I 
117TH CONGRESS 
2D SESSION 
H. R. 8655 
To streamline and improve the Federal student loan program to protect 
borrowers and taxpayers, prohibit the Secretary of Education from exer-
cising regulatory overreach and abusing its authorities granted by Con-
gress, and extend Federal Pell Grant eligibility to certain short-term 
workforce development programs. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 5, 2022 
Ms. FOXX (for herself, Ms. STEFANIK, and Mr. BANKS) introduced the 
following bill; which was referred to the Committee on Education and Labor 
A BILL 
To streamline and improve the Federal student loan program 
to protect borrowers and taxpayers, prohibit the Sec-
retary of Education from exercising regulatory overreach 
and abusing its authorities granted by Congress, and 
extend Federal Pell Grant eligibility to certain short- 
term workforce development programs. 
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 
‘‘Responsible Education Assistance through Loan Re-
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forms Act’’ or the ‘‘Responsible Education Assistance 
through Loan Reforms Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. References. 
TITLE I—LIMITS ON SECRETARIAL AUTHORITY 
Sec. 101. Limitation on authority of Secretary to propose or issue regulations 
and executive actions. 
TITLE II—LOAN REFORMS 
PART A—CURRENT BORROWERS 
Sec. 201. Income-contingent and income-based repayment plans. 
PART B—LOAN REHABILITATION AND LOAN LIMITS 
Sec. 211. Loan rehabilitation. 
Sec. 212. Loan limits. 
PART C—REPAYMENT TERMS AND CONDITIONS FOR LOANS MADE ON OR 
AFTER JULY 1, 2023 
Sec. 221. Repayment terms for Federal Direct Consolidation Loans. 
Sec. 222. Repayment incentives. 
Sec. 223. Repayment plans. 
Sec. 224. Public service loan forgiveness. 
Sec. 225. Income-based repayment plan. 
Sec. 226. Deferment on loans made on or after July 1, 2023. 
PART D—ELIMINATION OF INTEREST CAPITALIZATION 
Sec. 231. Elimination of interest capitalization. 
TITLE III—WORKFORCE PELL GRANTS 
Sec. 301. Data collection and dissemination related to Workforce Pell. 
Sec. 302. Program eligibility for Workforce Pell grants. 
Sec. 304. Workforce Pell Grants. 
Sec. 305. Accrediting agency determination of eligibility requirements for the 
Workforce Pell Grants program. 
SEC. 2. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
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sion, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
TITLE I—LIMITS ON 
SECRETARIAL AUTHORITY 
SEC. 101. LIMITATION ON AUTHORITY OF SECRETARY TO 
PROPOSE OR ISSUE REGULATIONS AND EX-
ECUTIVE ACTIONS. 
Part G of title IV (20 U.S.C. 1088 et seq.) is amend-
ed by inserting after section 492 the following: 
‘‘SEC. 492A. LIMITATION ON AUTHORITY OF THE SEC-
RETARY TO PROPOSE OR ISSUE REGULA-
TIONS AND EXECUTIVE ACTIONS. 
‘‘(a) DRAFT REGULATIONS.—Beginning after the 
date of enactment of this section, a draft regulation imple-
menting this title (as described in section 492(b)(1)) that 
is determined by the Secretary to be economically signifi-
cant shall be subject to the following requirements (re-
gardless of whether negotiated rulemaking occurs): 
‘‘(1) The Secretary shall determine whether the 
draft regulation, if implemented, would result in an 
increase in a subsidy cost resulting from a loan 
modification. 
‘‘(2) If the Secretary determines under para-
graph (1) that the draft regulation would result in 
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an increase in a subsidy cost resulting from a loan 
modification, then the Secretary may take no further 
action with respect to such regulation. 
‘‘(b) PROPOSED OR FINAL REGULATIONS AND EXEC-
UTIVE ACTIONS.—Beginning after the date of enactment 
of this section, the Secretary may not issue a proposed 
rule, final regulation, or executive action implementing 
this title if the Secretary determines that the rule, regula-
tion, or executive action— 
‘‘(1) is economically significant; and 
‘‘(2) would result in an increase in a subsidy 
cost resulting from a loan modification. 
‘‘(c) RELATIONSHIP TO OTHER REQUIREMENTS.— 
The analyses required under subsections (a) and (b) shall 
be in addition to any other cost analysis required under 
law for a regulation implementing this title, including any 
cost analysis that may be required pursuant to Executive 
Order 12866 (58 Fed. Reg. 51735; relating to regulatory 
planning and review), Executive Order 13563 (76 Fed. 
Reg. 3821; relating to improving regulation and regu-
latory review), or any related or successor orders. 
‘‘(d) DEFINITION.—In this section, the term ‘eco-
nomically significant’, when used with respect to a draft, 
proposed, or final regulation or executive action, means 
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that the regulation or executive action is likely, as deter-
mined by the Secretary— 
‘‘(1) to have an annual effect on the economy 
of $100,000,000 or more; or 
‘‘(2) adversely to affect in a material way the 
economy, a sector of the economy, productivity, com-
petition, jobs, the environment, public health or safe-
ty, or State, local, or tribal governments or commu-
nities.’’. 
TITLE II—LOAN REFORMS 
PART A—CURRENT BORROWERS 
SEC. 201. INCOME-CONTINGENT AND INCOME-BASED RE-
PAYMENT PLANS. 
(a) INCOME-CONTINGENT REPAYMENT.— 
(1) EXCESSIVE INTEREST CAP.—Section 455(e) 
(20 U.S.C. 1087e(e)) is amended by adding at the 
end the following: 
‘‘(9) EXCESSIVE
INTEREST
CAP.—The Sec-
retary shall cancel any outstanding balance due on 
all loans made under this part (other than an ex-
cepted PLUS Loan or an excepted Consolidation 
Loan as such terms are defined in section 493C) to 
a borrower— 
‘‘(A) for whom an income contingent re-
payment plan under this subsection is in effect, 
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without regard to the period of time for which 
such plan has been so in effect for such bor-
rower; 
‘‘(B) who, in the absence of this para-
graph, would not yet be eligible for loan can-
cellation under such plan; and 
‘‘(C) who has repaid, pursuant to para-
graph (7)— 
‘‘(i)(I) subject to subclause (II), an 
amount on such loans that is equal to the 
total amount of principal and interest that 
the borrower would have repaid under a 
standard repayment plan under section 
455(d)(1)(A), based on a 10-year repay-
ment period, when the borrower entered 
repayment on such loans; or 
‘‘(II) in the case of a Federal Direct 
Consolidation Loan, an amount on such 
loan that is equal to the total amount of 
principal and interest that the borrower 
would have repaid under the repayment 
schedule established for such loan under 
section 428C(c)(2) on the date on which 
such loan was made; and 
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‘‘(ii) an amount equal to the amount 
of any unpaid interest that has accrued, 
but was not included in the calculation of 
the total amount principal and interest 
that would have been repaid under the 
standard repayment plan or schedule de-
scribed in clause (i)— 
‘‘(I) during any deferment period 
described in clause (i) or (ii) of sec-
tion 455(f)(2)(A); and 
‘‘(II) during any forbearance pe-
riod while serving in a medical or den-
tal internship or residency program as 
described 
in 
section 
428(c)(3)(A)(i)(I); and’’. 
(2) EXCESSIVE INTEREST CAP FOR DISTRESSED 
BORROWERS.—Section 455(e) (20 U.S.C. 1087e(e)) 
is further amended by adding at the end the fol-
lowing: 
‘‘(10) EXCESSIVE
INTEREST
CAP
FOR
DIS-
TRESSED BORROWERS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
cancel the balance of interest due (in accord-
ance with subparagraph (B)) on any loan made 
under this part (other than an excepted PLUS 
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or excepted consolidation loan (as defined in 
section 493C)) to a borrower— 
‘‘(i)(I) who has been in repayment for 
not less than a 10-year period on such 
loan; or 
‘‘(II) in the case of a Federal Direct 
Consolidation Loan, who has been in re-
payment on such loan for not less than the 
repayment period under the repayment 
schedule established for such loan under 
section 428C(c)(2) on the date on which 
such loan was made; and 
‘‘(ii) whose first monthly payment on 
such loan pursuant to paragraph (7) that 
is not less than the full amount due on 
such loan for such month, after the date of 
enactment of the REAL Reforms Act, is 
insufficient to cover the interest that has 
accrued on such loan for such month, and 
results in higher balance of principal and 
interest on such loan. 
‘‘(B) AMOUNT
OF
INTEREST
CANCELLA-
TION.—The Secretary shall cancel the obliga-
tion to repay the balance of interest due on 
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such loan as of the time of the payment de-
scribed in subparagraph (A)(ii) on such loan.’’. 
(b) INCOME-BASED REPAYMENT.— 
(1) 
EXCESSIVE
INTEREST
CAP.—Section 
493C(b)(7)(B) 
(20 
U.S.C. 
1098e(b)(7)(B)) 
is 
amended— 
(A) by redesignating clauses (i) through 
(v) as subclauses (I) through (V), respectively, 
and moving the margins accordingly; 
(B) by striking the following: 
‘‘(B) for a period’’; and inserting the fol-
lowing: 
‘‘(B)(i) for a period’’; 
(C) by inserting ‘‘or’’ at the end of clause 
(i)(V), as so redesignated; and 
(D) by adding at the end the following: 
‘‘(ii) in the absence of this clause, 
would not yet be eligible for loan cancella-
tion or repayment under this paragraph, 
and has repaid, pursuant to clause (i)— 
‘‘(I)(aa) subject to item (bb), an 
amount on such loans that is equal to 
the total amount of principal and in-
terest that the borrower would have 
repaid under a standard repayment 
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plan under section 428(b)(9)(A)(i) or 
section 455(d)(1)(A), based on a 10- 
year repayment period, when the bor-
rower entered repayment on such 
loans; or 
‘‘(bb) in the case of a Federal 
Direct Consolidation Loan or a loan 
made under section 428C, an amount 
on such loan that is equal to the total 
amount of principal and interest that 
the borrower would have repaid under 
the repayment schedule established 
for 
such 
loan 
under 
section 
428C(c)(2) on the date on which such 
loan was made; and 
‘‘(II) an amount equal to the 
amount of any unpaid interest that 
has accrued, but was not included in 
the calculation of the total amount 
principal and interest that would have 
been repaid under the standard repay-
ment plan or schedule described in 
subclause (I)— 
‘‘(aa) during any deferment 
period 
described 
in 
section 
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427(a)(2)(C)(i) 
or 
428(b)(1)(M)(i), or clause (i) or 
(ii) of section 455(f)(2)(A); and 
‘‘(bb) during any forbear-
ance period while serving in a 
medical or dental internship or 
residency program as described 
in section 428(c)(3)(A)(i)(I);’’. 
(2) CLARIFICATION OF REPAYMENT OF PART B 
LOANS.—Section 493C(b) (20 U.S.C. 1098e(b)) is 
further amended— 
(A) by striking ‘‘and’’ at end of paragraph 
(8); 
(B) by striking the period at the end of 
paragraph (9); and 
(C) by adding the end the following: 
‘‘(10) in repaying under clause (ii) of para-
graph (7)(B) the outstanding balance of principal 
and interest due on a loan made under part B to a 
borrower who meets the requirements of such clause 
(ii), or in repaying under subsection (g) the balance 
of interest due on a loan made under part B to a 
borrower who meets the requirements of such sub-
section (g), the Secretary shall— 
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‘‘(A) enter into an agreement with the 
holder of such loan (or, if the holder acts as an 
eligible lender trustee for the beneficial owner 
of the loan, the beneficial owner of the loan) for 
the purpose of assuming the repayment obliga-
tions of the borrower in accordance with sub-
paragraph (B), except that the Secretary shall 
not assign to the United States the right to 
such loan; 
‘‘(B)(i) in the case of a repayment under 
paragraph (7)(B)(ii), assume the obligation of 
the borrower to repay the holder of such loan 
(or, if the holder acts as an eligible lender 
trustee for the beneficial owner of the loan, the 
beneficial owner of the loan) the total amount 
of principal and interest remaining to be repaid 
on such loan (after taking into account the 
amounts repaid by the borrower under para-
graph (7)(B)(ii) and the Secretary under sub-
section (g), if applicable) according to the terms 
and conditions, including the repayment sched-
ule, that were in effect with respect to such 
loan on the day before the Secretary assumes 
such obligation; or 
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‘‘(ii) in the case of a repayment under sub-
section (g), assume the obligation of the bor-
rower to repay the holder of such loan (or, if 
the holder acts as an eligible lender trustee for 
the beneficial owner of the loan, the beneficial 
owner of the loan) the balance of interest due 
on such loan as of the time of the payment de-
scribed in subsection (g)(1)(B) on such loan ac-
cording to the terms and conditions, including 
the repayment schedule, that were in effect with 
respect to such loan on the day before the Sec-
retary assumes such obligation; and 
‘‘(C) ensure that the holder of such loan 
(or, if the holder acts as an eligible lender 
trustee for the beneficial owner of the loan, the 
beneficial owner of the loan) shall, upon enter-
ing into an agreement described in subpara-
graph (A) with respect to a loan of a borrower, 
reports to consumer reporting agencies that— 
‘‘(i) in the case of a repayment under 
paragraph (7)(B)(ii), the borrower’s liabil-
ity on such loan has been discharged; and 
‘‘(ii) in the case of a repayment under 
subsection (g), the borrower’s liability has 
been discharged with respect to the bal-
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ance of the interest due on such loan as of 
the time of the payment described in sub-
section (g)(1)(B) on such loan.’’. 
(3) RULES OF CONSTRUCTION.—Section 493C 
(20 U.S.C. 1098e) is amended by adding at the end 
the following: 
‘‘(f) RULES OF CONSTRUCTION.—Nothing in sub-
section (b)(10) shall be construed to authorize the Sec-
retary to— 
‘‘(1) revoke the rights to a special allowance 
under section 438 of the holder (or, if the holder 
acts as an eligible lender trustee for the beneficial 
owner of the loan, the beneficial owner of the loan) 
of the loans being repaid by the Secretary under 
subsection (b)(10); 
‘‘(2) prepay such loan ahead of repayment 
schedule with respect to such loans described in sub-
paragraph (B) of subsection (b)(10); or 
‘‘(3) use any authority or take any actions be-
yond what is authorized explicitly in subsection 
(b)(10).’’. 
(4) EXCESSIVE INTEREST CAP FOR DISTRESSED 
BORROWERS.—Section 493C (20 U.S.C. 1098e) is 
further amended by adding at the end the following: 
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‘‘(g) EXCESSIVE INTEREST CAP FOR DISTRESSED 
BORROWERS.— 
‘‘(1) IN GENERAL.—The Secretary shall repay 
or cancel the balance of interest due (in accordance 
with paragraph (2)) on any loan made under part B 
or D (other than an excepted PLUS or excepted 
consolidation loan) to a borrower— 
‘‘(A)(i) who has been in repayment for not 
less than a 10-year period on such loan; or 
‘‘(ii) in the case of a Federal Direct Con-
solidation Loan or a consolidation loan under 
section 428C, who has been in repayment on 
such loan for not less than the repayment pe-
riod under the repayment schedule established 
for such loan under section 428C(c)(2) on the 
date on which such loan was made; and 
‘‘(B) whose first monthly payment on such 
loan pursuant to subsection (b)(7) that is not 
less than the full amount due on such loan for 
such month, after the date of enactment of the 
REAL Reforms Act, is insufficient to cover the 
interest that has accrued on such loan for such 
month, and results in higher balance of prin-
cipal and interest on such loan. 
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‘‘(2) AMOUNT
OF
INTEREST
REPAYMENT
OR 
CANCELLATION.—The Secretary shall repay or can-
cel the obligation to repay the balance of interest 
due on such loan as of the time of the payment de-
scribed in paragraph (1)(B) on such loan.’’. 
PART B—LOAN REHABILITATION AND LOAN 
LIMITS 
SEC. 211. LOAN REHABILITATION. 
(a) IN GENERAL.—Section 428F(a)(5) (20 U.S.C. 
1078–6) is amended by striking ‘‘one time’’ and inserting 
‘‘two times’’. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by this section shall apply to any borrower of a loan 
made, insured, or guaranteed under title IV of the Higher 
Education Act of 1965 before, on, or after the date of 
enactment of this Act. 
SEC. 212. LOAN LIMITS. 
(a) GRADUATE AND PROFESSIONAL STUDENTS.— 
(1) AGGREGATE AND ANNUAL LIMITS.—Section 
455(a) (20 U.S.C. 1087e(a)) is amended— 
(A) in paragraph (3)— 
(i) in subparagraph (A)(ii), by insert-
ing before the period at the end the fol-
lowing: ‘‘, except that for any period of in-
struction beginning on or after July 1, 
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2023, and subject to subparagraph (D), 
such maximum annual amount may not ex-
ceed $25,000’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) AGGREGATE LIMITS.—Subject to sub-
paragraph (D), for any period of instruction be-
ginning on or after July 1, 2023, the maximum 
aggregate amount of loans under this part that 
a graduate or professional student may borrow 
for enrollment in a program of graduate or pro-
fessional education shall be $100,000. 
‘‘(D) EXCEPTION
FOR
CERTAIN
STU-
DENTS.—The annual and aggregate limits de-
scribed in subparagraphs (A)(ii) and (C) for 
any period of instruction beginning on or after 
July 1, 2023, shall not apply to any student en-
rolled in a program of study as of June 30, 
2023, or any loans made under this part to (or 
on behalf of) such student, during the period 
required for the completion of such program.’’. 
(2) TERMINATION
OF
AUTHORITY
TO
MAKE 
FEDERAL DIRECT PLUS LOANS TO GRADUATE AND 
PROFESSIONAL
STUDENTS.—Section 455(a) (20 
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U.S.C. 1087e(a)) is further amended by adding at 
the end the following: 
‘‘(4) TERMINATION
OF
AUTHORITY
TO
MAKE 
FEDERAL DIRECT PLUS LOANS TO GRADUATE AND 
PROFESSIONAL STUDENTS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
provision of this part or part B, and except as 
otherwise provided in subparagraph (B), for 
any period of instruction beginning on or after 
July 1, 2023, a graduate or professional stu-
dent shall not be eligible to receive a Federal 
Direct PLUS Loan under this part for enroll-
ment in a program of graduate or professional 
education. 
‘‘(B) EXCEPTION
FOR
CERTAIN
STU-
DENTS.—This paragraph shall not apply to any 
student enrolled in a program of study at an el-
igible institution as of June 30, 2023, or any 
loans made under this part to (or on behalf of) 
such student, during the period required for the 
completion of such program.’’. 
(b) INSTITUTIONALLY DETERMINED LIMITS.—Sec-
tion 455(a) (20 U.S.C. 1087e(a)) is further amended by 
adding at the end the following: 
‘‘(5) INSTITUTIONALLY DETERMINED LIMITS.— 
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‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this subsection, an eligible in-
stitution (at the discretion of a financial aid ad-
ministrator at the institution) may prorate or 
limit the amount of a loan any student (other 
than a student described in subparagraph (D)) 
who is enrolled in a program of study for a pe-
riod of instruction beginning on or after July 1, 
2023, at that institution, may borrow under 
this part for an academic year— 
‘‘(i) if the institution can reasonably 
demonstrate that student debt levels are or 
would be excessive for such program, based 
on— 
‘‘(I) the most recently available 
data from the Bureau of Labor Sta-
tistics for the average starting salary 
in the region in which the institution 
is located for typical occupations pur-
sued by graduates of such program; 
or 
‘‘(II) the most recently available 
data from the College Scorecard (or 
successor website) on— 
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‘‘(aa) the median earnings 
of students who complete such 
program; and 
‘‘(bb) the median debt owed, 
and the repayment rate, on loans 
made under this part, of such 
students; 
‘‘(ii) in a case in which the student is 
enrolled on a less than full-time basis or 
the student is enrolled for less than the pe-
riod of enrollment to which the annual loan 
limit applies under this subsection, based 
on the student’s enrollment status; 
‘‘(iii) based on the credential level 
(such as a degree, certificate, or other rec-
ognized educational credential) that the 
student would attain upon completion of 
such program; or 
‘‘(iv) based on the year of the pro-
gram for which the student is seeking such 
loan. 
‘‘(B) APPLICATION TO ALL STUDENTS.— 
Any proration or limiting of loan amounts 
under subparagraph (A) shall be applied in the 
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same manner to all students enrolled in the in-
stitution or program of study. 
‘‘(C) INCREASES
FOR
INDIVIDUAL
STU-
DENTS.—Upon the request of a student whose 
loan amount for an academic year has been 
prorated or limited under subparagraph (A), an 
eligible institution (at the discretion of the fi-
nancial aid administrator at the institution) 
may increase such loan amount to an amount 
not exceeding the annual loan amount applica-
ble to such student under this paragraph for 
such academic year if such student dem-
onstrates special circumstances or exceptional 
need. 
‘‘(D) EXCEPTION
FOR
CERTAIN
STU-
DENTS.—This paragraph shall not apply to any 
student enrolled in a program of study at an el-
igible institution as of June 30, 2023, or any 
loans made under this part to (or on behalf of) 
such student, during the period required for the 
completion of such program.’’. 
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is a student enrolled in a program of study at an institu-
tion of higher education (as defined in section 102 of the 
Higher Education Act of 1965 (20 U.S.C. 1002)) as of 
June 30, 2023, or any loans made under part D of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
et seq.) to (or on behalf of) such student, during the pe-
riod required for the completion of such program. 
SEC. 223. REPAYMENT PLANS. 
Section 455(d) (20 U.S.C. 1087e(d)) is amended by 
adding at the end the following: 
‘‘(6) REPAYMENT PLANS FOR LOANS MADE ON 
OR AFTER JULY 1, 2023.— 
‘‘(A) DESIGN AND SELECTION.—Notwith-
standing paragraph (1) and except as provided 
in subparagraph (E), the Secretary shall offer 
a borrower of a loan made under this part on 
or after July 1, 2023, two plans for repayment 
of such loan, including principal and interest on 
the loan. The borrower shall be entitled to ac-
celerate, without penalty, repayment on such 
loans. The borrower may choose— 
‘‘(i) a standard repayment plan with a 
fixed monthly repayment amount paid over 
a fixed period of time, not to exceed 10 
years; or 
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‘‘(ii) an income-based repayment plan 
under section 460A. 
‘‘(B) SELECTION BY SECRETARY.—If such 
borrower does not select a repayment plan de-
scribed in subparagraph (A), the Secretary shall 
provide the borrower with the repayment plan 
described in subparagraph (A)(i). 
‘‘(C) CHANGES IN SELECTION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), a borrower may change the borrower’s 
selection of a repayment plan under sub-
paragraph (A), or the Secretary’s selection 
of a plan for the borrower under subpara-
graph (B), as the case may be, under such 
terms and conditions as may be established 
by the Secretary, except that the Secretary 
may not establish any terms or conditions 
with respect to whether a borrower may 
change the borrower’s repayment plan. 
Nothing in this subsection shall prohibit 
the Secretary from encouraging struggling 
borrowers from enrolling in the income- 
based repayment plan under section 460A. 
‘‘(ii) SAME
REPAYMENT
PLAN
RE-
QUIRED.—All loans made under this part 
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on or after July 1, 2023, to a borrower 
shall be repaid under the same repayment 
plan under subparagraph (A), except that 
the borrower may repay an excepted PLUS 
loan or an excepted consolidation loan (as 
such terms are defined in section 493C(a)) 
separately from other loans made under 
this part to the borrower. 
‘‘(D) REPAYMENT AFTER DEFAULT.—The 
Secretary may require a borrower who has de-
faulted on a loan made under this part on or 
after July 1, 2023, to— 
‘‘(i) pay all reasonable collection costs 
associated with such loan; and 
‘‘(ii) repay the loan pursuant to the 
income-based repayment plan under sec-
tion 460A. 
‘‘(E) EXCEPTION
FOR
CERTAIN
BOR-
ROWERS.—This paragraph shall not apply to 
any borrower who is student who is enrolled in 
a program of study at an institution of higher 
education as of June 30, 2023, or any loans 
made to (or on behalf of) such borrower, during 
the period required for the completion of such 
program. 
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‘‘(F) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to author-
ize, with respect to a borrower of loans made 
under this part on or after July 1, 2023— 
‘‘(i) eligibility for a repayment plan 
that is not described in clause (i) or (ii) of 
subparagraph (A); or 
‘‘(ii) the Secretary to— 
‘‘(I) carry out a repayment plan 
that is not described in such clause (i) 
or (ii); or 
‘‘(II) modify a repayment plan 
that is described in such clause (i) or 
(ii).’’. 
SEC. 224. PUBLIC SERVICE LOAN FORGIVENESS. 
(a) AMENDMENT.—Section 455(m)(3)(A) (20 U.S.C. 
1087e(m)(3)(A)) is amended by inserting before the pe-
riod at the end the following: ‘‘that was made before July 
1, 2023’’. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by this section shall not apply to any borrower who 
is a student enrolled in a program of study at an institu-
tion of higher education (as defined in section 102 of the 
Higher Education Act of 1965 (20 U.S.C. 1002)) as of 
June 30, 2023, or any loans made under part D of title 
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IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
et seq.) to (or on behalf of) such student, during the pe-
riod required for the completion of such program. 
SEC. 225. INCOME-BASED REPAYMENT PLAN. 
(a) ESTABLISHMENT OF NEW IBR.—Part D of title 
IV (20 U.S.C. 1087e et seq.) is further amended by add-
ing at the end the following: 
‘‘SEC. 460A. INCOME-BASED REPAYMENT PROGRAM. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this Act, the Secretary shall carry out a program 
under which— 
‘‘(1) a borrower (other than a borrower de-
scribed in section 455(d)(6)(E)) of a loan made 
under this part on or after July 1, 2023, may elect 
to have the borrower’s aggregate monthly payment 
for all such loans (other than an excepted PLUS 
Loan or excepted Consolidation Loan) made to the 
borrower— 
‘‘(A) not to exceed the result obtained by 
dividing by 12, 15 percent of the result ob-
tained by calculating, on at least an annual 
basis, the amount by which— 
‘‘(i) the adjusted gross income of the 
borrower or, if the borrower is married and 
files a Federal income tax return jointly 
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with or separately from the borrower’s 
spouse, the adjusted gross income of the 
borrower and the borrower’s spouse; ex-
ceeds 
‘‘(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)); and 
‘‘(B) not to be less than $25; 
‘‘(2) the Secretary shall apply the borrower’s 
monthly payment under this section first toward in-
terest due on such a loan, next toward any fees due 
on the loan, and then toward the principal of the 
loan; 
‘‘(3) any principal due and not paid under 
paragraph (2) shall be deferred; 
‘‘(4) the amount of time the borrower makes 
monthly payments under paragraph (1) may exceed 
10 years; 
‘‘(5) the Secretary shall cancel any outstanding 
balance due on all loans made on or after July 1, 
2023, under this part (other than an excepted 
PLUS Loan or an excepted Consolidation Loan) to 
the borrower— 
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‘‘(A) who, at any time, elected to partici-
pate in income-based repayment under para-
graph (1); 
‘‘(B) whose final monthly payment for 
such loans prior to the loan cancellation under 
this paragraph was made under such income- 
based repayment; and 
‘‘(C) who has repaid, pursuant to income- 
based repayment under paragraph (1), a stand-
ard 
repayment 
plan 
under 
section 
455(d)(6)(A)(i), or a combination, or in the 
case of consolidation loans, a repayment sched-
ule described in clause (i)(II)— 
‘‘(i)(I) except as otherwise provided in 
subclause (II), an amount on such loans 
that is equal to the total amount of prin-
cipal and interest that the borrower would 
have repaid under a standard repayment 
plan under section 455(d)(6)(A)(i), based 
on a 10-year repayment period, when the 
borrower entered repayment on such loans; 
or 
‘‘(II) in the case of a Federal Direct 
Consolidation Loan, an amount on such 
loan that is equal to the total amount of 
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principal and interest that the borrower 
would have repaid under the repayment 
schedule established for such loan under 
section 428C(c)(2) on the date on which 
such loan was made; and 
‘‘(ii) an amount equal to the amount 
of any unpaid interest that has accrued, 
but was not included in the calculation of 
the total amount principal and interest 
that would have been repaid under the 
standard repayment plan or schedule de-
scribed in clause (i), during any period of 
deferment under subparagraph (A), (B), or 
(F) of section 460B(b)(1); and 
‘‘(6) a borrower who is repaying a loan made 
under this part pursuant to income-based repayment 
under paragraph (1) may elect, at any time, to ter-
minate repayment pursuant to such income-based 
repayment and repay such loan under the standard 
repayment plan. 
‘‘(b) ELIGIBILITY DETERMINATIONS.—The Secretary 
shall establish and implement with respect to any borrower 
who chooses to repay a loan made under this part pursu-
ant to income-based repayment under this section proce-
dures to— 
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‘‘(1) use return information disclosed under sec-
tion 6103(l)(13) of the Internal Revenue Code of 
1986, pursuant to approval provided under section 
494, to determine the repayment obligation of the 
borrower without further action by the borrower; 
‘‘(2) allow the borrower (or the spouse of the 
borrower), at any time, to opt out of disclosure 
under such section 6103(l)(13) and instead provide 
such information as the Secretary may require to de-
termine the repayment obligation of the borrower (or 
withdraw from the repayment plan under this sub-
section); and 
‘‘(3) provide the borrower with an opportunity 
to update the return information so disclosed before 
the determination of the repayment obligation of the 
borrower. 
‘‘(c) NOTIFICATION TO BORROWERS.—The Secretary 
shall establish procedures under which a borrower of a 
loan made under this part who chooses to repay such loan 
pursuant to income-based repayment under this section is 
notified of the terms and conditions of such plan, includ-
ing notification that if a borrower considers that special 
circumstances, such as a loss of employment by the bor-
rower or the borrower’s spouse, warrant an adjustment in 
the borrower’s loan repayment as determined using the 
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borrower’s Federal tax return information, or the alter-
native documentation described in subsection (b)(2), the 
borrower may contact the Secretary, who shall determine 
whether such adjustment is appropriate, in accordance 
with criteria established by the Secretary. 
‘‘(d) REDUCED PAYMENT PERIODS.— 
‘‘(1) IN GENERAL.—The Secretary shall author-
ize borrowers meeting the criteria under paragraph 
(2) to make monthly payments of $5 for a period 
not in excess of 3 years, except that— 
‘‘(A) for purposes of paragraph (2)(A), the 
Secretary may authorize reduced payments in 
6-month increments, beginning on the date the 
borrower provides to the Secretary the evidence 
described in paragraph (2)(A)(i); and 
‘‘(B) for purposes of paragraph (2)(B), the 
Secretary may authorize reduced payments in 
3-month increments, beginning on the date the 
borrower provides to the Secretary the evidence 
described in paragraph (2)(B)(i). 
‘‘(2) ELIGIBILITY DETERMINATIONS.—The Sec-
retary shall authorize borrowers to make reduced 
payments under this subsection in the following cir-
cumstances: 
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‘‘(A) In a case of borrower who is seeking 
and unable to find full-time employment, as 
demonstrated by providing to the Secretary— 
‘‘(i) evidence of the borrower’s eligi-
bility for unemployment benefits to the 
Secretary; or 
‘‘(ii) the borrower recertifies the rea-
son for the $5 monthly payment under this 
subparagraph. 
‘‘(B) The Secretary determines that, due 
to high medical expenses, the $25 monthly pay-
ment the borrower would otherwise make would 
be an extreme economic hardship to the bor-
rower, if— 
‘‘(i) the borrower documents the rea-
son why the $25 minimum payment is an 
extreme economic hardship; and 
‘‘(ii) the borrower recertifies the rea-
son for the $5 minimum payment on a 
three-month basis. 
‘‘(3) DEFINITION.—For purpose of this sub-
section, the term ‘full-time employment’ means em-
ployment that will provide not less than 30 hours of 
work a week and is expected to continue for a period 
of not less than 3 months. 
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‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) ADJUSTED GROSS INCOME.—The term ‘ad-
justed gross income’ has the meaning given the term 
in section 62 of the Internal Revenue Code of 1986. 
‘‘(2) EXCEPTED
CONSOLIDATION
LOAN.—The 
term ‘excepted Consolidation Loan’ means a Federal 
Direct Consolidation Loan, if the proceeds of such 
loan were used to the discharge the liability on— 
‘‘(A) an excepted PLUS loan; or 
‘‘(B) a Federal Direct Consolidation loan, 
if the proceeds of such loan were used to dis-
charge the liability on an excepted PLUS loan. 
‘‘(3) EXCEPTED
PLUS
LOAN.—The term ‘ex-
cepted PLUS Loan’ has the meaning given the term 
in section 493C.’’. 
(b) PROCEDURE AND REQUIREMENTS FOR REQUEST-
ING TAX RETURN INFORMATION FROM THE IRS.—Sec-
tion 494(a) (20 U.S.C. 1098h(a)) is amended by adding 
at the end the following: 
‘‘(4) INCOME-BASED
REPAYMENT
FOR
LOANS 
MADE ON OR AFTER JULY 1, 2023.— 
‘‘(A) NEW
APPLICANTS.—In the case of 
any written or electronic application by an indi-
vidual for an income-based repayment plan 
under section 460A for a loan made under part 
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D on after July 1, 2023, the Secretary, with re-
spect to such individual and any spouse of such 
individual, shall— 
‘‘(i) provide to such individuals the 
notification 
described 
in 
paragraph 
(1)(A)(i); and 
‘‘(ii) require, as a condition of eligi-
bility for such repayment plan, that such 
individuals— 
‘‘(I) affirmatively approve the 
disclosures described in subclauses (I) 
and (II) of paragraph (1)(A)(i), to the 
extent applicable, and agree that such 
approval shall serve as an ongoing ap-
proval of such disclosures until the 
date on which the individual elects to 
opt out of such disclosures under sec-
tion 465(b)(2); or 
‘‘(II) provide such information as 
the Secretary may require to confirm 
the eligibility of such individual for 
such repayment plan. 
‘‘(B) RECERTIFICATIONS.—With respect to 
the first written or electronic recertification 
(after the date of the enactment of the REAL 
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Reforms Act) of an individual’s income or fam-
ily size for purposes of an income-based repay-
ment plan under section 460A (entered into be-
fore the date of the enactment of the REAL 
Reforms Act) for a loan under part D, the Sec-
retary, with respect to such individual and any 
spouse of such individual, shall meet the re-
quirements of clauses (i) and (ii) of subpara-
graph (A) with respect to such recertification.’’. 
SEC. 226. DEFERMENT ON LOANS MADE ON OR AFTER JULY 
1, 2023. 
(a) IN GENERAL.—Part D of title IV (20 U.S.C. 
1087e et seq.) is further amended by adding at the end 
the following: 
‘‘SEC. 460B. DEFERMENT ON LOANS MADE ON OR AFTER 
JULY 1, 2023. 
‘‘(a) EFFECT ON PRINCIPAL AND INTEREST.— 
‘‘(1) IN GENERAL.—A borrower (other than a 
borrower described in section 455(d)(6)(E)) of a 
loan made under this part on or after July 1, 
2023— 
‘‘(A) who meets the requirements described 
in subsection (b) shall be eligible for a 
deferment on such loan during which install-
ments of principal need not be paid and, as 
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specified in paragraph (2), interest shall not ac-
crue, or shall accrue and be paid by the bor-
rower; and 
‘‘(B) may not be eligible for a deferment or 
forbearance under section 455(f) or any other 
provision of this Act (other than forbearance 
under section 455(l), forbearance under section 
685.205(a) of title 34, Code of Federal Regula-
tions (or successor regulations), or deferment 
under section 493D). 
‘‘(2) EFFECT ON INTEREST.— 
‘‘(A) NO ACCRUAL OF INTEREST ON SUB-
SIDIZED LOANS.—With respect to a deferment 
period described in subparagraphs (A) through 
(D) of subsection (b)(1), interest— 
‘‘(i) shall not accrue, in the case of 
a— 
‘‘(I) 
Federal 
Direct 
Stafford 
Loan; or 
‘‘(II) a Federal Direct Consolida-
tion Loan that consolidated only Fed-
eral Direct Stafford Loans, or a com-
bination of such loans and Federal 
Stafford Loans for which the student 
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borrower received an interest subsidy 
under section 428; or 
‘‘(ii) shall accrue or be paid by the 
borrower, in the case of a Federal Direct 
PLUS Loan, a Federal Direct Unsub-
sidized Stafford Loan, or a Federal Direct 
Consolidation Loan not described in clause 
(i)(II). 
‘‘(B) 
INTEREST
ACCRUAL
ON
ALL 
LOANS.—With respect to a deferment period de-
scribed in subparagraph (E) or (F) of sub-
section (b)(1), or paragraph (2), (3)(A), or (4), 
interest shall accrue or be paid by the borrower, 
in the case of any loan made under this part. 
‘‘(C) NO ACCRUAL OF INTEREST ON ANY 
LOAN.—With respect to a deferment period de-
scribed in paragraph (3)(B) or paragraph (5), 
interest shall not accrue, in the case of any loan 
made under this part. 
‘‘(b) ELIGIBILITY.—Any borrower described in sub-
section (a) shall be eligible for a deferment on a loan made 
under this part on or after July 1, 2023— 
‘‘(1) during any period during which the bor-
rower— 
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‘‘(A) is carrying at least one-half the nor-
mal full-time work load for the course of study 
that the borrower is pursuing, as determined by 
the eligible institution the borrower is attend-
ing; 
‘‘(B) is pursuing a course of study pursu-
ant to— 
‘‘(i) an eligible graduate fellowship 
program in accordance with subsection (g); 
or 
‘‘(ii) an eligible rehabilitation training 
program for individuals with disabilities in 
accordance with subsection (i); 
‘‘(C) is serving on active duty during a war 
or other military operation or national emer-
gency, and for the 180-day period following the 
demobilization date for such service; 
‘‘(D) is performing qualifying National 
Guard duty during a war or other military op-
eration or national emergency, and for the 180- 
day period following the demobilization date for 
such service; 
‘‘(E) is a member of the National Guard 
who is not eligible for a post-active duty 
deferment under section 493D and is engaged 
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in active State duty for a period of more than 
30 consecutive days beginning— 
‘‘(i) the day after 6 months after the 
date the student ceases to carry at least 
one-half the normal full-time academic 
workload (as determined by the institu-
tion); or 
‘‘(ii) the day after the borrower ceases 
enrollment on at least a half-time basis, for 
a loan in repayment; or 
‘‘(F) is serving in a medical or dental in-
ternship or residency program, the successful 
completion of which is required to begin profes-
sional practice or service, or is serving in a 
medical or dental internship or residency pro-
gram leading to a degree or certificate awarded 
by an institution of higher education, a hos-
pital, or a health care facility that offers post-
graduate training; 
‘‘(2) during a period sufficient to enable the 
borrower to resume honoring the agreement to repay 
the outstanding balance of principal and interest on 
the loan after default, if— 
‘‘(A) the borrower signs a new agreement 
to repay such outstanding balance; 
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‘‘(B) the deferment period is limited to 
120 days; and 
‘‘(C) such deferment is not granted for 
consecutive periods; 
‘‘(3) 
during 
a 
period 
of 
administrative 
deferment— 
‘‘(A) described in paragraphs (1) through 
(4) of subsection (j); or 
‘‘(B) described in subsection (j)(5); 
‘‘(4) in the case of a borrower of an excepted 
PLUS Loan or an excepted Consolidation Loan, 
during a period described in subsection (k); or 
‘‘(5) during a period in which such borrower is 
receiving treatment for cancer (in this paragraph re-
ferred to as the ‘treatment period’), and the 6- 
month period after such treatment period (in this 
paragraph referred to as the ‘post-treatment pe-
riod’), except that, notwithstanding subsection (a), 
interest shall not accrue during any such treatment 
period or post-treatment period. 
‘‘(c) LENGTH OF DEFERMENT.—A deferment grant-
ed by the Secretary— 
‘‘(1) under subparagraph (F) of subsection 
(b)(1) shall be renewable at 12 month intervals; and 
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‘‘(2) under subparagraph (F) of subsection 
(b)(1) shall equal the length of time remaining in 
the borrower’s medical or dental internship or resi-
dency program. 
‘‘(d) REQUEST
AND DOCUMENTATION.—The Sec-
retary shall determine the eligibility of a borrower for a 
deferment under paragraph (1), (2), or (4) of subsection 
(b), based on— 
‘‘(1) the receipt of a request for a deferment 
from the borrower, and documentation of the bor-
rower’s eligibility for the deferment; 
‘‘(2) receipt of a completed loan application 
that documents the borrower’s eligibility for a 
deferment; 
‘‘(3) receipt of a student status information 
documenting that the borrower is enrolled on at 
least a half-time basis; or 
‘‘(4) the Secretary’s confirmation of the bor-
rower’s half-time enrollment status, if the confirma-
tion is requested by the institution of higher edu-
cation. 
‘‘(e) NOTIFICATION.—The Secretary shall— 
‘‘(1) notify a borrower of a loan made under 
this part— 
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‘‘(A) the granting of a deferment under 
this subsection on such loan; and 
‘‘(B) the option of the borrower to con-
tinue making payments on the outstanding bal-
ance of principal and interest on such loan in 
accordance with subsection (f); 
‘‘(2) at the time the Secretary grants a 
deferment to a borrower of a loan made under this 
part, and not less frequently than once every 180 
days during the period of such deferment, provide 
information to the borrower to assist the borrower in 
understanding— 
‘‘(A) the effect of granting a deferment on 
the total amount to be paid under the income- 
based repayment plan under 460A; 
‘‘(B) interest shall not accrue, or shall ac-
crue or be paid by the borrower, as specified in 
subsection (a)(2); 
‘‘(C) the amount of unpaid principal and 
the amount of interest that has accrued since 
the last statement of such amounts provided to 
the borrower; and 
‘‘(D) the borrower’s option to discontinue 
the deferment at any time. 
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‘‘(f) PAYMENTS BY BORROWERS AUTHORIZED.—A 
borrower may make payments on the outstanding balance 
of principal and interest on a loan made under this part 
during any period of deferment granted under this sub-
section. 
‘‘(g) GRADUATE FELLOWSHIP DEFERMENT.— 
‘‘(1) IN GENERAL.—A borrower of a loan under 
this part is eligible for a deferment under subsection 
(b)(1)(B)(i) during any period for which an author-
ized official of the borrower’s graduate fellowship 
program certifies that the borrower meets the re-
quirements of paragraph (2) and is pursuing a 
course of study pursuant to an eligible graduate fel-
lowship program. 
‘‘(2) BORROWER REQUIREMENTS.—A borrower 
meets the requirements of this subparagraph if the 
borrower— 
‘‘(A) holds at least a baccalaureate degree 
conferred by an institution of higher education; 
‘‘(B) has been accepted or recommended 
by an institution of higher education for accept-
ance on a full-time basis into an eligible grad-
uate fellowship program; and 
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‘‘(C) is not serving in a medical internship 
or residency program, except for a residency 
program in dentistry. 
‘‘(h) TREATMENT OF STUDY OUTSIDE THE UNITED 
STATES.— 
‘‘(1) IN GENERAL.—The Secretary shall treat, 
in the same manner as required under section 
428(b)(4), any course of study at a foreign univer-
sity that is accepted for the completion of a recog-
nized international fellowship program by the admin-
istrator of such a program as an eligible graduate 
fellowship program. 
‘‘(2) REQUESTS
FOR
DEFERMENT.—Requests 
for deferment of repayment of loans under this sub-
section by students engaged in graduate or post-
graduate fellowship-supported study (such as pursu-
ant to a Fulbright grant) outside the United States 
shall be approved until completion of the period of 
the fellowship, in the same manner as required 
under section 428(b)(4). 
‘‘(i) 
REHABILITATION
TRAINING
PROGRAM 
DEFERMENT.—A borrower of a loan under this part is 
eligible for a deferment under subsection (b)(1)(B)(ii) dur-
ing any period for which an authorized official of the bor-
rower’s rehabilitation training program certifies that the 
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borrower is pursuing an eligible rehabilitation training 
program for individuals with disabilities. 
‘‘(j) ADMINISTRATIVE DEFERMENTS.—The Secretary 
may grant a deferment to a borrower without requiring 
a request and documentation from the borrower under 
subsection (d) for— 
‘‘(1) a period during which the borrower was 
delinquent at the time a deferment is granted, in-
cluding a period for which scheduled payments of 
principal and interest were overdue at the time such 
deferment is granted; 
‘‘(2) a period during which the borrower was 
granted a deferment under this subsection but for 
which the Secretary determines the borrower should 
not have qualified; 
‘‘(3) a period necessary for the Secretary to de-
termine the borrower’s eligibility for the cancellation 
of the obligation of the borrower to repay the loan 
under section 437; 
‘‘(4) a period during which the Secretary has 
authorized deferment due to a national military mo-
bilization or other local or national emergency; or 
‘‘(5) a period not to exceed 60 days, during 
which interest shall accrue but not be capitalized, if 
the Secretary reasonably determines that a suspen-
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sion of collection activity is warranted to enable the 
Secretary to process supporting documentation relat-
ing to a borrower’s request— 
‘‘(A) for a deferment under this sub-
section; 
‘‘(B) for a change in repayment plan under 
section 455(d)(6); or 
‘‘(C) to consolidate loans under this part. 
‘‘(k) DEFERMENTS FOR EXCEPTED PLUS LOANS OR 
EXCEPTED CONSOLIDATION LOANS.— 
‘‘(1) IN GENERAL.—A qualified borrower shall 
be eligible for deferments under paragraphs (3) 
through (5). 
‘‘(2) QUALIFIED BORROWER DEFINED.—In this 
subsection, the term ‘qualified borrower’ means a 
borrower of an excepted PLUS Loan or an excepted 
consolidation loan. 
‘‘(3) ECONOMIC HARDSHIP DEFERMENT.— 
‘‘(A) IN GENERAL.—A qualified borrower 
shall be eligible for a deferment during periods, 
not to exceed 3 years in total, during which the 
qualified borrower experiences an economic 
hardship described in subparagraph (B). 
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‘‘(B) ECONOMIC HARDSHIP.—An economic 
hardship described in this clause is a period 
during which the qualified borrower— 
‘‘(i) is receiving payment under a 
means-tested benefit program; 
‘‘(ii) is employed full-time and the 
monthly gross income of the qualified bor-
rower does not exceed the greater of— 
‘‘(I) the minimum wage rate de-
scribed in section 6 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 
206); or 
‘‘(II) an amount equal to 150 
percent of the poverty line; or 
‘‘(iii) demonstrates that the sum of 
the qualified borrower’s monthly payments 
on the qualified borrower’s excepted PLUS 
Loan or an excepted consolidation loan is 
not less than 20 percent of the qualified 
borrower’s monthly gross income. 
‘‘(C) ELIGIBILITY.—To be eligible to re-
ceive a deferment under this subparagraph, a 
qualified borrower shall submit to the Sec-
retary— 
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‘‘(i) for the first period of deferment 
under this subparagraph, evidence showing 
the monthly gross income of the qualified 
borrower; and 
‘‘(ii) for a subsequent period of 
deferment that begins less than one year 
after the end of a period of deferment 
granted under this subparagraph— 
‘‘(I) evidence showing the month-
ly gross income of the qualified bor-
rower; or 
‘‘(II) the qualified borrower’s 
most recently filed Federal income tax 
return, if such a return was filed in 
either of the two tax years preceding 
the year in which the qualified bor-
rower requests the subsequent period 
of deferment. 
‘‘(4) UNEMPLOYMENT DEFERMENT.— 
‘‘(A) IN GENERAL.—A qualified borrower 
shall be eligible for a deferment for periods dur-
ing which the qualified borrower is seeking, and 
is unable to find, full-time employment. 
‘‘(B) ELIGIBILITY.—To be eligible to re-
ceive an deferment under this subparagraph, a 
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qualified borrower shall submit to the Sec-
retary— 
‘‘(i) evidence of the qualified bor-
rower’s eligibility for unemployment bene-
fits; or 
‘‘(ii) for requests submitted after the 
initial request, written confirmation, or an 
equivalent as approved by the Secretary, 
that the qualified borrower has made at 
least six diligent attempts during the pre-
ceding six-month period to secure full-time 
employment. 
‘‘(C) TERMS
OF
DEFERMENT.—The fol-
lowing terms shall apply to a deferment under 
this subparagraph: 
‘‘(i) 
INITIAL
PERIOD.—The 
first 
deferment granted to a qualified borrower 
under this subparagraph may be for a pe-
riod of unemployment beginning not more 
than 6 months before the date on which 
the Secretary receives the qualified bor-
rower’s request for deferment and may be 
granted for a period of up to 6 months 
after that date. 
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‘‘(ii) RENEWALS.—Deferments under 
this subparagraph shall be renewable at 6- 
month intervals beginning after the expira-
tion of the first period of deferment under 
clause (i). To be eligible to renew a 
deferment under this subparagraph, a 
qualified borrower shall submit to the Sec-
retary the information described in sub-
paragraph (B)(i). 
‘‘(iii) AGGREGATE LIMIT.—The period 
of all deferments granted to a borrower 
under this subparagraph may not exceed 3 
years in aggregate. 
‘‘(5) HEALTH DEFERMENT.— 
‘‘(A) IN GENERAL.—A qualified borrower 
shall be eligible for a deferment during periods 
in which the qualified borrower is unable to 
make scheduled loan payments due to high 
medical expenses, as determined by the Sec-
retary. 
‘‘(B) ELIGIBILITY.—To be eligible to re-
ceive a deferment under this subparagraph, a 
qualified borrower shall— 
‘‘(i) submit to the Secretary docu-
mentation 
demonstrating 
that 
making 
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scheduled loan payments would be an ex-
treme economic hardship to the borrower 
due to high medical expenses, as deter-
mined by the Secretary; and 
‘‘(ii) resubmit such documentation to 
the Secretary not less frequently than once 
every 3 months. 
‘‘(l) PROHIBITIONS.— 
‘‘(1) PROHIBITION ON FEES.—No administra-
tive fee or other fee may be charged to the borrower 
in connection with the granting of a deferment 
under this subsection. 
‘‘(2) PROHIBITION
ON
ADVERSE
CREDIT
RE-
PORTING.—No adverse information relating to a bor-
rower may be reported to a consumer reporting 
agency solely because of the granting of a deferment 
under this subsection. 
‘‘(3) LIMITATION
ON
AUTHORITY.—The Sec-
retary shall not, through regulation or otherwise, au-
thorize additional deferment options or periods of 
deferment other than the deferment options and pe-
riods of deferment authorized under this subsection. 
‘‘(m) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE
GRADUATE
FELLOWSHIP
PRO-
GRAM.—The term ‘eligible graduate fellowship pro-
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gram’, when used with respect to a course of study 
pursued by the borrower of a loan under this part, 
means a fellowship program that— 
‘‘(A) provides sufficient financial support 
to graduate fellows to allow for full-time study 
for at least six months; 
‘‘(B) requires a written statement from 
each applicant explaining the applicant’s objec-
tives before the award of that financial support; 
‘‘(C) requires a graduate fellow to submit 
periodic reports, projects, or evidence of the fel-
low’s progress; and 
‘‘(D) in the case of a course of study at an 
institution of higher education outside the 
United States described in section 102, accepts 
the course of study for completion of the fellow-
ship program. 
‘‘(2) 
ELIGIBLE
REHABILITATION
TRAINING 
PROGRAM FOR INDIVIDUALS WITH DISABILITIES.— 
The term ‘eligible rehabilitation training program 
for individuals with disabilities’, when used with re-
spect a course of study pursued by the borrower of 
a loan under this part, means a program that— 
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‘‘(A) is necessary to assist an individual 
with a disability in preparing for, securing, re-
taining, or regaining employment; 
‘‘(B) is licensed, approved, certified, or 
otherwise recognized as providing rehabilitation 
training to disabled individuals by— 
‘‘(i) a State agency with responsibility 
for vocational rehabilitation programs, 
drug abuse treatment programs, mental 
health services programs, or alcohol abuse 
treatment programs; or 
‘‘(ii) the Secretary of Veterans Af-
fairs; and 
‘‘(C) provides or will provide the borrower 
with rehabilitation services under a written plan 
that— 
‘‘(i) is individualized to meet the bor-
rower’s needs; 
‘‘(ii) specifies the date on which the 
services to the borrower are expected to 
end; and 
‘‘(iii) requires a commitment of time 
and effort from the borrower that prevents 
the borrower from being employed at least 
30 hours per week, either because of the 
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number of hours that must be devoted to 
rehabilitation or because of the nature of 
the rehabilitation. 
‘‘(3) EXCEPTED PLUS LOAN; EXCEPTED CON-
SOLIDATION
LOAN.—The terms ‘excepted PLUS 
loan’ and ‘excepted consolidation loan’ have the 
meanings given such terms in section 460A. 
‘‘(4) FAMILY
SIZE.—The term ‘family size’ 
means the number that is determined by counting— 
‘‘(A) the borrower; 
‘‘(B) the borrower’s spouse; 
‘‘(C) the borrower’s children, including un-
born children who are expected to be born dur-
ing the period covered by the deferment, if the 
children receive more than half their support 
from the borrower; and 
‘‘(D) another individual if, at the time the 
borrower requests a deferment under this sec-
tion, the individual— 
‘‘(i) lives with the borrower; 
‘‘(ii) receives more than half of the in-
dividual’s support (which may include 
money, gifts, loans, housing, food, clothes, 
car, medical and dental care, and payment 
of college costs) from the borrower; and 
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‘‘(iii) is expected to receive such sup-
port from the borrower during the relevant 
period of deferment. 
‘‘(5) FULL-TIME.—The term ‘full-time’, when 
used with respect to employment, means employment 
for not less than 30 hours per week that is expected 
to continue for not less than three months. 
‘‘(6) MEANS-TESTED BENEFIT PROGRAM.—The 
term ‘means-tested benefit program’ means— 
‘‘(A) a State public assistance program 
under which eligibility for the program’s bene-
fits, or the amount of such benefits, are deter-
mined on the basis of income or resources of 
the individual or family seeking the benefit; or 
‘‘(B) a mandatory spending program of the 
Federal Government, other than a program 
under this title, under which eligibility for the 
program’s benefits, or the amount of such bene-
fits, are determined on the basis of income or 
resources of the individual or family seeking the 
benefit, and may include such programs as— 
‘‘(i) the supplemental security income 
program under title XVI of the Social Se-
curity Act (42 U.S.C. 1381 et seq.); 
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‘‘(ii) the supplemental nutrition assist-
ance program under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2011 et seq.); 
‘‘(iii) the program of block grants for 
States for temporary assistance for needy 
families established under part A of title 
IV of the Social Security Act (42 U.S.C. 
601 et seq.); 
‘‘(iv) the special supplemental nutri-
tion program for women, infants, and chil-
dren established by section 17 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786); 
and 
‘‘(v) other programs identified by the 
Secretary. 
‘‘(7) MONTHLY
GROSS
INCOME.—The term 
‘monthly gross income’, when used with respect to a 
borrower, means— 
‘‘(A) the gross amount of income received 
by the borrower from employment and other 
sources for the most recent month; or 
‘‘(B) one-twelfth of the borrower’s adjusted 
gross income, as recorded on the borrower’s 
most recently filed Federal income tax return. 
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‘‘(8) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to impact a bor-
rower’s eligibility to receive the benefit of section 
455(o).’’. 
(b) CONFORMING AMENDMENT.—Section 493D(a) 
(20 U.S.C. 1098f(a)) is amended by inserting ‘‘, or section 
460B’’ after ‘‘464(c)(2)(A)(iii)’’. 
PART D—ELIMINATION OF INTEREST 
CAPITALIZATION 
SEC. 231. ELIMINATION OF INTEREST CAPITALIZATION. 
(a) FEDERAL PLUS LOANS.—Section 428B(d)(2) 
(20 U.S.C. 1078–2(d)(2)) is amended to read as follows: 
‘‘(2) NO CAPITALIZATION OF INTEREST.—Inter-
est on loans made under this section for which pay-
ments of principal are deferred pursuant to para-
graph (1) shall be paid monthly or quarterly, if 
agreed upon by the borrower and the lender.’’. 
(b) FEDERAL
CONSOLIDATION
LOANS
DEFER-
RALS.—Section 428C(b)(4)(C)(ii)(III) (20 U.S.C. 1078– 
3(b)(4)(C)(III)) is amended by striking ‘‘or capitalized,’’. 
(c) LOAN LIMITS
FOR UNSUBSIDIZED STAFFORD 
LOANS.—Section 428H(d)(5) (20 U.S.C. 1078–8(d)(5)) is 
amended by inserting ‘‘before the date of enactment of 
the REAL Reforms Act’’ after ‘‘Interest capitalized’’. 
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(d) UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE 
INCOME BORROWERS.—Section 428H(e)(2) (20 U.S.C. 
1078–8(e)(2)) is amended— 
(1) in subparagraph (A), in the matter before 
clause (i), by striking ‘‘, if agreed upon by the bor-
rower and the lender’’ and all that follows through 
clause (ii)(IV) and inserting ‘‘be paid monthly or 
quarterly, if agreed upon by the borrower and the 
lender.’’; 
(2) by striking subparagraph (B); and 
(3) by redesignating subparagraph (C) as sub-
paragraph (B). 
(e) INCOME
CONTINGENT
REPAYMENT.—Section 
455(e)(5) (20 U.S.C. 1087e(e)(5)) is amended by striking 
the last sentence and inserting ‘‘No interest may be cap-
italized on such loan on or after the date of the enactment 
of the REAL Reforms Act, and the Secretary shall pro-
mulgate regulations with respect to the treatment of ac-
crued interest that is not capitalized’’. 
(f) EFFECT OF DEFERMENT ON PRINCIPAL AND IN-
TEREST.—Section 
455(f)(1)(B) 
(20 
U.S.C. 
1087e(f)(1)(B)) is amended by striking ‘‘capitalized or’’. 
(g) INCOME-BASED REPAYMENT PROGRAM.—Section 
493C(b)(3)(B) (20 U.S.C. 1098e(b)(3)(B)) is amended by 
inserting ‘‘shall accrue but not’’ before ‘‘be capitalized’’. 
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TITLE III—WORKFORCE PELL 
GRANTS 
SEC. 301. DATA COLLECTION AND DISSEMINATION RE-
LATED TO WORKFORCE PELL. 
Section 131 (20 U.S.C. 1015) is amended by adding 
at the end the following: 
‘‘(i) DATA COLLECTION AND DISSEMINATION RE-
LATED TO WORKFORCE PELL.— 
‘‘(1) APPEAL
OF
EARNINGS
INFORMATION.— 
The Secretary may establish an appeals process to 
permit eligible programs for purposes of the Work-
force Pell Grants program under section 401(k) to 
submit alternate earnings data to comply with sec-
tion 481(b)(3)(F), provided that such data are sta-
tistically rigorous, accurate, comparable, and rep-
resentative of students who receive a Workforce Pell 
Grant and complete the eligible program. 
‘‘(2) DISSEMINATION
OF
INFORMATION.—The 
Secretary shall collect, verify, and make publicly 
available the information required under subpara-
graph (E) of subsection (b)(3) of section 481 on the 
College Scorecard or any similar successor website. 
‘‘(3) EXCEPTIONS.—Notwithstanding any other 
provision of this subsection, if disclosure of any data 
under paragraph (2) is prohibited under State or 
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Federal privacy laws or regulations, the Secretary 
shall take such steps as the Secretary determines 
necessary to make publicly available such data in ac-
cordance with such laws and regulations.’’. 
SEC. 302. PROGRAM ELIGIBILITY FOR WORKFORCE PELL 
GRANTS. 
Section 481(b) (20 U.S.C. 1088(b)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) A program is an eligible program for pur-
poses of the Workforce Pell Grants program under 
section 401(k) only if— 
‘‘(A) it is at least 150 clock hours of in-
struction, but not more than 600 clock hours of 
instruction, or an equivalent number of credit 
hours, offered during a minimum of 8 weeks, 
but not more than 15 weeks; 
‘‘(B) it is determined by an accrediting 
agency or association recognized by the Sec-
retary pursuant to section 496(a) to— 
‘‘(i) provide an education aligned with 
the requirements of in-demand industry 
sectors or occupations, as defined in sec-
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tion 3 of the Workforce Innovation and 
Opportunity Act; 
‘‘(ii) meet the hiring requirements of 
potential employers in the sectors or occu-
pations described in clause (i); 
‘‘(iii) have been offered by an institu-
tion for not less than 1 year prior to a de-
termination by such agency or association 
under this subparagraph; 
‘‘(iv) have a completion rate (based on 
the methodology of such agency or associa-
tion) of at least 70 percent; and 
‘‘(v) have a job placement rate (based 
on the methodology of such agency or asso-
ciation) of at least 70 percent; and 
‘‘(C) the increase in median earnings of 
students who receive Federal financial aid 
under this title and who complete the program 
is an amount that is equal to or greater than 
the published tuition and fees of such program, 
as determined by calculating the difference be-
tween— 
‘‘(i) the median earnings of such stu-
dents at the time of initial enrollment in 
the program; and 
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‘‘(ii) the median earnings of such stu-
dents two years after completing such pro-
gram.’’. 
SEC. 303. WORKFORCE PELL GRANTS. 
(a) AWARD YEAR 2023–2024.—Section 401 (20 
U.S.C. 1070a) is amended by adding at the end the fol-
lowing: 
‘‘(k) WORKFORCE PELL GRANTS PROGRAM.— 
‘‘(1) IN GENERAL.—For the award year begin-
ning on July 1, 2023, the Secretary shall award 
grants (referred to as a ‘Workforce Pell Grants’) to 
eligible students under paragraph (2) in accordance 
with this subsection. 
‘‘(2) ELIGIBLE
STUDENTS.—For award year 
2023–2024, to be eligible to receive a Workforce Pell 
Grant under this subsection for any period of enroll-
ment, a student shall meet the eligibility require-
ments for a Federal Pell Grant under this section, 
except that the student— 
‘‘(A) shall be enrolled, or accepted for en-
rollment, in an eligible program described in 
section 481(b)(3); and 
‘‘(B) 
may 
not 
have 
received 
a 
postbaccalaureate degree. 
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‘‘(3) TERMS AND CONDITIONS OF AWARDS.— 
The Secretary shall award Workforce Pell Grants 
under this subsection in the same manner and with 
the same terms and conditions as the Secretary 
awards Federal Pell Grants under subsection (b), ex-
cept that a student who is eligible for a grant equal 
to less than the amount of the minimum Federal 
Pell Grant because the eligible workforce develop-
ment program in which the student is enrolled or ac-
cepted for enrollment is less than an academic year 
(in hours of instruction or weeks of duration) may 
still be eligible for a Workforce Pell Grant. 
‘‘(4) PREVENTION OF DOUBLE BENEFITS.—No 
eligible student described in paragraph (2) may, for 
the same period of enrollment, receive both a grant 
under this subsection and a Federal Pell Grant 
under subsection (b).’’. 
(b) SUBSEQUENT AWARD YEARS.— 
(1) IN
GENERAL.—Section 401 (20 U.S.C. 
1070a), as amended by section 703 of the FAFSA 
Simplification Act (title VII of division FF of Public 
Law 116–260), is amended by adding at the end the 
following: 
‘‘(k) WORKFORCE PELL GRANTS PROGRAM.— 
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