‘‘(H) CALCULATING LOAN FORGIVENESS.— 
The Secretary shall determine appropriate loan 
forgiveness options for students who select the 
repayment plan under this section. 
‘‘(I) FINANCIAL HARDSHIPS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall establish a process for providing an 
adjustment in both the monthly payment 
and annual repayment amount obligations 
on a loan for a borrower experiencing ex-
treme unforeseen financial circumstances 
unrelated to a change in annual income. 
‘‘(ii) REPAYMENT
STATUS.—A bor-
rower who receives an adjustment under 
clause (i) for a loan shall be deemed in re-
payment status with respect to such loan. 
‘‘(2) MONTHLY PAYMENTS PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a process under which a borrower, or 
one making payments on behalf of a borrower 
under paragraph (1)(D), shall make monthly 
payments towards the borrower’s annual repay-
ment amount. 
‘‘(B) INFORMATION REQUIRED.—The pro-
cedure for initiating the monthly payments 
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process under subparagraph (A) shall include 
an income estimate based on the income 
verification provided by the Secretary of the 
Treasury under subsection (b). 
‘‘(C) 
AUTOMATIC
CONTINUATION.—The 
monthly payments process shall continue until 
the borrower’s loans made under this part after 
the date of enactment of the LOAN Act of 
2019 are repaid. 
‘‘(D) UPDATING PAYMENT AMOUNTS.— 
‘‘(i) 
SECRETARY.—The 
Secretary 
shall automatically recalculate a borrower’s 
monthly payment amount— 
‘‘(I) at the beginning of a new 
taxable year using the most recent in-
come estimate provided under sub-
section (b)(1) by the Secretary of the 
Treasury; and 
‘‘(II) not later than 30 days after 
the date the borrower’s income esti-
mate is adjusted after an appeal 
under paragraph (1)(E). 
‘‘(ii) BORROWER.—A borrower may 
request that the Secretary update the bor-
rower’s income estimate to adjust monthly 
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payment amounts pursuant to subpara-
graph (E) or (I) of paragraph (1) at any 
time. 
‘‘(d) BORROWER REPAYMENT.— 
‘‘(1) REPAYMENT PERIOD.—The repayment pe-
riod of a loan in the repayment plan under this sec-
tion shall— 
‘‘(A) begin on the first day of the first tax-
able year that begins after the borrower’s in- 
school deferment period; and 
‘‘(B) continue until the loan is paid in full, 
except that the Secretary may grant a borrower 
deferment of the borrower’s annual repayment 
amount— 
‘‘(i) for a period not to exceed 60 
days, due to administrative or technical 
reasons; 
‘‘(ii) 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 
‘‘(iii) renewable at 12-month intervals 
for a period not to exceed 3 years, due to 
documented extreme economic hardship on 
the part of a borrower. 
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kjohnson on DSK79L0C42 with BILLS
‘‘(2) PREPAYMENT AUTHORIZED.—A borrower 
shall have the right to prepay all or part of such 
loan, at any time and without penalty. Any such pre-
payment amount shall be applied in accordance with 
section 455(r)(3)(C). 
‘‘(3) DETERMINATION OF INCOME-BASED RE-
PAYMENT OBLIGATION.— 
‘‘(A) IN GENERAL.—The repayment obliga-
tion under this section with respect to an indi-
vidual for any taxable year is an amount equal 
to 10 percent of the amount of the gross in-
come of the borrower for the taxable year that 
exceeds the exemption amount under subpara-
graph (C). 
‘‘(B) EXCLUSION
OF
CERTAIN
AMOUNTS 
PAID
ON
BEHALF
OF
INDIVIDUAL.—Any 
amount paid on the borrower’s behalf under 
subsection (c)(1)(D) shall not be taken into ac-
count in determining such borrower’s income- 
based repayment obligation. 
‘‘(C) EXEMPTION AMOUNT.—For purposes 
of this section, the exemption amount with re-
spect to an individual shall be $10,000 (ad-
justed each year to reflect changes in the Con-
sumer Price Index for All Urban Consumers 
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published by the Bureau of Labor Statistics of 
the Department of Labor for the most recent 
12-month period for which such data are avail-
able). 
‘‘(D) INDIVIDUALS
NOT
FILING
A
RE-
TURN.—The income-based repayment obligation 
with respect to an individual not required to file 
a return under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 shall be treated as 
zero.’’. 
Æ 
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