793 
‘‘(aa) separated from the spouse of 
the borrower; or 
‘‘(bb) unable to reasonably access the 
income information the spouse of such bor-
rower. 
‘‘(iii) For purposes of clause (i), the term 
‘applicable percentage’ means 250 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)))— 
‘‘(I) reduced by 10 percentage points 
for each $1,000 by which the borrower’s 
adjusted gross income (in the case of a sin-
gle borrower) exceeds $80,000; and 
‘‘(II) reduced by 10 percentage points 
for each $2,000 by which the borrower’s 
adjusted gross income (in the case of a 
married borrower (regardless of filing sta-
tus)), exceeds $160,000. 
‘‘(B) Subsection (b)(7)(B) shall apply by 
substituting ‘20 years’ for ‘25 years’. 
‘‘(C) A borrower of such a loan may elect, 
and remain enrolled in, the income-based repay-
ment plan under this subsection regardless of— 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00793
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
794 
‘‘(i) whether such borrower has a par-
tial financial hardship; and 
‘‘(ii) the income level of the borrower. 
‘‘(D) Notwithstanding subparagraph (A) of 
subsection (b)(6), a borrower’s monthly pay-
ment— 
‘‘(i) shall be equal to the repayment 
amount determined under subparagraph 
(A) divided by 12; and 
‘‘(ii) may exceed the monthly repay-
ment amount under a standard 10-year re-
payment plan or a fixed repayment plan 
described in section 493E. 
‘‘(E) Subparagraph (B) of subsection 
(b)(3) shall not apply. 
‘‘(F) Subsection (d) shall not apply. 
‘‘(G) In the case of a Federal Direct Con-
solidation Loan made on or after the date of 
enactment of the College Affordability Act that 
is being repaid under this subsection, any 
monthly payment made pursuant to any repay-
ment plan listed in subsection (b)(7)(B) on a 
loan for which the liability has been discharged 
by the proceeds of such consolidation loan shall 
be treated as a monthly payment under this 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00794
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
795 
subsection on the portion of such consolidation 
loan that is attributable to such discharged 
loan, except that in the case of a subsequent 
consolidation loan, for purposes of this clause— 
‘‘(i) any monthly payment made on 
the first consolidation loan or any other 
loan for which the liability has been dis-
charged by such subsequent consolidation 
loan shall be applicable; and 
‘‘(ii) any monthly payment made on a 
loan for which the liability has been dis-
charged by such first consolidation loan 
shall not be applicable. 
‘‘(3) ADDITIONAL
SPECIAL
TERMS
FOR
CER-
TAIN BORROWERS.—A borrower described in para-
graph (1)(B)— 
‘‘(A) may— 
‘‘(i) choose to continue repayment 
pursuant to the repayment plan in which 
the borrower is enrolled on June 30, 2021; 
or 
‘‘(ii) make a one-time election to— 
‘‘(I) terminate repayment pursu-
ant to the repayment plan described 
in clause (i) and enter the income- 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00795
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
796 
based repayment plan under this sub-
section; or 
‘‘(II) terminate repayment pursu-
ant to the repayment plan described 
in clause (i) and enter a fixed repay-
ment plan described in section 493E; 
and 
‘‘(B) who makes an election under sub-
paragraph (A)(ii), shall not repay a loan de-
scribed in paragraph (1)(B) under a repayment 
plan that is not an income-based repayment 
plan under this subsection or a fixed repayment 
plan described in section 493E. 
‘‘(4) WRITTEN, ELECTRONIC, OR VERBAL EN-
ROLLMENT IN INCOME-BASED REPAYMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop and implement a process that is con-
sistent 
with 
any 
procedures 
(including 
verification procedures) established under sub-
section (c), which enables a covered borrower of 
a loan made under part D who desires to elect 
to repay such loan under income-based repay-
ment under this subsection to make such elec-
tion through written, electronic, or verbal notice 
to the Secretary. 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00796
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
797 
‘‘(B) COVERED BORROWER DEFINED.—In 
this paragraph, the term ‘covered borrower’ 
means a borrower of a loan made under part D 
who— 
‘‘(i) is enrolled in the fixed repayment 
plan under section 493E; or 
‘‘(ii) has not yet selected a repayment 
plan. 
‘‘(g) SPECIAL RULE FOR REFINANCED LOANS.— 
‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL 
LOANS.—In calculating the period of time during 
which a borrower of a loan that is refinanced under 
section 460A has made monthly payments for pur-
poses of subsection (b)(7), the Secretary shall in-
clude each month in which a monthly payment was 
made for the original loan or the refinanced loan, if 
such monthly payment otherwise meet the require-
ments of this section. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOANS.—In calculating the period of time during 
which a borrower of a Federal Direct Refinanced 
Private Loan under section 460B has made monthly 
payments for purposes of subsection (b)(7), the Sec-
retary shall include only payments— 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00797
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
798 
‘‘(A) that are made after the date of the 
issuance of the Federal Direct Refinanced Pri-
vate Loan; and 
‘‘(B) that otherwise meet the requirements 
of this section.’’. 
SEC. 4629. FIXED REPAYMENT PLAN. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is further amended by add-
ing at the end the following: 
‘‘SEC. 493E. FIXED REPAYMENT PLAN. 
‘‘(a) IN GENERAL.—A borrower of a loan made under 
this part on or after July 1, 2021, and a borrower who 
is in repayment on a loan made, insured, or guaranteed 
under part B or part D before July 1, 2021, may elect 
to repay such loan under the fixed repayment plan de-
scribed in this section. 
‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re-
payment plan, a borrower whose total outstanding amount 
of principal and interest on such a loan (as of the day 
before entering repayment on such loan)— 
‘‘(1) is equal to or less than $20,000, shall 
repay such loan with a fixed monthly repayment 
amount paid over a period of 10 years; 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00798
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
799 
‘‘(2) is more than $20,000 and less than 
$30,000, shall repay such loan with a fixed monthly 
repayment amount paid over a period of— 
‘‘(A) 15 years; or 
‘‘(B) the period described in paragraph 
(1), if the borrower elects such period; 
‘‘(3) is equal to or greater than $30,000, and 
less than $40,000, shall repay such loan with a fixed 
monthly repayment amount paid over a period of— 
‘‘(A) 20 years; or 
‘‘(B) the period described in paragraph (1) 
or (2), if the borrower elects such period; and 
‘‘(4) is equal to or greater than $40,000, shall 
repay such loan with a fixed monthly repayment 
amount paid over a period of— 
‘‘(A) 25 years; or 
‘‘(B) the period described in any of para-
graphs (1) through (3), if the borrower elects 
such period. 
‘‘(c) TREATMENT
OF
CERTAIN
CONSOLIDATION 
LOANS.—In the case of a Federal Direct Consolidation 
Loan made on or after the date of enactment of the Col-
lege Affordability Act that is being repaid under this sec-
tion, any monthly payment made pursuant to any repay-
ment plan listed in section 493C(b)(7)(B) on a loan for 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00799
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
800 
which the liability has been discharged by the proceeds 
of such consolidation loan shall be treated as a monthly 
payment under this section on the portion of such consoli-
dation loan that is attributable to such discharged loan, 
except that in the case of a subsequent consolidation loan, 
for purposes of this subsection— 
‘‘(1) any monthly payment made on the first 
consolidation loan or any other loan for which the li-
ability has been discharged by such subsequent con-
solidation loan shall be applicable; and 
‘‘(2) any monthly payment made on a loan for 
which the liability has been discharged by such first 
consolidation loan shall not be applicable.’’. 
SEC. 4630. REQUIRING A COMMON MANUAL FOR LOAN 
SERVICERS. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.), as amended by this part, 
is further amended by adding at the end the following: 
‘‘SEC. 493F. REQUIRING A COMMON MANUAL FOR LOAN 
SERVICERS. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of the College Affordability Act, the 
Secretary shall develop a manual of common procedures 
and policies for entities with which the Secretary enters 
into contracts for the origination, servicing, and collection 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00800
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
801 
of covered loans, to standardize procedures to ensure con-
sistency of quality and practice across such entities, and 
a minimum standard of quality and practice, to ensure 
that borrowers, including individuals pursuing public serv-
ice loan forgiveness under section 455(m) and teachers, 
are well served. 
‘‘(b) UPDATES.—The Secretary shall update the 
manual under subsection (a) as frequently as may be nec-
essary, but not less frequently than once every 5 years. 
‘‘(c) COVERED LOANS DEFINED.—The term ‘covered 
loans’ means— 
‘‘(1) loans sold or assigned to the Secretary 
under part B; 
‘‘(2) loans made or purchased under part D; 
and 
‘‘(3) loans referred, transferred, or assigned to 
the Secretary under part E.’’. 
SEC. 4631. REMOVAL OF RECORD OF DEFAULT. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.), as amended by the pre-
ceding sections, is further amended by adding at the end 
the following: 
‘‘SEC. 493G. REMOVAL OF RECORD OF DEFAULT. 
‘‘Upon repaying in full the amount due on a defaulted 
loan made, insured, or guaranteed under this title, the 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00801
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
802 
Secretary, guaranty agency, or other holder of the loan 
shall request any consumer reporting agency to which the 
Secretary, guaranty agency or holder, as applicable, re-
ported the default of the loan, to remove any adverse item 
of information relating to a delinquent or defaulted loan 
made, insured, or guaranteed under this title from the bor-
rower’s credit history.’’. 
SEC. 4632. AMENDMENTS TO TERMS AND CONDITIONS OF 
BORROWER DEFENSES. 
(a) IN GENERAL.—Part G of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1088 et seq.), as 
amended by the preceding sections, is further amended by 
adding at the end the following: 
‘‘SEC. 493H. BORROWER DEFENSES. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of State or Federal law, a defense to repayment of 
a loan under this title includes— 
‘‘(1) a substantial misrepresentation; 
‘‘(2) an act or omission that would give rise to 
a cause of action against an institution of higher 
education under applicable State law, to the extent 
that such act or omission relates to— 
‘‘(A) a loan received by a borrower under 
this title; or 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00802
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
803 
‘‘(B) educational services for which such a 
loan was received; or 
‘‘(3) such further acts or omissions that the 
Secretary determines to be appropriate in accord-
ance with subsection (b). 
‘‘(b) REGULATIONS.—The Secretary shall specify in 
regulations which further acts or omissions of an institu-
tion of higher education a borrower may assert as a de-
fense to repayment of a loan made under this title. 
‘‘(c) SECRETARIAL DETERMINATION.— 
‘‘(1) IN GENERAL.—The Secretary shall deter-
mine whether a borrower is entitled to relief under 
this section based on all evidence available to the 
Secretary. 
‘‘(2) EVIDENTIARY
STANDARD.—A borrower 
shall be entitled to relief under this section if a pre-
ponderance of the evidence available to the Secretary 
demonstrates that the borrower is entitled to such 
relief. 
‘‘(3) INDEPENDENT
DETERMINATION.—A de-
termination under paragraph (1) shall be inde-
pendent of any action that the Secretary may take 
to recoup funds from the institution of higher edu-
cation implicated by the borrower defense claim. 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00803
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
804 
‘‘(d) PROCEDURES FOR REVIEW AND RESOLUTION 
OF CLAIMS.— 
‘‘(1) PROCEDURES REQUIRED.—The Secretary 
shall establish procedures for the fair and expedi-
tious review and resolution of borrower defense 
claims brought under this section. In establishing 
such procedures, the Secretary shall— 
‘‘(A) provide a fair process for the review 
and resolution of borrower defense claims, 
which shall include procedures for the consider-
ation of borrower defense claims on behalf of 
groups of similarly situated borrowers without 
requiring each borrower in the group to submit 
a separate claim; 
‘‘(B) review a borrower defense claim at 
any time without regard to the repayment sta-
tus of any loan subject to such claim; 
‘‘(C) allow a legal representative to bring 
a borrower defense claim— 
‘‘(i) on behalf of an individual bor-
rower; or 
‘‘(ii) on behalf of a group of similarly 
situated borrowers; and 
‘‘(D) specify a fixed timeframe for the res-
olution of borrower defense claims. 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00804
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674
805 
‘‘(2) DEFERMENT
DURING
PENDENCY
OF 
CLAIMS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a loan made under this title that is 
subject to a pending borrower defense claim 
shall be placed in deferment status, during 
which periodic installments of principal need 
not be paid and interest shall not accrue (or 
shall be paid by the Secretary), without regard 
to whether such loan is in default. 
‘‘(B) OPT OUT.—The borrower of a loan 
subject to deferment under subparagraph (A) 
may opt out of such deferment at any time dur-
ing the pendency of the borrower defense claim. 
‘‘(C) SUSPENSION OF CREDIT REPORTING 
AND
COLLECTION.—The Secretary shall sus-
pend all adverse credit reporting and collection 
activity, including offsets and garnishments, 
with respect to any loan in default that is sub-
ject to a deferment under subparagraph (A). 
‘‘(f) TERMS OF RELIEF.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
under subsection (c) that a borrower is entitled to 
relief, the Secretary shall, subject to paragraph 
(2)— 
VerDate Sep 11 2014 
23:01 Oct 22, 2019
Jkt 099200
PO 00000
Frm 00805
Fmt 6652
Sfmt 6201
E:\BILLS\H4674.IH
H4674