I 
114TH CONGRESS 
1ST SESSION H. R. 3752 
To simplify and improve the Federal student loan program through income- 
contingent repayment to provide stronger protections for borrowers, en-
courage responsible borrowing, and save money for taxpayers. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 9, 2015 
Mr. POLIS (for himself and Mr. HANNA) introduced the following bill; which 
was referred to the Committee on Education and the Workforce, and in 
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To simplify and improve the Federal student loan program 
through income-contingent repayment to provide stronger 
protections for borrowers, encourage responsible bor-
rowing, and save money for taxpayers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Earnings Contingent 
Education Loans Act of 2015’’ or the ‘‘ExCEL Act of 
2015’’. 
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SEC. 2. TERMINATION OF AUTHORITY TO MAKE FEDERAL 
DIRECT STAFFORD LOANS, FEDERAL DIRECT 
UNSUBSIDIZED STAFFORD LOANS, AND FED-
ERAL DIRECT PLUS LOANS TO STUDENTS 
UNDER THE WILLIAM D. FORD FEDERAL DI-
RECT LOAN PROGRAM. 
Section 455(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(a)) is amended by adding at the end 
the following: 
‘‘(4) TERMINATION
OF
AUTHORITY
TO
MAKE 
FEDERAL DIRECT STAFFORD LOANS, FEDERAL DI-
RECT UNSUBSIDIZED STAFFORD LOANS, AND FED-
ERAL DIRECT PLUS LOANS TO STUDENTS UNDER 
THIS PART.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
provision of this part or part B, for any period 
of instruction beginning on or after July 1, 
2016— 
‘‘(i) a student shall not be eligible to 
receive a Federal Direct Stafford Loan 
under this part; and 
‘‘(ii) a student shall not be eligible to 
receive a Federal Direct Unsubsidized 
Stafford Loan or Federal Direct PLUS 
Loan under this part, except as provided in 
subparagraph (B). 
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‘‘(B) EXCEPTIONS.—Subparagraph (A)(ii) 
shall not be applicable with respect to the fol-
lowing: 
‘‘(i) 
EXISTING
STUDENT
BOR-
ROWERS.—A student who, as of July 1, 
2016, has an outstanding balance of prin-
cipal or interest owing on any loan made, 
insured, or guaranteed under part B or 
this part may continue to be eligible to 
borrow a loan under this part, except for 
a Federal Direct Stafford Loan, in accord-
ance with subparagraph (C) until June 30, 
2019. 
‘‘(ii) PARENT PLUS LOANS.—An ex-
cepted PLUS loan or excepted consolida-
tion loan (as such terms are defined in sec-
tion 493C(a)) under this part that is made 
to a parent on behalf of an undergraduate 
dependent student. 
‘‘(iii) FEDERAL
DIRECT
CONSOLIDA-
TION LOANS.—A Federal Direct Consolida-
tion Loan under this part. 
‘‘(C) MAXIMUM
ANNUAL
AMOUNTS
OF 
FEDERAL
DIRECT
UNSUBSIDIZED
STAFFORD 
LOANS.—The maximum annual amount of Fed-
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eral Direct Unsubsidized Stafford Loans a stu-
dent described in subparagraph (B)(i) may bor-
row in an academic year (as defined in section 
481(a)(2)) or its equivalent shall be the max-
imum annual amount for such student deter-
mined under section 428H, plus an amount 
equal to the amount of Federal Direct Stafford 
Loans the student would have received in the 
absence of subparagraph (A)(i).’’. 
SEC. 3. ESTABLISHMENT OF THE INCOME DEPENDENT 
EDUCATION ASSISTANCE LOAN PROGRAM 
AND THE IDEA LOAN REPAYMENT PROGRAM. 
Title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070a et seq.) is amended by adding at the end 
the following new part: 
‘‘PART J—INCOME DEPENDENT EDUCATION 
ASSISTANCE LOANS 
‘‘Subpart 1—IDEA Loans 
‘‘SEC. 499A. PROGRAM AUTHORITY AND AGREEMENTS. 
‘‘(a) PROGRAM AUTHORITY.— 
‘‘(1) IN
GENERAL.—There are hereby made 
available, in accordance with the provisions of this 
part, such sums as may be necessary to make loans 
to all eligible students in attendance at participating 
institutions of higher education selected by the Sec-
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retary, to enable such students to pursue their 
courses of study at such institutions during the pe-
riod beginning July 1, 2016. Loans made under this 
part shall be made by participating institutions, or 
consortia thereof, that have agreements with the 
Secretary to originate loans, or by alternative origi-
nators designated by the Secretary to make loans for 
students in attendance at participating institutions. 
‘‘(2) DESIGNATION.—The program established 
under this subpart shall be referred to as the ‘In-
come Dependent Education Assistance Loan Pro-
gram’, or the ‘IDEA Loan Program’. 
‘‘(b) FUNDS
FOR
THE
ORIGINATION
OF
IDEA 
LOANS.—The Secretary shall provide funds for student 
loans under this part in the same manner as the Secretary 
provides funds for the origination of Federal Direct Stu-
dent Loans under part D in accordance with section 452. 
The requirements, rights, and limitations under section 
452 with respect to the Secretary and institutions for 
funds provided for loans under part D shall apply with 
respect to the Secretary and institutions for funds pro-
vided for loans under this part, except that funds under 
this part shall not be provided for parent loans. 
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‘‘(c) SELECTION OF INSTITUTIONS FOR PARTICIPA-
TION AND ORIGINATION, AND AGREEMENTS WITH INSTI-
TUTIONS.— 
‘‘(1) SELECTION OF INSTITUTIONS FOR PAR-
TICIPATION AND ORIGINATION.—The Secretary shall 
enter into agreements with institutions of higher 
education to participate in the IDEA Loan Program 
under this part and agreements with institutions of 
higher education, or consortia thereof, to originate 
loans in such program for academic years beginning 
on or after July 1, 2016. The provisions of section 
453 shall apply with respect to agreements under 
this section. The Secretary shall provide alternative 
origination services for loans under this part, as ap-
propriate, in a manner consistent with the provisions 
of sections 453 and 456 related to alternative origi-
nation services for loans under part D. 
‘‘(2) PARTICIPATION AND ORIGINATION AGREE-
MENTS
WITH
INSTITUTIONS.—An agreement with 
any institution of higher education for participation 
in the IDEA Loan Program under this part, and an 
agreement with any institution of higher education, 
or consortia thereof, to originate loans in such pro-
gram, shall have the same terms as the terms re-
quired under section 454 for agreements with an in-
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stitution for participation or origination, respec-
tively, in the student loan program under part D, 
except that agreements for participation or origina-
tion under this part shall not apply to parent loans. 
‘‘(3) WITHDRAWAL AND TERMINATION PROCE-
DURES.—The Secretary shall establish procedures by 
which institutions or consortia may withdraw or be 
terminated from the program under this part. 
‘‘SEC. 499B. TERMS AND CONDITIONS OF IDEA LOANS. 
‘‘(a) PARALLEL TERMS, CONDITIONS, BENEFITS, 
AND AMOUNTS.—Unless otherwise specified in this part, 
Income Dependent Education Assistance Loans (herein-
after referred to as ‘IDEA Loans’) made to borrowers 
under this part shall have the same terms, conditions, and 
benefits, and be available in the same amounts, as Federal 
Direct Unsubsidized Stafford Loans made to borrowers 
under part D, and first disbursed on the day before the 
date of enactment of the Earnings Contingent Education 
Loans Act of 2015. 
‘‘(b) ELIGIBLE BORROWERS.— 
‘‘(1) IN GENERAL.—In addition to the require-
ments of section 484, to be eligible to receive a loan 
(other than an IDEA Consolidation Loan) under 
this part, a borrower— 
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‘‘(A) shall be an individual who, on the 
date of application for such loan, has no out-
standing balance of principal or interest owing 
on any loan made, insured, or guaranteed under 
part B or D (other than an excepted PLUS 
loan or an excepted consolidation loan (as such 
terms are defined in section 493C(a))); or 
‘‘(B) in the case of an individual with an 
outstanding balance of principal or interest 
owing on any loan described in subparagraph 
(A), shall consolidate all such existing loans 
into an IDEA Consolidation Loan under section 
499C. 
‘‘(2) ONLY STUDENT BORROWERS ELIGIBLE.— 
For purposes of this part, the term ‘borrower’ shall 
not include a parent borrower. 
‘‘(c) ANNUAL AND AGGREGATE LIMITS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the maximum annual amount of IDEA Loans in any 
academic year (as defined in section 481(a)(2)) or 
its equivalent, and the maximum aggregate amount 
of IDEA Loans that a student may borrow, shall be 
the maximum annual amounts and maximum aggre-
gate amounts, respectively, of Federal Direct Unsub-
sidized Stafford Loans under part D that such stu-
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dent would have been eligible to borrow in the ab-
sence of section 455(a)(4), as added by Earnings 
Contingent Education Loans Act of 2015. 
‘‘(2) GRADUATE
AND
PROFESSIONAL
STU-
DENTS.—In the case of a graduate or professional 
student who would have been eligible to borrow a 
Federal Direct PLUS Loan under part D in the ab-
sence of section 455(a)(4), as added by Earnings 
Contingent Education Loans Act of 2015, the max-
imum annual amounts and maximum aggregate 
amounts, respectively, of IDEA Loans that the stu-
dent may borrow as determined under paragraph (1) 
for any academic year (as defined in section 
481(a)(2)) or its equivalent, may be increased to an 
amount equal to the maximum annual amounts and 
maximum aggregate amounts, respectively, of Fed-
eral Direct PLUS Loans that such student would 
have been eligible to borrow in the absence of such 
section 455(a)(4). 
‘‘(d) LOAN FEE.—The Secretary shall charge the 
borrower of a loan (other than an IDEA Consolidation 
Loan) made under this part an origination fee. Such fee 
shall be the sum of— 
‘‘(1) for the portion of the principal amount of 
the loan that is equal to (or less than) the maximum 
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annual amount a student may borrow under sub-
section (c)(1), 1.0 percent of such portion of the 
principal amount of the loan; plus 
‘‘(2) for the portion of the principal amount of 
the loan that exceeds the maximum annual amount 
a student may borrow under subsection (c)(1), as 
authorized by subsection (c)(2), 4.0 percent of such 
portion of the principal amount of the loan. 
‘‘(e) INTEREST RATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for IDEA Loans for which the first dis-
bursement is made on or after July 1, 2016, the ap-
plicable rate of interest shall, during any 12-month 
period beginning on July 1 and ending on June 30, 
be determined on the preceding June 1 and be equal 
to— 
‘‘(A) the bond equivalent rate of 10-year 
Treasury bills auctioned at the final auction 
held prior to such June 1; plus 
‘‘(B) 3.0 percent. 
‘‘(2) CERTAIN GRADUATE AND PROFESSIONAL 
STUDENTS.—Notwithstanding paragraph (1), with 
respect to graduate or professional students who 
have increased maximum annual and aggregate loan 
limits under subsection (c)(2), for IDEA Loans for 
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which the first disbursement is made on or after 
July 1, 2016, the applicable rate of interest shall be 
the weighted average of— 
‘‘(A) the rate determined under paragraph 
(1) for the portion of the principal amount of 
the loan that is equal to (or less than) the max-
imum annual amount a student may borrow 
under subsection (c)(1); and 
‘‘(B) the rate determined under paragraph 
(1), except that ‘4.1 percent’ shall be sub-
stituted for ‘3.0 percent’ in such determination, 
for the portion of the principal amount of the 
loan that exceeds the maximum annual amount 
a student may borrow under subsection (c)(1), 
as authorized by subsection (c)(2). 
‘‘(3) CONSULTATION.—The Secretary shall de-
termine the applicable rate of interest under para-
graph (1) after consultation with the Secretary of 
the Treasury and shall publish such rate in the Fed-
eral Register as soon as practicable after the date of 
determination. 
‘‘(4) APPLICATION OF INTEREST RATE DURING 
THE LIFE OF THE LOAN.— 
‘‘(A) FIXED RATE UNTIL CAP.—The appli-
cable rate of interest determined under para-
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graph (1) or (2) for an IDEA Loan shall be 
fixed for the life of the loan, except that inter-
est shall cease to accrue when the total amount 
of interest (both paid and unpaid) that has ac-
crued during the borrower’s grace and repay-
ment periods equals 50 percent of the total 
amount of the loan (equal to the sum of the un-
paid principal, interest, penalties, and fees due 
on the loan) as of the first day of the bor-
rower’s grace period. 
‘‘(B) IN-SCHOOL
DEFERMENT
PERIOD.— 
Interest shall accrue and be capitalized or paid 
by the borrower (but periodic installments of 
principal need not be paid) during the in-school 
deferment period with respect to an IDEA 
Loan. For the purposes of this part, the in- 
school deferment period with respect to an 
IDEA Loan is the first period during which the 
borrower is pursuing at least one-half the nor-
mal full-time academic workload (as determined 
by the institution) in the course of study for 
which the borrower received such loan and end-
ing on the first day of the first month that be-
gins after the borrower ceases to carry at least 
one-half the normal full-time academic workload 
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(as determined by the institution) in the course 
of study. 
‘‘(C) GRACE AND REPAYMENT PERIODS.— 
Interest that accrues during the borrower’s 
grace period (for the purposes of this title, de-
fined as the period between the borrower’s in- 
school deferment period and the borrower’s re-
payment period) and during the borrower’s re-
payment period shall not be capitalized. 
‘‘(f) ARMED FORCES STUDENT LOAN INTEREST 
PAYMENT PROGRAM.—Using funds received by transfer to 
the Secretary under section 2174 of title 10, United States 
Code, for the payment of interest on a loan made under 
this part to a member of the Armed Forces, the Secretary 
shall pay the interest on the loan as due for a period not 
in excess of 36 consecutive months. The Secretary may 
not pay interest on such a loan out of any funds other 
than funds that have been so transferred. 
‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY 
SERVICEMEMBERS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this part and in accordance with para-
graphs (2) and (4), interest shall not accrue for an 
eligible military borrower on a loan made under this 
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part for which the first disbursement is made on or 
after July 1, 2016. 
‘‘(2) IDEA CONSOLIDATION
LOANS.—In the 
case of any IDEA Consolidation Loan made under 
this part that is disbursed on or after July 1, 2016, 
interest shall not accrue pursuant to this subsection 
only on such portion of such loan as was used to 
repay a loan made under part D for which the first 
disbursement is made on or after October 1, 2008. 
‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 
subsection, the term ‘eligible military borrower’ 
means an individual who— 
‘‘(A)(i) is serving on active duty during a 
war or other military operation or national 
emergency; or 
‘‘(ii) is performing qualifying National 
Guard duty during a war or other military op-
eration or national emergency; and 
‘‘(B) is serving in an area of hostilities in 
which service qualifies for special pay under 
section 310 of title 37, United States Code. 
‘‘(4) LIMITATION.—An individual who qualifies 
as an eligible military borrower under this sub-
section may receive the benefit of this subsection for 
not more than 60 months. 
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‘‘(h) LOAN CANCELLATION AND DISCHARGE.—The 
Secretary shall discharge a borrower’s liability on a loan 
made under this part in accordance with subsections (a) 
and (c) of section 437. 
‘‘(i) NO PUBLIC SERVICE LOAN FORGIVENESS.—A 
loan made under this part shall not be eligible for the pub-
lic service loan forgiveness program under section 455(m). 
‘‘SEC. 499C. IDEA CONSOLIDATION LOANS. 
‘‘(a) IDEA CONSOLIDATION LOANS.— 
‘‘(1) IN GENERAL.—Except as provided in this 
section, an IDEA Consolidation Loan under this sec-
tion shall have the same terms, conditions, and bene-
fits, as IDEA Loans under this part. 
‘‘(2) BORROWER AND LOAN ELIGIBILITY.—To 
be eligible to receive an IDEA Consolidation Loan 
under this section, a borrower— 
‘‘(A) shall— 
‘‘(i) meet the criteria described in sec-
tion 428C(a)(3)(A); and 
‘‘(ii) in the case of a borrower de-
scribed in section 499B(b)(1)(B), agree to 
consolidate into an IDEA Consolidation 
Loan all loans made to the borrower that 
are described in subparagraphs (A) and 
(C) of section 428C(a)(4) (other than an 
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excepted PLUS loan or an excepted con-
solidation loan (as such terms are defined 
in section 493C(a))); 
‘‘(B) may consolidate the loans described 
in subparagraphs (B), (D), and (E) of section 
428C(a)(4) into such IDEA Consolidation 
Loan; and 
‘‘(C) may not consolidate an IDEA Loan 
under section 499B into such IDEA Consolida-
tion Loan. 
‘‘(3) REQUIREMENTS FOR THE SECRETARY.— 
In making IDEA Consolidation Loans under this 
section, the Secretary— 
‘‘(A) shall ensure that— 
‘‘(i) each IDEA Consolidation Loan 
will be made, notwithstanding any other 
provision of this title limiting the annual or 
aggregate principal amount for all loans 
made to the borrower, in an amount which 
is equal to the sum of the unpaid principal, 
interest, penalties, and fees of all loans re-
ceived by the borrower which are selected 
by the borrower for consolidation under 
this section; and 
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‘‘(ii) the proceeds of each IDEA Con-
solidation Loan will be paid by the Sec-
retary to the holder or holders of the loans 
being consolidated to discharge the liability 
on such loans; 
‘‘(B) shall not discriminate against any 
borrower seeking such an IDEA Consolidation 
Loan— 
‘‘(i) based on the number or type of 
loans the borrower seeks to consolidate; 
‘‘(ii) based on the interest rate to be 
charged to the borrower with respect to the 
consolidation loan; or 
‘‘(iii) based on the type or category of 
institution of higher education that the 
borrower attends or attended; and 
‘‘(C) shall disclose to a prospective bor-
rower, in simple and understandable terms, at 
the time the Secretary provides an application 
for an IDEA Consolidation Loan— 
‘‘(i) whether consolidation would re-
sult in a loss of loan benefits under part 
B or part D, including loan forgiveness, 
cancellation, and deferment; 
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‘‘(ii) with respect to Federal Perkins 
Loans under part E— 
‘‘(I) that if a borrower includes a 
Federal Perkins Loan under part E in 
the consolidation loan, the borrower 
will lose all interest-free periods that 
would have been available for the Fed-
eral Perkins Loan, including— 
‘‘(aa) the periods during 
which no interest accrues on such 
loan while the borrower is en-
rolled in school at least half-time; 
‘‘(bb) the grace period under 
section 464(c)(1)(A); and 
‘‘(cc) the periods during 
which the borrower’s student 
loan repayments are deferred 
under section 464(c)(2); 
‘‘(II) that if a borrower includes 
a Federal Perkins Loan in the con-
solidation loan, the borrower will no 
longer be eligible for cancellation of 
part or all of the Federal Perkins 
Loan under section 465(a); and 
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‘‘(III) the occupations listed in 
section 465 that qualify for Federal 
Perkins Loan cancellation under sec-
tion 465(a); 
‘‘(iii) the options of the borrower to 
prepay the IDEA Consolidation Loan; 
‘‘(iv) the consequences of default on 
the IDEA Consolidation Loan; and 
‘‘(v) that by applying for an IDEA 
Consolidation Loan, the borrower is not 
obligated to agree to take the consolidation 
loan. 
‘‘(b) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
499B(e), an IDEA Consolidation Loan for which the 
application is received on or after July 1, 2016, shall 
bear interest at an annual rate on the unpaid prin-
cipal balance of the loan that is equal to the weight-
ed average of the interest rates on the loans consoli-
dated, rounded to the nearest higher one-eighth of 
one percent. Interest that accrues on such an IDEA 
Consolidation Loan shall not be capitalized. 
‘‘(2) APPLICATION OF INTEREST RATE DURING 
THE LIFE OF THE LOAN.—The applicable rate of in-
terest determined under paragraph (1) shall be fixed 
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for the life of the IDEA Consolidation Loan, except 
that interest shall cease to accrue when the total 
amount of interest (both paid and unpaid) that has 
accrued on such Loan equals 50 percent of the total 
amount of the loans consolidated (as calculated on 
the date such Consolidation Loan is made, and equal 
to the sum of the unpaid principal, interest, pen-
alties, and fees of all loans received by the borrower 
which are selected by the borrower for consolidation 
under this section). 
‘‘Subpart 2—IDEA Loan Repayment Program 
‘‘CHAPTER 1—ESTABLISHMENT OF THE 
IDEA LOAN REPAYMENT PROGRAM 
‘‘SEC. 499D. DUTIES OF THE SECRETARY OF THE TREAS-
URY. 
‘‘(a) IN GENERAL.—As part of the IDEA Loan Re-
payment Program established under this subpart, the Sec-
retary of the Treasury shall, with respect to each indi-
vidual for whom a loan made under this part is in repay-
ment status during a taxable year, transmit to the Sec-
retary of Education— 
‘‘(1) in the case of such an individual who files 
an income tax return for such taxable year, such tax 
information as is necessary to determine the individ-
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ual’s income-based repayment obligation under sec-
tion 499E; and 
‘‘(2) in the case of any such individual who does 
not file a return for such taxable year, any available 
tax information of the individual as may be nec-
essary to determine such obligation and whether 
such individual is in default under the terms of such 
loan for not so filing. 
‘‘(b) ADDITIONAL PROGRAM REQUIREMENTS.—The 
Secretary of the Treasury shall establish such other poli-
cies, procedures, and guidance as may be necessary to 
carry out the purposes of this subpart, including measures 
to prevent underreporting and evasion of repayment or fil-
ing. 
‘‘SEC. 499E. DUTIES OF THE SECRETARY OF EDUCATION. 
‘‘(a) IN GENERAL.—The Secretary shall carry out, 
as part of the IDEA Loan Repayment Program estab-
lished under this subpart, the following activities: 
‘‘(1) CALCULATION
OF
ANNUAL
REPAYMENT 
AMOUNTS.—The Secretary shall calculate the annual 
repayment amount under this subpart for borrowers 
with 1 or more loans made under this part in repay-
ment status, including the income-based repayment 
obligations of such borrowers in accordance with sec-
tion 499F(i). 
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‘‘(2) COMMUNICATION
WITH
THE
SECRETARY 
OF THE TREASURY.—The Secretary shall transmit 
to the Secretary of the Treasury such information as 
is necessary for the Secretary of the Treasury to 
carry out section 499F(i). 
‘‘(3) ANNUAL STATEMENTS.—Upon calculating 
the annual repayment amounts under paragraph (1) 
for a taxable year, the Secretary shall provide a 
statement, on an annual basis, to each borrower 
with a loan made under this part, which lists the fol-
lowing: 
‘‘(A) Total payments made on the bor-
rower’s annual repayment amount for such tax-
able year. 
‘‘(B) The borrower’s annual repayment 
amount for such taxable year. 
‘‘(C) In the case of a borrower who, ac-
cording to section 499F(f), has underpaid such 
annual repayment amount, the amount of such 
underpayment and the process for paying such 
underpayment under section 499F(f)(2). 
‘‘(D) In the case of a borrower with an 
overpayment 
on 
such 
annual 
repayment 
amount, the amount of such overpayment and 
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the process for requesting a refund of such 
amount under section 499F(g), if applicable. 
‘‘(E) The outstanding balances on all the 
loans made to the borrower under this part. 
‘‘(F) A description of how the borrower’s 
annual repayment amount was calculated under 
paragraph (1) or (2) of section 499F(b). 
‘‘(4) DIRECT PAYMENT.—The Secretary shall 
enable a borrower to make direct payments on the 
borrower’s annual repayment amount for the taxable 
year to the Secretary throughout the year. 
‘‘(5) PAYMENTS ON A BORROWER’S BEHALF.— 
The Secretary shall— 
‘‘(A) provide a mechanism for other indi-
viduals or entities to make payments on the an-
nual repayment amount of a borrower for a tax-
able year; and 
‘‘(B) notify the borrower that any pay-
ments made under subparagraph (A) for the 
taxable year that exceed the annual repayment 
amount for the year shall not be refunded to 
the borrower. 
‘‘(6) CALCULATING INTEREST ACCRUED.—The 
Secretary shall calculate the interest accrued for the 
taxable year as if the borrower’s payments under 
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wage withholding under paragraph (10) for the tax-
able year were made in 12 equal increments 
throughout the year. 
‘‘(7) APPEALS PROCESS.—The Secretary shall 
make available a process through which a borrower 
can appeal the calculation of the borrower’s annual 
repayment amount, including a worksheet that en-
ables a borrower to calculate the borrower’s annual 
repayment amount. 
‘‘(8) DEFAULT FOR FAILURE TO FILE A RE-
TURN.—In a case in which the Secretary receives in-
formation from the Secretary of the Treasury under 
section 499D that a borrower with a loan made 
under this part in repayment status has failed to file 
a return under section 6012(a)(1) of the Internal 
Revenue Code of 1986 and such borrower was re-
quired to file such a return, the Secretary shall— 
‘‘(A) notify the borrower of the borrower’s 
failure to file such a return; and 
‘‘(B) if the borrower fails to file such a re-
turn within 90 days of receipt of the notice de-
scribed in subparagraph (A), consider the bor-
rower’s loans made under this part in repay-
ment status to be in default. 
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‘‘(1) WITHHOLDING ORDERS.—In carrying out 
the employer withholding process under subsection 
(a)(10), the Secretary shall carry out the following: 
‘‘(A) NEW
EMPLOYMENT.—Upon deter-
mining, using the information provided under 
section 453(j)(12) of the Social Security Act 
(42 U.S.C. 653(j)(12)), that a borrower who 
meets the requirements of subparagraphs (A) 
through (C) of subsection (a)(10) obtains new 
employment, issue a withholding order to the 
borrower’s employer directing the employer to 
withhold and transmit the amounts described in 
paragraph (3) to the Secretary. 
‘‘(B) OTHER
PURPOSES.—Upon notifica-
tion by a borrower that the borrower no longer 
wishes to opt out of the withholding process 
under subsection (a)(10) or that a borrower 
who has been in forbearance under section 
499F(a)(2)(C), voluntarily ends or no longer 
qualifies for such forbearance, or upon deter-
mining that a borrower has entered repayment 
status on 1 or more loans made under this part 
(and the borrower had no loans made under 
this part already in repayment status), using 
the 
information 
provided 
under 
section 
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453(j)(12) of the Social Security Act (42 
U.S.C. 653(j)(12)), issue a withholding order to 
all of the borrower’s employers directing such 
employers 
to 
withhold 
and 
transmit 
the 
amounts described in paragraph (3) to the Sec-
retary. 
‘‘(C) STOP WITHHOLDING ORDER.—Upon 
determining that a borrower is eligible for a for-
bearance under section 499F(a)(2)(C), that the 
borrower has opted out of the withholding proc-
ess under subsection (a)(10), or that a borrower 
has repaid the borrower’s loans made under 
this part, using the information provided under 
paragraph 12 of section 453(j)(12) of the So-
cial Security Act (42 U.S.C. 653(j)(12)), issue 
a withholding order to the borrower’s employers 
directing such employers to cease withholding 
under this paragraph. 
‘‘(D) TRANSFER OF PAYMENTS.—Outline 
clearly the process through which employers 
shall transfer money withheld under this sub-
section to the Secretary. 
‘‘(E) ELECTRONIC TRANSMISSION.— 
‘‘(i) IN
GENERAL.—Make available 
electronic means of transmitting and proc-
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essing both withholding orders and pay-
ments from employers, including a means 
to correct under- and overpayments to the 
extent feasible, with the goal of stream-
lining the processing of such orders and 
payments and minimizing impacts on em-
ployers. 
‘‘(ii) NO REQUIREMENT TO USE ELEC-
TRONIC
TRANSMISSION.—Nothing in this 
part shall be construed to require an em-
ployer, in carrying out a withholding order 
under this section, to use the electronic 
process described in clause (i). 
‘‘(2) EMPLOYER REMITTANCE.— 
‘‘(A) IN GENERAL.—In the case where an 
employer has received a withholding order 
under subparagraph (A) or (B) of paragraph 
(1) or the employee has indicated under para-
graph (4)(A) that the employee has a loan that 
meets the requirements of subparagraphs (A) 
through (C) of subsection (a)(10), and the em-
ployer has not subsequently received an order to 
stop withholding under paragraph (1)(C) for 
such employee, the employer shall withhold and 
transmit the amounts described in paragraph 
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(3) to the Secretary as directed under para-
graph (1)(D) and shall be liable for, and the 
Secretary, as appropriate, may sue the em-
ployer in a State or Federal court of competent 
jurisdiction to recover any amount that such 
employer fails to withhold from wages with re-
spect to an employee after being directed to do 
so for such employee, plus attorneys’ fees, costs, 
and, in the court’s discretion, punitive damages. 
Such employer shall not be required to vary the 
normal pay and disbursement cycles in order to 
comply with this subparagraph. 
‘‘(B) TIMING.—An employer transmitting 
to the Secretary withholding payments under 
this subsection shall transmit such payments on 
a periodic basis, as determined by the employer 
but not less frequently than quarterly. 
‘‘(3) WITHHOLDING
AMOUNT.—The amount 
withheld by an employer for each pay period with re-
spect to any employee for whom the employer is 
withholding under this subsection shall be an 
amount equal to the sum of— 
‘‘(A) the amount that results from the em-
ployer withholding— 
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‘‘(i) 15 percent of the employee’s 
wages for such pay period that will count 
towards the employee’s annual repayment 
amount under section 499F(b) that is in 
excess of the employee’s exemption amount 
for such pay period (as determined by di-
viding the employee’s exemption amount 
under section 499F(i)(3) by the number of 
pay periods for the taxable year); or 
‘‘(ii) in a case in which an employee 
requests that such exemption amount not 
be taken into account, 15 percent of the 
employee’s wages for such pay period that 
will count towards the employee’s annual 
repayment amount under section 499F(b); 
and 
‘‘(B) any additional amounts the employee 
wishes to have withheld in accordance with 
paragraph (4)(C). 
‘‘(4) WITHHOLDING PREFERENCES.—The Sec-
retary shall provide forms and procedures to allow 
an employee to indicate to the employee’s em-
ployer— 
‘‘(A) that the employee has a loan that 
meets the requirements of subparagraphs (A) 
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through (C) of subsection (a)(10) and therefore 
the employer shall withhold payments under 
this subsection; 
‘‘(B) that the employer shall not take into 
account the exemption amount to which the em-
ployee is eligible under this part in determining 
the employee’s withholding amount because the 
exemption amount has already been taken into 
account with respect to such employee; and 
‘‘(C) an election by the employee to have 
amounts withheld in addition to the employee’s 
withholding amount as calculated under para-
graph (3). 
‘‘(5) EMPLOYEE
PROTECTION.—An employer 
may not discharge from employment, refuse to em-
ploy, or take disciplinary action against an indi-
vidual subject to wage withholding in accordance 
with this section by reason of the fact that the indi-
vidual’s wages have been subject to withholding 
under this section, nor may an employer require that 
an individual opt-out under subsection (a)(9) and 
such individual may sue in a State or Federal court 
of competent jurisdiction any employer who takes 
such action. The court shall award attorneys’ fees to 
a prevailing employee and, in its discretion, may 
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order reinstatement of the individual, award punitive 
damages and back pay to the employee, or order 
such other remedy as may be reasonably necessary. 
‘‘(6) GARNISHMENT.—For purposes of title III 
of the Consumer Credit Protection Act (15 U.S.C. 
1671 et seq.), amounts withheld under this sub-
section shall— 
‘‘(A) not be considered a garnishment; and 
‘‘(B) be considered to be amounts required 
by law to be withheld. 
‘‘(c) MONTHLY PAYMENTS PROCESS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a process under which a borrower may make 
monthly payments towards the borrower’s annual re-
payment amount, at any time in the taxable year, 
because the borrower— 
‘‘(A) has opted-out of withholding under 
subsection (a)(10); or 
‘‘(B) expects to have income that is not 
subject to the withholding process described in 
subsection (b). 
‘‘(2) INFORMATION REQUIRED.—The procedure 
for initiating the monthly payments process under 
paragraph (1) shall include the following: 
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‘‘(A) INCOME ESTIMATE.—A requirement 
for a borrower to provide an estimate of the 
borrower’s income for the taxable year that will 
count towards the borrower’s income-based re-
payment obligation, excluding, in the case of a 
borrower subject to the withholding process, 
any income subject to the withholding process. 
‘‘(B) AMORTIZATION
SCHEDULE.—In the 
case of a borrower who has opted out of the 
withholding process, the ability for the borrower 
to indicate that the borrower would like the bor-
rower’s monthly payments set such that the 
borrower’s outstanding loans made under this 
part would be repaid within a specified number 
of years. 
‘‘(3) MONTHLY
PAYMENTS
AMOUNTS.—The 
Secretary shall set the borrower’s monthly payment 
amount to the greater of— 
‘‘(A) the difference between the borrower’s 
annual repayment amount that would result 
given the income estimate provided by the bor-
rower under paragraph (2)(A) and the pay-
ments the borrower has already made in the 
year towards such amount (excluding, for bor-
rowers who have not opted-out of withholding, 
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payments through the withholding process), di-
vided by the remaining months in the taxable 
year; or 
‘‘(B) for a borrower who indicates a time 
frame under paragraph (2)(B), the monthly 
payment amount that would result in the bor-
rower’s currently outstanding loans made under 
this part being repaid within the number of 
years specified by the borrower. 
‘‘(4) AUTOMATIC CONTINUATION.—The month-
ly payments process shall continue until— 
‘‘(A) the borrower elects to stop such pay-
ments; or 
‘‘(B) the borrower’s loans made under this 
part are repaid. 
‘‘(5) UPDATING PAYMENT AMOUNTS.— 
‘‘(A) SECRETARY.—The Secretary shall 
automatically recalculate a borrower’s monthly 
payment amount at the beginning of a new tax-
able year using the most recent income estimate 
provided under paragraph (2)(A) by the bor-
rower. 
‘‘(B) BORROWER.—The borrower may up-
date the borrower’s income estimate under 
paragraph (2)(A) at any time. 
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‘‘CHAPTER 2—BORROWER REPAYMENT OF 
IDEA LOANS AND IDEA CONSOLIDA-
TION LOANS 
‘‘SEC. 499F. BORROWER REPAYMENT. 
‘‘(a) REPAYMENT PERIOD.—The repayment period of 
a loan made under this part shall— 
‘‘(1) begin on the first day of the first taxable 
year that begins after the borrower’s in-school 
deferment period, or in the case of an IDEA Con-
solidation Loan, on the first day of the first taxable 
year that begins after such Consolidation Loan is 
disbursed; and 
‘‘(2) continue until the loan is paid in full, ex-
cept that the Secretary may grant a borrower for-
bearance of the borrower’s annual repayment 
amount— 
‘‘(A) for a period not to exceed 60 days, 
due to administrative or technical reasons; 
‘‘(B) for a period not to exceed 3 months, 
due to unusual circumstances that disrupt the 
borrower’s ability to make timely payments on 
the loan; or 
‘‘(C) renewable at 12-month intervals for a 
period not to exceed 3 years, due to docu-
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mented extreme economic hardship on the part 
of a borrower. 
‘‘(b) ANNUAL REPAYMENT AMOUNT.—The annual 
repayment amount under this part for a taxable year for 
a borrower with 1 or more loans made under this part 
in repayment status shall be equal to the lesser of— 
‘‘(1) the income-based repayment obligation for 
such borrower for such year, as calculated under 
section 499E(a)(1); or 
‘‘(2) an amount equal to the sum of the out-
standing balances (equal to the sum of the unpaid 
principal, interest, penalties, and fees) that the bor-
rower owes on such loans. 
‘‘(c) METHODS OF REPAYMENT.—A borrower who 
expects to have an annual repayment amount for the tax-
able year that is greater than the amount specified in sub-
section (f)(1)(D) shall make payments through the fol-
lowing methods: 
‘‘(1) With respect to any wages earned by the 
borrower that are subject to Federal income tax 
withholding, the withholding process described in 
section 499E(a)(10). 
‘‘(2) The monthly payments process described 
in section 499E(c), to meet the portion of the bor-
rower’s obligation that is not paid through with-
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holding, or, in the case of a borrower who opts out 
of the withholding process, to meet the borrower’s 
entire obligation. 
‘‘(3) The direct payments process under section 
499E(a)(4). 
‘‘(4) 
The 
process 
described 
in 
section 
499E(a)(5) that allows other individuals or entities 
to make payments on the borrower’s annual repay-
ment amount for the year. 
‘‘(d) ORDER
OF CREDITING.—Payments on loans 
made under this part shall be applied, without regard to 
the method of such payments, first toward penalties due 
on the loans, next toward any fees due on the loans, then 
toward any interest due on the loans, and finally toward 
the principal due on the loan with the highest applicable 
rate of interest among such loans. 
‘‘(e) PREPAYMENT AUTHORIZED.—A borrower shall 
have the right to prepay all or part of such loan, at any 
time and without penalty. Any such prepayment amount 
will be applied to loans made under this part in the same 
order as described in subsection (d). 
‘‘(f) UNDERPAYMENTS.— 
‘‘(1) PENALTIES FOR UNDERPAYMENTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), if, as of the last day of a taxable 
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year, a borrower has not paid at least 90 per-
cent of the borrower’s annual repayment 
amount for such year, the borrower shall be 
charged a penalty in an amount equal to 15 
percent of the difference between— 
‘‘(i) an amount equal to 90 percent of 
the borrower’s annual repayment amount 
for such year; and 
‘‘(ii) the amount paid on such annual 
repayment amount as of such day. 
‘‘(B) INCREASE OF ANNUAL REPAYMENT 
AMOUNT.—A 
borrower’s 
annual 
repayment 
amount calculated under subsection (b) for such 
year shall be increased by the amount of such 
penalty, but such penalty shall not be treated as 
a principal or interest amount for a loan made 
under this part. 
‘‘(C) EXCEPTION FOR MEETING THE OBLI-
GATION FOR THE PREVIOUS YEAR.—A borrower 
who has paid 100 percent of the borrower’s an-
nual repayment amount for the taxable year 
preceding the taxable year described in sub-
paragraph (A) shall not be subject to the pen-
alty under this paragraph for the taxable year 
described in subparagraph (A). 
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‘‘(D) DE
MINIMIS
EXCEPTION.—A bor-
rower whose annual repayment amount is less 
than $300 shall not be subject to the penalty 
under this paragraph for the taxable year de-
scribed in subparagraph (A). 
‘‘(2) RECONCILING UNDERPAYMENTS.— 
‘‘(A) IN GENERAL.—If, as of the last day 
of a taxable year, the sum of the payments 
made on a borrower’s annual repayment 
amount for such year is less than the total 
amount of the borrower’s annual repayment 
amount for such year, the borrower— 
‘‘(i) in the case of the first year that 
the borrower has a difference between such 
amounts— 
‘‘(I) may request, in such manner 
as the Secretary shall require, that 
the Secretary reduce the borrower’s 
annual repayment amount for such 
year to the sum of— 
‘‘(aa) the payments made, 
as of such day, on the borrower’s 
annual repayment amount for 
such year; and 
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such penalty is charged) that such amount 
is owed or until the borrower defaults on 
the loan for which such amount is owed, 
whichever occurs first. 
‘‘(B) DEFAULT.—A loan for which an 
amount is owed under subparagraph (A) and 
that is not paid within 270 days after the date 
of receipt by the borrower of the borrower’s an-
nual statement described in section 499E(a)(3) 
shall be considered to be in default. 
‘‘(g) OVERPAYMENTS.—If, as of the last day of a tax-
able year, the sum of the payments made on a borrower’s 
annual repayment amount for such year is greater than 
the total amount of the borrower’s annual repayment 
amount for such year, the Secretary shall— 
‘‘(1) refund the overpayment amount, if the 
borrower notifies the Secretary, within the 90-day 
period beginning on the date of receipt of the bor-
rower’s annual statement described in section 
499E(a)(3) for such year and in a manner pre-
scribed by the Secretary, that the borrower desires 
to have the overpayment amount refunded; or 
‘‘(2) if a borrower fails to notify the Secretary 
of the borrower’s desire for a refund of such amount 
within such 90-day period, apply such amount as a 
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prepayment to the borrower’s loans made under this 
part in the same manner as a prepayment author-
ized under subsection (e). 
‘‘(h) EMPLOYER
FAILURE
TO
WITHHOLD
PAY-
MENTS.—In the case of a borrower whose employer fails 
to withhold amounts under section 499E(b) upon any 
wages earned by the borrower that are subject to Federal 
income tax withholding and with respect to which the bor-
rower made an election to have amounts withheld under 
such section, the Secretary shall— 
‘‘(1) reduce the borrower’s annual repayment to 
an amount equal to the borrower’s annual repay-
ment amount had wages from such employer been 
excluded when calculating the borrower’s annual re-
payment amount; and 
‘‘(2) reduce any penalties for underpayments 
calculated under subsection (f)(1) and refund any 
overpayments on such annual repayment amount, 
accordingly. 
‘‘(i) DETERMINATION
OF INCOME-BASED REPAY-
MENT OBLIGATION.— 
‘‘(1) IN
GENERAL.—The income-based repay-
ment obligation with respect to an individual for any 
taxable year is an amount equal to 15 percent of the 
excess of— 
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‘‘(A) the sum of— 
‘‘(i) the wages, salaries, tips, and 
other employee compensation of the indi-
vidual, but only if such amounts are in-
cludible in gross income for the taxable 
year (determined without regard to sec-
tions 911, 931, and 933 of the Internal 
Revenue Code of 1986) and are readily at-
tributable to the individual, plus 
‘‘(ii) any other amount included in 
total income of the taxpayer for the tax-
able year but not described in clause (i), 
except that such amount shall be divided 
by 2 in the case of an individual who is 
married and filing a joint tax return, over 
‘‘(B) the sum of— 
‘‘(i) the exemption amount with re-
spect to such individual, plus 
‘‘(ii) the lesser of the amount deter-
mined with respect to the taxpayer under 
subparagraph (A)(ii). 
‘‘(2) EXCLUSION OF CERTAIN AMOUNTS PAID 
ON BEHALF OF INDIVIDUAL.—Any amount paid on 
the borrower’s behalf under section 499E(a)(5) shall 
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not be taken into account in determining such bor-
rower’s income-based repayment obligation. 
‘‘(3) EXEMPTION
AMOUNT.—For purposes of 
this subpart, the exemption amount with respect to 
an individual shall be 150 percent of the poverty line 
for the individual’s household size (as determined 
under section 673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2))) for the cal-
endar year in which the taxable year ends. 
‘‘(4) INDIVIDUALS
NOT
FILING
A
RETURN.— 
The income-based repayment obligation with respect 
to an individual not required to file a return under 
section 6012(a)(1) of the Internal Revenue Code of 
1986 shall be treated as zero.’’. 
SEC. 4. CONFORMING CHANGES TO THE HIGHER EDU-
CATION ACT OF 1965. 
(a) LOAN FORGIVENESS AND CANCELLATION FOR 
TEACHERS.— 
(1) LOAN FORGIVENESS FOR TEACHERS.—Sec-
tion 428J of the Higher Education Act of 1965 (20 
U.S.C. 1078–10) is amended— 
(A) in subsection (b), by inserting ‘‘or for 
an IDEA loan made under part J,’’ after ‘‘or 
428H,’’; and 
(B) in subsection (c)— 
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(i) in paragraph (1), by inserting ‘‘or 
an IDEA loan made under part J’’ after 
‘‘or 428H’’; and 
(ii) in paragraph (2)— 
(I) by striking ‘‘A loan’’ and in-
serting the following: 
‘‘(A) 
LOANS
MADE
UNDER
SECTION 
428C.—A loan’’; and 
(II) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) IDEA 
CONSOLIDATION
LOAN.—A 
loan amount for an IDEA Consolidation Loan 
may be a qualified loan amount for purposes of 
this subsection only to the extent that such loan 
amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Consolidation 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a loan made under section 428, 428C, 
or 428H.’’. 
(2) LOAN
CANCELLATION
FOR
TEACHERS.— 
Section 460 of such Act (20 U.S.C. 1087j) is 
amended— 
(A) in subsection (b), by inserting ‘‘or for 
an IDEA loan made under part J’’ after 
‘‘under this part’’; and 
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(B) in subsection (c)— 
(i) in paragraph (1), by striking ‘‘or a 
Federal 
Direct 
Unsubsidized 
Stafford 
Loan’’ and inserting ‘‘, a Federal Direct 
Unsubsidized Stafford Loan, or an IDEA 
loan made under part J’’; and 
(ii) in paragraph (2)— 
(I) by striking ‘‘A loan’’ and in-
serting the following: 
‘‘(A) FEDERAL
DIRECT
CONSOLIDATION 
LOAN.—A loan’’; and 
(II) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) IDEA 
CONSOLIDATION
LOAN.—A 
loan amount for an IDEA Consolidation Loan 
may be a qualified loan amount for purposes of 
this subsection only to the extent that such loan 
amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Consolidation 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a loan made under section 428, 428C, 
or 428H.’’. 
(b) LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
NATIONAL NEED.—Section 428K(a)(2) of such Act (20 
U.S.C. 1078–11(a)(2)) is amended— 
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(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) to cancel the qualified loan amount 
for a loan made under part J of this title.’’. 
(c) LOAN REPAYMENT FOR CIVIL LEGAL ASSIST-
ANCE ATTORNEYS.—Section 428L(b)(2)(A) of such Act 
(20 U.S.C. 1078–12(b)(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘or part E’’ and 
inserting ‘‘, part E, or part J’’; and 
(2) in clause (ii)— 
(A) in the matter preceding subclause (I), 
by striking ‘‘or 455(g)’’ and inserting ‘‘, 455(g), 
or 499C’’; 
(B) by striking ‘‘or’’ at the end of sub-
clause (II); 
(C) by redesignating subclause (III) as 
subclause (IV); and 
(D) by inserting after subclause (II) the 
following: 
‘‘(III) a Federal Direct Consoli-
dation Loan or a loan made under 
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section 428C, in the case of a loan 
made under section 499C; or’’. 
(d) 
MASTER
PROMISSORY
NOTE.—Section 
432(m)(1)(D) of such Act (20 U.S.C. 1082(m)(1)(D)) is 
amended— 
(1) by striking ‘‘this part and part D’’ each 
place it appears and by inserting ‘‘this part, part D, 
and part J’’; and 
(2) by striking ‘‘this part or part D’’ each place 
it appears and by inserting ‘‘this part, part D, or 
part J’’. 
(e) CONTRACTS.—Section 456 of such Act (20 U.S.C. 
1087f) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2), by striking ‘‘this 
part’’ each place it appears and inserting ‘‘this 
part or part J’’; and 
(B) in paragraph (4), by inserting ‘‘or part 
J’’ after ‘‘this part’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘or the 
program under part J’’ after ‘‘(or their par-
ents)’’; 
(B) in paragraph (2), by inserting ‘‘or part 
J’’ after ‘‘this part’’; 
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(C) in paragraph (3), by inserting ‘‘or part 
J’’ after ‘‘this part’’; and 
(D) in paragraph (4), by inserting ‘‘or the 
IDEA Loan Program’’ after ‘‘loan program’’. 
(f) FUNDS FOR ADMINISTRATIVE EXPENSES.—Sec-
tion 458(a)(3) of such Act (20 U.S.C. 1087h(a)(3)) is 
amended— 
(1) by striking ‘‘this part and part B’’ and in-
serting ‘‘this part, part B, and part J’’; and 
(2) by inserting before the period at the end the 
following: ‘‘and part J’’. 
(g) STUDENT ELIGIBILITY.—Section 484 of such Act 
(20 U.S.C. 1091) is amended— 
(1) in subsection (b)— 
(A) in paragraph (3), by striking ‘‘or D’’ 
and inserting ‘‘, D, or E’’; and 
(B) in paragraph (4)(B), by striking ‘‘or 
E’’ and inserting ‘‘E, or J’’; 
(2) in subsection (d), by striking ‘‘and E’’ and 
inserting ‘‘E, and J’’; 
(3) in subsection (f), by striking ‘‘or part E’’ 
each place it appears and inserting ‘‘part E, or part 
J’’; and 
(4) in subsection (m), by striking ‘‘and E’’ and 
inserting ‘‘E, and J’’. 
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(h) INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS.—Section 485 of such Act 
(20 U.S.C. 1092) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(M), by striking ‘‘and 
E’’ and inserting ‘‘E, and J’’; and 
(B) in paragraph (7)(A)(i), by striking 
‘‘Loan)’’ each place it appears and inserting 
‘‘Loan) or part J’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(A)— 
(i) in the matter preceding clause (i), 
by inserting ‘‘or made under part J’’ after 
‘‘part E’’; and 
(ii) in clause (vii)— 
(I) by inserting ‘‘or an IDEA 
Consolidation Loan’’ after ‘‘Federal 
Direct Consolidation Loan’’; and 
(II) by striking ‘‘and E’’ and in-
serting ‘‘E, and J’’; and 
(B) in paragraph (2)(A), by striking ‘‘or 
E’’ and inserting ‘‘E, or J’’; and 
(3) in subsection (l)(1)— 
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(A) in subparagraph (A), in the matter 
preceding clause (i), by inserting ‘‘or made 
under part J’’ after ‘‘student)’’; and 
(B) in subparagraph (B), by striking ‘‘or 
D’’ and inserting ‘‘, D, or J’’. 
SEC. 5. NATIONAL DIRECTORY OF NEW HIRES. 
Section 453(j) of the Social Security Act (42 U.S.C. 
653(j)) is amended by adding at the end the following: 
‘‘(12) INFORMATION
COMPARISONS
AND
DIS-
CLOSURE
TO
ASSIST
WITH
COLLECTION
OF
IDEA 
STUDENT LOANS.— 
‘‘(A) FURNISHING
OF
INFORMATION
BY 
THE
SECRETARY
OF
EDUCATION.—The Sec-
retary of Education shall furnish to the Sec-
retary, on such periodic basis as determined by 
the Secretary of Education in consultation with 
the Secretary, information in the custody of the 
Secretary of Education for comparison with in-
formation in the National Directory of New 
Hires, in order to obtain information in such 
Directory with respect to persons who have a 
loan made under part J of title IV of the High-
er Education Act of 1965 in repayment status. 
‘‘(B) REQUIREMENT
TO
SEEK
MINIMUM 
INFORMATION.—The Secretary of Education 
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shall seek information pursuant to this section 
only to the extent necessary to improve collec-
tion of the debts owed on the loans described in 
subparagraph (A). 
‘‘(C) DUTIES OF THE SECRETARY.— 
‘‘(i) INFORMATION DISCLOSURE.—The 
Secretary, in cooperation with the Sec-
retary of Education, shall compare infor-
mation in the National Directory of New 
Hires with information provided by the 
Secretary of Education with respect to per-
sons described in subparagraph (A) and 
shall disclose information in such Directory 
regarding such persons to the Secretary of 
Education in accordance with this para-
graph, for the purposes specified in this 
paragraph. 
‘‘(ii) CONDITION
ON
DISCLOSURE.— 
The Secretary shall make disclosures in ac-
cordance with clause (i) only to the extent 
that the Secretary determines that such 
disclosures do not interfere with the effec-
tive operation of the program under this 
part. 
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