owner of the loan, the beneficial owner of the loan) 
of the loans being repaid by the Secretary under 
subsection (a)(7); 
‘‘(2) prepay any such loan ahead of the loan’s 
repayment 
schedule 
referenced 
in 
subsection 
(a)(7)(B); or 
‘‘(3) use any authority or take any actions be-
yond what is authorized explicitly in subsection 
(a)(7). 
‘‘(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) APPLICABLE
MONTHLY
PAYMENT.—The 
term ‘applicable monthly payment’ means, when 
used with respect to a borrower, the amount ob-
tained by dividing by 12, 10 percent of the result ob-
tained by calculating, on at least an annual basis, 
the amount by which— 
‘‘(A) the adjusted gross income of the bor-
rower or, if the borrower is married and files a 
Federal income tax return jointly with or sepa-
rately from the borrower’s spouse, the adjusted 
gross income of the borrower and the bor-
rower’s spouse; exceeds 
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‘‘(B) 150 percent of the poverty line appli-
cable to the borrower’s family size as deter-
mined under section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 9902(2)). 
‘‘(3) 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. 
‘‘(4) 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-DRIVEN REPAYMENT ASSISTANCE 
FOR LOANS IN REPAYMENT 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-driven repayment plan 
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under section 494A for a loan made under part 
B or D, the Secretary, with respect to such in-
dividual 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 494A(b)(3); or 
‘‘(II) provide such information as 
the Secretary may require to confirm 
the eligibility of such individual for 
such repayment plan. 
‘‘(B) RECERTIFICATIONS.—In the case of 
an individual whom the Secretary enrolls, pur-
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suant to section 494A(b)(1), in an income-driv-
en repayment assistance plan under section 
494A, the Secretary shall meet the require-
ments of clauses (i) and (ii) of subparagraph 
(A), with respect to such individual and any 
spouse of such individual, for the first written 
or electronic recertification of such individual’s 
income or family size for purposes of such in-
come-driven repayment assistance plan.’’. 
SEC. 6. DEFERMENT ON LOANS MADE ON OR AFTER JULY 
1, 2024. 
(a) IN GENERAL.—Part D of title IV (20 U.S.C. 
1087e et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 460A. DEFERMENT ON LOANS MADE ON OR AFTER 
JULY 1, 2024. 
‘‘(a) EFFECT ON PRINCIPAL AND INTEREST.— 
‘‘(1) IN GENERAL.— 
‘‘(A) REQUIREMENTS FOR BORROWERS.— 
Subject to subparagraph (B), a borrower of a 
loan made under this part on or after July 1, 
2024— 
‘‘(i) who meets the requirements de-
scribed in subsection (b) shall be eligible 
for a deferment on such loan during which 
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installments of principal need not be paid 
and, as specified in paragraph (2), interest 
shall not accrue, or shall accrue and be 
paid by the borrower; and 
‘‘(ii) may not be eligible for a 
deferment or forbearance under section 
455(f) or any other provision of this Act 
(other than a forbearance under section 
455(l), 
a 
forbearance 
under 
section 
685.205(a) of title 34, Code of Federal 
Regulations (or successor regulations), or a 
deferment under section 493D). 
‘‘(B) EXCEPTIONS
FOR
BORROWERS
EN-
ROLLED IN CERTAIN PROGRAMS OF STUDY.— 
Any borrower who is student who is enrolled in 
a program of study at an institution of higher 
education as of June 30, 2024, or any loans 
made to (or on behalf of) such borrower, during 
the period required for the completion of such 
program) shall not be subject to this section 
‘‘(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), or (b)(6) interest— 
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‘‘(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 
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-
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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, 2024— 
‘‘(1) during any period during which the bor-
rower— 
‘‘(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; 
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‘‘(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 
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-
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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; 
‘‘(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); 
‘‘(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-
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riod’), except that, notwithstanding subsection (a), 
interest shall not accrue during any such treatment 
period or post-treatment period; or 
‘‘(6) during a period, not to exceed an aggre-
gate of 180 days, in which the borrower— 
‘‘(A) is the spouse of a member of the 
Armed Forces serving on active duty; and 
‘‘(B) has experienced a loss of employment 
as a result of relocation to accommodate a per-
manent change in duty station of such member. 
‘‘(c) LENGTH OF DEFERMENT.—A deferment grant-
ed by the Secretary under subparagraph (F) of subsection 
(b)(1) shall— 
‘‘(1) be renewable at 12 month intervals; and 
‘‘(2) equal the length of time remaining in the 
borrower’s medical or dental internship or residency 
program. 
‘‘(d) REQUEST
AND DOCUMENTATION.—The Sec-
retary shall determine the eligibility of a borrower for a 
deferment— 
‘‘(1) under paragraph (1), (2), or (4) of sub-
section (b), based on— 
‘‘(A) the receipt of a request for a 
deferment from the borrower, and documenta-
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tion of the borrower’s eligibility for the 
deferment; 
‘‘(B) receipt of a completed loan applica-
tion that documents the borrower’s eligibility 
for a deferment; 
‘‘(C) receipt of a student status informa-
tion documenting that the borrower is enrolled 
on at least a half-time basis; or 
‘‘(D) the Secretary’s confirmation of the 
borrower’s half-time enrollment status, if the 
confirmation is requested by the institution of 
higher education; and 
‘‘(2) under paragraph (6) based on— 
‘‘(A)(i) evidence that the borrower is the 
spouse of a member of the Armed Forces serv-
ing on active duty; 
‘‘(ii) evidence that a military permanent 
change of station order was issued to such 
member; and 
‘‘(iii)(I) evidence that the borrower is eligi-
ble for unemployment benefits due to a loss of 
employment resulting from relocation to accom-
modate such permanent change in duty station; 
or 
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‘‘(II) a written certification, or an equiva-
lent as approved by the Secretary, that the bor-
rower is registered with a public or private em-
ployment agency due to a loss of employment 
resulting from relocation to accommodate such 
permanent change in duty station; or 
‘‘(B) such other documentation as the Sec-
retary determines appropriate. 
‘‘(e) NOTIFICATION.—The Secretary shall— 
‘‘(1) notify a borrower of a loan made under 
this part— 
‘‘(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— 
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‘‘(A) the effect of granting a deferment on 
the total amount to be paid under the income- 
driven repayment plan under 494A; 
‘‘(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. 
‘‘(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 
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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 
‘‘(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-
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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 
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 
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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-
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). 
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‘‘(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). 
‘‘(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 
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‘‘(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— 
‘‘(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 
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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 
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: 
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‘‘(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. 
‘‘(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 
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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 
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 section. 
‘‘(2) PROHIBITION
ON
ADVERSE
CREDIT
RE-
PORTING.—No adverse information relating to a bor-
rower may be reported to a consumer reporting 
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agency solely because of the granting of a deferment 
under this section. 
‘‘(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 section. 
‘‘(m) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE
GRADUATE
FELLOWSHIP
PRO-
GRAM.—The term ‘eligible graduate fellowship pro-
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 
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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— 
‘‘(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— 
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‘‘(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 
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 494A. 
‘‘(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 
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‘‘(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 
‘‘(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 
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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.); 
‘‘(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. 
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‘‘(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. 
‘‘(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 
460A’’ after ‘‘464(c)(2)(A)(iii)’’. 
SEC. 7. 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. 
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SEC. 8. LIMITATION ON AUTHORITY OF SECRETARY TO 
PROPOSE OR ISSUE REGULATIONS AND EX-
ECUTIVE ACTIONS. 
(a) IN GENERAL.—Part G of title IV (20 U.S.C. 
1088 et seq.) is amended 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. 
‘‘(2) If the Secretary determines under para-
graph (1) that the draft regulation would result in 
an increase in a subsidy cost, then the Secretary 
may take no further action with respect to such reg-
ulation. 
‘‘(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 
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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. 
‘‘(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 
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-
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ty, or State, local, or tribal governments or commu-
nities.’’. 
(b) PROHIBITION ON CERTAIN FINAL RULE.—Ex-
cept as expressly authorized by an Act of Congress, the 
Secretary may not implement, administer, or enforce a 
final rule that is substantially similar to the proposed rule 
on ‘‘Improving Income-Driven Repayment for the William 
D. Ford Federal Direct Loan Program’’ published by the 
Department of Education in the Federal Register on Jan-
uary 11, 2023 (88 Fed. Reg. 1894 et seq.). 
Æ 
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