‘‘(ii) 
NOTICE
REQUIREMENT.—The 
Secretary shall adjust any forbearance no-
tice required in accordance with section 
428(a)(3)(A)(iii) to reflect the availability 
of the pause payment process pursuant to 
section 460B and the treatment of interest 
under such section. 
‘‘(C) LIMITED
RETROACTIVITY.—For a 
borrower of a loan made under this part on or 
before the effective date of the Affordable 
Loans for Any Student Act that is in a status, 
on the day before such effective date, that in-
volves interest capitalization, such loan shall 
have capitalization pro-rated to the effective 
date of such Act, but shall not be subject to 
further capitalization after the effective date of 
such Act.’’; 
(2) in subsection (e)(5)— 
(A) by inserting ‘‘(which, beginning after 
the effective date of the Affordable Loans for 
Any Student Act, shall not be capitalized)’’ 
after ‘‘accrued interest’’; and 
(B) by striking the second sentence; and 
(3) in subsection (q)(2), by striking the second 
sentence and inserting the following: ‘‘Such interest 
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shall be paid or shall accrue but not be capitalized 
in accordance with subsection (b)(11)(B).’’. 
(b) INCOME-BASED
REPAYMENT
PLANS.—Para-
graph 
(3)(B) 
of 
section 
493C(b) 
(20 
U.S.C. 
1098e(b)(3)(B)) is amended to read as follows: 
‘‘(B)(i) beginning on the effective date of 
the Affordable Loans for Any Student Act, for 
an eligible loan issued under part D or not oth-
erwise described in clause (ii), shall not be cap-
italized and shall be added to the balance of in-
terest due for the loan; and 
‘‘(ii) for an eligible loan made, insured, or 
guaranteed under part B and held by a private 
lender, shall be added to the principal amount 
and capitalized at the time the borrower— 
‘‘(I) ends the election to make income- 
based repayment under this subsection; or 
‘‘(II) begins making payments of not 
less than the amount specified in para-
graph (6)(A);’’. 
SEC. 202. ELIMINATION OF ORIGINATION FEES FOR FED-
ERAL DIRECT LOANS. 
(a) REPEAL OF ORIGINATION FEES.—Subsection (c) 
of section 455 (20 U.S.C. 1087e(c)) is repealed. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to loans made 
under part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) for which the first dis-
bursement of principal is made, or, in the case of a Fed-
eral Direct Consolidation Loan, the application is received, 
on or after July 1, 2020. 
TITLE III—PROVIDING ASSIST-
ANCE IN SITUATIONS OF BOR-
ROWER DISTRESS 
SEC. 301. LIMITS ON SEIZING INCOME FOR DEBT RELATING 
TO FEDERAL STUDENT LOANS. 
Part D of title IV (20 U.S.C. 1087a et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 460A. LIMITS ON SEIZING INCOME FOR DEBT RELAT-
ING TO FEDERAL STUDENT LOANS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘adjusted gross income’ has the 
meaning given the term in section 62 of the Internal 
Revenue Code of 1986; and 
‘‘(2) the term ‘poverty line’ means the poverty 
line (as defined by the Office of Management and 
Budget and revised annually in accordance with sec-
tion 673(2) of the Community Services Block Grant 
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Act (42 U.S.C. 9902(2))) applicable to a family of 
the size involved. 
‘‘(b) LIMITATION ON COLLECTION.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, any entity engaged in the collection 
of debts relating to loans made under this title may 
not take any action to cause, or seek to cause, the 
collection of such a debt that is taken from the 
wages, Federal benefits, or other amounts due to a 
borrower through garnishment, deduction, offset, or 
seizure in an amount on a monthly basis that is 
more than the amount described in paragraph (2). 
‘‘(2) CALCULATION.—The amount described in 
this paragraph is the amount obtained by calculating 
what the monthly repayment amount would be for 
loans made under this title, with respect to the bor-
rower, under the income-based repayment plan 
under section 493C(c). 
‘‘(3) PRESUMPTION.—For purposes of this sec-
tion, if an entity described in paragraph (1) is un-
able to determine the family size of a borrower after 
taking reasonable steps to collect the information 
necessary to do so, that person shall presume that 
the family size of the borrower is 1 individual. 
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‘‘(c) COMMUNICATIONS.—Any communication by an 
entity described in subsection (b)(1) that is for the pur-
pose of seizing income of a consumer for debt that relates 
to a loan made under this title shall— 
‘‘(1) be considered— 
‘‘(A) an attempt to collect a debt; and 
‘‘(B) conduct in connection with the collec-
tion of a debt for the purposes of this title; and 
‘‘(2) contain a notice to the borrower that, con-
sistent with the procedures for rehabilitating a loan 
pursuant to section 428F(a) or consolidating loans 
out 
of 
default 
as 
described 
in 
section 
428C(a)(3)(B)(i)(V), the borrower may exit default 
and reenter current repayment status (as defined in 
section 428(l)(2)(C)) with a similar monthly pay-
ment amount on an income-based repayment plan 
under section 493C(c) and thereby obtain the full 
flexibility and benefits of such status, including the 
ability to adjust family size and make qualifying 
payments for purposes of repayment or cancellation 
of any outstanding balance of principal and interest 
due on a loan (as described in section 493C(b)(7)). 
‘‘(d) REMEDIES.— 
‘‘(1) FIRST TIER.—The Secretary may impose a 
civil penalty on an entity for a violation of this sec-
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tion not to exceed $5,000 for each day during which 
such violation continues. 
‘‘(2) SECOND
TIER.—Notwithstanding para-
graph (1), the Secretary may impose a civil penalty 
on an entity that recklessly engages in a violation of 
this section not to exceed $25,000 for each day dur-
ing which such violation continues. 
‘‘(3) 
THIRD
TIER.—Notwithstanding 
para-
graphs (1) and (2), the Secretary may impose a civil 
penalty on an entity that knowingly violates this sec-
tion not to exceed $1,000,000 for each day during 
which such violation continues. 
‘‘(4) NO EXEMPLARY OR PUNITIVE DAMAGES.— 
Nothing in this subsection shall be construed as au-
thorizing the imposition of exemplary or punitive 
damages. 
‘‘(5) ENTITIES SUBJECT TO PENALTY.—An en-
tity subject to a penalty under this subsection may 
include a contractor or agent of the Department.’’. 
SEC. 302. ALLOWING FOR MULTIPLE LOAN REHABILI-
TATIONS. 
(a) FFEL LOANS.—Section 428F(a)(5) (20 U.S.C. 
1078–6(a)(5)) is amended by striking ‘‘one time per loan’’ 
and inserting ‘‘2 times per loan’’. 
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(b) DIRECT LOANS.—Section 455(d) (20 U.S.C. 
1087e(d)), as amended by section 103, is further amended 
by adding at the end the following: 
‘‘(8) LOAN REHABILITATION.—In carrying out 
the process for loan rehabilitation described in sec-
tion 428F(a)(5) with respect to loans made under 
this part and in accordance with subsection (a), the 
Secretary shall allow a borrower to obtain the bene-
fits available under such section not more than 2 
times per loan.’’. 
SEC. 303. PAUSE PAYMENT PROCESS. 
(a) ESTABLISHMENT
OF PAUSE PAYMENT PROC-
ESS.—Part D of title IV (20 U.S.C. 1087a et seq.), as 
amended by section 301, is further amended by adding 
at the end the following: 
‘‘SEC. 460B. PAUSE PAYMENT PROCESS. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
single, streamlined pause payment process available in a 
single application with respect to loans made under this 
part that replaces the deferment and forbearance options 
and their respective applications that are available to bor-
rowers before the effective date of the Affordable Loans 
for Any Student Act and provides temporary relief from 
repayment of such loans in accordance with this section. 
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‘‘(b) APPLICATION FOR RELIEF.—Notwithstanding 
any other provision of this Act, a borrower of a loan made 
under this part that desires to receive temporary relief 
from repayment with respect to such loan shall request 
relief in accordance with the pause payment process estab-
lished by the Secretary under subsection (a), which shall 
include the options to select a temporary cessation of pay-
ments and to make smaller payments than the monthly 
payments required under the borrower’s repayment plan. 
‘‘(c) PAUSE PAYMENT.— 
‘‘(1) IN GENERAL.—A borrower of a loan made 
under this part who meets the requirements de-
scribed in paragraph (2) shall be eligible for a pause 
payment, during which periodic installments of prin-
cipal need not be paid, and interest— 
‘‘(A) shall not accrue, in the case of a— 
‘‘(i) Federal Direct Stafford Loan; or 
‘‘(ii) a Federal Direct Consolidation 
Loan that consolidated only Federal Direct 
Stafford Loans, or a combination of such 
loans and Federal Stafford Loans for 
which the student borrower received an in-
terest subsidy under section 428; or 
‘‘(B) shall accrue and be added to the bal-
ance of interest due but not be capitalized, or 
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be paid by the borrower, in the case of a Fed-
eral Direct PLUS Loan, a Federal Direct Un-
subsidized Stafford Loan, or a Federal Direct 
Consolidation Loan not described in subpara-
graph (A)(ii). 
‘‘(2) ELIGIBILITY.—A borrower of a loan made 
under this part shall be eligible for a pause payment 
during any period— 
‘‘(A) during which— 
‘‘(i) the borrower is carrying at least 
one-half the normal full-time work load for 
the course of study that the borrower is 
pursuing, as determined by the eligible in-
stitution (as such term is defined in sec-
tion 435(a)) the student is attending; or 
‘‘(ii) in the case of a parent borrower, 
the borrower or the student on whose be-
half the loan was borrowed is carrying at 
least one-half the normal full-time work 
load, in accordance with clause (i); 
‘‘(B) during which the borrower is pur-
suing a course of study pursuant to a graduate 
fellowship program approved by the Secretary; 
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‘‘(C) during which the borrower is serving 
in a medical or dental internship or residency 
program; 
‘‘(D) during which the borrower is in a re-
habilitation training program for individuals 
with disabilities approved by the Secretary; 
‘‘(E) during which the borrower— 
‘‘(i) is serving on active duty during a 
war or other military operation or national 
emergency and for the 180-day period fol-
lowing the demobilization date for the serv-
ice; or 
‘‘(ii) qualifies for partial repayment of 
the borrower’s loans under a provision of 
chapter 109 or 1609 of title 10, United 
States Code; 
‘‘(F) during which the borrower is per-
forming qualifying National Guard duty during 
a war or other military operation or national 
emergency and for the 180-day period following 
the demobilization date for the service; 
‘‘(G) during which the borrower is serving 
in— 
‘‘(i) an approved national service posi-
tion (as defined in section 101 of the Na-
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tional and Community Service Act of 1990 
(42 U.S.C. 12511)) in an Americorps pro-
gram (defined for purposes of this sub-
paragraph as a program carried out under 
subtitle C or E of title I of the National 
and Community Service Act of 1990 (42 
U.S.C. 12571 et seq., 12611 et seq.) or 
title I of the Domestic Volunteer Service 
Act of 1973 (42 U.S.C. 4951 et seq.)); 
‘‘(ii) in the Peace Corps; or 
‘‘(iii) in a teaching position that would 
qualify for teacher loan forgiveness under 
section 428J; 
‘‘(H) not in excess of 3 years during which 
the Secretary determines, in accordance with 
regulations prescribed under section 435(o), 
that the borrower has experienced or will expe-
rience an economic hardship, such as experi-
encing financial difficulties, having unexpected 
or significant medical expenses, or being unable 
to find full-time employment; 
‘‘(I) during which a borrower’s ability to 
make payments, as determined by the Sec-
retary, has been adversely affected by— 
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‘‘(i) any major disaster or emergency 
declared by the President under section 
401 or 501, respectively, of the Robert T. 
Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170, 5191); 
‘‘(ii) a local emergency, as declared by 
the appropriate government agency; or 
‘‘(iii) a military mobilization; 
‘‘(J) during which the borrower is awaiting 
a determination by the Secretary of the bor-
rower’s request for a pause payment, change in 
repayment plan, loan forgiveness or cancella-
tion, or consolidation loan; or 
‘‘(K) during which the borrower is experi-
encing other exceptional circumstances for 
which pause payment under this section is in 
the best interest of the borrower, as determined 
by the Secretary through regulation.’’. 
(b) CONFORMING AMENDMENTS.—Section 455 (20 
U.S.C. 1087e) is amended— 
(1) in subsection (e)(7)(B)(i), by striking ‘‘is in 
deferment’’ and inserting ‘‘is under pause payment 
pursuant to section 460B’’; 
(2) by striking subsection (f) and inserting the 
following: 
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‘‘(f) øreserved¿’’; and 
(3) in subsection (l)— 
(A) by striking ‘‘PROGRAM.—’’ and all that 
follows through ‘‘Using funds’’ and inserting 
the following: ‘‘PROGRAM.—Using funds’’; and 
(B) by striking paragraph (2). 
SEC. 304. AUTOMATIC ENROLLMENT INTO INCOME-BASED 
REPAYMENT FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS AND FOR BORROWERS 
WHO REHABILITATE DEFAULTED LOANS. 
(a) NOTIFICATION AND AUTOMATIC ENROLLMENT 
PROCEDURES.—Section 455(d) (20 U.S.C. 1087e(d)), as 
amended by sections 103 and 302, is further amended by 
adding at the end the following: 
‘‘(9) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.— 
‘‘(i) IN GENERAL.—In the case of any 
borrower who is at least 60 days delin-
quent on a loan made under this part, the 
Secretary may obtain such information as 
is reasonably necessary regarding the in-
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come and family size of the borrower (and 
the borrower’s spouse, if applicable). 
‘‘(ii) AVAILABILITY OF RETURNS AND 
RETURN INFORMATION.—Returns and re-
turn information (as defined in section 
6103 of the Internal Revenue Code of 
1986) may be obtained under this subpara-
graph only to the extent authorized by sec-
tion 6103(l)(13) of such Code. 
‘‘(B) BORROWER NOTIFICATION.—With re-
spect to each borrower of a loan made under 
this part who is at least 60 days delinquent on 
such loan and who has not been subject to the 
procedures under this paragraph for such loan 
in the preceding 120 days, the Secretary shall, 
as soon as practicable after such 60-day delin-
quency, provide to the borrower the following: 
‘‘(i) Notification that the borrower is 
at least 60 days delinquent on at least 1 
loan under this part, and a description of 
all delinquent loans under this part, and 
nondelinquent loans under this part, of the 
borrower. 
‘‘(ii) A brief description of the repay-
ment plans for which the borrower is eligi-
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ble and the borrower’s loans made under 
this part, and loans made, insured, or 
guaranteed under part B or E, that may 
be eligible for such plans, based on infor-
mation available to the Secretary. 
‘‘(iii) Clear and simple instructions on 
how to select the repayment plans. 
‘‘(iv) The amount of monthly pay-
ments for the loans made under this part, 
and any loans made, insured, or guaran-
teed under part B or E, under the repay-
ment plans for which the borrower is eligi-
ble, based on information available to the 
Secretary, including, if the income infor-
mation of the borrower is available to the 
Secretary under subparagraph (A)— 
‘‘(I) the amount of the monthly 
payment under the income-based re-
payment plan under section 493C(c) 
for which the borrower is eligible for 
the borrower’s loans made under this 
part, based on such income informa-
tion; and 
‘‘(II) the income, family size, tax 
filing status, and tax year information 
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on which each the monthly payment is 
based. 
‘‘(v) An explanation that the Sec-
retary shall take the actions under sub-
paragraph (C) with respect to such bor-
rower, if— 
‘‘(I) the borrower is 120 days de-
linquent on one or more loans under 
this part and has not selected a new 
repayment plan for the borrower’s 
loans under this part; and 
‘‘(II) in the case of such a bor-
rower whose repayment plan for any 
loans made under this part is not an 
income-based repayment plan under 
section 493C(c), the monthly pay-
ments under such repayment plan are 
higher than such monthly payments 
would be under an income-based re-
payment plan for such loans. 
‘‘(vi) Instructions on updating the in-
formation of the borrower obtained under 
subparagraph (A). 
‘‘(C) SECRETARY’S INITIAL SELECTION OF 
PLAN.—With respect to each borrower de-
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scribed in subparagraph (B) who has a repay-
ment plan for loans made under this part that 
meets the requirements of clause (v)(II) of sub-
paragraph (B), who has not selected a new re-
payment plan for such loans in accordance with 
the notice received under such subparagraph, 
and who is at least 120 days delinquent on such 
a loan, the Secretary shall, as soon as prac-
ticable— 
‘‘(i) in a case in which any of the bor-
rower’s loans made under part B or E are 
eligible for an income-based repayment 
plan under section 493C(c), provide the 
borrower with the income-based repayment 
plan; and 
‘‘(ii) in a case in which none of the 
borrower’s loans made under part B or E 
are eligible for an income-based repayment 
plan under section 493C(c), notify the bor-
rower of the actions, if any, the borrower 
may take for such loans to become eligible 
for such a plan. 
‘‘(D) SECRETARY’S
ADDITIONAL
SELEC-
TION OF PLAN.— 
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