I 
114TH CONGRESS 
2D SESSION 
H. R. 6239 
To amend the Higher Education Act of 1965 to improve Federal Pell Grants 
and loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2016 
Mr. DEFAZIO introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Com-
mittee on the Judiciary, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to improve 
Federal Pell Grants and loans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Helping Improve Grants for Higher Education & Repay-
ment of Expensive Debt Act’’ or the ‘‘HIGHER ED Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Federal Pell Grants. 
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Sec. 3. Reinstatement of authority to make Federal Direct Stafford Loans to 
graduate and professional students. 
Sec. 4. Discharge student loans in bankruptcy. 
Sec. 5. Refinancing programs. 
Sec. 6. Loan forgiveness for adjunct faculty. 
Sec. 7. Revised income-driven repayment plans for new borrowers on or after 
July 1, 2017. 
SEC. 2. FEDERAL PELL GRANTS. 
(a) INCREASE IN THE MAXIMUM AMOUNT OF A FED-
ERAL PELL GRANT.—Section 401(b)(7)(C) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is 
amended by striking clauses (ii) and (iii) and inserting the 
following: 
‘‘(ii) AWARD
YEAR
2017–2018.—For 
award year 2017–2018, the amount deter-
mined under this subparagraph for pur-
poses of subparagraph (B)(iii) shall be in-
creased to $9,410. 
‘‘(iii) SUBSEQUENT AWARD YEARS.— 
For award year 2018–2019 and each sub-
sequent award year, the amount deter-
mined under this subparagraph for pur-
poses of subparagraph (B)(iii) shall be 
equal to— 
‘‘(I) 
the 
amount 
determined 
under this subparagraph for the pre-
ceding award year; increased by 
‘‘(II) a percentage equal to the 
annual adjustment percentage for the 
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award year for which the amount 
under this subparagraph is being de-
termined; and 
‘‘(III) rounded to the nearest 
$5.’’. 
(b) YEAR-ROUND
FEDERAL
PELL
GRANT
STU-
DENTS.— 
(1) IN GENERAL.—Section 401(b) of the High-
er Education Act of 1965 (20 U.S.C. 1070a(b)) is 
amended by adding at the end the following: 
‘‘(8) YEAR-ROUND FEDERAL PELL GRANT STU-
DENTS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this subsection, the Secretary 
shall award, to an eligible student who meets 
the requirements in subparagraph (B) who has 
received a Federal Pell Grant for an award year 
and is enrolled in a program of study for one 
or more additional payment periods during the 
same award year that are not otherwise covered 
by the student’s Federal Pell Grant, an addi-
tional Federal Pell Grant for the additional 
payment periods. 
‘‘(B) ELIGIBILITY.—In order to be eligible 
to receive the additional Federal Pell Grant for 
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an award year that is described in subpara-
graph (A), a student shall, in addition to meet-
ing all eligibility requirements for the receipt of 
a Federal Pell Grant— 
‘‘(i) be enrolled at least on a part-time 
basis in an institution of higher education; 
and 
‘‘(ii) have successfully completed at 
least a full-time course load (as determined 
by the institution) prior to receiving an ad-
ditional Federal Pell Grant award as de-
scribed in subparagraph (A). 
‘‘(C) AMOUNTS.—In the case of a student 
receiving more than one Federal Pell Grant in 
a single award year under subparagraph (A), 
the total amount of the Federal Pell Grants 
awarded to such student for the award year 
shall not exceed an amount equal to 150 per-
cent of the total maximum Federal Pell Grant 
for such award year calculated in accordance 
with paragraph (7)(C)(iv)(II). 
‘‘(D) INCLUSION
IN
DURATION
LIMIT.— 
Any period of study covered by a Federal Pell 
Grant awarded under subparagraph (A) shall 
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be included in determining a student’s duration 
limit under subsection (c)(5). 
‘‘(9) CROSSOVER PERIOD.—In any case where 
an eligible student is receiving a Federal Pell Grant 
for a payment period that spans 2 award years, the 
Secretary shall allow the eligible institution in which 
the student is enrolled to determine the award year 
to which the additional period shall be assigned.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall take effect on July 1, 2017. 
SEC. 3. REINSTATEMENT OF AUTHORITY TO MAKE FED-
ERAL DIRECT STAFFORD LOANS TO GRAD-
UATE AND PROFESSIONAL STUDENTS. 
(a) AMENDMENTS.—Section 455(a)(3) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is amend-
ed— 
(1) in the paragraph heading, by inserting 
‘‘TEMPORARY’’ before ‘‘TERMINATION’’; and 
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘, and ending on or 
before June 30, 2016’’ after ‘‘2012’’. 
(b) INAPPLICABILITY
OF RULEMAKING REQUIRE-
MENTS.—Sections 482(c) and 492 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1089(c); 1098a) shall not 
apply to the regulations under this section. 
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SEC. 4. DISCHARGE STUDENT LOANS IN BANKRUPTCY. 
(a) EXCEPTION TO DISCHARGE.—Section 523(a) of 
title 11, United States Code, is amended— 
(1) by striking paragraph (8), and 
(2) by redesignating paragraphs (9) through 
(14B) as paragraphs (8) through (14A), respec-
tively. 
(b) CONFORMING AMENDMENTS.—Title 11, United 
States Code, is amended— 
(1) in section 704(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’, 
(2) in section 1106(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’, 
(3) in section 1202(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’, and 
(4) in section 1328(a)(2) by striking ‘‘(8), or 
(9)’’ and inserting ‘‘or (8)’’. 
(c) EFFECTIVE DATE; APPLICATION
OF AMEND-
MENTS.— 
(1) EFFECTIVE DATE.—Except as provided in 
subsection (b), this section and the amendments 
made by this section shall take effect on the date of 
the enactment of this Act. 
(2) 
APPLICATION
OF
AMENDMENTS.—The 
amendments made by this section shall apply only 
with respect to cases commenced under title 11 of 
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the United States Code on or after the date of the 
enactment of this Act. 
SEC. 5. REFINANCING PROGRAMS. 
(a) PROGRAM AUTHORITY.—Section 451(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 
amended— 
(1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 
and 
(2) by inserting ‘‘; and (3) to make loans under 
section 460A and section 460B’’ after ‘‘section 
459A’’. 
(b) REFINANCING PROGRAM.—Part D of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087a et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 180 
days after the date of enactment of the Helping Improve 
Grants for Higher Education & Repayment of Expensive 
Debt Act, the Secretary shall establish a program under 
which the Secretary, upon the receipt of an application 
from a qualified borrower, makes a loan under this part, 
in accordance with the provisions of this section, in order 
to permit the borrower to obtain the interest rate provided 
under subsection (c). 
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‘‘(b) REFINANCING DIRECT LOANS.— 
‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a qualified borrower, the Secretary shall 
repay a Federal Direct Stafford Loan, a Federal Di-
rect Unsubsidized Stafford Loan, a Federal Direct 
PLUS Loan, or a Federal Direct Consolidation 
Loan of the qualified borrower, for which the first 
disbursement was made, or the application for the 
consolidation loan was received, before July 1, 2016, 
with the proceeds of a refinanced Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford Loan, a Federal Direct PLUS Loan, or a Fed-
eral Direct Consolidation Loan, respectively, issued 
to the borrower in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan. 
‘‘(2) REFINANCING FFEL PROGRAM LOANS AS 
REFINANCED FEDERAL DIRECT LOANS.—Upon ap-
plication of a qualified borrower for any loan that 
was made, insured, or guaranteed under part B and 
for which the first disbursement was made, or the 
application for the consolidation loan was received, 
before July 1, 2010, the Secretary shall make a loan 
under this part, in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
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late charges of the original loan to the borrower in 
accordance with the following: 
‘‘(A) The Secretary shall pay the proceeds 
of such loan to the eligible lender of the loan 
made, insured, or guaranteed under part B, in 
order to discharge the borrower from any re-
maining obligation to the lender with respect to 
the original loan. 
‘‘(B) A loan made under this section that 
was originally— 
‘‘(i) a loan originally made, insured, 
or guaranteed under section 428 shall be a 
Federal Direct Stafford Loan; 
‘‘(ii) a loan originally made, insured, 
or guaranteed under section 428B shall be 
a Federal Direct PLUS Loan; 
‘‘(iii) a loan originally made, insured, 
or guaranteed under section 428H shall be 
a Federal Direct Unsubsidized Stafford 
Loan; and 
‘‘(iv) a loan originally made, insured, 
or guaranteed under section 428C shall be 
a Federal Direct Consolidation Loan. 
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‘‘(C) The interest rate for each loan made 
by the Secretary under this paragraph shall be 
the rate provided under subsection (c). 
‘‘(c) INTEREST RATES.— 
‘‘(1) IN GENERAL.—The interest rate for the 
refinanced Federal Direct Stafford Loans, Federal 
Direct Unsubsidized Stafford Loans, Federal Direct 
PLUS Loans, and Federal Direct Consolidation 
Loans, shall be a rate equal to— 
‘‘(A) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
an undergraduate student, a rate equal to the 
rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017; 
‘‘(B) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford Loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
a graduate or professional student, a rate equal 
to the rate for Federal Direct Unsubsidized 
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graduate student shall be a rate equal to 
the lesser of— 
‘‘(I) the rate for Federal Direct 
Stafford Loans and Federal Direct 
Unsubsidized Stafford Loans issued 
to undergraduate students for the 12- 
month period beginning on July 1, 
2016, and ending on June 30, 2017; 
or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(ii) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan issued to a graduate 
or professional student shall be a rate 
equal to the lesser of— 
‘‘(I) the rate for Federal Direct 
Unsubsidized Stafford Loans issued 
to graduate or professional students 
for the 12-month period beginning on 
July 1, 2016, and ending on June 30, 
2017; or 
‘‘(II) the original interest rate of 
the component loan. 
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‘‘(iii) The interest rate for any loan 
under section 428B or Federal Direct 
PLUS Loan shall be a rate equal to the 
lesser of— 
‘‘(I) the rate for Federal Direct 
PLUS Loans for the 12-month period 
beginning on July 1, 2016, and end-
ing on June 30, 2017; or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(iv) The interest rate for any compo-
nent loan that is a loan under section 
428C or a Federal Direct Consolidation 
Loan shall be the weighted average of the 
interest rates that would apply under this 
subparagraph for each loan comprising the 
component consolidation loan. 
‘‘(v) The interest rate for any eligible 
loan that is a component of a loan made 
under section 428C or a Federal Direct 
Consolidation Loan and is not described in 
clauses (i) through (iv) shall be the inter-
est rate on the original component loan. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under paragraph (1) for a refi-
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nanced loan under this section shall be fixed for the 
period of the loan. 
‘‘(d) TERMS AND CONDITIONS OF LOANS.— 
‘‘(1) IN GENERAL.—A loan that is refinanced 
under this section shall have the same terms and 
conditions as the original loan, except as otherwise 
provided in this section. 
‘‘(2) NO
AUTOMATIC
EXTENSION
OF
REPAY-
MENT PERIOD.—Refinancing a loan under this sec-
tion shall not result in the extension of the duration 
of the repayment period of the loan, and the bor-
rower shall retain the same repayment term that 
was in effect on the original loan. Nothing in this 
paragraph shall be construed to prevent a borrower 
from electing a different repayment plan at any time 
in accordance with section 455(d)(3). 
‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified borrower’ means a bor-
rower— 
‘‘(A) of a loan under this part or part B 
for which the first disbursement was made, or 
the application for a consolidation loan was re-
ceived, before July 1, 2016; and 
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‘‘(B) who meets the eligibility requirements 
based on income or debt-to-income ratio estab-
lished by the Secretary. 
‘‘(2) INCOME REQUIREMENTS.—Not later than 
180 days after the date of enactment of the Helping 
Improve Grants for Higher Education & Repayment 
of Expensive Debt Act, the Secretary shall establish 
eligibility requirements based on income or debt-to- 
income ratio that take into consideration providing 
access to refinancing under this section for bor-
rowers with the greatest financial need. 
‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 
in coordination with the Director of the Bureau of Con-
sumer Financial Protection, shall undertake a campaign 
to alert borrowers of loans that are eligible for refinancing 
under this section that the borrowers are eligible to apply 
for such refinancing. The campaign shall include the fol-
lowing activities: 
‘‘(1) Developing consumer information mate-
rials about the availability of Federal student loan 
refinancing. 
‘‘(2) Requiring servicers of loans under this 
part or part B to provide such consumer information 
to borrowers in a manner determined appropriate by 
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the Secretary, in consultation with the Director of 
the Bureau of Consumer Financial Protection. 
‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 
The term ‘eligible private education loan’ means a 
private education loan, as defined in section 140(a) 
of the Truth in Lending Act (15 U.S.C. 1650(a)), 
that— 
‘‘(A) was disbursed to the borrower before 
July 1, 2016; and 
‘‘(B) was for the borrower’s own postsec-
ondary educational expenses for an eligible pro-
gram at an institution of higher education par-
ticipating in the loan program under this part, 
as of the date that the loan was disbursed. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOAN.—The term ‘Federal Direct Refinanced Pri-
vate Loan’ means a loan issued under subsection 
(b)(1). 
‘‘(3) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ has the meaning 
given the term in section 140(a) of the Truth in 
Lending Act (15 U.S.C. 1650(a)). 
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‘‘(4) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means an individual who— 
‘‘(A) has an eligible private education loan; 
‘‘(B) has been current on payments on the 
eligible private education loan for the 6 months 
prior to the date of the qualified borrower’s ap-
plication for refinancing under this section, and 
is in good standing on the loan at the time of 
such application; 
‘‘(C) is not in default on the eligible pri-
vate education loan or on any loan made, in-
sured, or guaranteed under this part or part B 
or E; and 
‘‘(D) meets the eligibility requirements de-
scribed in subsection (b)(2). 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Treasury, shall carry 
out a program under which the Secretary, upon ap-
plication by a qualified borrower who has an eligible 
private education loan, shall issue such borrower a 
loan under this part in accordance with the fol-
lowing: 
‘‘(A) The loan issued under this program 
shall be in an amount equal to the sum of the 
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unpaid principal, accrued unpaid interest, and 
late charges of the private education loan. 
‘‘(B) The Secretary shall pay the proceeds 
of the loan issued under this program to the 
private educational lender of the private edu-
cation loan, in order to discharge the qualified 
borrower from any remaining obligation to the 
lender with respect to the original loan. 
‘‘(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the information and counseling 
required under clauses (i) through (viii) of sec-
tion 485(b)(1)(A) before the loan is refinanced 
in accordance with this section, and before the 
proceeds of such loan are paid to the private 
educational lender. 
‘‘(D) The Secretary shall issue the loan as 
a Federal Direct Refinanced Private Loan, 
which shall have the same terms, conditions, 
and benefits as a Federal Direct Unsubsidized 
Stafford Loan, except as otherwise provided in 
this section. 
‘‘(2) BORROWER ELIGIBILITY.—Not later than 
180 days after the date of enactment of the Helping 
Improve Grants for Higher Education & Repayment 
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of Expensive Debt Act, the Secretary, in consulta-
tion with the Secretary of the Treasury and the Di-
rector of the Bureau of Consumer Financial Protec-
tion, shall establish eligibility requirements— 
‘‘(A) based on income or debt-to-income 
ratio that take into consideration providing ac-
cess to refinancing under this section for bor-
rowers with the greatest financial need; 
‘‘(B) to ensure eligibility only for bor-
rowers in good standing; 
‘‘(C) to minimize inequities between Fed-
eral Direct Refinanced Private Loans and other 
Federal student loans; 
‘‘(D) to preclude windfall profits for pri-
vate educational lenders; and 
‘‘(E) to ensure full access to the program 
authorized in this subsection for borrowers with 
private loans who otherwise meet the criteria 
established in accordance with subparagraphs 
(A) and (B). 
‘‘(c) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—The interest rate for a 
Federal Direct Refinanced Private Loan is— 
‘‘(A) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
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loan originally issued for undergraduate post-
secondary educational expenses, a rate equal to 
the rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017; and 
‘‘(B) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for graduate or profes-
sional degree postsecondary educational ex-
penses, a rate equal to the rate for Federal Di-
rect Unsubsidized Stafford Loans issued to 
graduate or professional students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017. 
‘‘(2) COMBINED UNDERGRADUATE AND GRAD-
UATE
STUDY
LOANS.—If a Federal Direct Refi-
nanced Private Loan is for a private education loan 
originally issued for both undergraduate and grad-
uate or professional postsecondary educational ex-
penses, the interest rate shall be a rate equal to the 
rate for Federal Direct PLUS Loans for the 12- 
month period beginning on July 1, 2016, and ending 
on June 30, 2017. 
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‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under this subsection for a Fed-
eral Direct Refinanced Private Loan shall be fixed 
for the period of the loan. 
‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 
amount of a Federal Direct Refinanced Private Loan, or 
a Federal Direct Consolidated Loan to the extent such 
loan was used to repay a Federal Direct Refinanced Pri-
vate Loan, shall not be included in calculating a bor-
rower’s annual or aggregate loan limits under section 428 
or 428H. 
‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE-
PAYMENT.—Notwithstanding 
sections 
428K(a)(2)(A), 
428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 
Refinanced Private Loan, or any Federal Direct Consoli-
dation Loan to the extent such loan was used to repay 
a Federal Direct Refinanced Private Loan, shall not be 
eligible for any loan repayment or loan forgiveness pro-
gram under section 428K, 428L, or 460 or for the repay-
ment plan for public service employees under section 
455(m). 
‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING 
REQUIREMENT.— 
‘‘(1) REPORTING
REQUIRED.—Not later than 
180 days after the date of enactment of the Helping 
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Improve Grants for Higher Education & Repayment 
of Expensive Debt Act, the Secretary, in consulta-
tion with the Secretary of the Treasury and the Di-
rector of the Bureau of Consumer Financial Protec-
tion, shall establish a requirement that private edu-
cational lenders report the data described in para-
graph (2) to the Secretary, to Congress, to the Sec-
retary of the Treasury, and to the Director of the 
Bureau of Consumer Financial Protection, in order 
to allow for an assessment of the private education 
loan market. 
‘‘(2) CONTENTS
OF
REPORTING.—The data 
that private educational lenders shall report in ac-
cordance with paragraph (1) shall include each of 
the following about private education loans (as de-
fined in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a))): 
‘‘(A) The total amount of private education 
loan debt the lender holds. 
‘‘(B) The total number of private edu-
cation loan borrowers the lender serves. 
‘‘(C) The average interest rate on the out-
standing private education loan debt held by the 
lender. 
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‘‘(D) The proportion of private education 
loan borrowers who are in default on a loan 
held by the lender. 
‘‘(E) The proportion of the outstanding 
private education loan volume held by the lend-
er that is in default. 
‘‘(F) The proportions of outstanding pri-
vate education loan borrowers who are 30, 60, 
and 90 days delinquent. 
‘‘(G) The proportions of outstanding pri-
vate education loan volume that is 30, 60, and 
90 days delinquent. 
‘‘(g) NOTIFICATION
TO
BORROWERS.—The Sec-
retary, in coordination with the Secretary of the Treasury 
and the Director of the Bureau of Consumer Financial 
Protection, shall undertake a campaign to alert borrowers 
about the availability of private student loan refinancing 
under this section.’’. 
(c) AMENDMENTS TO PUBLIC SERVICE REPAYMENT 
PLAN PROVISIONS.—Section 455(m) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(m)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing: 
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‘‘(3) SPECIAL
RULES
FOR
SECTION
460A 
LOANS.— 
‘‘(A) 
REFINANCED
FEDERAL
DIRECT 
LOANS.—Notwithstanding paragraph (1), in de-
termining the number of monthly payments 
that meet the requirements of such paragraph 
for an eligible Federal Direct Loan refinanced 
under section 460A that was originally a loan 
under this part, the Secretary shall include all 
monthly payments made on the original loan 
that meet the requirements of such paragraph. 
‘‘(B) REFINANCED FFEL LOANS.—In the 
case of an eligible Federal Direct Loan refi-
nanced under section 460A that was originally 
a loan under part B, only monthly payments 
made after the date on which the loan was refi-
nanced may be included for purposes of para-
graph (1).’’; and 
(3) in paragraph (4)(A) (as redesignated by 
paragraph (1)), by inserting ‘‘(including any Federal 
Direct Stafford Loan, Federal Direct PLUS Loan, 
Federal Direct Unsubsidized Stafford Loan, or Fed-
eral Direct Consolidation Loan refinanced under sec-
tion 460A)’’ before the period at the end. 
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SEC. 6. LOAN FORGIVENESS FOR ADJUNCT FACULTY. 
Section 455(m)(3)(B)(ii) of the Higher Education 
Act of 1965 (20 U.S.C. 1087e(m)(3)(B)(ii)) is amended— 
(1) by striking ‘‘teaching as’’ and inserting the 
following: ‘‘teaching— 
‘‘(I) as’’; 
(2) by striking ‘‘, foreign language faculty, and 
part-time faculty at community colleges), as deter-
mined by the Secretary.’’ and inserting ‘‘and foreign 
language faculty), as determined by the Secretary; 
or’’; and 
(3) by adding at the end the following: 
‘‘(II) as a part-time faculty mem-
ber or instructor who— 
‘‘(aa) teaches not less than 
1 course at an institution of 
higher education (as defined in 
section 101(a)), a postsecondary 
vocational institution (as defined 
in section 102(c)), or a Tribal 
College or University (as defined 
in section 316(b)); and 
‘‘(bb) is not employed on a 
full-time basis by any other em-
ployer.’’. 
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SEC. 7. REVISED INCOME-DRIVEN REPAYMENT PLANS FOR 
NEW BORROWERS ON OR AFTER JULY 1, 2017. 
(a) 
INCOME-CONTINGENT
REPAYMENT.—Section 
455 of the Higher Education Act of 1965 (20 U.S.C. 
1087e) is amended— 
(1) in subsection (d)(1)(D), by adding at the 
end before the semicolon the following: ‘‘, and such 
plan shall meet the requirements of subsection (e)(8) 
with respect to any loan made under this part to a 
new borrower on or after July 1, 2017’’; and 
(2) in subsection (e), by adding at the end the 
following: 
‘‘(8) SPECIAL TERMS FOR NEW BORROWERS ON 
OR AFTER JULY 1, 2017.—With respect to any loan 
made under this part to a new borrower on or after 
July 1, 2017, and eligible to be repaid pursuant to 
income contingent repayment, such borrower may 
repay such loan pursuant to an income contingent 
repayment plan under the following conditions: 
‘‘(A) Notwithstanding any partial hardship 
requirement for the income contingent repay-
ment plan— 
‘‘(i) during any period during which 
the borrower’s (and the borrower’s spouse, 
if applicable) adjusted gross income is 
equal to or less than 225 percent of the 
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poverty line applicable to the borrower’s 
family size as determined under section 
673(2) of the Community Services Block 
Grant Act (42 U.S.C. 9902(2)), the bor-
rower’s aggregate monthly payment for all 
such loans shall be equal to $0; and 
‘‘(ii) during any period during which 
the borrower’s (and the borrower’s spouse, 
if applicable) adjusted gross income ex-
ceeds 225 percent of such poverty line, the 
borrower’s aggregate monthly payment for 
all such loans shall be determined in ac-
cordance with the terms and conditions, 
and borrower benefits, of such plan. 
‘‘(B) The interest on any such loan shall 
not accrue, or if accrued, shall be paid by the 
Secretary for the following periods: 
‘‘(i) The period described in subpara-
graph (A)(i). 
‘‘(ii) The 6-month period after the 
date the borrower ceases to carry at least 
one-half the normal full-time academic 
workload at an institution of higher edu-
cation, as determined by the institution, 
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and during which the borrower is not earn-
ing any income.’’. 
(b) INCOME-BASED REPAYMENT.—Section 493C(b) 
of the Higher Education Act of 1965 (20 U.S.C. 
1098e(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘(1) a borrower’’ and in-
serting the following: 
‘‘(1)(A) a borrower’’; 
(B) by adding ‘‘or’’ at the end of subpara-
graph (A); and 
(C) by adding at the end the following: 
‘‘(B) with respect to any loan made under 
part D (other than an excepted PLUS loan or 
excepted consolidation loan) to a new borrower 
on or after July 1, 2017, such borrower may 
elect— 
‘‘(i) during any period during which 
the borrower’s (and the borrower’s spouse, 
if applicable) adjusted gross income is 
equal to or less than 225 percent of the 
poverty line applicable to the borrower’s 
family size as determined under section 
673(2) of the Community Services Block 
Grant Act (42 U.S.C. 9902(2)), to have 
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the borrower’s aggregate monthly payment 
for all such loans equal to $0; and 
‘‘(ii) during any period during which 
the borrower’s (and the borrower’s spouse, 
if applicable) adjusted gross income ex-
ceeds 225 percent of such poverty line, to 
have the borrower’s aggregate monthly 
payment for all such loans not exceed, the 
lesser of— 
‘‘(I) the result described in sub-
section (a)(3)(B) divided by 12; or 
‘‘(II) the monthly amount cal-
culated under section 455(d)(1)(A), 
based on a 10-year repayment period, 
when the borrower first made the elec-
tion described in this subsection;’’; 
and 
(2) in paragraph (3)— 
(A) at the end of subparagraph (A), by 
striking ‘‘and’’; 
(B) by adding ‘‘and’’ at the end of sub-
paragraph (B); and 
(C) by adding at the end the following: 
‘‘(C) shall, on any loan for which payments 
may be made under paragraph (1)(B), be paid, 
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or be treated as if no interest has accrued, by 
the Secretary— 
‘‘(i) for any period described in para-
graph (1)(B)(i); and 
‘‘(ii) for the 6-month period after the 
date the borrower ceases to carry at least 
one-half the normal full-time academic 
workload at an institution of higher edu-
cation, as determined by the institution, 
and during which the borrower is not earn-
ing any income;’’. 
Æ 
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