I 
116TH CONGRESS 
1ST SESSION H. R. 2065 
To amend the Higher Education Act of 1965 in order to increase usage 
of the Federal student loan income-based repayment plan and improve 
repayment options for borrowers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2019 
Ms. DELAURO introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committees on 
Ways and Means, and Financial Services, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 in order to 
increase usage of the Federal student loan income-based 
repayment plan and improve repayment options for bor-
rowers, 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 
‘‘Affordable Loans for Any Student Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. References in Act. 
TITLE I—SIMPLIFYING REPAYMENT PLANS 
Sec. 101. Income-based repayment plan. 
Sec. 102. Fixed repayment plan. 
Sec. 103. Termination of certain repayment plan options. 
Sec. 104. Providing incentives to switch into simplified repayment plans. 
Sec. 105. Automatic recertification of income. 
Sec. 106. Disclosure of tax return information to carry out certain higher edu-
cation loan programs. 
Sec. 107. Study and procedures on determining family size. 
TITLE II—ENDING INTEREST CAPITALIZATION AND ORIGINATION 
FEES 
Sec. 201. Ending interest capitalization for Federal Direct Loans. 
Sec. 202. Elimination of origination fees for Federal Direct Loans. 
TITLE III—PROVIDING ASSISTANCE IN SITUATIONS OF 
BORROWER DISTRESS 
Sec. 301. Limits on seizing income for debt relating to Federal student loans. 
Sec. 302. Allowing for multiple loan rehabilitations. 
Sec. 303. Pause payment process. 
Sec. 304. Automatic enrollment into income-based repayment for borrowers 
who are delinquent on loans and for borrowers who rehabilitate 
defaulted loans. 
Sec. 305. Separating joint consolidation loans. 
Sec. 306. Removing the collection cost requirement. 
TITLE IV—IMPROVING LOAN INFORMATION AND COUNSELING 
Sec. 401. Student loan contract; simplifying loan disclosures. 
Sec. 402. Annual and pre-loan information and counseling requirements. 
Sec. 403. Exit counseling. 
Sec. 404. Online counseling tools. 
Sec. 405. Private education loan certification and information. 
TITLE V—EFFECTIVE DATE; TRANSITION 
Sec. 501. Effective date; rulemaking regarding termination of certain repay-
ment plans. 
SEC. 2. REFERENCES IN ACT. 
Except as otherwise expressly provided in this Act, 
wherever an amendment or repeal is expressed in terms 
of an amendment to or repeal of a section or other provi-
sion, the reference shall be considered to be made to that 
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section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
TITLE I—SIMPLIFYING 
REPAYMENT PLANS 
SEC. 101. INCOME-BASED REPAYMENT PLAN. 
(a) SIMPLIFYING THE INCOME-BASED REPAYMENT 
PLAN.—Section 493C (20 U.S.C. 1098e) is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘INCOME-BASED REPAY-
MENT PROGRAM AUTHORIZED.—’’ and insert-
ing the following: ‘‘INCOME-BASED REPAYMENT 
PROGRAM FOR BORROWERS WHO ENTER IN-
COME-BASED REPAYMENT BEFORE JULY 1, 
2020.—’’; 
(B) in paragraph (3)(A), by striking ‘‘ex-
cept that’’ and all that follows through ‘‘section 
435(o)’’; and 
(C) in paragraph (8), by striking ‘‘the 
standard repayment plan;’’ and inserting ‘‘the 
fixed repayment plan under section 493E;’’; 
and 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) INCOME-BASED REPAYMENT PROGRAM
FOR 
NEW LOANS ON AND AFTER JULY 1, 2020 AND FOR BOR-
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ROWERS
WHO
ENTER
INCOME-BASED
REPAYMENT 
AFTER JULY 1, 2020.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, the provisions of this sub-
section shall apply— 
‘‘(A) with respect to any loan made, in-
sured, or guaranteed under part B or D on or 
after July 1, 2020, for which the borrower 
elects the income-based repayment plan under 
this section; and 
‘‘(B) with respect to any loan made, in-
sured, or guaranteed under part B or D before 
July 1, 2020, if such borrower elects to repay 
the loan under the income-based repayment 
plan on or after July 1, 2020, in accordance 
with paragraph (3) and section 428(b)(1)(D)(ii) 
or 455(d)(7), as applicable. 
‘‘(2) SPECIAL TERMS.—With respect to a loan 
described in paragraph (1), the following terms shall 
apply to the income-based repayment plan carried 
out under this section: 
‘‘(A)(i) 
Notwithstanding 
subsection 
(a)(3)(B), (b), or (e)— 
‘‘(I) the annual repayment amount 
under this subsection shall be an amount 
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equal to 10 percent of the result obtained 
by calculating, on at least an annual basis, 
the amount by which— 
‘‘(aa) the borrower’s, and the 
borrower’s spouse’s (if applicable), ad-
justed gross income; exceeds 
‘‘(bb) the applicable percentage 
of the poverty line in accordance with 
clause (ii) that is applicable to the 
borrower’s family size as determined 
under section 673(2) of the Commu-
nity Services Block Grant Act (42 
U.S.C. 9902(2)); and 
‘‘(II) a borrower’s monthly payment 
shall be determined in accordance with 
subclause (I) divided by 12, which amount 
may 
exceed 
the 
monthly 
repayment 
amount under a standard 10-year repay-
ment plan or a fixed repayment plan de-
scribed in section 493E. 
‘‘(ii) For purposes of clause (i), the term 
‘applicable percentage’ means 250 percent re-
duced by 5 percentage points for each $1,000 
by which the borrower’s adjusted gross income 
exceeds $120,000. 
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plan, excluding any period of pause payment 
under section 460B; and 
‘‘(B) in the case of an unsubsidized loan or 
a subsidized loan that no longer qualifies under 
subparagraph (A), 50 percent of the interest 
not covered by the borrower’s monthly payment 
shall be paid or forgiven by the Secretary and 
the amount of the remaining interest shall be 
added to the balance of interest due on the 
loan, but shall not be capitalized. 
‘‘(5) WRITTEN, ELECTRONIC, OR VERBAL EN-
ROLLMENT IN INCOME-BASED REPAYMENT.— 
‘‘(A) IN GENERAL.—A borrower of a loan 
made under this part may elect to repay such 
loan under the income-based repayment plan 
under this subsection by providing written, elec-
tronic, or verbal notice to the Secretary of the 
borrower’s desire to make such election, subject 
to subparagraph (C). 
‘‘(B) USE OF INFORMATION.— 
‘‘(i) IN
GENERAL.—The estimated 
monthly payment amount under this sec-
tion for a loan for a borrower who makes 
an election described in subparagraph (A) 
shall be immediately calculated using the 
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income and family size information pro-
vided through the borrower’s written, elec-
tronic, or verbal statement. 
‘‘(ii) VERIFICATION.—The informa-
tion described in clause (i) shall be verified 
by the Secretary not later than 90 days 
after the date the borrower states such in-
come and family size information. If the 
Secretary is unable to verify the informa-
tion by the end of the 90-day period, the 
borrower’s payment after such 90-day pe-
riod will be the amount applicable under 
the fixed repayment plan under section 
493E. 
‘‘(iii) ADJUSTMENT IF NECESSARY.— 
Upon verification by the Secretary under 
clause (ii), the Secretary shall adjust the 
estimated monthly payment described in 
clause (i) based on the verified income and 
family size information of the borrower, if 
necessary. Any adjusted monthly payment 
shall take effect beginning with the pay-
ment due not less than 60 days after the 
Secretary notifies the borrower of the ad-
justed amount. The Secretary shall con-
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sider any payments made prior to the ad-
justed monthly payment as having satisfied 
the amount due to qualify toward loan can-
cellation or forgiveness options under this 
title. 
‘‘(C) LIMITATION.—The Secretary shall 
permit a borrower to make an election of in-
come-based repayment in the written, elec-
tronic, or verbal manner described in subpara-
graph (A) only in connection with the first in-
stance of each of the following: 
‘‘(i) The borrower’s selection of a re-
payment plan during the grace period for 
such loan. 
‘‘(ii) The borrower changing from the 
fixed repayment plan under section 493E 
to income-based repayment. 
‘‘(iii) The borrower’s failure to com-
plete the verification process described in 
subparagraph (B)(ii). 
‘‘(iv) The borrower’s failure to recer-
tify enrollment in income-based repayment 
under this subsection.’’. 
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(b) INCLUDING INCOME OF SPOUSES.—Subsection 
(d) of section 493C (20 U.S.C. 1098e(d)) is amended to 
read as follows: 
‘‘(d) CALCULATION OF ADJUSTED GROSS INCOME 
FOR MARRIED BORROWERS.—The Secretary shall cal-
culate the adjusted gross income of a married borrower 
under this section— 
‘‘(1) in the case of a married borrower and 
spouse who jointly file a Federal income tax return, 
based on the adjusted gross income of the borrower 
and spouse as reported on the Federal income tax 
return; and 
‘‘(2) in the case of a married borrower who files 
a Federal income tax return separately from the 
borrower’s spouse, based on the sum of the adjusted 
gross income of the borrower and the spouse, as re-
ported on the applicable Federal income tax returns, 
unless the borrower certifies, on a form approved by 
the Secretary, that the borrower is— 
‘‘(A) separated from the borrower’s spouse; 
or 
‘‘(B) unable to reasonably access the in-
come information of the borrower’s spouse.’’. 
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SEC. 102. FIXED REPAYMENT PLAN. 
Part G of title IV (20 U.S.C. 1088 et seq.) is amend-
ed by adding at the end the following: 
‘‘SEC. 493E. FIXED REPAYMENT PLAN. 
‘‘(a) IN GENERAL.—A borrower of a loan made under 
part D on or after July 1, 2020, and a borrower who is 
in repayment on a loan made, insured, or guaranteed 
under part B or D before July 1, 2020, may elect to repay 
such loan under the fixed repayment plan described in this 
section. 
‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re-
payment plan, a borrower shall repay each loan described 
in subsection (a) with a fixed monthly repayment amount 
paid over a period of 10 years, subject to subsection (c). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) MINIMUM.—If a borrower’s monthly pay-
ment under this section (except for the final pay-
ment on the loan) is less than $25, the Secretary 
shall establish the borrower’s monthly payment as 
$25. 
‘‘(2) ALTERNATIVE MINIMUM PAYMENTS.—Not-
withstanding paragraph (1), the Secretary may ac-
cept an alternative minimum payment amount, 
which may include an amount of less than $25, to 
account 
for 
a 
borrower’s 
exceptional 
cir-
cumstances.’’. 
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SEC. 103. TERMINATION OF CERTAIN REPAYMENT PLAN 
OPTIONS. 
(a) FFEL PROGRAM REPAYMENT PLAN OPTIONS.— 
Section 428(b) (20 U.S.C. 1078(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (D)— 
(i) in clause (ii), by striking ‘‘may an-
nually change the selection of a repayment 
plan under this part,’’ and inserting ‘‘may 
at any time after July 1, 2020, change the 
selection of a repayment plan under this 
part or part G to one of the 2 repayment 
plans described in paragraph (9)(C),’’; and 
(ii) in clause (iii), by inserting ‘‘or, in 
the case of a default that occurs after July 
1, 2020, be subject to income-based repay-
ment in accordance with section 493C(c)’’ 
before the semicolon at the end; 
(B) in subparagraph (E)(i), by striking 
‘‘the option of repaying the loan in accordance 
with a standard, graduated, income-sensitive, or 
extended repayment schedule (as described in 
paragraph (9)) established by the lender in ac-
cordance with regulations of the Secretary; 
and’’ and inserting ‘‘the option of repaying the 
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loan in accordance with an applicable repay-
ment plan described in paragraph (9)(C)’’; and 
(C) by striking subparagraph (L); and 
(2) in paragraph (9)— 
(A) in subparagraph (A)— 
(i) in the subparagraph heading, by 
inserting ‘‘BEFORE
JULY
1, 2020’’ after 
‘‘SELECTION’’; and 
(ii) in the matter preceding clause 
(i)— 
(I) by inserting ‘‘or subparagraph 
(C), as applicable,’’ after ‘‘this sub-
paragraph’’; and 
(II) by striking ‘‘The borrower’’ 
and inserting ‘‘Before July 1, 2020, 
the borrower’’; 
(B) in subparagraph (B), by inserting be-
fore the period at the end ‘‘or, for a borrower 
entering repayment after July 1, 2020, the 
lender shall provide the borrower with the fixed 
repayment plan described in section 493E’’; 
and 
(C) by adding at the end the following: 
‘‘(C) SELECTION
OF
REPAYMENT
PLANS 
ON AND AFTER JULY 1, 2020.—Notwithstanding 
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any other provision of law, and in accordance 
with regulations promulgated, beginning on 
July 1, 2020, a lender shall offer a borrower of 
a loan made, insured, or guaranteed under this 
part the opportunity to change repayment plans 
at any time after July 1, 2020, and then not 
more than once per calendar year thereafter. 
The borrower may choose between the following 
repayment plans: 
‘‘(i) A fixed repayment plan described 
in section 493E. 
‘‘(ii) The income-based repayment 
plan under section 493C(c).’’. 
(b) FEDERAL DIRECT LOAN PROGRAM REPAYMENT 
PLAN OPTIONS.—Section 455(d) (20 U.S.C. 1087e(d)) is 
amended— 
(1) by redesignating paragraphs (2) through 
(5) as paragraphs (3) through (6), respectively; 
(2) in paragraph (1)— 
(A) in the paragraph heading, by inserting 
‘‘BEFORE
JULY
1, 2020’’ after ‘‘SELECTION’’; 
and 
(B) in the matter preceding subparagraph 
(A), by inserting ‘‘that enters repayment before 
July 1, 2020,’’ before ‘‘a variety’’; 
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(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) DESIGN AND SELECTION BEGINNING JULY 
1, 2020.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for any borrower of a loan made 
under this part that enters repayment on or 
after July 1, 2020, and for any borrower sub-
ject to paragraph (7), the Secretary shall offer 
the borrower a choice between the following 2 
plans for repayment of such loan, including 
principal and interest on the loan. The borrower 
may choose— 
‘‘(i) a fixed repayment plan described 
in section 493E; or 
‘‘(ii) an income-based repayment plan 
under section 493C(c). 
‘‘(B) ACCELERATION.—A borrower in re-
payment shall be entitled to accelerate, without 
penalty, repayment on the borrower’s loans 
under this part. 
‘‘(C) SELECTION BY THE SECRETARY.—If 
a borrower of a loan made under this part that 
enters repayment on or after July 1, 2020, does 
not select a repayment plan described in sub-
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paragraph (A) before the first payment on such 
loan is due, the Secretary shall provide the bor-
rower with a fixed repayment plan described in 
section 493E. 
‘‘(D) CHANGES
IN
SELECTIONS.—A bor-
rower of a loan made under this part that en-
ters repayment or on after July 1, 2020, may 
change the borrower’s selection of a repayment 
plan in accordance with subparagraphs (B) and 
(C) of paragraph (7). 
‘‘(E) BORROWER IN DEFAULT.—Beginning 
on July 1, 2020, in lieu of the requirements of 
paragraph (6), the Secretary may require any 
borrower who has defaulted on a loan made 
under this part on or after July 1, 2020, to 
repay the loan pursuant to an income-based re-
payment plan under section 493C(c).’’; and 
(4) by adding at the end the following: 
‘‘(7) BORROWERS
OF
LOANS
MADE
BEFORE 
JULY 1, 2020.—A borrower who is in repayment on 
a loan made under this part before July 1, 2020— 
‘‘(A) may choose to retain the repayment 
plan that the borrower was enrolled in on the 
day before such date; 
‘‘(B) may elect to— 
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‘‘(i) enter an income-based repayment 
plan under section 493C(c); 
‘‘(ii) enter a fixed repayment plan de-
scribed in section 493E; or 
‘‘(iii) switch between the repayment 
plans described in clauses (i) and (ii); 
‘‘(C) after switching to a repayment plan 
described in clause (i) or (ii) of subparagraph 
(B), shall not be permitted to select a repay-
ment plan not described in subparagraph (B) 
for the loan; and 
‘‘(D) shall retain, for purposes of repay-
ment or cancellation of any outstanding balance 
of principal and interest due on a loan (as de-
scribed in section 493C(b)(7)), any payments 
on such loan under another income-based or in-
come-contingent repayment plan under this title 
that would otherwise be qualifying.’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
433(b)(7)(B) (20 U.S.C. 1083(b)(7)(B)) is amended by 
striking ‘‘on a standard repayment plan’’ and inserting ‘‘, 
in the case of a borrower who has not selected a repayment 
plan, on the repayment plan designated under subpara-
graph (B) of section 428(b)(9)’’. 
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SEC. 104. PROVIDING INCENTIVES TO SWITCH INTO SIM-
PLIFIED REPAYMENT PLANS. 
(a) ENABLING CONSOLIDATION IN ORDER TO SIM-
PLIFY
REPAYMENT.—Section 
455(g) 
(20 
U.S.C. 
1087e(g)) is amended— 
(1) by striking ‘‘LOANS.—’’ and all that follows 
through ‘‘A borrower of’’ and inserting the following: 
‘‘LOANS.— 
‘‘(1) IN GENERAL.—A borrower of’’; 
(2) by striking the second sentence; and 
(3) by adding at the end the following: 
‘‘(2) ELIGIBILITY.—To be eligible for a Federal 
Direct Consolidation Loan under this part, a bor-
rower shall meet the eligibility criteria set forth in 
section 428C(a)(3), except that, notwithstanding 
section 428C(a)(3)(B), a borrower may obtain a 
Federal Direct Consolidation Loan if the borrower— 
‘‘(A) obtains the Federal Direct Consolida-
tion Loan for the purpose of— 
‘‘(i) selecting the income-based repay-
ment plan under section 493C(c) or fixed- 
income repayment plan under section 
495E; or 
‘‘(ii) participating in the pause pay-
ment process under section 460B; and 
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‘‘(B) meets the requirements of section 
428C(a)(3)(A).’’. 
(b) INCENTIVES
FOR
SIMPLIFIED
REPAYMENT 
PLANS.—Part G of title IV (20 U.S.C. 1088 et seq.), as 
amended by section 102, is further amended by adding 
at the end the following: 
‘‘SEC. 493F. INCENTIVES FOR SIMPLIFIED REPAYMENT 
PLANS. 
‘‘(a) IN GENERAL.—To facilitate the transition of 
borrowers to simplified repayment plan options, the Sec-
retary shall reduce the interest rate applicable under sec-
tion 455(b) or 427A to a loan under part B or D held 
by a borrower as of July 1, 2020, by 100 basis points 
(or the equivalent), if the borrower of the loan, after the 
effective date of the Affordable Loans for Any Student 
Act— 
‘‘(1) changes from a repayment plan described 
in subparagraphs (A) through (E) of section 
455(d)(1) for such loan to an income-based repay-
ment plan under section 493C(c) or a fixed repay-
ment plan under section 493E; or 
‘‘(2) consolidates 1 or more loans under this 
title, or described in section 428C(a)(4), that were 
under a repayment plan described in subparagraphs 
(A) through (E) of section 455(d)(1), or clauses (i) 
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through (v) of section 428(b)(9), into a Federal Di-
rect Consolidation Loan and selects an income-based 
repayment plan under section 493C(c) or a fixed re-
payment plan under section 493E for the loan. 
‘‘(b) LIMITATION.—The interest rate for a loan eligi-
ble for the incentive under subsection (a) may be reduced 
only once under this section. 
‘‘(c) REGULATIONS.—The Secretary shall promulgate 
rules carrying out the incentive program established under 
this section.’’. 
SEC. 105. AUTOMATIC RECERTIFICATION OF INCOME. 
(a) INCOME-BASED REPAYMENT.—Section 493C of 
the Higher Education Act of 1965 (20 U.S.C. 1098e) is 
amended by adding at the end the following: 
‘‘(f) ELIGIBILITY DETERMINATIONS AND AUTOMATIC 
RECERTIFICATION.— 
‘‘(1) IN GENERAL.—Beginning as soon as the 
Secretary determines practicable after the Secretary 
finalizes the procedures under section 107 of the Af-
fordable Loans for Any Student Act, the Secretary 
shall establish and implement, with respect to any 
borrower described in paragraph (2), procedures 
to— 
‘‘(A) obtain (for each year of repayment 
and without further action by the borrower) 
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such information as is reasonably necessary re-
garding the income of such borrower (and the 
borrower’s spouse, if applicable), for the pur-
pose of determining the repayment obligation of 
the borrower for such year, including informa-
tion with respect to the borrower’s family size 
in accordance with the procedures under such 
section 107, subject to subparagraph (B); 
‘‘(B) allow the borrower, at any time, to 
opt out of subparagraph (A) and prevent the 
Secretary from obtaining information under 
such subparagraph without further action by 
the borrower; 
‘‘(C) provide the borrower with an oppor-
tunity to update the information obtained under 
subparagraph (A) before the determination of 
the annual repayment obligation of the bor-
rower; and 
‘‘(D) in the case of a borrower for whom 
adjusted gross income is unavailable (except as 
provided in paragraph (2)(B)), ensure that the 
borrower will not be required to provide the 
Secretary with other documentation of income 
and provide the borrower with a calculated 
monthly payment of $0. 
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‘‘(2) APPLICABILITY.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
apply to each borrower of a loan made under 
this part who, on or after the date on which the 
Secretary establishes procedures under such 
paragraph— 
‘‘(i) selects, or for whom the Secretary 
selected under subparagraphs (C) or (D) 
of paragraph (8), or paragraph (9), of sub-
section (d), or section 428(m)(1), an in-
come-based repayment plan; or 
‘‘(ii) recertifies income and family size 
under such plan. 
‘‘(B) ELIGIBILITY
EXCEPTION.—A bor-
rower for whom adjusted gross income is un-
available because the borrower has been granted 
an extension on filing the borrower’s income 
taxes or is undergoing an audit or examination 
by the Internal Revenue Service shall not auto-
matically be eligible for the calculated monthly 
payment of $0 in accordance with paragraph 
(1)(D) during such period. When the extension, 
audit, or examination is completed, the Sec-
retary shall resume consideration of the bor-
rower for automatic recertification under the 
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procedures described in paragraph (1), includ-
ing subparagraph (D) of such paragraph (if ap-
plicable). 
‘‘(3) AVAILABILITY OF RETURNS AND RETURN 
INFORMATION.—Returns and return information (as 
defined in section 6103 of the Internal Revenue 
Code of 1986) may be obtained under paragraph 
(1)(A) only to the extent authorized by section 
6103(l)(13) of such Code.’’. 
(b) 
INCOME-CONTINGENT
REPAYMENT.—Section 
455(e) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(e)) is amended— 
(1) in paragraph (3), by inserting ‘‘, consistent 
with the procedures established under paragraph 
(8)(B)(iv)’’ before the period at the end; and 
(2) by adding at the end the following: 
‘‘(8) AUTOMATIC RECERTIFICATION.— 
‘‘(A) IN GENERAL.—Beginning as soon as 
the Secretary determines practicable after the 
Secretary finalizes the procedures under section 
107 of the Affordable Loans for Any Student 
Act, the Secretary shall establish and imple-
ment procedures that allow the automatic recer-
tification of income with respect to borrowers 
described in subparagraph (B). Such proce-
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dures shall, to the extent practicable, be the 
same procedures described in section 493C(f). 
‘‘(B) APPLICABILITY.—Subparagraph (A) 
shall apply to each borrower of a loan made 
under this part— 
‘‘(i) who, on or after the date on 
which the Secretary establishes procedures 
under such subparagraph, applies to recer-
tify income and family size under such 
plan; or 
‘‘(ii) for whom the Secretary selected 
an 
income-contingent 
repayment 
plan 
under section 428(m)(1). 
‘‘(C) AVAILABILITY OF RETURNS AND RE-
TURN INFORMATION.—Returns and return in-
formation (as defined in section 6103 of the In-
ternal Revenue Code of 1986) may be obtained 
under subparagraph (A) only to the extent au-
thorized by section 6103(l)(13) of such Code. 
‘‘(D) OTHER REQUIREMENTS.—The proce-
dures established by the Secretary under this 
paragraph shall be consistent with the require-
ments of paragraphs (1) through (7), except as 
otherwise provided in this paragraph.’’. 
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SEC. 106. DISCLOSURE OF TAX RETURN INFORMATION TO 
CARRY OUT CERTAIN HIGHER EDUCATION 
LOAN PROGRAMS. 
(a) IN GENERAL.—Paragraph (13) of section 6103(l) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(13) DISCLOSURE OF RETURN INFORMATION 
TO CARRY OUT THE HIGHER EDUCATION ACT OF 
1965.— 
‘‘(A) INCOME-CONTINGENT
OR
INCOME- 
BASED REPAYMENT AND TOTAL AND PERMA-
NENT DISABILITY DISCHARGE.—The Secretary 
shall, upon written request from the Secretary 
of Education, disclose to officers, employees, 
and contractors of the Department of Edu-
cation, as specifically authorized and designated 
by the Secretary of Education, only for the pur-
pose of (and to the extent necessary in) estab-
lishing, renewing, administering, and con-
ducting analyses and forecasts for estimating 
costs related to income-contingent or income- 
based repayment programs, and the discharge 
of loans based on a total and permanent dis-
ability (within the meaning of section 437(a) of 
the Higher Education Act of 1965), under title 
IV of the Higher Education Act of 1965, the 
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grams as required by the Higher Edu-
cation Act of 1965. 
‘‘(B) 
FEDERAL
STUDENT
FINANCIAL 
AID.—The Secretary shall, upon written request 
from the Secretary of Education, disclose to of-
ficers, employees, and contractors of the De-
partment of Education, as specifically author-
ized and designated by the Secretary of Edu-
cation, only for the purpose of (and to the ex-
tent necessary in) determining eligibility for, 
and amount of, Federal student financial aid 
under programs authorized by title IV of the 
Higher Education Act of 1965 and conducting 
analyses and forecasts for estimating costs re-
lated to such programs, the following return in-
formation (as defined in subsection (b)(2)) with 
respect to taxpayers identified by the Secretary 
of Education as applicants for Federal student 
financial aid under title IV of such Act, for tax-
able years specified by such Secretary: 
‘‘(i) Taxpayer identity information 
with respect to such taxpayer. 
‘‘(ii) The filing status of such tax-
payer. 
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‘‘(iii) Type of tax return from which 
the return information is provided. 
‘‘(iv) The adjusted gross income of 
such taxpayer. 
‘‘(v) The amount of any net earnings 
from self-employment (as defined in sec-
tion 1402), wages (as defined in section 
3121(a) or 3401(a)), and taxable income 
from a farming business (as defined in sec-
tion 236A(e)(4)) for the period reported on 
the return. 
‘‘(vi) The total income tax of such 
taxpayer. 
‘‘(vii) Total number of exemptions 
claimed, or total number of individuals and 
dependents claimed, as applicable, on the 
return. 
‘‘(viii) Number of children with re-
spect to which tax credits under section 24 
are claimed on the return. 
‘‘(ix) Amount of any credit claimed 
under section 25A for the taxable year. 
‘‘(x) Amount of individual retirement 
account distributions not included in ad-
justed gross income for the taxable year. 
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‘‘(xi) Amount of individual retirement 
account contributions and payments to 
self-employed SEP, Keogh, and other 
qualified plans which were deducted from 
income for the taxable year. 
‘‘(xii) The amount of tax-exempt in-
terest. 
‘‘(xiii) Amounts from retirement pen-
sions and annuities not included in ad-
justed gross income for the taxable year. 
‘‘(xiv) If applicable, the fact that 
there is no return filed for such taxpayer 
for the applicable year. 
‘‘(xv) Other information determined to 
be necessary by agreement between the 
Secretary and the Secretary of Education 
to administer the Federal financial aid pro-
grams as required by the Higher Edu-
cation Act of 1965. 
‘‘(C) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.— 
‘‘(i) IN
GENERAL.—Return informa-
tion disclosed under subparagraphs (A) 
and (B) may be used by officers, employ-
ees, and contractors of the Department of 
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Education, as specifically authorized and 
designated by the Secretary of Education, 
only for the purposes and to the extent 
necessary described in such subparagraphs 
and for mitigating risks (as defined in 
clause (ii)) relating to the programs de-
scribed in such subparagraphs. 
‘‘(ii) MITIGATING
RISKS.—For pur-
poses of this subparagraph, the term ‘miti-
gating risks’ means, with respect to the 
programs described in subparagraphs (A) 
and (B)— 
‘‘(I) analyzing or estimating costs 
associated with potential changes to 
the need-analysis formula, 
‘‘(II) oversight activities by the 
Office of Inspector General of the De-
partment of Education as authorized 
by the Inspector General Act of 1978, 
as amended, 
‘‘(III) 
developing 
or 
admin-
istering statistical models that inform 
support to populations of Federal stu-
dent loan borrowers who are at risk of 
default or delinquency, 
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‘‘(IV) reducing the net cost of 
improper payments to Federal finan-
cial aid recipients, and 
‘‘(V) producing aggregate statis-
tics for reporting, research, or con-
sumer information on the performance 
of programs or institutions of higher 
education participating in the pro-
grams under title IV of the Higher 
Education Act of 1965. 
Such term does not include the conduct of 
criminal investigations or prosecutions. 
‘‘(iii) REDISCLOSURE
TO
INSTITU-
TIONS
OF
HIGHER
EDUCATION, 
STATE 
HIGHER EDUCATION AGENCIES, AND DES-
IGNATED SCHOLARSHIP ORGANIZATIONS.— 
The Secretary of Education, and officers, 
employees, and contractors of the Depart-
ment of Education, may disclose return in-
formation received under subparagraph 
(B), solely for the use in the application, 
award, and administration of Federal stu-
dent financial aid, State aid, or aid award-
ed by eligible institutions or such entities 
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as the Secretary of Education may des-
ignate, to the following persons: 
‘‘(I) An institution of higher edu-
cation with which the Secretary of 
Education has an agreement under 
subpart 1 of part A, or part D or E, 
of title IV of the Higher Education 
Act of 1965. 
‘‘(II) A State higher education 
agency. 
‘‘(III) A scholarship organization 
which is designated by the Secretary 
of Education as of the effective date 
of the Affordable Loans for Any Stu-
dent Act as an organization eligible to 
receive 
the 
information 
provided 
under this clause. 
The preceding sentence shall only apply to 
the extent that the taxpayer with respect 
to whom the return information relates 
provides consent for such disclosure to the 
Secretary of Education as part of the ap-
plication for Federal student financial aid 
under title IV of the Higher Education Act 
of 1965. 
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(b) CONFIDENTIALITY OF RETURN INFORMATION.— 
Section 6103(a)(3) of such Code is amended by inserting 
‘‘, (13)(A), (13)(B)’’ after ‘‘(12)’’. 
(c) 
CONFORMING
AMENDMENTS.—Section 
6103(p)(4) of such Code is amended— 
(1) by inserting ‘‘(A), (13)(B)’’ after ‘‘(13)’’ 
each place it occurs, and 
(2) by inserting ‘‘, (13)(A), (13)(B)’’ after 
‘‘(l)(10)’’ each place it occurs. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made under section 
6103(l)(13) of the Internal Revenue Code of 1986 (as 
amended by this section) after the date of the enactment 
of this Act. 
(e) IN GENERAL.—Part G of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend-
ed by adding at the end the following: 
‘‘SEC. 494. NOTIFICATION OF REQUEST FOR TAX RETURN 
INFORMATION. 
‘‘The Secretary shall advise students and borrowers 
who submit an application for Federal student financial 
aid under this title or for the discharge of a loan based 
on permanent and total disability, as described in section 
437(a), or who request an income-contingent or income- 
based repayment plan on their loan (as well as parents 
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and spouses who sign such an application or request or 
a Master Promissory Note on behalf of those students and 
borrowers) that the Secretary has the authority to request 
that the Internal Revenue Service disclose their tax return 
information (as well as that of parents and spouses who 
sign such an application or request or a Master Promis-
sory Note on behalf of those students and borrowers) to 
officers, employees, and contractors of the Department of 
Education as authorized under section 6103(1)(13) of the 
Internal Revenue Code of 1986, to the extent necessary 
for the Secretary to carry out this title.’’. 
(f) CONFORMING AMENDMENT.—Section 484(q) of 
the Higher Education Act of 1965 (20 U.S.C. 1091(q)) 
is amended to read as follows: 
ø‘‘(q) reserved’’.¿ 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to disclosures made after the date 
of enactment of this Act. 
SEC. 107. STUDY AND PROCEDURES ON DETERMINING FAM-
ILY SIZE. 
(a) IN GENERAL.—The Secretary of Education, act-
ing jointly with the Secretary of the Treasury, shall— 
(1) not later than 1 year after the date of en-
actment of this Act, publish, in the Federal Register, 
notice of the Secretary’s intent to conduct a study 
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on the effect of using data from the Internal Rev-
enue Service such as personal exemptions, filing sta-
tus, or child tax credits, as proxies for family size 
in an income-driven repayment plan, and invite pub-
lic comment regarding the study; 
(2) after reviewing any public comments pro-
vided under paragraph (1), conduct the study and 
publish the results of the study in the Federal Reg-
ister; 
(3) use the results of the study conducted under 
paragraph (1) to develop procedures for determining 
family size for the automatic recertification of in-
come for an income-driven repayment plan in a man-
ner that minimizes burdens and unintended harm to 
borrowers; 
(4) publish the procedures developed under 
paragraph (3) in the Federal Register; and 
(5) after a notice and comment period on such 
procedures, use such comments to finalize the proce-
dures. 
(b) SPECIFICATIONS.—The study conducted under 
subsection (a) shall— 
(1) be completed, with the results published 
pursuant to subsection (a)(2), not later than 3 years 
after the date of enactment of this Act; 
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(2) determine how closely personal exemptions, 
filing status, or child tax credits match the family 
size that borrowers report on their income-driven re-
payment plan request form; 
(3) compare the borrower’s actual monthly pay-
ment amount with the monthly payment amount 
borrowers would have using family size information 
derived from tax returns; 
(4) include data from tax year 2018 or later tax 
years; and 
(5) use data from more than one year, where 
possible, to analyze how much family size changes 
over time. 
(c) DEFINITION.—The term ‘‘income-driven repay-
ment plan’’ has the meaning given the term in section 
6103(l)(13)(F) of the Internal Revenue Code of 1986, as 
amended by section 106. 
TITLE 
II—ENDING 
INTEREST 
CAPITALIZATION AND ORIGI-
NATION FEES 
SEC. 201. ENDING INTEREST CAPITALIZATION FOR FED-
ERAL DIRECT LOANS. 
(a) IN GENERAL.—Section 455 (20 U.S.C. 1087e) is 
amended— 
(1) in subsection (b)— 
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(A) in the subsection heading, by inserting 
‘‘AND PRACTICES’’ after ‘‘RATE’’; and 
(B) by adding at the end the following: 
‘‘(11) INTEREST PRACTICES.— 
‘‘(A) IN GENERAL.—Beginning on the ef-
fective date of the Affordable Loans for Any 
Student Act, interest on a loan made under this 
part shall accrue and only be added to the bal-
ance of interest due on the loan, and shall not 
ever be capitalized. 
‘‘(B) NO
CAPITALIZATION
OF
INTEREST 
DURING IN-SCHOOL OR GRACE PERIODS.— 
‘‘(i) IN GENERAL.—Beginning on the 
effective date of the Affordable Loans for 
Any Student Act, interest on loans made 
under this part for which payments of 
principal are not required during the in- 
school and grace periods or for which pay-
ments are deferred in accordance with sec-
tions 427(a)(2)(C) and 428(b)(1)(M) shall 
accrue and be added to the balance of in-
terest due from the borrower when the 
loan enters repayment, but shall not ever 
be capitalized. 
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