528 
such effective date, in accordance with the amendments 
made by this Act. 
(e) NOTIFICATION TO BORROWERS.— 
(1) IN GENERAL.—Beginning on the date of en-
actment of this Act, the Secretary of Education, in co-
ordination with the Director of the Bureau of Con-
sumer Financial Protection, shall undertake a cam-
paign to alert all borrowers of loans made, insured, 
or guaranteed under part B or D of title IV of the 
Higher Education Act of 1965 that they are eligible 
to change repayment plans and to enroll in one of the 
following repayment plans: 
(A) A fixed repayment plan described in 
section 493E of the Higher Education Act of 
1965, as added by section 4632. 
(B) The income-based repayment plan 
under section 493C(f) of the Higher Education 
Act of 1965, as added by section 4631(c). 
(2) CAMPAIGN ACTIVITIES.—The campaign shall 
include the following activities: 
(A) Developing consumer information mate-
rials about the opportunity to change repayment 
plans and to enroll in one of the following repay-
ment plans: 
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529 
(i) A fixed repayment plan described 
in such section 493E. 
(ii) The income-based repayment plan 
under such section 493C(f). 
(B) Requiring servicers of loans made, in-
sured, or guaranteed under parts B and D of 
title IV of the Higher Education Act of 1965 to 
provide such consumer information to borrowers 
in a manner determined appropriate by the Sec-
retary. 
(f) REPAYMENT PLANS.—Section 455(d) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(d)) is amended— 
(1) by redesignating paragraphs (2) through (5) 
as paragraphs (3) through (6), respectively; 
(2) by inserting after paragraph (1), the fol-
lowing: 
‘‘(2) DESIGN
AND
SELECTION
ON
AND
AFTER 
JULY 1, 2021.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for the borrower of a loan made on or 
after July 1, 2021, and for other borrowers sub-
ject to paragraph (7), the Secretary shall offer a 
borrower of a loan made under this part 2 plans 
for repayment of such loan, including principal 
and interest on the loan. The borrower shall be 
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entitled to accelerate, without penalty, repay-
ment on the borrower’s loans under this part. 
The borrower may choose— 
‘‘(i) a fixed repayment plan described 
in section 493E; or 
‘‘(ii) the income-based repayment plan 
under section 493C(f). 
‘‘(B) SELECTION BY THE SECRETARY.—If a 
borrower of a loan made under this part on or 
after July 1, 2021, does not select a repayment 
plan described in subparagraph (A), the Sec-
retary may provide the borrower with a fixed re-
payment plan described in section 493E. 
‘‘(C) CHANGES IN SELECTIONS.—Beginning 
on July 1, 2021, a borrower of a loan made 
under this part may change the borrower’s selec-
tion of a repayment plan in accordance with 
paragraph (7) and under such terms and condi-
tions as may be established by the Secretary.’’; 
(3) in paragraph (6)(B), as redesignated, by 
striking ‘‘an income contingent repayment plan.’’ and 
inserting ‘‘the income-based repayment plan under 
section 493C(f).’’; and 
(4) by adding at the end the following: 
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‘‘(7) BORROWERS OF LOANS MADE BEFORE JULY 
1, 2021.—A borrower who is in repayment on a loan 
made under part B or part D before July 1, 2021— 
‘‘(A) may choose to retain the repayment 
plan that the borrower was enrolled in on the 
day before such date; 
‘‘(B) may elect to— 
‘‘(i) enter the income-based repayment 
plan under section 493C(f); or 
‘‘(ii) enter a fixed repayment plan de-
scribed in section 493E; and 
‘‘(C) after electing to leave a repayment 
plan other than an income-based repayment 
plan described under section 493C(f) or a fixed 
repayment plan described in section 493E, shall 
not be permitted to re-elect a repayment plan 
that is not an income-based repayment plan 
under section 493C(f) or a fixed repayment plan 
described in section 493E. 
‘‘(8) NOTIFICATION
AND
AUTOMATIC
ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME INFOR-
MATION.—In the case of any borrower who is at 
least 60 days delinquent on a covered loan, the 
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532 
Secretary may obtain such information as is 
reasonably necessary regarding the income and 
family size of the borrower (and the borrower’s 
spouse, if applicable). 
‘‘(B) BORROWER NOTIFICATION.—With re-
spect to each borrower of a covered loan who is 
at least 60 days delinquent on such loan and 
who has not been subject to the procedures under 
this paragraph for such loan in the preceding 
120 days, the Secretary shall, as soon as prac-
ticable after such 60-day delinquency, provide to 
the borrower the following: 
‘‘(i) Notification that the borrower is 
at least 60 days delinquent on at least 1 
covered loan, and a description of all delin-
quent covered loans, nondelinquent covered 
loans, and noncovered loans of the borrower. 
‘‘(ii) A brief description of the repay-
ment plans for which the borrower is eligi-
ble and the covered loans and noncovered 
loans of the borrower that may be eligible 
for such plans, based on information avail-
able to the Secretary. 
‘‘(iii) The amount of monthly pay-
ments for the covered and noncovered loans 
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533 
under the income-based repayment plan 
under section 493C(f) and the fixed repay-
ment plan described in section 493E, based 
on information available to the Secretary, 
including, if the income information of the 
borrower is available to the Secretary under 
subparagraph (A)— 
‘‘(I) the amount of the monthly 
payment under the income-based re-
payment plan under section 493C(f) 
and the fixed repayment plan described 
in section 493E for which the borrower 
is eligible for the borrower’s covered 
and noncovered loans, based on such 
income information; and 
‘‘(II) the income, family size, tax 
filing status, and tax year information 
on which each monthly payment is 
based. 
‘‘(iv) Clear and simple instructions on 
how to select the repayment plans. 
‘‘(v) An explanation that, in the case 
of a borrower for whom adjusted gross in-
come is unavailable— 
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534 
‘‘(I) if the borrower selects to 
repay the covered loans of such bor-
rower pursuant to the income-based re-
payment plan under section 493C(f) 
that defines discretionary income in 
such a manner that an individual not 
required under section 6012(a)(1) of 
the Internal Revenue Code of 1986 to 
file a return with respect to income 
taxes imposed by subtitle A of such 
Code may have a calculated monthly 
payment greater than $0, the borrower 
will be required to provide the Sec-
retary with other documentation of in-
come satisfactory to the Secretary, 
which documentation the Secretary 
may use to determine an appropriate 
repayment schedule; and 
‘‘(II) if the borrower selects to 
repay such loans pursuant to an in-
come-driven repayment plan that is 
not described in subclause (I), the bor-
rower will not be required to provide 
the Secretary with such other docu-
mentation of income, and the borrower 
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535 
will have a calculated monthly pay-
ment of $0. 
‘‘(vi) An explanation that the Sec-
retary shall take the actions under subpara-
graph (C) with respect to such borrower, 
if— 
‘‘(I) the borrower is 120 days de-
linquent on 1 or more covered loans 
and has not selected a new repayment 
plan for the covered loans of the bor-
rower; and 
‘‘(II) in the case of such a bor-
rower whose repayment plan for the 
covered loans of the borrower is not an 
income-driven repayment plan de-
scribed in subparagraph (D) or (E) of 
paragraph (1), the monthly payments 
under such repayment plan are higher 
than such monthly payments would be 
under the income-based repayment 
plan under section 493C(f). 
‘‘(vii) Instructions on updating the in-
formation of the borrower obtained under 
subparagraph (A). 
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536 
‘‘(C) SECRETARY’S INITIAL SELECTION OF A 
PLAN.—With respect to each borrower described 
in subparagraph (B) who has a repayment plan 
for the covered loans of the borrower that meets 
the requirements of clause (vi)(II) of subpara-
graph (B) and has not selected a new repayment 
plan for such loans in accordance with the notice 
received under such subparagraph, and who is at 
least 120 days delinquent on such a loan, the 
Secretary shall, as soon as practicable— 
‘‘(i) provide the borrower with the in-
come-based repayment plan under section 
493C(f); and 
‘‘(ii) authorize the borrower to change 
the Secretary’s selection of a plan under 
this clause to the fixed repayment plan de-
scribed in section 493E. 
‘‘(D) OPT-OUT.—A borrower of a covered 
loan shall have the right to opt out of the proce-
dures under this paragraph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
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537 
‘‘(9) NOTIFICATION
AND
AUTOMATIC
ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE REHA-
BILITATING DEFAULTED LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME INFOR-
MATION.—In the case of any borrower who is re-
habilitating a covered loan pursuant to section 
428F(a), the Secretary may obtain such infor-
mation as is reasonably necessary regarding the 
income and family size of the borrower (and the 
borrower’s spouse, if applicable). 
‘‘(B) BORROWER NOTIFICATION.—Not later 
than 30 days after a borrower makes the 6th 
payment required for the loan rehabilitation de-
scribed in subparagraph (A), the Secretary shall 
notify the borrower of the process under subpara-
graph (C) with respect to such loan. 
‘‘(C) SECRETARY’S SELECTION OF PLAN.— 
With respect to each borrower who has made the 
9th payment required for the loan rehabilitation 
described in subparagraph (A), the Secretary 
shall, as soon as practicable after such payment, 
provide the borrower with the income-based re-
payment plan under section 493C(f), without re-
gard to whether the loan has been so rehabili-
tated. 
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538 
‘‘(D) OPT-OUT.—A borrower of a covered 
loan shall have the right to opt out of the proce-
dures under this paragraph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
‘‘(10) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED
LOAN.—The term ‘covered 
loan’ means— 
‘‘(i) a loan made under this part; 
‘‘(ii) a loan purchased under section 
459A; or 
‘‘(iii) a loan that has been assigned to 
the Secretary under section 428(c)(8) or 
part E. 
‘‘(B) NONCOVERED LOAN.—The term ‘non-
covered loan’ means a loan made, insured, or 
guaranteed under this title that is not a covered 
loan. 
‘‘(11) 
APPLICATION
OF
PREPAYMENT 
AMOUNTS.— 
‘‘(A) REQUIREMENT.—Notwithstanding any 
other provision of this subsection or any other 
provision of law— 
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539 
‘‘(i) with respect to loans made to an 
eligible borrower under this part or part B, 
which are held by the same holder and 
which have different applicable rates of in-
terest, the holder of such loans shall, unless 
otherwise requested by the borrower in writ-
ing, apply the borrower’s prepayment 
amount (within the meaning of section 
682.209(b) of title 34, Code of Federal Reg-
ulations, or a successor regulation) for one 
or more of such loans, first toward the out-
standing balance of principal due on the 
loan with the highest applicable rate of in-
terest among such loans; and 
‘‘(ii) except as provided in clause (i), 
with respect to loans made to an eligible 
borrower under this part or part B, which 
are held by the same holder and which have 
the same applicable rates of interest, the 
holder of such loans shall, unless otherwise 
requested by the borrower in writing, apply 
the borrower’s prepayment amount (within 
the meaning of section 682.209(b) of title 
34, Code of Federal Regulations, or a suc-
cessor regulation) for one or more of such 
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540 
loans, first toward the outstanding balance 
of principal due on the loan with the high-
est principal balance among such loans. 
‘‘(B) ELIGIBLE BORROWER.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘eligible borrower’ 
means a borrower with no outstanding bal-
ance of fees, including collection costs and 
authorized late charges, due on any loan 
made under this part or part B. 
‘‘(ii) PREPAYMENT AMOUNTS.—A pre-
payment amount (as described in subpara-
graph (A)) made by a borrower who is not 
an eligible borrower to a holder shall be ap-
plied first toward the borrower’s out-
standing balance of fees, including collection 
costs and authorized late charges, due on 
any loan made under this part or part B 
held by such holder.’’. 
(g) APPLICATION.—The amendments made by sub-
section (c)(4) shall— 
(1) take effect as soon as the Secretary of Edu-
cation determines practicable after the Secretary fi-
nalizes the procedures under section 9004, but not 
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541 
later than 2 years after the date of enactment of this 
Act; and 
(2) apply to all borrowers of covered loans (as 
defined in section 455(d)(10) of the Higher Education 
Act of 1965, as added by subsection (c)(4)). 
(h) MAXIMUM REPAYMENT PERIOD FOR INCOME-CON-
TINGENT REPAYMENT.—Section 455(e) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(e)) is further amend-
ed— 
(1) in paragraph (7)(B)— 
(A) by striking ‘‘or’’ at the end of clause 
(iv); 
(B) by striking the period at the end of 
clause (v) and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(vi) makes payments under the in-
come-based repayment plan under section 
493C(f); or 
‘‘(vii) makes payments under the fixed 
repayment 
plan 
described 
in 
section 
493E.’’; and 
‘‘(8) 
ADDITIONAL
QUALIFYING
REPAYMENT 
PLANS.—A borrower repaying a loan pursuant to in-
come-contingent repayment under this subsection may 
elect at any time to terminate repayment under such 
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542 
repayment plan and repay such loan under the in-
come-based repayment plan under section 493C(f) or 
the fixed repayment plan described in section 493E.’’. 
(i) AUTOMATIC RECERTIFICATION OF INCOME FOR IN-
COME-DRIVEN REPAYMENT PLANS.—Section 455(e) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is 
amended— 
(1) in paragraph (3)— 
(A) by striking ‘‘does not reasonably reflect 
the borrower’s current income’’ and inserting 
‘‘whose income has decreased relative to the ad-
justed gross income available to the Secretary’’; 
and 
(B) by inserting ‘‘, consistent with the pro-
cedures established under paragraph (9)(B)(iv)’’ 
before the period at the end; and 
(2) by adding at the end the following: 
‘‘(9) AUTOMATIC RECERTIFICATION.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered loan’ has the meaning given the 
term in subsection (d)(10). 
‘‘(B) IN GENERAL.—Beginning as soon as 
the Secretary determines practicable after the 
Secretary finalizes the procedures under section 
9004 of the College Affordability Act, but not 
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543 
later than 2 years after the date of enactment of 
such Act, the Secretary shall establish and imple-
ment, with respect to any borrower described in 
subparagraph (C), procedures to— 
‘‘(i) obtain (for each year of repayment 
and without further action by the borrower) 
such information as is reasonably necessary 
regarding the income of such borrower (and 
the borrower’s spouse, if applicable), for the 
purpose of determining the repayment obli-
gation of the borrower for such year, includ-
ing information with respect to the bor-
rower’s family size in accordance with the 
procedures under section 9004 of the College 
Affordability Act, subject to clause (ii); 
‘‘(ii) allow the borrower, at any time, 
to opt out of clause (i) and prevent the Sec-
retary from obtaining information under 
such clause without further action by the 
borrower; 
‘‘(iii) provide the borrower with an op-
portunity to update the information ob-
tained under clause (i) before the deter-
mination of the annual repayment obliga-
tion of the borrower; and 
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544 
‘‘(iv) in the case of a borrower for 
whom adjusted gross income is unavail-
able— 
‘‘(I) if the borrower has selected to 
repay the covered loans of such bor-
rower pursuant to an income contin-
gent repayment plan that defines dis-
cretionary income in such a manner 
that an individual not required under 
section 6012(a)(1) of the Internal Rev-
enue Code of 1986 to file a return with 
respect to income taxes imposed by 
subtitle A of such Code may have a 
calculated monthly payment greater 
than $0, the borrower will be required 
to provide the Secretary with other 
documentation of income satisfactory 
to the Secretary, which documentation 
the Secretary may use to determine an 
appropriate repayment schedule; or 
‘‘(II) if the borrower has selected 
to repay such loans pursuant to an in-
come contingent repayment that is not 
described in subclause (I), the borrower 
will not be required to provide the Sec-
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545 
retary with such other documentation 
of income, and the borrower will have 
a calculated monthly payment of $0. 
‘‘(C) APPLICABILITY.—Subparagraph (B) 
shall apply to each borrower of a covered loan 
who, on or after the date on which the Secretary 
establishes procedures under such subparagraph, 
recertifies income and family size under such 
plan. 
‘‘(D) OTHER REQUIREMENTS.—The proce-
dures established by the Secretary under this 
paragraph shall be consistent with the require-
ments of paragraphs (1) through (7), except as 
otherwise provided in this paragraph.’’. 
(j) DEFERMENT AND FORBEARANCE.—Section 455(f) 
of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) 
is amended— 
(1) in the subsection heading, by inserting at the 
end the following: ‘‘AND FORBEARANCE’’; and 
(2) by amending subparagraph (B) of paragraph 
(1) to read as follows: 
‘‘(B) in the case of a Federal Direct PLUS 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a Federal Direct Consolidation Loan 
not described in subparagraph (A)(ii), beginning 
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546 
on or after the date of enactment of the College 
Affordability Act— 
‘‘(i) for a deferment during a period 
described in paragraph (2)(A)(i), shall ac-
crue and be capitalized or paid by the bor-
rower; and 
‘‘(ii) for a deferment during a period 
described in subparagraphs (B) through (D) 
of paragraph (2), shall accrue but not be 
capitalized.’’; and 
(3) by adding at the end the following: 
‘‘(6) FORBEARANCE.—At the expiration of a pe-
riod of forbearance that begins on or after the date of 
enactment of the College Affordability Act, interest 
may accrue but shall not be capitalized on any loans 
made under this part.’’. 
(k) SEPARATING JOINT CONSOLIDATION LOANS.—Sec-
tion 455(g) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(g)) is amended— 
(1) by striking ‘‘A borrower’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—A borrower’’; and 
(2) by adding at the end the following: 
‘‘(2) 
SEPARATING
JOINT
CONSOLIDATION 
LOANS.— 
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567 
Loans issued to graduate or professional students 
for the 12-month period beginning on July 1, 
2019, and ending on June 30, 2020; 
‘‘(C) in any case where the original loan 
was a loan under section 428B or a Federal Di-
rect PLUS Loan, a rate equal to the rate for 
Federal Direct PLUS Loans for the 12-month 
period beginning on July 1, 2019, and ending on 
June 30, 2020; and 
‘‘(D) in any case where the original loan 
was a loan under section 428C or a Federal Di-
rect Consolidation Loan, a rate calculated in ac-
cordance with paragraph (2). 
‘‘(2) INTEREST
RATES
FOR
CONSOLIDATION 
LOANS.— 
‘‘(A) METHOD OF CALCULATION.—In order 
to determine the interest rate for any refinanced 
Federal Direct Consolidation Loan under para-
graph (1)(D), the Secretary shall— 
‘‘(i) determine each of the component 
loans that were originally consolidated in 
the loan under section 428C or the Federal 
Direct Consolidation Loan, and calculate 
the proportion of the unpaid principal bal-
ance of the loan under section 428C or the 
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