‘‘(B) if the borrower fails to file such a re-
turn within 90 days of receipt of the notice de-
scribed in subparagraph (A), consider the bor-
rower’s loans made under this part in repay-
ment status to be in default. 
‘‘(10) NATIONAL DIRECTORY OF NEW HIRES.— 
The Secretary shall send notices to borrowers under 
paragraph (5) of section 435(i) of the Social Secu-
rity Act (42 U.S.C. 653(i)), as added by section 5 
of the Earnings Contingent Education Loans Act of 
2017. 
‘‘CHAPTER 2—BORROWER REPAYMENT OF 
IDEA LOANS AND IDEA CONSOLIDA-
TION LOANS 
‘‘SEC. 499F. BORROWER REPAYMENT. 
‘‘(a) REPAYMENT PERIOD.—The repayment period of 
a loan made under this part shall— 
‘‘(1) begin on the first day of the first taxable 
year that begins after the borrower’s in-school 
deferment period, or in the case of an IDEA Con-
solidation Loan, on the first day of the first taxable 
year that begins after such Consolidation Loan is 
disbursed; and 
‘‘(2) continue until the loan is paid in full, ex-
cept that the Secretary may grant a borrower for-
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bearance of the borrower’s annual repayment 
amount— 
‘‘(A) for a period not to exceed 60 days, 
due to administrative or technical reasons; 
‘‘(B) for a period not to exceed 3 months, 
due to unusual circumstances that disrupt the 
borrower’s ability to make timely payments on 
the loan; or 
‘‘(C) renewable at 12-month intervals for a 
period not to exceed 3 years, due to docu-
mented extreme economic hardship on the part 
of a borrower. 
‘‘(b) ANNUAL REPAYMENT AMOUNT.—The annual 
repayment amount under this part for a taxable year for 
a borrower with 1 or more loans made under this part 
in repayment status shall be equal to the lesser of— 
‘‘(1) the income-based repayment obligation for 
such borrower for such year, as calculated under 
section 499E(1); or 
‘‘(2) an amount equal to the sum of the out-
standing balances (equal to the sum of the unpaid 
principal, interest, penalties, and fees) that the bor-
rower owes on such loans. 
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‘‘(c) METHODS OF REPAYMENT.—In repaying an an-
nual repayment amount owed by a borrower for a taxable 
year, a borrower may— 
‘‘(1) with respect to any wages earned by the 
borrower that are subject to Federal income tax 
withholding, have amounts withheld upon such 
wages under section 499D(b)(2); 
‘‘(2) in the case of a borrower who makes quar-
terly estimated tax return payments under section 
6654 of the Internal Revenue Code of 1986 for the 
year, pay such annual repayment amount concur-
rently with such quarterly payments under section 
499D(b)(3); 
‘‘(3) make direct payments under section 
499E(4) on such amount to the Secretary through-
out the year; or 
‘‘(4) have other individuals or entities make 
payments under section 499E(5) on the borrower’s 
annual repayment amount for the year. 
‘‘(d) ORDER
OF CREDITING.—Payments on loans 
made under this part shall be applied, without regard to 
the method of such payments, first toward penalties due 
on the loans, next toward any fees due on the loans, then 
toward any interest due on the loans, and finally toward 
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the principal due on the loan with the highest applicable 
rate of interest among such loans. 
‘‘(e) PREPAYMENT AUTHORIZED.—A borrower shall 
have the right to prepay all or part of such loan, at any 
time and without penalty. Any such prepayment amount 
will be applied to loans made under this part in the same 
order as described in subsection (d). 
‘‘(f) UNDERPAYMENTS.— 
‘‘(1) PENALTIES FOR UNDERPAYMENTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), if, as of the last day of a taxable 
year, a borrower has not paid at least 90 per-
cent of the borrower’s annual repayment 
amount for such year, the borrower shall be 
charged a penalty in an amount equal to 10 
percent of the difference between— 
‘‘(i) an amount equal to 90 percent of 
the borrower’s annual repayment amount 
for such year; and 
‘‘(ii) the amount paid on such annual 
repayment amount as of such day. 
‘‘(B) INCREASE OF ANNUAL REPAYMENT 
AMOUNT.—A 
borrower’s 
annual 
repayment 
amount calculated under subsection (b) for such 
year shall be increased by the amount of such 
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penalty, but such penalty shall not be treated as 
a principal or interest amount for a loan made 
under this part. 
‘‘(C) EXCEPTION.—A borrower who has 
paid 100 percent of the borrower’s annual re-
payment amount for the taxable year preceding 
the taxable year described in subparagraph (A) 
shall not be subject to the penalty under this 
paragraph for the taxable year described in sub-
paragraph (A). 
‘‘(2) RECONCILING UNDERPAYMENTS.— 
‘‘(A) IN GENERAL.—If, as of the last day 
of a taxable year, the sum of the payments 
made on a borrower’s annual repayment 
amount for such year is less than the total 
amount of the borrower’s annual repayment 
amount for such year, the borrower— 
‘‘(i) in the case of the first year that 
the borrower has a difference between such 
amounts— 
‘‘(I) may request, in such manner 
as the Secretary shall require, that 
the Secretary reduce the borrower’s 
annual repayment amount for such 
year to the sum of— 
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‘‘(aa) the payments made, 
as of such day, on the borrower’s 
annual repayment amount for 
such year; and 
‘‘(bb) 
any 
penalties 
cal-
culated under paragraph (1) re-
sulting from such underpayment; 
and 
‘‘(II) if the borrower qualifies for 
the reduction requested under sub-
clause (I), shall pay the sum cal-
culated under such subclause at such 
time and in such manner as required 
by the Secretary; 
‘‘(ii) if the borrower does not qualify 
for a reduction under clause (i) or does not 
request such a reduction, shall pay to the 
Secretary an amount equal to the dif-
ference between such amounts within the 
30-day period beginning on the date of re-
ceipt by the borrower of the borrower’s an-
nual 
statement 
described 
in 
section 
499E(3) for such year; or 
‘‘(iii) if the borrower fails to pay the 
amount owed by the borrower as calculated 
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under clause (ii) within the 30-day period, 
shall be charged a penalty equal to 2 per-
cent of such amount for each month (pro-
rated based on the percentage of a month 
such penalty is charged) that such amount 
is owed or until the borrower defaults on 
the loan for which such amount is owed, 
whichever occurs first. 
‘‘(B) DEFAULT.—A loan for which an 
amount is owed under subparagraph (A) and 
that is not paid within 360 days after the date 
of receipt by the borrower of the borrower’s an-
nual statement described in subparagraph (A) 
shall be considered to be default. 
‘‘(g) OVERPAYMENTS.—If, as of the last day of a tax-
able year, the sum of the payments made on a borrower’s 
annual repayment amount for such year is greater than 
the total amount of the borrower’s annual repayment 
amount for such year, the Secretary shall— 
‘‘(1) refund the overpayment amount, if the 
borrower notifies the Secretary, within the 90-day 
period beginning on the date of receipt of the bor-
rower’s annual statement described in section 
499E(3) for such year and in a manner prescribed 
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by the Secretary, that the borrower desires to have 
the overpayment amount refunded; or 
‘‘(2) if a borrower fails to notify the Secretary 
of the borrower’s desire for a refund of such amount 
within such 90-day period, apply such amount as a 
prepayment to the borrower’s loans made under this 
part in the same manner as a prepayment author-
ized under subsection (e). 
‘‘(h) EMPLOYER
FAILURE
TO
WITHHOLD
PAY-
MENTS.—In the case of a borrower whose employer fails 
to withhold amounts under section 499D(b)(2) upon any 
wages earned by the borrower that are subject to Federal 
income tax withholding and with respect to which the bor-
rower made an election to have amounts withheld under 
section 499(b)(2), the Secretary shall— 
‘‘(1) reduce the borrower’s annual repayment to 
an amount equal to the borrower’s annual repay-
ment amount had wages from such employer been 
excluded when calculating the borrower’s annual re-
payment amount; and 
‘‘(2) reduce any penalties for underpayments 
calculated under subsection (f)(1) and refund any 
overpayments on such annual repayment amount, 
accordingly.’’. 
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SEC. 4. CONFORMING CHANGES TO THE HIGHER EDU-
CATION ACT OF 1965. 
(a) LOAN FORGIVENESS AND CANCELLATION FOR 
TEACHERS.— 
(1) LOAN FORGIVENESS FOR TEACHERS.—Sec-
tion 428J of the Higher Education Act of 1965 (20 
U.S.C. 1078–10) is amended— 
(A) in subsection (b), by inserting ‘‘or for 
an IDEA loan made under part J,’’ after ‘‘or 
428H,’’; and 
(B) in subsection (c)— 
(i) in paragraph (1), by inserting ‘‘or 
an IDEA loan made under part J’’ after 
‘‘or 428H’’; or 
(ii) in paragraph (2)— 
(I) by striking ‘‘A loan’’ and in-
serting the following: 
‘‘(A) 
LOANS
MADE
UNDER
SECTION 
428C.—A loan’’; and 
(II) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) IDEA 
CONSOLIDATION
LOAN.—A 
loan amount for an IDEA Consolidation Loan 
may be a qualified loan amount for purposes of 
this subsection only to the extent that such loan 
amount was used to repay a Federal Direct 
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Stafford Loan, a Federal Direct Consolidation 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a loan made under section 428, 428C, 
or 428H.’’. 
(2) LOAN
CANCELLATION
FOR
TEACHERS.— 
Section 460 of such Act (20 U.S.C. 1087j) is 
amended— 
(A) in subsection (b), by inserting ‘‘or for 
an IDEA loan made under part J’’ after 
‘‘under this part’’; and 
(B) in subsection (c)— 
(i) in paragraph (1), by striking ‘‘or a 
Federal 
Direct 
Unsubsidized 
Stafford 
Loan’’ and inserting ‘‘, a Federal Direct 
Unsubsidized Stafford Loan, or an IDEA 
loan made under part J’’; and 
(ii) in paragraph (2)— 
(I) by striking ‘‘A loan’’ and in-
serting the following: 
‘‘(A) FEDERAL
DIRECT
CONSOLIDATION 
LOAN.—A loan’’; and 
(II) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) IDEA 
CONSOLIDATION
LOAN.—A 
loan amount for an IDEA Consolidation Loan 
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may be a qualified loan amount for purposes of 
this subsection only to the extent that such loan 
amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Consolidation 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a loan made under section 428, 428C, 
or 428H.’’. 
(b) LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
NATIONAL NEED.—Section 428K(a)(2) of such Act (20 
U.S.C. 1078–11(a)(2)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) to cancel the qualified loan amount 
for a loan made under part J of this title.’’. 
(c) LOAN REPAYMENT FOR CIVIL LEGAL ASSIST-
ANCE ATTORNEYS.—Section 428L(b)(2)(A) of such Act 
(20 U.S.C. 1078–12(b)(2)(A)) is amended— 
(1) in clause (1), by striking ‘‘or part E’’ and 
inserting ‘‘, part E, or part J’’; and 
(2) in clause (ii)— 
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(A) in the matter preceding subclause (I), 
by striking ‘‘or 455(g)’’ and inserting ‘‘, 455(g), 
or 499C’’; 
(B) by striking ‘‘or’’ at the end of sub-
clause (II); 
(C) by redesignating subclause (III) as 
subclause (IV); and 
(D) by inserting after subclause (II) the 
following: 
‘‘(III) a Federal Direct Consoli-
dation loan or a loan made under sec-
tion 428C, in the case of a loan made 
under section 499C; or’’. 
(d) 
MASTER
PROMISSORY
NOTE.—Section 
432(m)(1)(D) of such Act (20 U.S.C. 1082(m)(1)(D)) is 
amended— 
(1) by striking ‘‘this part and part D’’ each 
place it appears and by inserting ‘‘this part, part D, 
and part J’’; and 
(2) by striking ‘‘this part or part D’’ each place 
it appears and by inserting ‘‘this part, part D, or 
part J’’. 
(e) CONTRACTS.—Section 456 of such Act (20 U.S.C. 
1087f) is amended— 
(1) in subsection (a)— 
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(A) in paragraph (2), by striking ‘‘this 
part’’ each place it appears and inserting ‘‘this 
part or part J’’; and 
(B) in paragraph (4), by inserting ‘‘or part 
J’’ after ‘‘this part’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘or the 
program under part J’’ after ‘‘(or their par-
ents)’’; 
(B) in paragraph (2), by inserting ‘‘or part 
J’’ after ‘‘this part’’; 
(C) in paragraph (3), by inserting ‘‘or part 
J’’ after ‘‘this part’’; and 
(D) in paragraph (4), by inserting ‘‘or the 
IDEA Loan Program’’ after ‘‘loan program’’. 
(f) FUNDS FOR ADMINISTRATIVE EXPENSES.—Sec-
tion 458(a)(3) of such Act (20 U.S.C. 1087h(a)(3)) is 
amended— 
(1) by striking ‘‘this part and part B’’ and in-
serting ‘‘this part, part B, and part J’’; and 
(2) by inserting before the period at the end the 
following: ‘‘and part J’’. 
(g) STUDENT ELIGIBILITY.—Section 484 of such Act 
(20 U.S.C. 1091) is amended— 
(1) in subsection (b)— 
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(A) in paragraph (3), by striking ‘‘or D’’ 
and inserting ‘‘, D, or E’’; and 
(B) in paragraph (4)(B), by striking ‘‘or 
E’’ and inserting ‘‘E, or J’’; 
(2) in subsection (d), by striking ‘‘and E’’ and 
inserting ‘‘E, and J’’; 
(3) in subsection (f), by striking ‘‘or part E’’ 
each place it appears and inserting ‘‘part E, or part 
J’’; and 
(4) in subsection (m), by striking ‘‘and E’’ and 
inserting ‘‘E, and J’’. 
(h) INSTITUTIONAL AND FINANCIAL ASSISTANCE IN-
FORMATION FOR STUDENTS.—Section 485 of such Act 
(20 U.S.C. 1092) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(M), by striking ‘‘and 
E’’ and inserting ‘‘E, and J’’; and 
(B) in paragraph (7)(A)(i), by striking 
‘‘Loan)’’ each place it appears and inserting 
‘‘Loan) or part J’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(A)— 
(i) in the matter preceding clause (i), 
by inserting ‘‘or made under part J’’ after 
‘‘part E’’; and 
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(ii) in clause (vii)— 
(I) by inserting ‘‘or an IDEA 
Consolidation Loan’’ after ‘‘Federal 
Direct Consolidation Loan’’; and 
(II) by striking ‘‘and E’’ and in-
serting ‘‘E, and J’’; and 
(B) in paragraph (2)(A), by striking ‘‘or 
E’’ and inserting ‘‘E, or J’’; and 
(3) in subsection (l)(1)— 
(A) in subparagraph (A), in the matter 
preceding clause (i), by inserting ‘‘or made 
under part J’’ after ‘‘student)’’; and 
(B) in subparagraph (B), by striking ‘‘or 
D’’ and inserting ‘‘, D, or J’’. 
SEC. 5. NATIONAL DIRECTORY OF NEW HIRES. 
Section 453(i) of the Social Security Act (42 U.S.C. 
653(i)) is amended by adding at the end the following new 
paragraph: 
‘‘(5) SENDING NOTICE TO BORROWERS OF CER-
TAIN STUDENT LOANS.—The Secretary of Education 
shall have access to the information in the National 
Directory of New Hires for purposes of— 
‘‘(A) identifying, on at least a monthly 
basis, newly hired employees with an IDEA 
Loan or IDEA Consolidation loan made under 
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part J of title IV of the Higher Education Act 
of 1965 in repayment status; and 
‘‘(B) sending a notice to each such indi-
vidual to remind such individual that— 
‘‘(i) the individual has 1 or more 
loans described in subparagraph (A) in re-
payment status; 
‘‘(ii) the individual is responsible for 
providing accurate information to the indi-
vidual’s employer to ensure that the em-
ployer will deduct and withhold upon such 
wages amounts to repay such loans in ac-
cordance with section 499D(b) of the 
Higher Education Act of 1965; and 
‘‘(iii) failure to provide such accurate 
information will likely result in significant 
penalties, 
default, 
or 
collections 
pro-
ceedings.’’. 
SEC. 6. WITHHELD AMOUNTS INCLUDED ON W–2. 
(a) IN GENERAL.—Section 6051(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of paragraph (14), by striking the period at the 
end of paragraph (15) and inserting ‘‘, and’’, and by in-
serting after paragraph (14) the following new paragraph: 
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‘‘(16) the total amount deducted and withheld 
under the IDEA Loan Repayment Program estab-
lished under chapter 1 of subpart 2 of part J of title 
IV of the Higher Education Act of 1965.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts deducted and withheld 
after the date of the enactment of this Act. 
SEC. 7. DISCLOSURE OF RETURN INFORMATION FOR PUR-
POSES OF IDEA LOAN REPAYMENT PRO-
GRAM. 
(a) IN GENERAL.—Section 6103(l) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(23) DISCLOSURE OF RETURN INFORMATION 
TO DEPARTMENT OF EDUCATION FOR PURPOSES OF 
ADMINISTERING
IDEA
LOAN
REPAYMENT
PRO-
GRAM.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
upon written request, disclose to the Depart-
ment of Education such return information as 
is necessary for purposes of carrying out the 
IDEA Loan Repayment Program established 
under subpart 2 of part J of the Higher Edu-
cation Act of 1965. 
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‘‘(B) RESTRICTION ON DISCLOSURE.—Re-
turn information disclosed under subparagraph 
(A) may be used by officers, employees, and 
contractors of the Department of Education 
only for purposes of, and to the extent nec-
essary in— 
‘‘(i) determining income-based repay-
ment obligations under the IDEA Loan 
Repayment Program, and 
‘‘(ii) determining amounts deducted 
and withheld, and amounts paid concur-
rently with quarterly estimated taxes, 
under the IDEA Loan Repayment Pro-
gram.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 8. SENSE OF CONGRESS. 
It is the sense of Congress that any loan repayment 
or forgiveness program available under a Federal law out-
side of the Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) to students with loans made under part D of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
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et seq.) should be available to students with loans made 
under part J of such title of such Act. 
Æ 
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