257 
(B) by striking ‘‘$6,000’’ in clause (ii) and 
inserting ‘‘$8,000’’; and 
(2) in paragraph (2)(B)— 
(A) by striking ‘‘$40,000’’ in clause (i) and 
inserting ‘‘$60,000’’; 
(B) by striking ‘‘$20,000’’ in clause (ii) and 
inserting ‘‘$27,500’’; and 
(C) by striking ‘‘$8,000’’ in clause (iii) and 
inserting ‘‘$11,000’’. 
(b) 
FORBEARANCE.—Section 
464(e) 
(20 
U.S.C. 
1087dd(e)) is amended by striking ‘‘, upon written re-
quest,’’. 
(c) SPECIAL REPAYMENT RULE.—Paragraph (2) of 
section 464(f) is amended to read as follows: 
‘‘(2) No compromise repayment of a defaulted loan as 
authorized by paragraph (1) may be made unless agreed 
to by the Secretary.’’. 
(d) 
REHABILITATION.—Section 
464(h)(1)(A) 
(20 
U.S.C. 1087dd(h)(1)(A)) is amended by striking ‘‘12 
ontime’’ and inserting ‘‘9 on-time’’. 
SEC. 463. LOAN CANCELLATION. 
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is 
amended— 
(1) by inserting ‘‘(D),’’ after ‘‘subparagraph (A), 
(C),’’ in clause (i);
258 
(2) by inserting ‘‘or’’ after the semicolon at the 
end of clause (ii); 
(3) by striking clause (iii); and 
(4) by redesignating clause (iv) as clause (iii). 
SEC. 464. TECHNICAL AMENDMENTS. 
Part E is further amended as follows: 
(1) 
Section 
462(g)(1)(E)(i)(I) 
(20 
U.S.C. 
1087bb(g)(1)(E)(i)(I)) 
is 
amended 
by 
inserting 
‘‘monthly’’ after ‘‘consecutive’’. 
(2) 
Section 
463(a)(4)(A) 
(20 
U.S.C. 
1087cc(a)(4)(A)) is amended by striking ‘‘the Sec-
retary may’’ and inserting ‘‘the Secretary shall’’. 
(3) 
Section 
464(c)(1)(D) 
(20 
U.S.C. 
1087dd(c)(1)(D)) is amended by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), respec-
tively. 
(4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is 
amended in subparagraph (A), by striking ‘‘section 
111(c)’’ and inserting ‘‘section 1113(a)(5)’’. 
(5) Section 467(b) (20 U.S.C. 1087gg(b)) is 
amended by striking ‘‘(5)(A), (5)(B)(i), or (6)’’ and 
inserting ‘‘(4)(A), (4)(B), or (5)’’. 
(6) Section 469(c) (20 U.S.C. 1087ii(c)) is 
amended—
259 
(A) by striking ‘‘sections 602 and 632’’ and 
inserting ‘‘sections 602(3) and 632(5)’’; 
(B) by striking ‘‘qualified professional pro-
vider of early intervention services’’ and insert-
ing ‘‘early intervention services’’; and 
(C) by striking ‘‘section 672(2)’’ and insert-
ing ‘‘section 632(4)’’. 
PART F—NEED ANALYSIS 
SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID 
APPLICATION PROCESS. 
(a) EXPANDING THE AUTO-ZERO AND FURTHER SIM-
PLIFYING THE SIMPLIFIED NEEDS TEST.— 
(1) SIMPLIFIED NEEDS TEST.—Section 479 (20 
U.S.C. 1087ss) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)— 
(I) by striking clause (i) of sub-
paragraph (A) and inserting the fol-
lowing: 
‘‘(i) the student’s parents file, or are el-
igible to file, a form described in paragraph 
(3) or certify that they are not required to 
file an income tax return, and the student 
files, or is eligible to file, such a form or 
certifies that the student is not required to
260 
file an income tax return, or the student’s 
parents, or the student, received benefits at 
some time during the previous 12-month pe-
riod under a means-tested Federal benefit 
program as defined under subsection (d); 
and’’; and 
(II) by striking clause (i) of sub-
paragraph (B) and inserting the fol-
lowing: 
‘‘(i) the student (and the student’s 
spouse, if any) files, or is eligible to file, a 
form described in paragraph (3) or certifies 
that the student (and the student’s spouse, if 
any) is not required to file an income tax 
return, or the student (and the student’s 
spouse, if any) received benefits at some 
time during the previous 12-month period 
under a means-tested Federal benefit pro-
gram as defined under subsection (d); and’’; 
and 
(ii) in paragraph (3), by striking ‘‘A 
student or family files a form described in 
this subsection, or subsection (c), as the case 
may be, if the student or family, respec-
tively, files’’ and inserting ‘‘In the case of