I 
117TH CONGRESS 
2D SESSION 
H. R. 7288 
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 
MARCH 30, 2022 
Ms. DELAURO (for herself, Mrs. HAYES, and Ms. SCANLON) introduced the 
following bill; which was referred to the Committee on Education and 
Labor, and in addition to the Committee on Financial Services, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee 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’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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. 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. 
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. 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; IMPLEMENTATION 
Sec. 501. Effective date; rulemaking regarding termination of certain repay-
ment termination of certain repayment plans; implementation. 
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. 
Section 493C (20 U.S.C. 1098e) is amended to read 
as follows: 
‘‘SEC. 493C. INCOME-BASED REPAYMENT. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) EXCEPTED
PLUS
LOAN.—The term ‘ex-
cepted PLUS loan’ means a loan under section 
428B, or a Federal Direct PLUS Loan, that is 
made, insured, or guaranteed on behalf of a depend-
ent student. 
‘‘(2) EXCEPTED
CONSOLIDATION
LOAN.—The 
term ‘excepted consolidation loan’ means a consoli-
dation loan under section 428C, or a Federal Direct 
Consolidation Loan, if the proceeds of such loan 
were used to the discharge the liability on an ex-
cepted PLUS loan. 
‘‘(3) PARTIAL
FINANCIAL
HARDSHIP.—The 
term ‘partial financial hardship’, when used with re-
spect to a borrower, means that for such borrower— 
‘‘(A) the annual amount due on the total 
amount of loans made, insured, or guaranteed 
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under part B or D (other than an excepted 
PLUS loan or excepted consolidation loan) to a 
borrower as calculated under the standard re-
payment plan under section 428(b)(9)(A)(i) or 
455(d)(1)(A), based on a 10-year repayment 
period; exceeds 
‘‘(B) 15 percent of the result obtained by 
calculating, on at least an annual basis, the 
amount by which— 
‘‘(i) the borrower’s, and the bor-
rower’s spouse’s (if applicable), adjusted 
gross income; exceeds 
‘‘(ii) 150 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)). 
‘‘(b) INCOME-BASED REPAYMENT PROGRAM
FOR 
BORROWERS WHO ENTER INCOME-BASED REPAYMENT 
BEFORE JULY 1, 2022.—Notwithstanding any other pro-
vision of this Act, the Secretary shall carry out a program 
under which— 
‘‘(1) a borrower of any loan made, insured, or 
guaranteed under part B or D (other than an ex-
cepted PLUS loan or excepted consolidation loan) 
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who has a partial financial hardship (whether or not 
the borrower’s loan has been submitted to a guar-
anty agency for default aversion or had been in de-
fault) may elect, during any period the borrower has 
the partial financial hardship, to have the borrower’s 
aggregate monthly payment for all such loans not 
exceed the result described in subsection (a)(3)(B) 
divided by 12; 
‘‘(2) the holder of such a loan shall apply the 
borrower’s monthly payment under this subsection 
first toward interest due on the loan, next toward 
any fees due on the loan, and then toward the prin-
cipal of the loan; 
‘‘(3) any interest due and not paid under para-
graph (2)— 
‘‘(A) shall, on subsidized loans, be paid by 
the Secretary for a period of not more than 3 
years after the date of the borrower’s election 
under paragraph (1); and 
‘‘(B) beginning on the effective date of the 
Affordable Loans for Any Student Act, for an 
eligible loan made, insured, or guaranteed 
under this title, shall not be capitalized and 
shall be added to the balance of interest due for 
the loan; 
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‘‘(4) any principal due and not paid under 
paragraph (2) shall be deferred; 
‘‘(5) the amount of time the borrower makes 
monthly payments under paragraph (1) may exceed 
10 years; 
‘‘(6) if the borrower no longer has a partial fi-
nancial hardship or no longer wishes to continue the 
election under this subsection, then— 
‘‘(A) the maximum monthly payment re-
quired to be paid for all loans made to the bor-
rower under part B or D (other than an ex-
cepted PLUS loan or excepted consolidation 
loan) shall not exceed the monthly amount cal-
culated 
under 
section 
428(b)(9)(A)(i) 
or 
455(d)(1)(A), based on a 10-year repayment 
period, when the borrower first made the elec-
tion described in this subsection; and 
‘‘(B) the amount of time the borrower is 
permitted to repay such loans may exceed 10 
years; 
‘‘(7) the Secretary shall repay or cancel any 
outstanding balance of principal and interest due on 
all loans made under part B or D (other than a loan 
under section 428B or a Federal Direct PLUS 
Loan) to a borrower who— 
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‘‘(A) at any time, elected to participate in 
income-based repayment under paragraph (1); 
and 
‘‘(B) for a period of time prescribed by the 
Secretary, not to exceed 25 years, meets 1 or 
more of the following requirements— 
‘‘(i) has made reduced monthly pay-
ments under paragraph (1) or paragraph 
(6); 
‘‘(ii) has made monthly payments of 
not less than the monthly amount cal-
culated under section 428(b)(9)(A)(i) or 
455(d)(1)(A), based on a 10-year repay-
ment period, when the borrower first made 
the election described in this subsection; 
‘‘(iii) has made payments of not less 
than the payments required under a stand-
ard 
repayment 
plan 
under 
section 
428(b)(9)(A)(i) or 455(d)(1)(A) with a re-
payment period of 10 years; 
‘‘(iv) has made payments under an in-
come-contingent repayment plan under sec-
tion 455(d)(1)(D); or 
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‘‘(v) has been in deferment due to an 
economic hardship described in section 
435(o); 
‘‘(8) a borrower who is repaying a loan made 
under part B or D pursuant to income-based repay-
ment may elect, at any time, to terminate repayment 
pursuant to income-based repayment and repay such 
loan under the fixed repayment plan under section 
493E; and 
‘‘(9) the special allowance payment to a lender 
calculated under section 438(b)(2)(I), when cal-
culated for a loan in repayment under this section, 
shall be calculated on the principal balance of the 
loan and on any accrued interest unpaid by the bor-
rower in accordance with this section. 
‘‘(c) INCOME-BASED REPAYMENT PROGRAM
FOR 
BORROWERS WHO ENTER INCOME-BASED REPAYMENT 
ON OR AFTER JULY 1, 2022.— 
‘‘(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 this title for which 
the borrower enters repayment on or after July 
1, 2022, and for which the borrower elects the 
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income-based repayment plan under this sec-
tion; and 
‘‘(B) with respect to any loan made, in-
sured, or guaranteed under this title for which 
the borrower enrolled in an income-based repay-
ment plan before July 1, 2022, if such borrower 
elects to enter the income-based repayment plan 
under this subsection, in accordance with para-
graph (3). 
‘‘(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— 
‘‘(aa) with respect to a borrower 
whose (and whose spouse’s, if applica-
ble) adjusted gross income equals or 
exceeds 1,300 percent of the poverty 
line that is applicable to the bor-
rower’s family size as determined 
under section 673(2) of the Commu-
nity Services Block Grant Act (42 
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U.S.C. 9902(2)) shall be an amount 
equal to 10 percent of such adjusted 
gross income; 
‘‘(bb) with respect to a borrower 
whose (and whose spouse’s, if applica-
ble) adjusted gross income equals or 
exceeds 800 percent of the poverty 
line but is less than 1,300 percent of 
the poverty line that is applicable to 
the borrower’s family size as deter-
mined under section 673(2) of the 
Community Services Block Grant Act 
(42 U.S.C. 9902(2)) shall be equal to 
the amount determined under clause 
(ii)(I); 
‘‘(cc) with respect to a borrower 
whose (and whose spouse’s, if applica-
ble) adjusted gross income exceeds 
250 percent of the poverty line but is 
less than 800 percent of the poverty 
line that is applicable to the bor-
rower’s family size as determined 
under section 673(2) of the Commu-
nity Services Block Grant Act (42 
U.S.C. 9902(2)) shall be equal to the 
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amount 
determined 
under 
clause 
(ii)(II); and 
‘‘(dd) with respect to a borrower 
whose (and whose spouse’s, if applica-
ble) adjusted gross income equals or 
is less than 250 percent of the poverty 
line that is applicable to the bor-
rower’s family size as determined 
under section 673(2) of the Commu-
nity Services Block Grant Act (42 
U.S.C. 9902(2)) shall be an amount 
equal to 0 percent of such adjusted 
gross income; 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)(I)(aa) 
For 
purposes 
of 
clause 
(i)(I)(bb), the annual repayment amount for 
borrowers described in such clause shall be an 
amount equal to 10 percent of the result ob-
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‘‘(B) Notwithstanding subsection (e)(2), sub-
section (b)(7)(B) shall be applied by substituting ‘20 
years’ for ‘25 years’. 
‘‘(C) Notwithstanding subparagraph (A) of sub-
section (b)(6), a borrower of such a loan shall not 
be required to have a partial financial hardship and 
may elect, and remain enrolled in, the income-based 
repayment plan under this section regardless of in-
come level, with the repayment amount calculated 
under subparagraph (A). 
‘‘(D) Notwithstanding subsection (b), a bor-
rower of an excepted PLUS loan or excepted consoli-
dation loan may elect the income-based repayment 
plan under this subsection for the excepted PLUS 
loan or excepted consolidation loan, and the Sec-
retary shall treat such loan, only for the purposes of 
the repayment terms, as a Federal Direct PLUS 
Loan issued to a student borrower. The Secretary 
may issue rules and regulations, as the Secretary de-
termines necessary, regarding the treatment of ex-
cepted PLUS loans or excepted consolidation loans 
that are to be repaid under an income-based repay-
ment plan under this subsection. 
‘‘(3) RULE FOR BORROWERS IN INCOME-BASED 
REPAYMENT BEFORE JULY 1, 2022.—A borrower of 
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a loan made, insured, or guaranteed under this title 
who enrolled in an income-based repayment plan be-
fore July 1, 2022, may choose to retain such repay-
ment plan or elect to enter an income-based repay-
ment plan under this subsection or a fixed repay-
ment plan described in section 493E, as provided in 
section 428(b)(1)(D)(ii) or section 455(d)(7) (as ap-
plicable). 
‘‘(4) 
INTEREST
ACCRUAL.—Notwithstanding 
any other provision of this Act, if a borrower’s 
monthly payment for a loan under an income-based 
repayment plan under this subsection is insufficient 
to pay the accrued interest on the borrower’s loan 
for such month, any interest due and not paid on 
the loan for that month shall be paid or forgiven by 
the Secretary. 
‘‘(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). 
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‘‘(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 
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 
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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-
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. 
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‘‘(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. 
‘‘(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 
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‘‘(B) unable to reasonably access the in-
come information of the borrower’s spouse. 
‘‘(e) SPECIAL TERMS FOR NEW BORROWERS ON AND 
AFTER JULY 1, 2014.—With respect to any loan made 
to a new borrower on or after July 1, 2014— 
‘‘(1) subsection (a)(3)(B) shall be applied by 
substituting ‘10 percent’ for ‘15 percent’; and 
‘‘(2) subsection (b)(7)(B) shall be applied by 
substituting ‘20 years’ for ‘25 years’. 
‘‘(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 105 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) 
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-
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Secretary establishes procedures under such 
paragraph— 
‘‘(i) selects, or for whom the Secretary 
selected under subparagraph (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 
procedures described in paragraph (1), includ-
ing subparagraph (D) of such paragraph (if ap-
plicable). 
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‘‘(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.’’. 
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, 2022, and a borrower who is 
in repayment on a loan made, insured, or guaranteed 
under part B or D before July 1, 2022, 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 
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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.’’. 
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 on or after July 1, 2022, 
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 on or 
after July 1, 2022, be subject to income- 
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based repayment in accordance with sec-
tion 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 
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, 2022’’ after 
‘‘SELECTION’’; and 
(ii) in the matter preceding clause 
(i)— 
(I) by inserting ‘‘or subparagraph 
(C), as applicable,’’ after ‘‘this sub-
paragraph’’; and 
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(II) by striking ‘‘The borrower’’ 
and inserting ‘‘Before July 1, 2022, 
the borrower’’; 
(B) in subparagraph (B), by inserting be-
fore the period at the end ‘‘or, for a borrower 
entering repayment on or after July 1, 2022, 
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, 2022.—Notwithstanding 
any other provision of law, and in accordance 
with regulations promulgated, beginning on 
July 1, 2022, 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 on or after July 1, 2022, and then 
not more than once per calendar year there-
after. 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).’’. 
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(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, 2022’’ after ‘‘SELECTION’’; 
and 
(B) in the matter preceding subparagraph 
(A), by inserting ‘‘that enters repayment before 
July 1, 2022,’’ before ‘‘a variety’’; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) DESIGN AND SELECTION BEGINNING JULY 
1, 2022.— 
‘‘(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, 2022, 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— 
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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)’’. 
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 ‘‘A borrower of’’ and inserting 
the following: 
‘‘(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 
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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 
‘‘(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, 2022, by 100 basis points 
(or the equivalent), if the borrower of the loan, after the 
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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) 
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) RULES AND WAIVERS.—The Secretary shall pro-
mulgate rules carrying out the incentive program estab-
lished under this section. In promulgating such rules, the 
Secretary may waive the application of— 
‘‘(1) subchapter I of chapter 35 of title 44, 
United States Code (commonly known as the ‘Paper-
work Reduction Act’); 
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‘‘(2) the master calendar requirements under 
section 482; 
‘‘(3) negotiated rulemaking under section 492; 
and 
‘‘(4) the requirement to publish the notices re-
lated to the system of records of the agency before 
implementation required under paragraphs (4) and 
(11) of section 552a(e) of title 5, United States 
Code (commonly known as the ‘Privacy Act of 
1974’), except that the notices shall be published not 
later than 180 days after the date of implementation 
of this Act.’’. 
SEC. 105. 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 
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; 
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(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; 
(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; 
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(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’’ means any of the following authorized under 
the Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.): 
(1) The income-contingent repayment plan. 
(2) The income-based repayment plan. 
(3) The PAYE repayment plan. 
(4) The REPAYE repayment plan. 
TITLE 
II—ENDING 
INTEREST 
CAPITALIZATION AND ORIGI-
NATION FEES 
SEC. 201. ENDING INTEREST CAPITALIZATION FOR FED-
ERAL DIRECT LOANS. 
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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‘‘(ii) 
NOTICE
REQUIREMENT.—The 
Secretary shall adjust any forbearance no-
tice required in accordance with section 
428(a)(3)(A)(iii) to reflect the availability 
of the pause payment process pursuant to 
section 460B and the treatment of interest 
under such section. 
‘‘(C) LIMITED
RETROACTIVITY.—For a 
borrower of a loan made under this part on or 
before the effective date of the Affordable 
Loans for Any Student Act that is in a status, 
on the day before such effective date, that in-
volves interest capitalization, such loan shall 
have capitalization pro-rated to the effective 
date of such Act, but shall not be subject to 
further capitalization after the effective date of 
such Act.’’; and 
(2) in subsection (e)(5)— 
(A) by inserting ‘‘(which, beginning after 
the effective date of the Affordable Loans for 
Any Student Act, shall not be capitalized)’’ 
after ‘‘accrued interest’’; and 
(B) by striking the second sentence. 
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SEC. 202. ELIMINATION OF ORIGINATION FEES FOR FED-
ERAL DIRECT LOANS. 
(a) REPEAL OF ORIGINATION FEES.—Subsection (c) 
of section 455 (20 U.S.C. 1087e(c)) is repealed. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to loans made 
under part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) for which the first dis-
bursement of principal is made on or after July 1, 2022. 
TITLE III—PROVIDING ASSIST-
ANCE IN SITUATIONS OF BOR-
ROWER DISTRESS 
SEC. 301. LIMITS ON SEIZING INCOME FOR DEBT. 
Part D of title IV (20 U.S.C. 1087a et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 460A. LIMITS ON SEIZING INCOME FOR DEBT RELAT-
ING TO FEDERAL STUDENT LOANS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘adjusted gross income’ has the 
meaning given the term in section 62 of the Internal 
Revenue Code of 1986; and 
‘‘(2) the term ‘poverty line’ means the poverty 
line (as defined by the Office of Management and 
Budget and revised annually in accordance with sec-
tion 673(2) of the Community Services Block Grant 
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Act (42 U.S.C. 9902(2))) applicable to a family of 
the size involved. 
‘‘(b) LIMITATION ON COLLECTION.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, any entity engaged in the collection 
of debts relating to loans made under this title may 
not take any action to cause, or seek to cause, the 
collection of such a debt that is taken from the 
wages, Federal benefits, or other amounts due to a 
borrower through garnishment, deduction, offset, or 
seizure in an amount on a monthly basis that is 
more than the amount described in paragraph (2). 
‘‘(2) CALCULATION.—The amount described in 
this paragraph is the amount obtained by calculating 
what the monthly repayment amount would be for 
loans made under this title, with respect to the bor-
rower, under the income-based repayment plan 
under section 493C(c). 
‘‘(3) PRESUMPTION.—For purposes of this sec-
tion, if an entity described in paragraph (1) is un-
able to determine the family size of a borrower after 
taking reasonable steps to collect the information 
necessary to do so, that person shall presume that 
the family size of the borrower is 1 individual. 
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‘‘(c) COMMUNICATIONS.—Any communication by an 
entity described in subsection (b)(1) that is for the pur-
pose of seizing income of a consumer for debt that relates 
to a loan made under this title shall— 
‘‘(1) be considered— 
‘‘(A) an attempt to collect a debt; and 
‘‘(B) conduct in connection with the collec-
tion of a debt for the purposes of this title; and 
‘‘(2) contain a notice to the borrower that, con-
sistent with the procedures for rehabilitating a loan 
pursuant to section 428F(a) or consolidating loans 
out 
of 
default 
as 
described 
in 
section 
428C(a)(3)(B)(i)(V), the borrower may exit default 
and reenter current repayment status (as defined in 
section 428(l)(2)(C)) with a similar monthly pay-
ment amount on an income-based repayment plan 
under section 493C(c) and thereby obtain the full 
flexibility and benefits of such status, including the 
ability to adjust family size and make qualifying 
payments for purposes of repayment or cancellation 
of any outstanding balance of principal and interest 
due on a loan (as described in section 493C(b)(7)). 
‘‘(d) REMEDIES.— 
‘‘(1) FIRST TIER.—The Secretary may impose a 
civil penalty on an entity for a violation of this sec-
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tion not to exceed $5,000 for each day during which 
such violation continues. 
‘‘(2) SECOND
TIER.—Notwithstanding para-
graph (1), the Secretary may impose a civil penalty 
on an entity that recklessly engages in a violation of 
this section not to exceed $25,000 for each day dur-
ing which such violation continues. 
‘‘(3) 
THIRD
TIER.—Notwithstanding 
para-
graphs (1) and (2), the Secretary may impose a civil 
penalty on an entity that knowingly violates this sec-
tion not to exceed $1,000,000 for each day during 
which such violation continues. 
‘‘(4) NO EXEMPLARY OR PUNITIVE DAMAGES.— 
Nothing in this subsection shall be construed as au-
thorizing the imposition of exemplary or punitive 
damages. 
‘‘(5) ENTITIES SUBJECT TO PENALTY.—An en-
tity subject to a penalty under this subsection may 
include a contractor or agent of the Department.’’. 
SEC. 302. ALLOWING FOR MULTIPLE LOAN REHABILI-
TATIONS. 
(a) FFEL LOANS.—Section 428F(a)(5) (20 U.S.C. 
1078–6(a)(5)) is amended by striking ‘‘one time per loan’’ 
and inserting ‘‘2 times per loan’’. 
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(b) DIRECT LOANS.—Section 455(d) (20 U.S.C. 
1087e(d)), as amended by section 103, is further amended 
by adding at the end the following: 
‘‘(8) LOAN REHABILITATION.—In carrying out 
the process for loan rehabilitation described in sec-
tion 428F(a)(5) with respect to loans made under 
this part and in accordance with subsection (a), the 
Secretary shall allow a borrower to obtain the bene-
fits available under such section not more than 2 
times per loan.’’. 
SEC. 303. PAUSE PAYMENT PROCESS. 
(a) ESTABLISHMENT
OF PAUSE PAYMENT PROC-
ESS.—Part D of title IV (20 U.S.C. 1087a et seq.), as 
amended by section 301, is further amended by adding 
at the end the following: 
‘‘SEC. 460B. PAUSE PAYMENT PROCESS. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
single, streamlined pause payment process available in a 
single application with respect to loans made under this 
part that replaces the deferment and forbearance options 
and their respective applications that are available to bor-
rowers before the effective date of the Affordable Loans 
for Any Student Act and provides temporary relief from 
repayment of such loans in accordance with this section. 
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‘‘(b) APPLICATION FOR RELIEF.—Notwithstanding 
any other provision of this Act, a borrower of a loan made 
under this part that desires to receive temporary relief 
from repayment with respect to such loan shall request 
relief in accordance with the pause payment process estab-
lished by the Secretary under subsection (a), which shall 
include the options to select a temporary cessation of pay-
ments and to make smaller payments than the monthly 
payments required under the borrower’s repayment plan. 
‘‘(c) PAUSE PAYMENT.— 
‘‘(1) IN GENERAL.—A borrower of a loan made 
under this part who meets the requirements de-
scribed in paragraph (2) shall be eligible for a pause 
payment, during which periodic installments of prin-
cipal need not be paid, and interest— 
‘‘(A) shall not accrue, in the case of a— 
‘‘(i) Federal Direct Stafford Loan; or 
‘‘(ii) a Federal Direct Consolidation 
Loan that consolidated only Federal Direct 
Stafford Loans, or a combination of such 
loans and Federal Stafford Loans for 
which the student borrower received an in-
terest subsidy under section 428; or 
‘‘(B) shall accrue and be added to the bal-
ance of interest due but not be capitalized, or 
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be paid by the borrower, in the case of a Fed-
eral Direct PLUS Loan, a Federal Direct Un-
subsidized Stafford Loan, or a Federal Direct 
Consolidation Loan not described in subpara-
graph (A)(ii). 
‘‘(2) ELIGIBILITY.—A borrower of a loan made 
under this part shall be eligible for a pause payment 
during any period— 
‘‘(A) during which— 
‘‘(i) the borrower is carrying at least 
one-half the normal full-time work load for 
the course of study that the borrower is 
pursuing, as determined by the eligible in-
stitution (as such term is defined in sec-
tion 435(a)) the student is attending; or 
‘‘(ii) in the case of a parent borrower, 
the borrower or the student on whose be-
half the loan was borrowed is carrying at 
least one-half the normal full-time work 
load, in accordance with clause (i); 
‘‘(B) during which the borrower is pur-
suing a course of study pursuant to a graduate 
fellowship program approved by the Secretary; 
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‘‘(C) during which the borrower is serving 
in a medical or dental internship or residency 
program; 
‘‘(D) during which the borrower is in a re-
habilitation training program for individuals 
with disabilities approved by the Secretary; 
‘‘(E) during which the borrower— 
‘‘(i) is serving on active duty during a 
war or other military operation or national 
emergency and for the 180-day period fol-
lowing the demobilization date for the serv-
ice; or 
‘‘(ii) qualifies for partial repayment of 
the borrower’s loans under a provision of 
chapter 109 or 1609 of title 10, United 
States Code; 
‘‘(F) during which the borrower is per-
forming qualifying National Guard duty during 
a war or other military operation or national 
emergency and for the 180-day period following 
the demobilization date for the service; 
‘‘(G) during which the borrower is serving 
in— 
‘‘(i) an approved national service posi-
tion (as defined in section 101 of the Na-
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tional and Community Service Act of 1990 
(42 U.S.C. 12511)) in an Americorps pro-
gram (defined for purposes of this sub-
paragraph as a program carried out under 
subtitle C or E of title I of the National 
and Community Service Act of 1990 (42 
U.S.C. 12571 et seq., 12611 et seq.) or 
title I of the Domestic Volunteer Service 
Act of 1973 (42 U.S.C. 4951 et seq.)); 
‘‘(ii) in the Peace Corps; or 
‘‘(iii) in a teaching position that would 
qualify for teacher loan forgiveness under 
section 428J or 460; 
‘‘(H) not in excess of a total period of 3 
years of repayment of a loan during which the 
Secretary determines, in accordance with regu-
lations prescribed under section 435(o), that 
the borrower has experienced or will experience 
an economic hardship, such as experiencing fi-
nancial difficulties, having unexpected or sig-
nificant medical expenses, or being unable to 
find full-time employment; 
‘‘(I) during which a borrower’s ability to 
make payments, as determined by the Sec-
retary, has been adversely affected by— 
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‘‘(i) any major disaster or emergency 
declared by the President under section 
401 or 501, respectively, of the Robert T. 
Stafford Disaster Relief and Emergency 34 
Assistance Act (42 U.S.C. 5170, 5191); 
‘‘(ii) a local emergency, as declared by 
the appropriate government agency; or 
‘‘(iii) a military mobilization; 
‘‘(J) during which the borrower is awaiting 
a determination by the Secretary of the bor-
rower’s request for a pause payment, change in 
repayment plan, loan forgiveness or cancella-
tion, or consolidation loan; or 
‘‘(K) during which the borrower is experi-
encing other exceptional circumstances for 
which pause payment under this section is in 
the best interest of the borrower, as determined 
by the Secretary through regulation.’’. 
(b) CONFORMING AMENDMENTS.—Section 455 (20 
U.S.C. 1087e) is amended— 
(1) in subsection (e)(7)(B)(i), by striking ‘‘is in 
deferment’’ and inserting ‘‘is under pause payment 
pursuant to section 460B’’; 
(2) by striking subsection (f) and inserting the 
following: 
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‘‘(f) øreserved¿’’; and 
(3) in subsection (l)— 
(A) by striking ‘‘PROGRAM.—’’ and all 
that follows through ‘‘Using funds’’ and insert-
ing 
the 
following: 
‘‘PROGRAM.—USING 
FUNDS’’; and 
(B) by striking paragraph (2). 
SEC. 304. AUTOMATIC ENROLLMENT INTO INCOME-BASED 
REPAYMENT FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS AND FOR BORROWERS 
WHO REHABILITATE DEFAULTED LOANS. 
(a) NOTIFICATION AND AUTOMATIC ENROLLMENT 
PROCEDURES.—Section 455(d) (20 U.S.C. 1087e(d)), as 
amended by sections 103 and 302, is further amended by 
adding at the end the following: 
‘‘(9) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.— 
‘‘(i) IN GENERAL.—In the case of any 
borrower who is at least 60 days delin-
quent on a loan made under this part, the 
Secretary may obtain such information as 
is reasonably necessary regarding the in-
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come and family size of the borrower (and 
the borrower’s spouse, if applicable). 
‘‘(ii) AVAILABILITY OF RETURNS AND 
RETURN INFORMATION.—Returns and re-
turn information (as defined in section 
6103 of the Internal Revenue Code of may 
be obtained under this subparagraph only 
to 
the 
extent 
authorized 
by 
section 
6103(l)(13) of such Code). 
‘‘(B) BORROWER NOTIFICATION.—With re-
spect to each borrower of a loan made under 
this part who is at least 60 days delinquent on 
such loan and who has not been subject to the 
procedures under this paragraph for such loan 
in the preceding 120 days, the Secretary shall, 
as soon as practicable after such 60-day delin-
quency, provide to the borrower the following: 
‘‘(i) Notification that the borrower is 
at least 60 days delinquent on at least 1 
loan under this part, and a description of 
all delinquent loans under this part, and 
nondelinquent loans under this part, of the 
borrower. 
‘‘(ii) A brief description of the repay-
ment plans for which the borrower is eligi-
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ble and the borrower’s loans made under 
this part, and loans made, insured, or 
guaranteed under part B or E, that may 
be eligible for such plans, based on infor-
mation available to the Secretary. 
‘‘(iii) Clear and simple instructions on 
how to select the repayment plans. 
‘‘(iv) The amount of monthly pay-
ments for the loans made under this part, 
and any loans made, insured, or guaran-
teed under part B or E, under the repay-
ment plans for which the borrower is eligi-
ble, based on information available to the 
Secretary, including, if the income infor-
mation of the borrower is available to the 
Secretary under subparagraph (A)— 
‘‘(I) the amount of the monthly 
payment under the income-based re-
payment plan under section 493C(c) 
for which the borrower is eligible for 
the borrower’s loans made under this 
part, based on such income informa-
tion; and 
‘‘(II) the income, family size, tax 
filing status, and tax year information 
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on which each the monthly payment is 
based. 
‘‘(v) An explanation that the Sec-
retary shall take the actions under sub-
paragraph (C) with respect to such bor-
rower, if— 
‘‘(I) the borrower is 120 days de-
linquent on one or more loans under 
this part and has not selected a new 
repayment plan for the borrower’s 
loans under this part; and 
‘‘(II) in the case of such a bor-
rower whose repayment plan for any 
loans made under this part is not an 
income-based repayment plan under 
section 493C(c), the monthly pay-
ments under such repayment plan are 
higher than such monthly payments 
would be under an income-based re-
payment plan for such loans. 
‘‘(vi) Instructions on updating the in-
formation of the borrower obtained under 
subparagraph (A). 
‘‘(C) SECRETARY’S INITIAL SELECTION OF 
PLAN.—With respect to each borrower de-
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scribed in subparagraph (B) who has a repay-
ment plan for loans made under this part that 
meets the requirements of clause (v)(II) of sub-
paragraph (B), who has not selected a new re-
payment plan for such loans in accordance with 
the notice received under such subparagraph, 
and who is at least 120 days delinquent on such 
a loan, the Secretary shall, as soon as prac-
ticable— 
‘‘(i) in a case in which any of the bor-
rower’s loans made under part B or E are 
eligible for an income-based repayment 
plan under section 493C(c), provide the 
borrower with the income-based repayment 
plan; and 
‘‘(ii) in a case in which none of the 
borrower’s loans made under part B or E 
are eligible for an income-based repayment 
plan under section 493C(c), notify the bor-
rower of the actions, if any, the borrower 
may take for such loans to become eligible 
for such a plan. 
‘‘(D) SECRETARY’S
ADDITIONAL
SELEC-
TION OF PLAN.— 
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‘‘(i) IN
GENERAL.—With respect to 
each borrower of a loan made under this 
part who selects a new repayment plan in 
accordance with the notice received under 
subparagraph (B) and who continues to be 
delinquent on such loan for a period de-
scribed in clause (ii), the Secretary shall, 
as soon as practicable after such period, 
carry out the procedures described in sub-
paragraph (C) for the borrower’s loans 
made under this part, if such procedures 
would result in lower monthly repayment 
amounts on such loan. 
‘‘(ii) DESCRIPTION OF PERIOD.—The 
duration of the period described in clause 
shall be the amount of time that the Sec-
retary determines is sufficient to indicate 
that the borrower may benefit from repay-
ing such loan under a new repayment plan, 
but in no case shall such period be less 
than 60 days. 
‘‘(E) OPT-OUT.—A borrower of a loan 
made under this part shall have the right to opt 
out of the procedures under this paragraph. 
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‘‘(F) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph. 
‘‘(10) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE RE-
HABILITATING DEFAULTED LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.— 
‘‘(i) IN GENERAL.—In the case of any 
borrower who is rehabilitating a loan made 
under this part pursuant to section 
428F(a), the Secretary may obtain such 
information as is reasonably necessary re-
garding the income and family size of the 
borrower (and the borrower’s spouse, if ap-
plicable). 
‘‘(ii) AVAILABILITY OF RETURNS AND 
RETURN INFORMATION.—Returns and re-
turn information (as defined in section 
6103 of the Internal Revenue Code of may 
be obtained under this subparagraph only 
to 
the 
extent 
authorized 
by 
section 
6103(l)(13) of such Code). 
‘‘(B) 
BORROWER
NOTIFICATION.—Not 
later than 30 days after a borrower makes the 
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6th payment required for the loan rehabilitation 
described in subparagraph (A), the Secretary 
shall notify the borrower of the process under 
subparagraph (C) with respect to such loan. 
‘‘(C) SECRETARY’S
AUTOMATIC
ENROLL-
MENT.—With respect to each borrower who has 
made the 9th payment required for the loan re-
habilitation described in subparagraph (A) and 
is eligible for the income-based repayment plan 
under section 493C(c), the Secretary shall, as 
soon as practicable after such payment, provide 
the borrower with the income-based repayment 
plan. 
‘‘(D) OPT-OUT.—A borrower of a loan 
made under this part shall have the right to opt 
out of the procedures for enrollment in an in-
come-based repayment plan under this para-
graph. 
‘‘(E) PROCEDURES.—The Secretary shall 
establish procedures as are necessary to effec-
tively implement this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall— 
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(1) take effect as soon as the Secretary of Edu-
cation determines practicable after the Secretary fi-
nalizes the procedures under section 105; and 
(2) apply to all borrowers of loans made under 
part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.). 
SEC. 305. SEPARATING JOINT CONSOLIDATION LOANS. 
(a) IN
GENERAL.—Section 455(g) (20 U.S.C. 
1087e(g)), as amended by section 104, is further amended 
by adding at the end the following: 
‘‘(3) 
SEPARATING
JOINT
CONSOLIDATION 
LOANS.— 
‘‘(A) IN GENERAL.—A married couple, or 
2 individuals who were previously a married 
couple, and who received a joint consolidation 
loan as such married couple under subpara-
graph (C) of section 428C(a)(3) (as such sub-
paragraph was in effect on or before June 30, 
2006), may apply to the Secretary for each in-
dividual borrower in the married couple (or pre-
viously married couple) to receive a separate 
Federal Direct Consolidation Loan under this 
part— 
‘‘(i) that shall— 
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‘‘(I) unless the Secretary receives 
notice of an agreement described in 
subclause (II)(aa), be equal to the 
sum of— 
‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the day 
before such joint consolidation 
loan was made, was attributable 
to the loans of the individual bor-
rower for whom such separate 
consolidation loan is being made; 
and 
‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; or 
‘‘(II) be equal to the sum of— 
‘‘(aa) the unpaid principal 
and accrued unpaid interest of 
the percentage of the joint con-
solidation loan that, as of the 
date of application under this 
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paragraph, the married couple 
(or previously married couple) 
agrees shall be considered attrib-
utable to the loans of the indi-
vidual borrower for whom such 
separate consolidation loan is 
being made; and 
‘‘(bb) any other loans de-
scribed in section 428C(a)(4) 
that such individual borrower se-
lects for consolidation under this 
part; 
‘‘(ii) the proceeds of which shall be 
paid by the Secretary to the holder or 
holders— 
‘‘(I) of the joint consolidation 
loan for the purpose of discharging 
the liability on the percentage of such 
joint consolidation loan described in 
subclause (I)(aa) or (II)(aa) of clause 
(i); and 
‘‘(II) of the loans selected for 
consolidation under subclause (I)(bb) 
or of clause (i) for the purpose of dis-
charging the liability on such loans; 
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‘‘(iii) except as otherwise provided in 
this paragraph, that has the same terms 
and conditions, and rate of interest as the 
joint consolidation loan, except if other 
loans are included in such Federal Direct 
Consolidation Loan after the date the Fed-
eral Direct Consolidation Loan is first 
made under this paragraph; 
‘‘(iv) for which any payment made 
under subsection (m)(1)(A) on the joint 
consolidation loan during a period in which 
the individual borrower for whom such sep-
arate consolidation loan is being made was 
employed in a public service job described 
in subsection (m)(1)(B) shall be treated as 
if such payment were made on such sepa-
rate consolidation loan; and 
‘‘(v) for which any payment made 
under an income contingent repayment 
plan under subsection (d)(1)(D), or an in-
come-based repayment plan under para-
graph (1)(E) or (2)(A)(ii) of subsection 
(d), on the joint consolidation loan shall be 
treated as if such payment were made on 
such separate consolidation loan. 
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‘‘(B) APPLICATION FOR SEPARATE DIRECT 
CONSOLIDATION LOANS.— 
‘‘(i) JOINT APPLICATION.—Except as 
provided in clause (ii), to receive separate 
consolidation loans under subparagraph 
(A), both individual borrowers in a married 
couple (or previously married couple) shall 
jointly apply under such subparagraph. 
‘‘(ii) SEPARATE
APPLICATION.—An 
individual borrower in a married couple (or 
previously married couple) may apply for a 
separate consolidation loan under subpara-
graph (A) separately and without regard to 
whether or when the other individual bor-
rower in the married couple (or previously 
married couple) applies under such sub-
paragraph, and shall be relieved of any re-
maining liability for the joint consolidation 
loan, in a case in which— 
‘‘(I) the individual borrower has 
experienced from the other individual 
borrower— 
‘‘(aa) domestic violence (as 
defined in section 40002(a) of 
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the Violence Against Women Act 
of 1994 (34 U.S.C. 12291(a))); 
‘‘(bb) economic abuse (in-
cluding behaviors that control 
such borrower’s ability to ac-
quire, use, and maintain access 
to money, credit, or the joint fi-
nancial obligations of both bor-
rowers); or 
‘‘(cc) other exceptional cir-
cumstances, as determined by the 
Secretary; and 
‘‘(II) the Secretary determines 
that authorizing each individual bor-
rower to apply separately under sub-
paragraph (A) would be in the best 
fiscal interests of the Federal Govern-
ment, including by reducing the risk 
of delinquency or default. 
‘‘(C) BORROWER
ELIGIBILITY.—Notwith-
standing section 428C(a)(3)(A), the Secretary 
shall provide a consolidation loan under this 
part to each borrower who— 
‘‘(i) applies for such loan under sub-
paragraph (A); and 
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‘‘(ii) meets the requirements of sub-
paragraphs (A) and (B).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
428C(a)(3)(B)(i)(V) (20 U.S.C. 1078–3(3)(B)(i)(V)) is 
amended— 
(1) by striking ‘‘or’’ at the end of item (bb); 
(2) by striking the period at the end of item 
(cc) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(dd) for the purpose of sep-
arating a joint consolidation loan 
into 2 separate Federal Direct 
Consolidation Loans under sec-
tion 455(g)(3).’’. 
SEC. 306. REMOVING THE COLLECTION COST REQUIRE-
MENT. 
(a) 
REMOVAL
OF
REQUIREMENT.—Section 
484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by strik-
ing ‘‘shall be required to pay, in addition to other charges 
specified in this title, reasonable collection costs’’ and in-
serting ‘‘shall not be required to pay collection costs’’. 
(b) 
REPAYMENT
AFTER
DEFAULT.—Section 
455(d)(6) (20 U.S.C. 1087e(d)(6)), as redesignated under 
section 103(b), is amended by striking ‘‘to—’’ and all that 
follows through the period at the end and inserting ‘‘to 
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repay the loan pursuant to an income-based repayment 
plan under section 493C(c).’’. 
TITLE IV—IMPROVING LOAN IN-
FORMATION 
AND 
COUN-
SELING 
SEC. 401. STUDENT LOAN CONTRACT; SIMPLIFYING LOAN 
DISCLOSURES. 
(a) STUDENT LOAN CONTRACT.—Section 455 (20 
U.S.C. 1087e), as amended by section 202, is further 
amended by inserting after subsection (b) the following: 
‘‘(c) STUDENT LOAN CONTRACT; SIMPLIFYING LOAN 
DISCLOSURES.— 
‘‘(1) STUDENT LOAN CONTRACT.— 
‘‘(A) IN GENERAL.—Any master promis-
sory 
note 
form 
described 
in 
section 
432(m)(1)(D) that is developed or used for cov-
ered loans shall be referred to as a ‘student 
loan contract’. 
‘‘(B) CLARIFICATION
ON
USE.—Notwith-
standing section 432(m)(1)(D)(i), each student 
loan contract for a covered loan shall— 
‘‘(i) not be entered into by a student 
unless the student has completed all re-
quired counseling related to such loan, in-
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cluding counseling required under section 
485(l); 
‘‘(ii) be signed by the student entering 
such student loan contract after completion 
of such counseling; 
‘‘(iii) be signed by the student during 
the first award year of such student’s en-
rollment at an institution; 
‘‘(iv) be valid for each award year 
after the award year described in clause 
(iii) in which the student remains enrolled 
at the same institution; and 
‘‘(v) include options for the student to 
enter both the student’s current contact in-
formation and permanent contact informa-
tion that is likely to remain valid upon the 
student’s exit from the institution. 
‘‘(C) COVERED LOAN.— 
‘‘(i) IN GENERAL.—In this subsection, 
the term ‘covered loan’ means a loan made 
under this part on or after the effective 
date of the Affordable Loans for Any Stu-
dent Act, except with respect to a borrower 
described in clause (ii). 
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‘‘(ii) EXCEPTION.—A borrower is de-
scribed in this clause if the loan made 
under this part on or after the effective 
date of the Affordable Loans for Any Stu-
dent Act with respect to such borrower is 
for the award year during which the Af-
fordable Loans for Any Student Act is en-
acted and the borrower has already taken 
out a loan under this part (other than a 
Federal Direct Consolidation Loan) for 
such award year (including any such loan 
for attendance at another institution from 
which the student transferred or in which 
the student had previously enrolled). 
‘‘(2) LOAN
DISCLOSURES.—For loans made 
under this part for periods of enrollment beginning 
on or after the effective date of the Affordable 
Loans for Any Student Act, the Secretary shall take 
such steps as are necessary to streamline the stu-
dent loan disclosure requirements under this Act. 
The Secretary shall ensure that information required 
to be disclosed to a student who is applying for, re-
ceiving, or preparing to repay a loan under this part 
shall be consumer-tested and delivered in a manner 
that— 
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‘‘(A) reduces and simplifies the paperwork 
students are required to complete; 
‘‘(B) limits the number of times a student 
is presented with disclosures by incorporating 
the streamlined disclosures into required stu-
dent loan counseling under section 485(l), the 
student loan contract under this subsection, or 
both; and 
‘‘(C) is effective in helping the student un-
derstand the student’s rights and obligations as 
a Federal student loan borrower. 
‘‘(3) LOAN ACCEPTANCE.—Prior to making the 
first disbursement of a covered loan (other than a 
Federal Direct Consolidation Loan) to a borrower, 
the eligible institution shall ensure that the bor-
rower— 
‘‘(A) has completed the applicable coun-
seling under paragraph (2) or (3) of section 
485(l); and 
‘‘(B) after completing such counseling, ac-
cepts the loan by— 
‘‘(i) signing and returning to the insti-
tution the student loan contract described 
in section 455(c)(1) that affirmatively 
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states that the borrower accepts the loan; 
or 
‘‘(ii) electronically signing an elec-
tronic version of such student loan con-
tract, which may be done through the on-
line counseling tool in accordance with sec-
tion 485(n)(1)(B).’’. 
(b) CONFORMING AMENDMENT.—Section 487(a)(7) 
(20 U.S.C. 1094(a)(7)) is amended by striking ‘‘section 
485’’ and inserting ‘‘sections 455(c)(3) and 485’’. 
SEC. 402. PRE-LOAN INFORMATION AND COUNSELING RE-
QUIREMENTS. 
Section 485(l) (20 U.S.C. 1092(l)) is amended to 
read as follows: 
‘‘(l) STUDENT LOAN ENTRANCE COUNSELING.— 
‘‘(1) STUDENT LOAN ENTRANCE COUNSELING 
REQUIREMENT FOR INSTITUTIONS.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall ensure that, prior to the date of the 
disbursement of a loan for a period of enroll-
ment at such institution, each individual for 
whom the institution has knowledge that the in-
dividual has accepted, or will accept, 1 or more 
student loans under part D (including any such 
loans for attendance at another institution from 
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which the student transferred or in which the 
student had previously enrolled, other than a 
Federal Direct Consolidation Loan) for such pe-
riod of enrollment, receives comprehensive in-
formation on the terms and conditions of such 
loans and the responsibilities the individual has 
with respect to such loans. Such information 
shall be provided in a simple, understandable, 
and consumer-friendly manner during a coun-
seling session conducted— 
‘‘(i) in person; 
‘‘(ii) online, with the individual ac-
knowledging receipt of the information; or 
‘‘(iii) through the use of the online 
counseling tool described in subsection 
(n)(1)(B). 
‘‘(B) USE OF INTERACTIVE PROGRAMS.— 
In the case of institutions not using the online 
counseling 
tool 
described 
in 
subsection 
(n)(1)(B), the Secretary shall require such in-
stitutions to carry out the requirements of sub-
paragraph (A) through the use of interactive 
programs, during a counseling session that is 
in-person or online, that test the individual’s 
understanding of the terms and conditions of 
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the loan awarded to the individual, using simple 
and understandable language and clear for-
matting. 
‘‘(2) LOAN COUNSELING FOR BORROWERS RE-
CEIVING LOANS MADE UNDER PART D (OTHER THAN 
PARENT PLUS LOANS).—The information to be pro-
vided under paragraph (1)(A) to a borrower of a 
loan made under part D (other than a Federal Di-
rect PLUS Loan made on behalf of a dependent stu-
dent) shall include the following: 
‘‘(A) A notification that some students 
may qualify for other financial aid that does not 
need to be repaid, and an explanation that the 
borrower should consider accepting any such 
grant, scholarship, military tuition assistance, 
veterans benefits, Federal or State work-study, 
or other programs for which the borrower is eli-
gible, prior to accepting student loans. 
‘‘(B) An explanation of the use of the stu-
dent loan contract referred to in section 455(c). 
‘‘(C) A recommendation to the borrower to 
exhaust the borrower’s Federal student loan op-
tions prior to taking out private education 
loans, an explanation that Federal student 
loans typically offer better terms and conditions 
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than private education loans, an explanation 
that Federal student loans offer consumer pro-
tections typically not available in the private 
education loan market, an explanation of treat-
ment of loans made under part D and private 
education loans in bankruptcy, and an expla-
nation that if a borrower decides to take out a 
private education loan— 
‘‘(i) the borrower has the ability to se-
lect a private educational lender of the bor-
rower’s choice; 
‘‘(ii) the proposed private education 
loan may impact the borrower’s potential 
eligibility for other financial assistance, in-
cluding Federal financial assistance under 
this title; and 
‘‘(iii) the borrower has a right— 
‘‘(I) to accept the terms of the 
private education loan within 30 cal-
endar days following the date on 
which the application for such loan is 
approved and the borrower receives 
the required disclosure documents, 
pursuant to section 128(e) of the 
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Truth in Lending Act (15 U.S.C. 
1638(e)); and 
‘‘(II) to cancel such loan within 3 
business days of the date on which the 
loan is consummated, pursuant to sec-
tion 128(e)(7) of such Act (15 U.S.C. 
1638(e)(7)). 
‘‘(D) An explanation of the importance of 
contacting the appropriate offices at the institu-
tion of higher education if the student with-
draws prior to completing a program of study 
so that the institution can provide exit coun-
seling, including information regarding the bor-
rower’s repayment options and loan consolida-
tion. 
‘‘(E) A general description of the terms 
and conditions under which the student may ob-
tain forgiveness or cancellation of any principal 
and interest of a loan issued under this title. 
‘‘(F) Information as to how the borrower 
can access their loan records and the contact 
information for inquiries regarding repaying the 
loan. 
‘‘(G) The contact information for the fi-
nancial aid office, or other appropriate office, at 
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the institution that the borrower may contact if 
the borrower has any questions about the bor-
rower’s rights and responsibilities or the terms 
and conditions of the loan. 
‘‘(H) An explanation that the borrower has 
the right to annually request a copy of the cred-
it report of the borrower from a consumer re-
porting agency pursuant to section 612(a) of 
the Fair Credit Reporting Act (15 U.S.C. 
1681j(a)). 
‘‘(I) An explanation that— 
‘‘(i) the borrower may be contacted 
during the repayment period by a third- 
party student debt relief company; 
‘‘(ii) the borrower should use caution 
when dealing with such a company; and 
‘‘(iii) the services that such a com-
pany typically provides are offered to bor-
rowers free of charge through the Depart-
ment or the borrower’s servicer. 
‘‘(3) BORROWERS
RECEIVING
PARENT
PLUS 
LOANS FOR DEPENDENT STUDENTS.—The informa-
tion to be provided under paragraph (1)(A) to a bor-
rower of a Federal Direct PLUS Loan made on be-
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half of a dependent student shall include the fol-
lowing: 
‘‘(A) A notification that some students 
may qualify for other financial aid and an ex-
planation that the student for whom the bor-
rower is taking out the loan should consider ac-
cepting any such grant, scholarship, military 
tuition assistance, veterans benefits, Federal or 
State work-study jobs, or other programs for 
which the student for whom the borrower is 
taking out the loan is eligible, prior to bor-
rowing any Federal Direct PLUS Loan on be-
half of a dependent student. 
‘‘(B) The information described in sub-
paragraphs (B) through (I) of paragraph (2), 
as applicable. 
‘‘(C) The circumstances under which a 
borrower of a Federal Direct PLUS Loan made 
on behalf of a dependent student may transfer 
such loan to the student for whom the loan was 
taken out.’’. 
SEC. 403. EXIT COUNSELING. 
Section 485(b) (20 U.S.C. 1092(b)) is amended to 
read as follows: 
‘‘(b) STUDENT LOAN EXIT COUNSELING.— 
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‘‘(1) IN GENERAL.— 
‘‘(A) COUNSELING INCLUDED.—Each eligi-
ble institution shall provide counseling to bor-
rowers of loans made under part D (including 
any such loans for attendance at another insti-
tution from which the student transferred or in 
which the student had previously enrolled, other 
than a Federal Direct Consolidation Loan) 
prior to the completion of the course of study 
for which the borrower enrolled at the institu-
tion or at the time of departure from such insti-
tution. The counseling required by this sub-
section shall be provided through the use of an 
interactive program, during an exit counseling 
session that is in-person or online, or through 
the use of the online counseling tool described 
in subsection (n)(1)(A), and shall include— 
‘‘(i) an explanation of the grace period 
preceding repayment and the expected date 
that the borrower will enter repayment; 
‘‘(ii) an explanation that the borrower 
has the option to pay any interest that has 
accrued while the borrower was in school 
or that may accrue during the grace period 
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preceding repayment or during an author-
ized period of pause payment; 
‘‘(iii) the outstanding balance of prin-
cipal and interest owed by the borrower at 
the time of such counseling on loans made, 
insured, or guaranteed to the borrower 
under this title; 
‘‘(iv) information on the repayment 
plans available, including a description of 
the different features of each plan and 
sample information showing the average 
anticipated monthly payments, and the dif-
ference in interest paid and total pay-
ments, under each plan; 
‘‘(v) a description of the borrower’s 
options for pause payment under section 
460B; 
‘‘(vi) a description of the Federal tax 
benefits that may be available for repaying 
loans made under this title; 
‘‘(vii) a description of the terms and 
conditions under which the student may 
obtain forgiveness or cancellation of any 
principal and interest of a loan made 
under this title; 
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‘‘(viii) an explanation that the bor-
rower has the option to prepay each loan, 
pay each loan on a shorter schedule, and 
change repayment plans; 
‘‘(ix) the implications of, and options 
to get out of, default on a loan; 
‘‘(x) information as to how the stu-
dent borrower can access their loan 
records; 
‘‘(xi) an explanation that— 
‘‘(I) the borrower may be con-
tacted during the repayment period by 
a third-party student debt relief com-
pany; 
‘‘(II) the borrower should use 
caution when dealing with such a 
company; and 
‘‘(III) the services that such a 
company typically provides are offered 
to borrowers free of charge through 
the Department or the borrower’s 
servicer; and 
‘‘(xii) an explanation that the bor-
rower has the right to annually request a 
copy of the credit report of the borrower 
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from a consumer reporting agency pursu-
ant to section 612(a) of the Fair Credit 
Reporting Act (15 U.S.C. 1681j(a)). 
‘‘(B) STUDENTS LEAVING WITHOUT PRIOR 
NOTICE TO THE INSTITUTION.—In the case of 
borrower who leaves an institution without the 
prior knowledge of the institution, the institu-
tion shall attempt to provide the information 
described in subparagraph (A) to the borrower 
in online or in writing, except that in the case 
of an institution using the online counseling 
tool described in subsection (n)(1)(A), the Sec-
retary shall attempt to provide such information 
to the borrower in the manner described in sub-
section (n)(3)(C). 
‘‘(2) INFORMATION TO BE SUBMITTED BY BOR-
ROWER.— 
‘‘(A) IN GENERAL.—Each eligible institu-
tion shall require that the borrower of a loan 
made under part D submit to the institution, 
during the exit counseling required by this sub-
section— 
‘‘(i) the borrower’s expected perma-
nent address after leaving the institution; 
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‘‘(ii) the borrower’s most recent con-
tact information; and 
‘‘(iii) any corrections in the institu-
tion’s records relating the borrower’s 
name, social security number, and driver’s 
license number, as applicable. 
‘‘(B) INFORMATION TO BE PROVIDED TO 
THE
SECRETARY.—Each eligible institution 
shall, not later than 60 days after the date of 
collection of the information described in sub-
paragraph (A), forward the information re-
ceived from the borrower to the Secretary. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this subsection shall be construed to prohibit 
an institution of higher education from utilizing 
electronic means to provide personalized exit 
counseling.’’. 
SEC. 404. ONLINE COUNSELING TOOLS. 
Section 485 (20 U.S.C. 1092), as amended by this 
Act, is further amended by adding at the end the fol-
lowing: 
‘‘(n) ONLINE COUNSELING TOOLS.— 
‘‘(1) IN GENERAL.—Beginning not later than 1 
year after the date of enactment of the Affordable 
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Loans for Any Student Act, the Secretary shall 
maintain— 
‘‘(A) an online counseling tool that pro-
vides the exit counseling required under sub-
section (b) and meets the applicable require-
ments of this subsection; and 
‘‘(B) an online counseling tool that pro-
vides the counseling required under subsection 
(l), enables a borrower to electronically sign and 
accept the borrower’s student loan contract, 
and meets the applicable requirements of this 
subsection. 
‘‘(2) REQUIREMENTS OF TOOLS.—In maintain-
ing the online counseling tools described in para-
graph (1), the Secretary shall ensure that each such 
tool, and its underlying content— 
‘‘(A) are consumer tested, in consultation 
with other relevant Federal agencies, students, 
borrowers, institutions of higher education, sec-
ondary school and postsecondary counselors, 
and consumer advocacy organizations, to ensure 
that the tool is effective in helping individuals 
understand their rights and obligations with re-
spect to borrowing a loan made under part D; 
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‘‘(B) are understandable to borrowers of 
loans made under part D; 
‘‘(C) are freely available to all eligible in-
stitutions; and 
‘‘(D) integrate applicable loan data from 
the National Student Loan Data System or a 
successor system, including data regarding 
loans made, insured, or guaranteed under this 
title and data regarding private education 
loans, pursuant to section 485B(i). 
‘‘(3) RECORD OF COUNSELING COMPLETION.— 
The Secretary shall— 
‘‘(A) use each online counseling tool de-
scribed in paragraph (1) to— 
‘‘(i) keep a record of which individuals 
have received counseling using the tool; 
and 
‘‘(ii) notify the applicable institutions 
of the individual’s completion of such coun-
seling; 
‘‘(B) in the case of a borrower who re-
ceives counseling for a loan made under part D 
using the tool described in paragraph (1)(B)— 
‘‘(i) enable the borrower to accept and 
electronically sign the student loan con-
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tract 
as 
required 
under 
section 
455(c)(3)(B)(ii), and notify the applicable 
institutions that the individual completed 
the counseling and electronically signed the 
contract; and 
‘‘(ii) if the borrower chooses not to 
sign the student loan contract through the 
online counseling tool— 
‘‘(I) 
inform 
the 
borrower, 
through the online counseling tool, of 
the date by when the borrower should 
accept and sign the student loan con-
tract for which the borrower has re-
ceived such counseling; and 
‘‘(II) notify the applicable insti-
tution that the borrower completed 
the counseling but did not sign the 
student loan contract; and 
‘‘(C) in the case of a borrower described in 
subsection (b)(1)(B) at an institution that uses 
the online counseling tool described in para-
graph (1)(A) of this subsection, attempt to pro-
vide the information described in subsection 
(b)(1)(A) to the borrower through such tool.’’. 
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SEC. 405. PRIVATE EDUCATION LOAN CERTIFICATION AND 
INFORMATION. 
(a) AMENDMENTS TO THE HIGHER EDUCATION ACT 
OF 1965.— 
(1) IN GENERAL.—Section 487(a) (20 U.S.C. 
1094(a)) is amended by striking paragraph (28) and 
inserting the following: 
‘‘(28)(A) The institution shall— 
‘‘(i) upon the request of a private edu-
cational lender, acting in connection with an ap-
plication initiated by a borrower for a private 
education loan in accordance with section 
128(e)(3) of the Truth in Lending Act, provide 
certification to such private educational lend-
er— 
‘‘(I) that the student who initiated the 
application for the private education loan, 
or on whose behalf the application was ini-
tiated, is enrolled or is scheduled to enroll 
at the institution; 
‘‘(II) of such student’s cost of attend-
ance at the institution as determined under 
part F; and 
‘‘(III) of the difference between— 
‘‘(aa) the cost of attendance at 
the institution; and 
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‘‘(bb) the student’s estimated fi-
nancial assistance received under this 
title and other assistance known to 
the institution, as applicable; and 
‘‘(ii) provide the certification described in 
clause (i), or notify the private educational 
lender that the institution has received the re-
quest for certification and will need additional 
time to comply with the certification request— 
‘‘(I) within 15 business days of receipt 
of such certification request; and 
‘‘(II) only after the institution has 
completed the activities described in sub-
paragraph (B). 
‘‘(B) The institution shall, upon receipt of a 
certification request described in subparagraph 
(A)(i), and prior to providing such certification— 
‘‘(i) determine whether the student who 
initiated the application for the private edu-
cation loan, or on whose behalf the application 
was initiated, has applied for and exhausted the 
Federal financial assistance available to such 
student under this title and inform the student 
accordingly; and 
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‘‘(ii) provide the borrower whose loan ap-
plication has prompted the certification request 
by a private education lender, as described in 
subparagraph (A)(i), with the following infor-
mation and disclosures: 
‘‘(I) If the borrower has not yet ex-
hausted the financial assistance available 
to the borrower under this title, the 
amount of additional Federal student as-
sistance for which the borrower is eligible 
and the potential advantages of Federal 
loans under this title, including disclosure 
of— 
‘‘(aa) the fixed interest rates and 
pause payment processes; 
‘‘(bb) the option for and terms of 
income-based repayment, loan forgive-
ness programs, and additional protec-
tions; and 
‘‘(cc) the higher student loan lim-
its for dependent students whose par-
ents are not eligible for a Federal Di-
rect PLUS Loan. 
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‘‘(II) The borrower’s ability to select a 
private educational lender of the bor-
rower’s choice. 
‘‘(III) The impact of a proposed pri-
vate education loan on the borrower’s po-
tential eligibility for other financial assist-
ance, including Federal financial assistance 
under this title. 
‘‘(IV) The borrower’s right to accept 
or reject a private education loan within 
the 30-day period following a private edu-
cational lender’s approval of a borrower’s 
application, and a borrower’s 3-day right 
to cancel period under section 128(e)(7) of 
the Truth in Lending Act (15 U.S.C. 
1650(e)(7)). 
‘‘(C) For purposes of this paragraph, the terms 
‘private educational lender’ and ‘private education 
loan’ have the meanings given such terms in section 
140 of the Truth in Lending Act (15 U.S.C. 
1650).’’. 
(2) NATIONAL STUDENT LOAN DATA SYSTEM.— 
Section 485B (20 U.S.C. 1092b) is amended— 
(A) in subsection (a), by striking ‘‘and 
loans made under parts D and E’’ and insert-
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ing ‘‘, loans made under parts D and E, and 
private education loans (in accordance with sub-
section (i))’’; 
(B) in subsection (g), in the subsection 
heading, by inserting ‘‘FOR FEDERAL LOANS’’ 
after ‘‘DATA REPORTING’’; and 
(C) by adding at the end the following: 
‘‘(j) PRIVATE EDUCATION LOAN REPORTING.—The 
Secretary shall include in the National Student Loan Data 
System the information regarding private education loans 
that the Director of the Consumer Financial Protection 
Bureau, in coordination with the Secretary, determines 
necessary 
to 
be 
included 
pursuant 
to 
section 
128(e)(9)(B)(ii) of the Truth in Lending Act (15 U.S.C. 
1638(e)(9)(B)(ii)).’’. 
(3) EFFECTIVE DATE.—The amendments made 
by paragraphs (1) and (2) shall take effect on the 
effective date of the regulations described in sub-
section (b)(3). 
(b) AMENDMENTS
TO
THE TRUTH
IN LENDING 
ACT.— 
(1) IN GENERAL.—Section 128(e) of the Truth 
in Lending Act (15 U.S.C. 1638(e)) is amended— 
(A) by striking paragraph (3) and insert-
ing the following: 
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‘‘(3) 
INSTITUTIONAL
CERTIFICATION
RE-
QUIRED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), before a private educational 
lender may issue any funds with respect to a 
private education loan, the private educational 
lender shall obtain, from the relevant institution 
of higher education where such loan is to be 
used for a student, a certification in accordance 
with section 485(a)(28)(A) of the Higher Edu-
cation 
Act 
of 
1965 
(20 
U.S.C. 
1094(a)(28)(A))— 
‘‘(i) confirming that the student is en-
rolled or is scheduled to be enrolled at the 
institution; and 
‘‘(ii) stating— 
‘‘(I) the student’s cost of attend-
ance at the institution, as determined 
by the institution under part F of title 
IV of the Higher Education Act of 
1965 (20 U.S.C. 1087kk et seq.); and 
‘‘(II) the difference between— 
‘‘(aa) such cost of attend-
ance; and 
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‘‘(bb) the student’s esti-
mated financial assistance, in-
cluding such assistance received 
under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 
1070 et seq.) and other financial 
assistance known to the institu-
tion, as applicable. 
‘‘(B) 
TIMING.—Pursuant 
to 
section 
485(a)(28)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1094(a)(28)(A)), a private 
education lender shall receive the certification 
described in subparagraph (A) within 15 days 
of a request by the private education lender, 
unless the institution of higher education noti-
fies the private educational lender pursuant to 
section 485(a)(28)(A)(ii) of such Act that addi-
tional time is needed. 
‘‘(C) ADDITIONAL REQUIREMENTS.—Upon 
receiving the certification described in subpara-
graph (A) for a private education loan, the pri-
vate educational lender— 
‘‘(i) may proceed to issue funds with 
respect to the private education loan; and 
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‘‘(ii) after issuing the private edu-
cation loan, shall— 
‘‘(I) notify the institution of 
higher education involved that the pri-
vate education loan has been issued to 
the borrower, and the amount of such 
loan; and 
‘‘(II) provide the Director of the 
Consumer Financial Protection Bu-
reau and the Secretary of Education 
with the information described in 
paragraph (9)(B).’’; 
(B) by redesignating paragraphs (9), (10), 
and (11), as paragraphs (10), (11), and (12), 
respectively; and 
(C) by inserting after paragraph (8) the 
following: 
‘‘(9) PROVISION OF INFORMATION.— 
‘‘(A) PROVISION OF INFORMATION TO BOR-
ROWERS.— 
‘‘(i) LOAN
STATEMENTS.—A private 
educational lender that issues any funds 
with respect to a private education loan 
shall— 
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‘‘(I) send loan statements, if the 
loan is to be used for a student, to 
borrowers of the funds not less than 
once every 3 months during the time 
that the student is enrolled at an in-
stitution of higher education; and 
‘‘(II) in the case of a private edu-
cation loan that includes a cosigner, 
annually send a loan statement to the 
borrower’s cosigner, notifying the co-
signer of the terms, conditions, and 
status of such private education loan. 
‘‘(ii) CONTENTS
OF
LOAN
STATE-
MENT.—Each 
statement 
described 
in 
clause (i) shall— 
‘‘(I) report the borrower’s total 
remaining debt to the private edu-
cational lender, including accrued but 
unpaid interest and capitalized inter-
est; 
‘‘(II) report any debt increases 
since the last statement; and 
‘‘(III) list the current interest 
rate for each loan. 
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‘‘(B) PROVISION
OF
INFORMATION
TO 
FEDERAL AGENCIES.— 
‘‘(i) INFORMATION FROM LENDER.— 
Each private educational lender shall— 
‘‘(I) submit to the Director of the 
Consumer Financial Protection Bu-
reau and the Secretary of Education 
such information regarding a private 
education loan as may be determined 
necessary by the Director and the 
Secretary under clause (ii) for inclu-
sion in the National Student Loan 
Data System under section 485B(i) of 
the Higher Education Act of 1965 (20 
U.S.C. 1092b(i)); and 
‘‘(II) prepare and submit an an-
nual report to the Consumer Finan-
cial Protection Bureau regarding the 
private education loans issued by the 
private educational lender. 
‘‘(ii) PROMULGATION
OF
REGULA-
TIONS.—Not later than 1 year after the 
date of enactment of the Affordable Loans 
for Any Student Act, the Director of the 
Consumer Financial Protection Bureau, in 
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coordination with the Secretary of Edu-
cation, shall promulgate regulations re-
garding the private education loan infor-
mation required to be submitted under 
clause (i), including the content, method, 
and format for submission. The informa-
tion required for inclusion in the National 
Student Loan Data System shall include— 
‘‘(I) information identifying the 
borrower, including the borrower’s 
name and social security number; 
‘‘(II) the name of the institution 
of higher education that has certified 
the private education loan; 
‘‘(III) the name of the lender; 
‘‘(IV) the amount of the private 
education loan; 
‘‘(V) the term, or other enroll-
ment period, for which the private 
education loan is issued; and 
‘‘(VI) whether a cosigner was re-
quired as a condition of the private 
education loan.’’. 
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(2) 
DEFINITION
OF
PRIVATE
EDUCATION 
LOAN.—Section 140(a)(8)(A) of the Truth in Lend-
ing Act (15 U.S.C. 1650(a)(8)(A)) is amended— 
(A) by redesignating clause (ii) as clause 
(iii); 
(B) in clause (i), by striking ‘‘and’’ after 
the semicolon; and 
(C) by adding after clause (i) the following: 
‘‘(ii) is not made, insured, or guaran-
teed under title VII or title VIII of the 
Public Health Service Act (42 U.S.C. 292 
et seq. and 296 et seq.); and’’. 
(3) REGULATIONS.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Di-
rector of the Consumer Financial Protection 
Bureau, in coordination with the Secretary of 
Education, shall promulgate regulations to im-
plement paragraphs (3) and (9) of section 
128(e) of the Truth in Lending Act (15 U.S.C. 
1638(e)), as amended by paragraph (1) of this 
subsection. 
(B) EFFECTIVE
DATE.—The regulations 
promulgated under subparagraph (A) shall take 
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effect on the date that is 180 days after the 
date on which the regulations are promulgated. 
TITLE V—EFFECTIVE DATE; 
TRANSITION; IMPLEMENTATION 
SEC. 501. EFFECTIVE DATE; RULEMAKING REGARDING TER-
MINATION OF CERTAIN REPAYMENT PLANS; 
IMPLEMENTATION. 
(a) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided, this Act, and the amendments made by this 
Act, shall take effect on July 1, 2022. 
(b) APPLICABILITY WITH RESPECT TO FORBEAR-
ANCE
AND
DEFERMENT
FOR
DIRECT
LOAN
BOR-
ROWERS.—With respect to any borrower of a loan under 
part D of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1087a et seq.) that is, or has been, in forbear-
ance or deferment as of the day before the effective date 
described in subsection (a), the Secretary shall take such 
steps as are necessary— 
(1) to transfer a borrower with a loan in for-
bearance or deferment as of such day automatically 
into relief provided under the pause payment process 
established under section 460B of such Act (as 
amended by this Act); and 
(2) to ensure that the period of time for which 
a borrower is eligible for pause payment under such 
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section 460B for a loan is appropriately reduced to 
account for any time the loan was previously in for-
bearance or deferment. 
(c) REGULATIONS.—Before the effective date de-
scribed in subsection (a), the Secretary of Education shall 
carry out a plan to end all eligibility for repayment plans 
other than a fixed repayment plan described in section 
493E of the Higher Education Act of 1965, as added by 
this Act, and an income-based repayment plan under sec-
tion 493C(c) of such Act (20 U.S.C. 1098e(f)) for loans 
made under part B or D of title IV of such Act, unless 
the borrower is enrolled in another repayment plan before 
such effective date, in accordance with the amendments 
made by this Act. 
(d) IMPLEMENTATION.—In carrying out the amend-
ments made by this Act, or any regulations promulgated 
under this Act, the Secretary of Education may waive the 
application of— 
(1) subchapter I of chapter 35 of title 44, 
United States Code (commonly known as the ‘‘Pa-
perwork Reduction Act’’); 
(2) the master calendar requirements under 
section 482 of the Higher Education Act of 1965 
(20 U.S.C. 1089); 
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(3) negotiated rulemaking under section 492 of 
the Higher Education Act of 1965 (20 U.S.C. 
1098a); and 
(4) the requirement to publish the notices re-
lated to the system of records of the agency before 
implementation required under paragraphs (4) and 
(11) of section 552a(e) of title 5, United States 
Code (commonly known as the ‘‘Privacy Act of 
1974’’). 
Æ 
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