 

23 accept and sign the student loan con24 tract for which the borrower has re25 ceived such counseling; and 


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1 ‘‘(II) notify the applicable insti2 tution that the borrower completed 

3 the counseling but did not sign the 

4 student loan contract; and 

5 ‘‘(C) in the case of a borrower described in 

6 subsection (b)(1)(B) at an institution that uses 

7 the online counseling tool described in para8 graph (1)(A) of this subsection, attempt to pro9 vide the information described in subsection 

10 (b)(1)(A) to the borrower through such tool. 

11 ‘‘(o) LONGITUDINAL STUDY ON THE EFFECTIVENESS

12 OF STUDENT LOAN COUNSELING.— 

13 ‘‘(1) IN GENERAL.—Not later than 1 year after 

14 the date of enactment of the Affordable Loans for 

15 Any Student Act, the Secretary, acting through the 

16 Director of the Institute of Education Sciences, shall 

17 begin conducting a rigorous, longitudinal study of 

18 the impact and effectiveness of the student loan 

19 counseling provided under section 485(n). 

20 ‘‘(2) CONTENTS.— 

21 ‘‘(A) BORROWER INFORMATION.—The lon22 gitudinal study carried out under paragraph (1) 

23 shall include borrower information, in the ag24 gregate and disaggregated by race and ethVerDate Sep 11 2014 02:22 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H2065.IH H2065

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1 nicity, gender, income quartile, and status as an 

2 individual with a disability, on— 

3 ‘‘(i) student persistence; 

4 ‘‘(ii) degree attainment; 

5 ‘‘(iii) program completion; 

6 ‘‘(iv) successfully maintaining current 

7 student loan repayment status following 

8 the student’s exit from the institution; 

9 ‘‘(v) cumulative borrowing levels; and 

10 ‘‘(vi) such other factors as the Sec11 retary may determine. 

12 ‘‘(B) EXCEPTION.—The disaggregation 

13 under subparagraph (A) shall not be required 

14 in a case in which the number of borrowers in 

15 a category is insufficient to yield statistically re16 liable information or the results would reveal 

17 personally identifiable information about an in18 dividual borrower. 

19 ‘‘(3) INTERIM REPORTS.—Not later than 18 

20 months after the commencement of the study under 

21 paragraph (1), and annually thereafter, the Sec22 retary shall evaluate the progress of the study and 

23 report any short-term findings to the authorizing 

24 committees.’’. 


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1 SEC. 405. PRIVATE EDUCATION LOAN CERTIFICATION AND 

2 INFORMATION. 

3 (a) AMENDMENT TO THE HIGHER EDUCATION ACT

4 OF 1965.— 

5 (1) IN GENERAL.—Section 487(a) (20 U.S.C. 

6 1094(a)) is amended by striking paragraph (28) and 

7 inserting the following: 

8 ‘‘(28)(A) The institution shall— 

9 ‘‘(i) upon the request of a private edu10 cational lender, acting in connection with an ap11 plication initiated by a borrower for a private 

12 education loan in accordance with section 

13 128(e)(3) of the Truth in Lending Act, provide 

14 certification to such private educational lend15 er— 

16 ‘‘(I) that the student who initiated the 

17 application for the private education loan, 

18 or on whose behalf the application was ini19 tiated, is enrolled or is scheduled to enroll 

20 at the institution; 

21 ‘‘(II) of such student’s cost of attend22 ance at the institution as determined under 

23 part F; and 

24 ‘‘(III) of the difference between— 

25 ‘‘(aa) the cost of attendance at 

26 the institution; and 


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1 ‘‘(bb) the student’s estimated fi2 nancial assistance received under this 

3 title and other assistance known to 

4 the institution, as applicable; and 

5 ‘‘(ii) provide the certification described in 

6 clause (i), or notify the private educational 

7 lender that the institution has received the re8 quest for certification and will need additional 

9 time to comply with the certification request— 

10 ‘‘(I) within 15 business days of receipt 

11 of such certification request; and 

12 ‘‘(II) only after the institution has 

13 completed the activities described in sub14 paragraph (B). 

15 ‘‘(B) The institution shall, upon receipt of a 

16 certification request described in subparagraph 

17 (A)(i), and prior to providing such certification— 

18 ‘‘(i) determine whether the student who 

19 initiated the application for the private edu20 cation loan, or on whose behalf the application 

21 was initiated, has applied for and exhausted the 

22 Federal financial assistance available to such 

23 student under this title and inform the student 

24 accordingly; and 


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1 ‘‘(ii) provide the borrower whose loan ap2 plication has prompted the certification request 

3 by a private education lender, as described in 

4 subparagraph (A)(i), with the following infor5 mation and disclosures: 

6 ‘‘(I) If the borrower has not yet ex7 hausted the financial assistance available 

8 to the borrower under this title, the 

9 amount of additional Federal student as10 sistance for which the borrower is eligible 

11 and the potential advantages of Federal 

12 loans under this title, including disclosure 

13 of— 

14 ‘‘(aa) the fixed interest rates and 

15 pause payment processes; 

16 ‘‘(bb) the option for and terms of 

17 income-based repayment, loan forgive18 ness programs, and additional protec19 tions; and 

20 ‘‘(cc) the higher student loan lim21 its for dependent students whose par22 ents are not eligible for a Federal Di23 rect PLUS Loan. 


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1 ‘‘(II) The borrower’s ability to select a 

2 private educational lender of the bor3 rower’s choice. 

4 ‘‘(III) The impact of a proposed pri5 vate education loan on the borrower’s po6 tential eligibility for other financial assist7 ance, including Federal financial assistance 

8 under this title. 

9 ‘‘(IV) The borrower’s right to accept 

10 or reject a private education loan within 

11 the 30-day period following a private edu12 cational lender’s approval of a borrower’s 

13 application and about a borrower’s 3-day 

14 right to cancel period under section 

15 128(e)(7) of the Truth in Lending Act (15 

16 U.S.C. 1650(e)(7)). 

17 ‘‘(C) For purposes of this paragraph, the terms 

18 ‘private educational lender’ and ‘private education 

19 loan’ have the meanings given such terms in section 

20 140 of the Truth in Lending Act (15 U.S.C. 

21 1650).’’. 

22 (2) NATIONAL STUDENT LOAN DATA SYSTEM.— 

23 Section 485B (20 U.S.C. 1092b) is amended— 

24 (A) in subsection (a), by striking ‘‘and 

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1 ing ‘‘, loans made under parts D and E, and 

2 private education loans (in accordance with sub3 section (i))’’; 

4 (B) in subsection (f), by inserting ‘‘FOR

5 FEDERAL LOANS’’ after ‘‘DATA REPORTING’’; 

6 and 

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

8 ‘‘(i) PRIVATE EDUCATION LOAN REPORTING.—The 

9 Secretary shall include in the National Student Loan Data 

10 System the information regarding private education loans 

11 that the Director of the Consumer Financial Protection 

12 Bureau, in coordination with the Secretary, determines 

13 necessary to be included pursuant to section 

14 128(e)(9)(B)(ii) of the Truth in Lending Act (15 U.S.C. 

15 1638(e)(9)(B)(ii)).’’. 

16 (3) EFFECTIVE DATE.—The amendments made 

17 by paragraphs (1) and (2) shall take effect on the 

18 effective date of the regulations described in sub19 section (b)(3). 

20 (b) AMENDMENTS TO THE TRUTH IN LENDING

21 ACT.— 

22 (1) IN GENERAL.—Section 128(e) of the Truth 

23 in Lending Act (15 U.S.C. 1638(e)) is amended— 

24 (A) by striking paragraph (3) and insert25 ing the following: 


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1 ‘‘(3) INSTITUTIONAL CERTIFICATION RE2 QUIRED.— 

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

4 subparagraph (B), before a private educational 

5 lender may issue any funds with respect to a 

6 private education loan, the private educational 

7 lender shall obtain, from the relevant institution 

8 of higher education where such loan is to be 

9 used for a student, a certification in accordance 

10 with section 485(a)(28)(A) of the Higher Edu11 cation Act of 1965 (20 U.S.C. 

12 1094(a)(28)(A))— 

13 ‘‘(i) confirming that the student is en14 rolled or is scheduled to enroll at the insti15 tution; and 

16 ‘‘(ii) stating— 

17 ‘‘(I) the student’s cost of attend18 ance at the institution, as determined 

19 by the institution under part F of title 

20 IV of the Higher Education Act of 

21 1965 (20 U.S.C. 1087kk et seq.); and 

22 ‘‘(II) the difference between— 

23 ‘‘(aa) such cost of attend24 ance; and 


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1 ‘‘(bb) the student’s esti2 mated financial assistance, in3 cluding such assistance received 

4 under title IV of the Higher Edu5 cation Act of 1965 (20 U.S.C. 

6 1070 et seq.) and other financial 

7 assistance known to the institu8 tion, as applicable. 

9 ‘‘(B) TIMING.—Pursuant to section 

10 485(a)(28)(A) of the Higher Education Act of 

11 1965 (20 U.S.C. 1094(a)(28)(A)), a private 

12 education lender shall receive the certification 

13 described in subparagraph (A) within 15 days 

14 of a request by the private education lender, 

15 unless the institution of higher education noti16 fies the private educational lender pursuant to 

17 section 485(a)(28)(A)(ii) of such Act that addi18 tional time is needed. 

19 ‘‘(C) ADDITIONAL REQUIREMENTS.—Upon 

20 receiving the certification described in subpara21 graph (A) for a private education loan, the pri22 vate educational lender— 

23 ‘‘(i) may proceed to issue funds with 

24 respect to the private education loan; and 


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1 ‘‘(ii) after issuing the private edu2 cation loan, shall— 

3 ‘‘(I) notify the institution of 

4 higher education involved that the pri5 vate education loan has been issued to 

6 the borrower, and the amount of such 

7 loan; and 

8 ‘‘(II) provide the Director of the 

9 Consumer Financial Protection Bu10 reau and the Secretary of Education 

11 with the information described in 

12 paragraph (9)(B).’’; 

13 (B) by redesignating paragraphs (9), (10), 

14 and (11) as paragraphs (10), (11), and (12), 

15 respectively; and 

16 (C) by inserting after paragraph (8) the 

17 following: 

18 ‘‘(9) PROVISION OF INFORMATION.— 

19 ‘‘(A) PROVISION OF INFORMATION TO BOR20 ROWERS.— 

21 ‘‘(i) LOAN STATEMENTS.—A private 

22 educational lender that issues any funds 

23 with respect to a private education loan 

24 shall— 


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1 ‘‘(I) send loan statements, if the 

2 loan is to be used for a student, to 

3 borrowers of the funds not less than 

4 once every 3 months during the time 

5 that the student is enrolled at an in6 stitution of higher education; and 

7 ‘‘(II) in the case of a private edu8 cation loan that includes a cosigner, 

9 annually send a loan statement to the 

10 borrower’s cosigner, notifying the co11 signer of the terms, conditions, and 

12 status of such private education loan. 

13 ‘‘(ii) CONTENTS OF LOAN STATE14 MENT.—Each statement described in 

15 clause (i) shall— 

16 ‘‘(I) report the borrower’s total 

17 remaining debt to the private edu18 cational lender, including accrued but 

19 unpaid interest and capitalized inter20 est; 

21 ‘‘(II) report any debt increases 

22 since the last statement; and 

23 ‘‘(III) list the current interest 

24 rate for each loan. 


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1 ‘‘(B) PROVISION OF INFORMATION TO

2 FEDERAL AGENCIES.— 

3 ‘‘(i) INFORMATION FROM LENDER.— 

4 Each private educational lender shall— 

5 ‘‘(I) submit to the Director of the 

6 Consumer Financial Protection Bu7 reau and the Secretary of Education 

8 such information regarding a private 

9 education loan as may be determined 

10 necessary by the Director and the 

11 Secretary under clause (ii) for inclu12 sion in the National Student Loan 

13 Data System under section 485B(i) of 

14 the Higher Education Act of 1965 (20 

15 U.S.C. 1092b(i)); and 

16 ‘‘(II) prepare and submit an an17 nual report to the Consumer Finan18 cial Protection Bureau regarding the 

19 private education loans issued by the 

20 private educational lender. 

21 ‘‘(ii) PROMULGATION OF REGULA22 TIONS.—Not later than 1 year after the 

23 date of enactment of the Affordable Loans 

24 for Any Student Act, the Director of the 

25 Consumer Financial Protection Bureau, in 


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1 coordination with the Secretary of Edu2 cation, shall promulgate regulations re3 garding the private education loan infor4 mation required to be submitted under 

5 clause (i), including the content, method, 

6 and format for submission. The informa7 tion required for inclusion in the National 

8 Student Loan Data System shall include, 

9 at a minimum— 

10 ‘‘(I) information identifying the 

11 borrower, including the borrower’s 

12 name and social security number; 

13 ‘‘(II) the name of the institution 

14 of higher education that has certified 

15 the private education loan; 

16 ‘‘(III) the name of the lender; 

17 ‘‘(IV) the amount of the private 

18 education loan; 

19 ‘‘(V) the term, or other enroll20 ment period, for which the private 

21 education loan is issued; and 

22 ‘‘(VI) whether a cosigner was re23 quired as a condition of the private 

24 education loan.’’. 


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1 (2) DEFINITION OF PRIVATE EDUCATION

2 LOAN.—Section 140(a)(8)(A) of the Truth in Lend3 ing Act (15 U.S.C. 1650(a)(8)(A)) is amended— 

4 (A) by redesignating clause (ii) as clause 

5 (iii); 

6 (B) in clause (i), by striking ‘‘and’’ after 

7 the semicolon; and 

8 (C) by adding after clause (i) the following: 

9 ‘‘(ii) is not made, insured, or guaran10 teed under title VII or title VIII of the 

11 Public Health Service Act (42 U.S.C. 292 

12 et seq. and 296 et seq.); and’’. 

13 (3) REGULATIONS.— 

14 (A) IN GENERAL.—Not later than 1 year 

15 after the date of enactment of this Act, the Di16 rector of the Consumer Financial Protection 

17 Bureau, in coordination with the Secretary of 

18 Education, shall promulgate regulations to im19 plement paragraphs (3) and (9) of section 

20 128(e) of the Truth in Lending Act (15 U.S.C. 

21 1638(e)), as amended by paragraph (1) of this 

22 subsection. 

23 (B) EFFECTIVE DATE.—The regulations 

24 promulgated under subparagraph (A) shall take 


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1 effect on the date that is 180 days after the 

2 date on which the regulations are promulgated. 

3 TITLE V—EFFECTIVE DATE; 

4 TRANSITION 

5 SEC. 501. EFFECTIVE DATE; RULEMAKING REGARDING TER6 MINATION OF CERTAIN REPAYMENT PLANS. 

7 (a) EFFECTIVE DATE.—Except as otherwise specifi8 cally provided, this Act, and the amendments made by this 

9 Act, shall take effect on July 1, 2020. 

10 (b) APPLICABILITY WITH RESPECT TO INTEREST

11 CAPITALIZATION.—Section 201, and the amendments 

12 made by such section, shall apply with respect to loans 

13 made, insured, or guaranteed under part B or D of title 

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

15 et seq., 1087a et seq.) that— 

16 (1) as of the effective date described in sub17 section (a), are not currently in a period where in18 terest is capitalized under such part; or 

19 (2) in the case of a loan that, as of the effective 

20 date described in subsection (a), is in a period where 

21 interest is accruing and not added, but will be cap22 italized under such part, the day after the interest 

23 is capitalized under such part, as in effect before the 

24 effective date. 


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1 (c) APPLICABILITY WITH RESPECT TO FORBEAR2 ANCE AND DEFERMENT FOR DIRECT LOAN BOR3 ROWERS.—With respect to any borrower of a loan under 

4 part D of title IV of the Higher Education Act of 1965 

5 (20 U.S.C. 1087a et seq.) that is, or has been, in forbear6 ance or deferment as of the day before the effective date 

7 described in subsection (a), the Secretary shall take such 

8 steps as are necessary— 

9 (1) to transfer a borrower with a loan in for10 bearance or deferment as of such day automatically 

11 into relief provided under the pause payment process 

12 established under section 460B of such Act (as 

13 amended by this Act); and 

14 (2) to ensure that the period of time for which 

15 a borrower is eligible for pause payment under such 

16 section 460B for a loan is appropriately reduced to 

17 account for any time the loan was previously in for18 bearance or deferment. 

19 (d) REGULATIONS.—Before the effective date de20 scribed in subsection (a), the Secretary of Education shall 

21 carry out a plan to end all eligibility for repayment plans 

22 other than a fixed repayment plan described in section 

23 493E of the Higher Education Act of 1965 (20 U.S.C. 

24 1098b) and an income-based repayment plan under sec25 tion 493C(c) of such Act (20 U.S.C. 1098e(f)) for loans 


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1 made under part B or D of title IV of such Act, unless 

2 the borrower is enrolled in another repayment plan before 

3 such effective date, in accordance with the amendments 

4 made by this Act. 

Æ 


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