I 

116TH CONGRESS 

1ST SESSION H. R. 4670 

To amend the Higher Education Act of 1965 to establish an income-based 

repayment for new loans on and after July 1, 2021, and for borrowers 

who enter income-based repayment after June 30, 2021, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 11, 2019 

Ms. WILD (for herself and Mrs. HAYES) introduced the following bill; which 

was referred to the Committee on Education and Labor 

A BILL 

To amend the Higher Education Act of 1965 to establish 

an income-based repayment for new loans on and after 

July 1, 2021, and for borrowers who enter income-based 

repayment after June 30, 2021, 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. 

4 This Act may be cited as the ‘‘Simplifying Student 

5 Loans Act’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 4670 IH

1 SEC. 2. TERMINATION OF CERTAIN REPAYMENT PLAN OP2 TIONS AND OPPORTUNITY TO CHANGE RE3 PAYMENT PLANS. 

4 (a) SELECTION OF REPAYMENT PLANS.—Section 

5 428(b) of the Higher Education Act of 1965 (20 U.S.C. 

6 1078(b)) is amended— 

7 (1) in paragraph (1)— 

8 (A) in subparagraph (D)— 

9 (i) in clause (ii), by striking ‘‘may an10 nually change the selection of a repayment 

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

12 at any time after July 1, 2021, change the 

13 selection of a repayment plan under this 

14 part to one of the 2 repayment plans de15 scribed in paragraph (9)(C),’’; and 

16 (ii) in clause (iii), by striking ‘‘be sub17 ject to income contingent repayment in ac18 cordance with subsection (m);’’ and insert19 ing ‘‘be subject to income-based repayment 

20 in accordance with section 493C(f);’’; and 

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

22 ‘‘the option of repaying the loan in accordance 

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

24 extended repayment schedule (as described in 

25 paragraph (9)) established by the lender in ac26 cordance with regulations of the Secretary; 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 4670 IH

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

2 loan in accordance with a repayment plan de3 scribed in paragraph (9)(C) established by the 

4 lender in accordance with regulations of the 

5 Secretary; and’’; and 

6 (2) in paragraph (9), by adding at the end the 

7 following: 

8 ‘‘(C) SELECTION OF REPAYMENT PLANS

9 ON AND AFTER JULY 1, 2021; OPPORTUNITY TO

10 CHANGE REPAYMENT PLANS.—Notwithstanding 

11 any other provision of this paragraph, or any 

12 other provision of law, and in accordance with 

13 regulations, beginning on July 1, 2021, the 

14 lender shall offer a borrower of a loan made, in15 sured, or guaranteed under this part the oppor16 tunity to change repayment plans, and to enroll 

17 in one of the following repayment plans: 

18 ‘‘(i) A fixed repayment plan described 

19 in section 493E. 

20 ‘‘(ii) The income-based repayment 

21 plan under section 493C(f).’’. 

22 SEC. 3. AMENDMENTS TO TERMS AND CONDITIONS OF 

23 LOANS AND REPAYMENT PLANS. 

24 (a) RULEMAKING REGARDING TERMINATION OF

25 CERTAIN REPAYMENT PLANS.—Before July 1, 2021, the 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 4670 IH

1 Secretary of Education shall carry out a plan to end all 

2 eligibility for repayment plans other than a fixed repay3 ment plan described in section 493E of the Higher Edu4 cation Act of 1965 (20 U.S.C. 1001 et seq.), as added 

5 by this Act, and an income-based repayment plan de6 scribed under section 493C(f) of the Higher Education 

7 Act of 1965 (20 U.S.C. 1001 et seq.), as added by this 

8 Act, for loans made under part B or D of title IV of the 

9 Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 

10 unless the borrower is enrolled in another repayment plan 

11 before July 1, 2021, in accordance with the amendments 

12 made by this Act. 

13 (b) REPAYMENT PLANS.—Section 455(d) of the 

14 Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is 

15 amended— 

16 (1) by redesignating paragraphs (2) through 

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

18 (2) by inserting after paragraph (1), the fol19 lowing: 

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

21 JULY 1, 2021.— 

22 ‘‘(A) IN GENERAL.—Notwithstanding para23 graph (1), for the borrower of a loan made on 

24 or after July 1, 2021, and for other borrowers 

25 subject to paragraph (7), the Secretary shall 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 4670 IH

1 offer a borrower of a loan made under this part 

2 2 plans for repayment of such loan, including 

3 principal and interest on the loan. The borrower 

4 shall be entitled to accelerate, without penalty, 

5 repayment on the borrower’s loans under this 

6 part. The borrower may choose— 

7 ‘‘(i) a fixed repayment plan described 

8 in section 493E; or 

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

10 under section 493C(f). 

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

12 a borrower of a loan made under this part on 

13 or after July 1, 2021, does not select a repay14 ment plan described in subparagraph (A), the 

15 Secretary may provide the borrower with a 

16 fixed repayment plan described in section 493E. 

17 ‘‘(C) CHANGES IN SELECTIONS.—Begin18 ning on July 1, 2021, a borrower of a loan 

19 made under this part may change the bor20 rower’s selection of a repayment plan in accord21 ance with paragraph (7) and under such terms 

22 and conditions as may be established by the 

23 Secretary.’’; 

24 (3) in paragraph (6)(B), as redesignated, by 

25 striking ‘‘an income contingent repayment plan.’’ 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•HR 4670 IH

1 and inserting ‘‘the income-based repayment plan 

2 under section 493C(f).’’; and 

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

4 ‘‘(7) BORROWERS OF LOANS MADE BEFORE

5 JULY 1, 2021.—A borrower who is in repayment on 

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

7 2021— 

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

9 plan that the borrower was enrolled in on the 

10 day before such date; 

11 ‘‘(B) may elect to— 

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

13 plan under section 493C(f); or 

14 ‘‘(ii) enter a fixed repayment plan de15 scribed in section 493E; 

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

17 plan other than an income-based repayment 

18 plan described under this subsection or a fixed 

19 repayment plan described in section 493E, shall 

20 not be permitted to re-elect a repayment plan 

21 that is not an income-based repayment plan 

22 under this subsection or a fixed repayment plan 

23 described in section 493E; and 

24 ‘‘(D) shall retain, for purposes of repay25 ment or cancellation of any outstanding balance 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•HR 4670 IH

1 of principal and interest due on a loan as de2 scribed in section 493C(b)(7) any years of re3 payment under another income-based or income 

4 contingent repayment plan under this title.’’. 

5 (c) MAXIMUM REPAYMENT PERIOD FOR INCOME6 CONTINGENT REPAYMENT.—Section 455(e) of the Higher 

7 Education Act of 1965 (20 U.S.C. 1087e(e)) is further 

8 amended— 

9 (1) in paragraph (7)(B)— 

10 (A) by striking ‘‘or’’ at the end of clause 

11 (iv); 

12 (B) by striking the period at the end of 

13 clause (v) and inserting a semicolon; and 

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

15 ‘‘(vi) makes payments under the in16 come-based repayment plan under section 

17 493C(f); or 

18 ‘‘(vii) makes payments under the fixed 

19 repayment plan described in section 493E. 

20 ‘‘(8) ADDITIONAL QUALIFYING REPAYMENT

21 PLANS.—A borrower repaying a loan pursuant to in22 come-contingent repayment under this subsection 

23 may elect at any time to terminate repayment under 

24 such repayment plan and repay such loan under the 

25 income-based repayment plan under section 493C(f) 


pamtmann on DSKBC07HB2PROD with BILLS
8 

•HR 4670 IH

1 or the fixed repayment plan described in section 

2 493E.’’. 

3 SEC. 4. INCOME-BASED REPAYMENT PLAN. 

4 (a) OPTIONS TO ENTER INTO THE NEW FIXED RE5 PAYMENT PLAN AND INCOME-BASED REPAYMENT

6 PLAN.—Section 493C(b) of the Higher Education Act of 

7 1965 (20 U.S.C. 1098e) is amended— 

8 (1) in paragraph (7)(B)— 

9 (A) by striking ‘‘or’’ at the end of clause 

10 (iv); and 

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

12 ‘‘(vi) has made payments under the 

13 income-based repayment plan under sec14 tion 493C(f); or 

15 ‘‘(vii) has made payments under the 

16 fixed repayment plan described in section 

17 493E;’’; 

18 (2) by amending paragraph (8) to read as fol19 lows: 

20 ‘‘(8) a borrower who is repaying a loan made 

21 under part B or D pursuant to income-based repay22 ment may elect, at any time, to terminate repayment 

23 pursuant to income-based repayment and repay such 

24 loan under the income-based repayment plan under 


pamtmann on DSKBC07HB2PROD with BILLS
9 

•HR 4670 IH

1 section 493C(f) or the fixed repayment plan de2 scribed in section 493E;’’; 

3 (3) in paragraph (9), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

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

6 ‘‘(10) a borrower who is repaying a loan made, 

7 insured, or guaranteed under part B or D pursuant 

8 to this section may repay such loan in full at any 

9 time without penalty.’’. 

10 (b) INCOME-BASED REPAYMENT.—Section 493C of 

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

12 amended by adding at the end the following: 

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

14 ON AND AFTER JULY 1, 2021, AND FOR BORROWERS

15 WHO ENTER INCOME-BASED REPAYMENT AFTER JUNE

16 30, 2021.— 

17 ‘‘(1) IN GENERAL.—The income-based repay18 ment plan under this subsection shall be carried out 

19 in accordance with this section, except as otherwise 

20 specified in this subsection— 

21 ‘‘(A) with respect to any loan made under 

22 part D on or after July 1, 2021, if such bor23 rower elects such income-based repayment plan 

24 for the loan; and 


pamtmann on DSKBC07HB2PROD with BILLS
10 

•HR 4670 IH

1 ‘‘(B) with respect to any loan made, in2 sured, or guaranteed under part B or D on or 

3 before June 30, 2021, if such borrower elects to 

4 repay the loan under such income-based repay5 ment plan on or after July 1, 2021. 

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

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

8 described under paragraph (1), the following terms 

9 shall apply to the income-based repayment plan 

10 under this subsection: 

11 ‘‘(A)(i) Notwithstanding subsection 

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

13 subsection shall be an amount equal to 10 per14 cent of the result obtained by calculating, on at 

15 least an annual basis, the amount by which the 

16 adjusted gross income of the borrower (subject 

17 to clause (ii)) exceeds the applicable percentage 

18 of the poverty line in accordance with clause 

19 (iii). 

20 ‘‘(ii)(I) Subject to subclause (II), in the 

21 case of a married borrower (regardless of tax 

22 filing status), clause (i) shall be applied by sub23 stituting ‘the adjusted gross income of the bor24 rower and the borrower’s spouse’ for ‘the ad25 justed gross income of the borrower’. 


pamtmann on DSKBC07HB2PROD with BILLS
11 

•HR 4670 IH

1 ‘‘(II) Subclause (I) shall not be applicable 

2 to any borrower who is married and who cer3 tifies to the Secretary through a form approved 

4 by the Secretary that the borrower is— 

5 ‘‘(aa) separated from the spouse of 

6 the borrower; or 

7 ‘‘(bb) unable to reasonably access the 

8 income information the spouse of such bor9 rower. 

10 ‘‘(iii) For purposes of clause (i), the term 

11 ‘applicable percentage’ means 200 percent of 

12 the poverty line applicable to the borrower’s 

13 family size (as determined under section 673(2) 

14 of the Community Services Block Grant Act 

15 (42 U.S.C. 9902(2))) reduced by 5 percentage 

16 points for each $1,000 by which the borrower’s 

17 adjusted gross income exceeds— 

18 ‘‘(I) in the case of a single borrower, 

19 $80,000; and 

20 ‘‘(II) in the case of a married bor21 rower (regardless of tax filing status), 

22 $160,000. 

23 ‘‘(B) Subsection (b)(7)(B) shall apply by 

24 substituting ‘20 years’ for ‘25 years’. 


pamtmann on DSKBC07HB2PROD with BILLS
12 

•HR 4670 IH

1 ‘‘(C) A borrower of such a loan may elect, 

2 and remain enrolled in, the income-based repay3 ment plan under this subsection regardless of— 

4 ‘‘(i) whether such borrower has a par5 tial financial hardship; and 

6 ‘‘(ii) the income level of the borrower. 

7 ‘‘(D) Notwithstanding subparagraph (A) of 

8 subsection (b)(6), a borrower’s monthly pay9 ment— 

10 ‘‘(i) shall be equal to the repayment 

11 amount determined under subparagraph 

12 (A) divided by 12; and 

13 ‘‘(ii) may exceed the monthly repay14 ment amount under a standard 10-year re15 payment plan or a fixed repayment plan 

16 described in section 493E. 

17 ‘‘(E) Subparagraph (B) of subsection 

18 (b)(3) shall not apply. 

19 ‘‘(F) Subsection (d) shall not apply. 

20 ‘‘(G) In the case of a consolidation loan 

21 made under part B or D on or after the date 

22 of enactment of the ‘Simplifying Student Loans 

23 Act’ that is being repaid under this subsection, 

24 any monthly payment made pursuant to any re25 payment plan listed in subsection (b)(7)(B) on 


pamtmann on DSKBC07HB2PROD with BILLS
13 

•HR 4670 IH

1 a loan for which the liability has been dis2 charged by the proceeds of such consolidation 

3 loan shall be treated as a monthly payment 

4 under this subsection on the portion of such 

5 consolidation loan that is attributable to such 

6 discharged loan, except that in the case of a 

7 subsequent consolidation loan, any monthly 

8 payment on a loan for which the liability has 

9 been discharged by the first consolidation loan 

10 shall not be applicable for the purposes of this 

11 subparagraph. 

12 ‘‘(3) ADDITIONAL SPECIAL TERMS FOR CER13 TAIN BORROWERS.—A borrower described in para14 graph (1)(B)— 

15 ‘‘(A) may— 

16 ‘‘(i) choose to continue repayment 

17 pursuant to the repayment plan in which 

18 the borrower is enrolled on June 30, 2021; 

19 or 

20 ‘‘(ii) make a one-time election to— 

21 ‘‘(I) terminate repayment pursu22 ant to the repayment plan described 

23 in clause (i) and enter the income24 based repayment plan under this sub25 section; or 


pamtmann on DSKBC07HB2PROD with BILLS
14 

•HR 4670 IH

1 ‘‘(II) terminate repayment pursu2 ant to the repayment plan described 

3 in clause (i) and enter a fixed repay4 ment plan described in section 493E; 

5 and 

6 ‘‘(B) who makes an election under sub7 paragraph (A)(ii), shall not repay a loan de8 scribed in paragraph (1)(B) under a repayment 

9 plan that is not an income-based repayment 

10 plan under this subsection or a fixed repayment 

11 plan described in section 493E.’’. 

12 SEC. 5. FIXED REPAYMENT PLAN. 

13 Part G of title IV of the Higher Education Act of 

14 1965 (20 U.S.C. 1088 et seq.) is further amended by add15 ing at the end the following: 

16 ‘‘SEC. 493E. FIXED REPAYMENT PLAN. 

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

18 this part on or after July 1, 2021, and a borrower who 

19 is in repayment on a loan made, insured, or guaranteed 

20 under part B or part D before July 1, 2021, may elect 

21 to repay such loan under the fixed repayment plan de22 scribed in this section. 

23 ‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re24 payment plan, a borrower whose total outstanding amount 


pamtmann on DSKBC07HB2PROD with BILLS
15 

•HR 4670 IH

1 of principal and interest on such a loan (as of the day 

2 before entering repayment on such loan)— 

3 ‘‘(1) is equal to or less than $20,000, shall 

4 repay such loan with a fixed monthly repayment 

5 amount paid over a period of 10 years; 

6 ‘‘(2) is more than $20,000 and less than 

7 $30,000, shall repay such loan with a fixed monthly 

8 repayment amount paid over a period of— 

9 ‘‘(A) 15 years; or 

10 ‘‘(B) the period described in paragraph 

11 (1), if the borrower elects such period; 

12 ‘‘(3) is equal to or greater than $30,000, and 

13 less than $40,000, shall repay such loan with a fixed 

14 monthly repayment amount paid over a period of— 

15 ‘‘(A) 20 years; or 

16 ‘‘(B) the period described in paragraph (1) 

17 or (2), if the borrower elects such period; and 

18 ‘‘(4) is equal to or greater than $40,000, shall 

19 repay such loan with a fixed monthly repayment 

20 amount paid over a period of— 

21 ‘‘(A) 25 years; or 

22 ‘‘(B) the period described in any of para23 graphs (1) through (3), if the borrower elects 

24 such period. 


pamtmann on DSKBC07HB2PROD with BILLS
16 

•HR 4670 IH

1 ‘‘(c) TREATMENT OF CERTAIN CONSOLIDATION

2 LOANS.—In the case of a consolidation loan made under 

3 part B or D on or after the date of enactment of the ‘Sim4 plifying Student Loans Act’ that is being repaid under this 

5 section, any monthly payment made pursuant to any re6 payment plan listed in section 493C(b)(7)(B) on a loan 

7 for which the liability has been discharged by the proceeds 

8 of such consolidation loan shall be treated as a monthly 

9 payment under this section on the portion of such consoli10 dation loan that is attributable to such discharged loan, 

11 except that in the case of a subsequent consolidation loan, 

12 any monthly payment on a loan for which the liability has 

13 been discharged by the first consolidation loan shall not 

14 be applicable for the purposes of this subsection.’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS