H. R. 4872—50 
(C) in subsection (a)(2)(A)— 
(i) in the second sentence of the matter preceding 
clause (i), by striking ‘‘made, insured, or guaranteed’’ 
and inserting ‘‘made’’; and 
(ii) in clause (iii)— 
(I) in subclause (III), by striking ‘‘only Federal 
Stafford’’ and all that follows through ‘‘section 
428B’’ and inserting ‘‘only Federal Direct Stafford 
Loans under section 455(a)(2)(A), Federal Direct 
Unsubsidized 
Stafford 
Loans 
under 
section 
455(a)(2)(D), or Federal Direct PLUS Loans under 
section 455(a)(2)(B)’’; and 
(II) in subclause (V), by striking ‘‘a Federal 
Stafford’’ and all that follows through ‘‘section 
428B’’ and inserting ‘‘a Federal Direct Stafford 
Loan under section 455(a)(2)(A), a Federal Direct 
Unsubsidized 
Stafford 
Loan 
under 
section 
455(a)(2)(D), or a Federal Direct PLUS Loan under 
section 455(a)(2)(B)’’. 
(2) EFFECTIVE DATE.—The amendments made by subpara-
graph (C) of paragraph (1) shall be effective on July 1, 2010, 
as if enacted as part of section 102(a)(1) of the Higher Education 
Opportunity Act (Public Law 110–315) and subject to section 
102(e) of such Act as amended by section 101(a)(2) of Public 
Law 111–39 (20 U.S.C. 1002 note). 
SEC. 2210. CONFORMING AMENDMENTS. 
(a) AMENDMENTS.—Section 454 (20 U.S.C. 1087d) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (4); and 
(B) by redesignating paragraphs (5) through (7) as 
paragraphs (4) through (6), respectively; and 
(2) in subsection (b)(2), by striking ‘‘(5), (6), and (7)’’ and 
inserting ‘‘(5), and (6)’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on July 1, 2010. 
SEC. 2211. TERMS AND CONDITIONS OF LOANS. 
(a) IN GENERAL.—Section 455 (20 U.S.C. 1087e) is amended— 
(1) in subsection (a)(1), by inserting ‘‘, and first disbursed 
on June 30, 2010,’’ before ‘‘under sections 428’’; and 
(2) in subsection (g)— 
(A) by inserting ‘‘, including any loan made under 
part B and first disbursed before July 1, 2010’’ after ‘‘section 
428C(a)(4)’’; and 
(B) by striking the third sentence. 
(b) EFFECTIVE DATE.—The amendment made by subsection 
(a)(1) shall apply with respect to loans first disbursed under part 
D of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.) on or after July 1, 2010. 
SEC. 2212. CONTRACTS; MANDATORY FUNDS. 
(a) CONTRACTS.—Section 456 (20 U.S.C. 1087f) is amended— 
(1) in subsection (a)— 
(A) by inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) SERVICING BY ELIGIBLE NOT-FOR-PROFIT SERVICERS.— 
‘‘(A) SERVICING CONTRACTS.—
H. R. 4872—51 
‘‘(i) IN
GENERAL.—The Secretary shall contract 
with each eligible not-for-profit servicer to service loans 
originated under this part, if the servicer— 
‘‘(I) meets the standards for servicing Federal 
assets that apply to contracts awarded pursuant 
to paragraph (1); and 
‘‘(II) has the capacity to service the applicable 
loan volume allocation described in subparagraph 
(B). 
‘‘(ii) COMPETITIVE
MARKET
RATE
DETERMINATION 
FOR FIRST 100,000 BORROWER ACCOUNTS.—The Secretary 
shall establish a separate pricing tier for each of the 
first 100,000 borrower loan accounts at a competitive 
market rate. 
‘‘(iii) 
INELIGIBILITY.—An 
eligible 
not-for-profit 
servicer shall no longer be eligible for a contract under 
this paragraph after July 1, 2014, if— 
‘‘(I) the servicer has not been awarded such 
a contract before that date; or 
‘‘(II) the servicer’s contract was terminated, 
and the servicer had not reapplied for, and been 
awarded, a contract under this paragraph. 
‘‘(B) ALLOCATIONS.— 
‘‘(i) IN GENERAL.—The Secretary shall (except as 
provided in clause (ii)) allocate to an eligible not-for- 
profit servicer, subject to the contract of such servicer 
described in subparagraph (A), the servicing rights 
for the loan accounts of 100,000 borrowers (including 
borrowers who borrowed loans in a prior year that 
were serviced by the servicer). 
‘‘(ii) SERVICER
ALLOCATION.—The Secretary may 
reallocate, increase, reduce, or terminate an eligible 
not-for-profit servicer’s allocation of servicing rights 
under clause (i) based on the performance of such 
servicer, on the same terms as loan allocations provided 
by contracts awarded pursuant to paragraph (1).’’; and 
(2) by adding at the end the following: 
‘‘(c) DEFINITION
OF ELIGIBLE NOT-FOR-PROFIT SERVICER.—In 
this section: 
‘‘(1) IN GENERAL.—The term ‘eligible not-for-profit servicer’ 
means an entity— 
‘‘(A) that is not owned or controlled in whole or in 
part by— 
‘‘(i) a for-profit entity; or 
‘‘(ii) a nonprofit entity having its principal place 
of business in another State; and 
‘‘(B) that— 
‘‘(i) as of July 1, 2009— 
‘‘(I) meets the definition of an eligible not- 
for-profit holder under section 435(p), except that 
such term does not include eligible lenders 
described in paragraph (1)(D) of such section; and 
‘‘(II) was performing, or had entered into a 
contract with a third party servicer (as such term 
is defined in section 481(c)) who was performing, 
student loan servicing functions for loans made 
under part B of this title;
H. R. 4872—52 
‘‘(ii) notwithstanding clause (i), as of July 1, 2009— 
‘‘(I) is the sole beneficial owner of a loan for 
which the special allowance rate is calculated 
under section 438(b)(2)(I)(vi)(II) because the loan 
is held by an eligible lender trustee that is an 
eligible not-for-profit holder as defined under sec-
tion 435(p)(1)(D); and 
‘‘(II) was performing, or had entered into a 
contract with a third party servicer (as such term 
is defined in section 481(c)) who was performing, 
student loan servicing functions for loans made 
under part B of this title; or 
‘‘(iii) is an affiliated entity of an eligible not-for- 
profit servicer described in clause (i) or (ii) that— 
‘‘(I) directly employs, or will directly employ 
(on or before the date the entity begins servicing 
loans under a contract awarded by the Secretary 
pursuant to subsection (a)(3)(A)), the majority of 
individuals who perform borrower-specific student 
loan servicing functions; and 
‘‘(II) as of July 1, 2009, was performing, or 
had entered into a contract with a third party 
servicer (as such term is defined in section 481(c)) 
who was performing, student loan servicing func-
tions for loans made under part B of this title. 
‘‘(2) AFFILIATED ENTITY.—For the purposes of paragraph 
(1), the term ‘affiliated entity’— 
‘‘(A) means an entity contracted to perform services 
for an eligible not-for-profit servicer that— 
‘‘(i) is a nonprofit entity or is wholly owned by 
a nonprofit entity; and 
‘‘(ii) is not owned or controlled, in whole or in 
part, by— 
‘‘(I) a for-profit entity; or 
‘‘(II) an entity having its principal place of 
business in another State; and 
‘‘(B) may include an affiliated entity that is established 
by an eligible not-for-profit servicer after the date of enact-
ment of the SAFRA Act, if such affiliated entity is otherwise 
described in paragraph (1)(B)(iii)(I) and subparagraph (A) 
of this paragraph.’’. 
(b) MANDATORY FUNDS.— 
(1) AMENDMENTS.—Section 458(a) (20 U.S.C. 1087h(a)) is 
amended— 
(A) by redesignating paragraph (5) as paragraph (8); 
(B) by redesignating paragraphs (2) through (4) as 
paragraphs (3) through (5), respectively; 
(C) by inserting after paragraph (1) the following new 
paragraph: 
‘‘(2) MANDATORY
FUNDS
FOR
ELIGIBLE
NOT-FOR-PROFIT 
SERVICERS.—For fiscal years 2010 through 2019, there shall 
be available to the Secretary, in addition to any other amounts 
appropriated to carry out this paragraph and out of any money 
in the Treasury not otherwise appropriated, funds to be obli-
gated for administrative costs of servicing contracts with 
eligible not-for-profit servicers as described in section 456.’’; 
and
H. R. 4872—53 
(D) by inserting after paragraph (5), as redesignated 
by subparagraph (B) of this paragraph, the following: 
‘‘(6) TECHNICAL
ASSISTANCE
TO
INSTITUTIONS
OF
HIGHER 
EDUCATION.— 
‘‘(A) PROVISION OF ASSISTANCE.—The Secretary shall 
provide institutions of higher education participating, or 
seeking to participate, in the loan programs under this 
part with technical assistance in establishing and admin-
istering such programs. 
‘‘(B) FUNDS.—There are authorized to be appropriated, 
and there are appropriated, to carry out this paragraph 
(in addition to any other amounts appropriated to carry 
out this paragraph and out of any money in the Treasury 
not otherwise appropriated), $50,000,000 for fiscal year 
2010. 
‘‘(C) DEFINITION.—In this paragraph, the term ‘assist-
ance’ means the provision of technical support, training, 
materials, technical assistance, and financial assistance. 
‘‘(7) ADDITIONAL PAYMENTS.— 
‘‘(A) PROVISION OF ASSISTANCE.—The Secretary shall 
provide payments to loan servicers for retaining jobs at 
locations in the United States where such servicers were 
operating under part B on January 1, 2010. 
‘‘(B) FUNDS.—There are authorized to be appropriated, 
and there are appropriated, to carry out this paragraph 
(in addition to any other amounts appropriated to carry 
out this paragraph and out of any money in the Treasury 
not otherwise appropriated), $25,000,000 for each of the 
fiscal years 2010 and 2011.’’. 
(2) CONFORMING
AMENDMENT.—Section 458 (20 U.S.C. 
1087h) is further amended by striking ‘‘subsection (a)(3)’’ in 
subsection (b) and inserting ‘‘subsection (a)(4)’’. 
SEC. 2213. INCOME-BASED REPAYMENT. 
Section 493C (20 U.S.C. 1098e) is amended by adding at the 
end the following new subsection: 
‘‘(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’.’’. 
Subtitle B—Health 
SEC. 2301. INSURANCE REFORMS. 
(a) EXTENDING
CERTAIN
INSURANCE
REFORMS
TO
GRAND-
FATHERED PLANS.—Section 1251(a) of the Patient Protection and 
Affordable Care Act, as added by section 10103(d) of such Act, 
is amended by adding at the end the following: 
‘‘(4) APPLICATION OF CERTAIN PROVISIONS.— 
‘‘(A) IN
GENERAL.—The following provisions of the 
Public Health Service Act (as added by this title) shall
H. R. 4872—54 
apply to grandfathered health plans for plan years begin-
ning with the first plan year to which such provisions 
would otherwise apply: 
‘‘(i) Section 2708 (relating to excessive waiting 
periods). 
‘‘(ii) Those provisions of section 2711 relating to 
lifetime limits. 
‘‘(iii) Section 2712 (relating to rescissions). 
‘‘(iv) Section 2714 (relating to extension of 
dependent coverage). 
‘‘(B) PROVISIONS APPLICABLE ONLY TO GROUP HEALTH 
PLANS.— 
‘‘(i) PROVISIONS DESCRIBED.—Those provisions of 
section 2711 relating to annual limits and the provi-
sions of section 2704 (relating to pre-existing condition 
exclusions) of the Public Health Service Act (as added 
by this subtitle) shall apply to grandfathered health 
plans that are group health plans for plan years begin-
ning with the first plan year to which such provisions 
otherwise apply. 
‘‘(ii) ADULT
CHILD
COVERAGE.—For plan years 
beginning before January 1, 2014, the provisions of 
section 2714 of the Public Health Service Act (as added 
by this subtitle) shall apply in the case of an adult 
child with respect to a grandfathered health plan that 
is a group health plan only if such adult child is 
not eligible to enroll in an eligible employer-sponsored 
health plan (as defined in section 5000A(f)(2) of the 
Internal Revenue Code of 1986) other than such grand-
fathered health plan.’’. 
(b) CLARIFICATION REGARDING DEPENDENT COVERAGE.—Section 
2714(a) of the Public Health Service Act, as added by section 
1001(5) of the Patient Protection and Affordable Care Act, is 
amended by striking ‘‘(who is not married)’’. 
SEC. 2302. DRUGS PURCHASED BY COVERED ENTITIES. 
Section 340B of the Public Health Service Act (42 U.S.C. 256b), 
as amended by sections 7101 and 7102 of the Patient Protection 
and Affordable Care Act, is amended— 
(1) in subsection (a)— 
(A) in paragraphs (1), (2), (5), (7), and (9), by striking 
the terms ‘‘covered drug’’ and ‘‘covered drugs’’ each place 
either term appears and inserting ‘‘covered outpatient 
drug’’ or ‘‘covered outpatient drugs’’, respectively; 
(B) in paragraph (4)(L)— 
(i) in clause (i), by striking ‘‘and’’ at the end; 
(ii) in clause (ii), by striking the period and 
inserting ‘‘; and’’; and 
(iii) by inserting after clause (ii), the following: 
‘‘(iii) does not obtain covered outpatient drugs 
through a group purchasing organization or other 
group purchasing arrangement.’’; and 
(C) in paragraph (5)— 
(i) by striking subparagraph (C); 
(ii) by redesignating subparagraphs (D) and (E) 
as subparagraphs (C) and (D), respectively; and