and’’ and inserting ‘‘the option of repaying the 
loan in accordance with a repayment plan de-
scribed in paragraph (9)(C) established by the 
lender in accordance with regulations of the 
Secretary; and’’; and 
(2) in paragraph (9), by adding at the end the 
following: 
‘‘(C) SELECTION
OF
REPAYMENT
PLANS 
ON AND AFTER JULY 1, 2023; OPPORTUNITY TO 
CHANGE REPAYMENT PLANS.—Notwithstanding 
any other provision of this paragraph, or any 
other provision of law, and in accordance with 
regulations, beginning on July 1, 2023, the 
lender shall offer a borrower of a loan made, in-
sured, or guaranteed under this part the oppor-
tunity to change repayment plans, and to enroll 
in one of the following repayment plans: 
‘‘(i) A fixed repayment plan described 
in section 493E. 
‘‘(ii) The income-based repayment 
plan under section 493C(f).’’. 
SEC. 3. AMENDMENTS TO TERMS AND CONDITIONS OF 
LOANS AND REPAYMENT PLANS. 
(a) RULEMAKING
REGARDING
TERMINATION
OF 
CERTAIN REPAYMENT PLANS.—Before July 1, 2023, the 
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Secretary of Education shall carry out a plan to end all 
eligibility for repayment plans other than a fixed repay-
ment plan described in section 493E of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001 et seq.), as added 
by this Act, and an income-based repayment plan de-
scribed under section 493C(f) of the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), as added by this 
Act, for loans made under part B or D of title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
unless the borrower is enrolled in another repayment plan 
before July 1, 2023, in accordance with the amendments 
made by this Act. 
(b) INTEREST RATES.—Section 455(b)(8) of the 
Higher Education Act of 1965 (20 U.S.C. 20 U.S.C. 
1087e(b)) is amended— 
(1) in subparagraph (A), by inserting ‘‘and be-
fore July 1, 2023,’’ after ‘‘July 1, 2013,’’; 
(2) in subparagraph (B), by inserting ‘‘and be-
fore July 1, 2023,’’ after ‘‘July 1, 2013,’’; 
(3) in subparagraph (C), by inserting ‘‘and be-
fore July 1, 2023,’’ after ‘‘July 1, 2013,’’; 
(4) in subparagraph (D), by inserting ‘‘and be-
fore July 1, 2023,’’ after ‘‘July 1, 2013,’’; 
(5) by redesignating subparagraph (F) as sub-
paragraph (G); and 
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(6) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) NEW LOANS ON OR AFTER JULY 1, 
2023.—Notwithstanding the preceding subpara-
graphs of this paragraph, for any loans made 
under this part for which the first disbursement 
is made, or for which the application is re-
ceived, on or after July 1, 2023, the applicable 
rate of interest shall be 1.0 percent.’’. 
(c) REPAYMENT PLANS.—Section 455(d) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is 
amended— 
(1) by redesignating paragraphs (2) through 
(5) as paragraphs (3) through (6), respectively; 
(2) by inserting after paragraph (1), the fol-
lowing: 
‘‘(2) DESIGN AND SELECTION ON AND AFTER 
JULY 1, 2023.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for the borrower of a loan made on 
or after July 1, 2023, and for other borrowers 
subject to paragraph (7), the Secretary shall 
offer a borrower of a loan made under this part 
2 plans for repayment of such loan, including 
principal and interest on the loan. The borrower 
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shall be entitled to accelerate, without penalty, 
repayment on the borrower’s loans under this 
part. The borrower may choose— 
‘‘(i) a fixed repayment plan described 
in section 493E; or 
‘‘(ii) the income-based repayment plan 
under section 493C(f). 
‘‘(B) SELECTION BY THE SECRETARY.—If 
a borrower of a loan made under this part on 
or after July 1, 2023, does not select a repay-
ment plan described in subparagraph (A), the 
Secretary may provide the borrower with a 
fixed repayment plan described in section 493E. 
‘‘(C) CHANGES
IN
SELECTIONS.—Begin-
ning on July 1, 2023, a borrower of a loan 
made under this part may change the bor-
rower’s selection of a repayment plan in accord-
ance with paragraph (7) and under such terms 
and conditions as may be established by the 
Secretary.’’; 
(3) in paragraph (6)(B), as redesignated, by 
striking ‘‘an income contingent repayment plan.’’ 
and inserting ‘‘the income-based repayment plan 
under section 493C(f).’’; and 
(4) by adding at the end the following: 
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‘‘(7) BORROWERS
OF
LOANS
MADE
BEFORE 
JULY 1, 2023.—A borrower who is in repayment on 
a loan made under part B or part D before July 1, 
2023— 
‘‘(A) may choose to retain the repayment 
plan that the borrower was enrolled in on the 
day before such date; 
‘‘(B) may elect to— 
‘‘(i) enter the income-based repayment 
plan under section 493C(f); or 
‘‘(ii) enter a fixed repayment plan de-
scribed in section 493E; 
‘‘(C) after electing to leave a repayment 
plan other than an income-based repayment 
plan described under this subsection or a fixed 
repayment plan described in section 493E, shall 
not be permitted to re-elect a repayment plan 
that is not an income-based repayment plan 
under this subsection or a fixed repayment plan 
described in section 493E; and 
‘‘(D) shall retain, for purposes of repay-
ment or cancellation of any outstanding balance 
of principal and interest due on a loan as de-
scribed in section 493C(b)(7) any years of re-
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payment under another income-based or income 
contingent repayment plan under this title.’’. 
(d) MAXIMUM REPAYMENT PERIOD FOR INCOME- 
CONTINGENT REPAYMENT.—Section 455(e) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(e)) is further 
amended— 
(1) in paragraph (7)(B)— 
(A) by striking ‘‘or’’ at the end of clause 
(iv); 
(B) by striking the period at the end of 
clause (v) and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(vi) makes payments under the in-
come-based repayment plan under section 
493C(f); or 
‘‘(vii) makes payments under the fixed 
repayment plan described in section 493E. 
‘‘(8) ADDITIONAL
QUALIFYING
REPAYMENT 
PLANS.—A borrower repaying a loan pursuant to in-
come-contingent repayment under this subsection 
may elect at any time to terminate repayment under 
such repayment plan and repay such loan under the 
income-based repayment plan under section 493C(f) 
or the fixed repayment plan described in section 
493E.’’. 
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SEC. 4. INCOME-BASED REPAYMENT PLAN. 
(a) OPTIONS TO ENTER INTO THE NEW FIXED RE-
PAYMENT
PLAN
AND
INCOME-BASED
REPAYMENT 
PLAN.—Section 493C(b) of the Higher Education Act of 
1965 (20 U.S.C. 1098e) is amended— 
(1) in paragraph (7)(B)— 
(A) by striking ‘‘or’’ at the end of clause 
(iv); and 
(B) by adding at the end the following: 
‘‘(vi) has made payments under the 
income-based repayment plan under sec-
tion 493C(f); or 
‘‘(vii) has made payments under the 
fixed repayment plan described in section 
493E;’’; 
(2) by amending paragraph (8) to read as fol-
lows: 
‘‘(8) a borrower who is repaying a loan made 
under part B or D pursuant to income-based repay-
ment may elect, at any time, to terminate repayment 
pursuant to income-based repayment and repay such 
loan under the income-based repayment plan under 
section 493C(f) or the fixed repayment plan de-
scribed in section 493E;’’; 
(3) in paragraph (9), by striking the period at 
the end and inserting ‘‘; and’’; and 
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(4) by adding at the end the following: 
‘‘(10) a borrower who is repaying a loan made, 
insured, or guaranteed under part B or D pursuant 
to this section may repay such loan in full at any 
time without penalty.’’. 
(b) INCOME-BASED REPAYMENT.—Section 493C of 
the Higher Education Act of 1965 (20 U.S.C. 1098e) is 
amended by adding at the end the following: 
‘‘(f) INCOME-BASED REPAYMENT FOR NEW LOANS 
ON AND AFTER JULY 1, 2023, AND FOR BORROWERS 
WHO ENTER INCOME-BASED REPAYMENT AFTER JUNE 
30, 2023.— 
‘‘(1) IN
GENERAL.—The income-based repay-
ment plan under this subsection shall be carried out 
in accordance with this section, except as otherwise 
specified in this subsection— 
‘‘(A) with respect to any loan made under 
part D on or after July 1, 2023, if such bor-
rower elects such income-based repayment plan 
for the loan; and 
‘‘(B) with respect to any loan made, in-
sured, or guaranteed under part B or D on or 
before June 30, 2023, if such borrower elects to 
repay the loan under such income-based repay-
ment plan on or after July 1, 2023. 
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‘‘(2) SPECIAL
TERMS.—Notwithstanding any 
other provision of this section, with respect to a loan 
described under paragraph (1), the following terms 
shall apply to the income-based repayment plan 
under this subsection: 
‘‘(A)(i) 
Notwithstanding 
subsection 
(a)(3)(B), the repayment amount under this 
subsection shall be an amount equal to 10 per-
cent of the result obtained by calculating, on at 
least an annual basis, the amount by which the 
adjusted gross income of the borrower (subject 
to clause (ii)) exceeds the applicable percentage 
of the poverty line in accordance with clause 
(iii). 
‘‘(ii)(I) Subject to subclause (II), in the 
case of a married borrower (regardless of tax 
filing status), clause (i) shall be applied by sub-
stituting ‘the adjusted gross income of the bor-
rower and the borrower’s spouse’ for ‘the ad-
justed gross income of the borrower’. 
‘‘(II) Subclause (I) shall not be applicable 
to any borrower who is married and who cer-
tifies to the Secretary through a form approved 
by the Secretary that the borrower is— 
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‘‘(aa) separated from the spouse of 
the borrower; or 
‘‘(bb) unable to reasonably access the 
income information the spouse of such bor-
rower. 
‘‘(iii) For purposes of clause (i), the term 
‘applicable percentage’ means 250 percent of 
the poverty line applicable to the borrower’s 
family size (as determined under section 673(2) 
of the Community Services Block Grant Act 
(42 U.S.C. 9902(2))) reduced by 5 percentage 
points for each $1,000 by which the borrower’s 
adjusted gross income exceeds— 
‘‘(I) in the case of a single borrower, 
$80,000; and 
‘‘(II) in the case of a married bor-
rower (regardless of tax filing status), 
$160,000. 
‘‘(B) Subsection (b)(7)(B) shall apply by 
substituting ‘20 years’ for ‘25 years’. 
‘‘(C) A borrower of such a loan may elect, 
and remain enrolled in, the income-based repay-
ment plan under this subsection regardless of— 
‘‘(i) whether such borrower has a par-
tial financial hardship; and 
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‘‘(ii) the income level of the borrower. 
‘‘(D) Notwithstanding subparagraph (A) of 
subsection (b)(6), a borrower’s monthly pay-
ment— 
‘‘(i) shall be equal to the repayment 
amount determined under subparagraph 
(A) divided by 12; and 
‘‘(ii) may exceed the monthly repay-
ment amount under a standard 10-year re-
payment plan or a fixed repayment plan 
described in section 493E. 
‘‘(E) Subparagraph (B) of subsection 
(b)(3) shall not apply. 
‘‘(F) Subsection (d) shall not apply. 
‘‘(G) In the case of a consolidation loan 
made under part B or D on or after the date 
of enactment of the ‘Simplifying Student Loans 
Act’ that is being repaid under this subsection, 
any monthly payment made pursuant to any re-
payment plan listed in subsection (b)(7)(B) on 
a loan for which the liability has been dis-
charged by the proceeds of such consolidation 
loan shall be treated as a monthly payment 
under this subsection on the portion of such 
consolidation loan that is attributable to such 
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discharged loan, except that in the case of a 
subsequent consolidation loan, any monthly 
payment on a loan for which the liability has 
been discharged by the first consolidation loan 
shall not be applicable for the purposes of this 
subparagraph. 
‘‘(3) ADDITIONAL
SPECIAL
TERMS
FOR
CER-
TAIN BORROWERS.—A borrower described in para-
graph (1)(B)— 
‘‘(A) may— 
‘‘(i) choose to continue repayment 
pursuant to the repayment plan in which 
the borrower is enrolled on June 30, 2023; 
or 
‘‘(ii) make a one-time election to— 
‘‘(I) terminate repayment pursu-
ant to the repayment plan described 
in clause (i) and enter the income- 
based repayment plan under this sub-
section; or 
‘‘(II) terminate repayment pursu-
ant to the repayment plan described 
in clause (i) and enter a fixed repay-
ment plan described in section 493E; 
and 
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‘‘(B) who makes an election under sub-
paragraph (A)(ii), shall not repay a loan de-
scribed in paragraph (1)(B) under a repayment 
plan that is not an income-based repayment 
plan under this subsection or a fixed repayment 
plan described in section 493E.’’. 
SEC. 5. FIXED REPAYMENT PLAN. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is further amended by add-
ing at the end the following: 
‘‘SEC. 493E. FIXED REPAYMENT PLAN. 
‘‘(a) IN GENERAL.—A borrower of a loan made under 
this part on or after July 1, 2023, and a borrower who 
is in repayment on a loan made, insured, or guaranteed 
under part B or part D before July 1, 2023, may elect 
to repay such loan under the fixed repayment plan de-
scribed in this section. 
‘‘(b) FIXED REPAYMENT PLAN.—Under the fixed re-
payment plan, a borrower whose total outstanding amount 
of principal and interest on such a loan (as of the day 
before entering repayment on such loan)— 
‘‘(1) is equal to or less than $20,000, shall 
repay such loan with a fixed monthly repayment 
amount paid over a period of 10 years; 
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‘‘(2) is more than $20,000 and less than 
$30,000, shall repay such loan with a fixed monthly 
repayment amount paid over a period of— 
‘‘(A) 15 years; or 
‘‘(B) the period described in paragraph 
(1), if the borrower elects such period; 
‘‘(3) is equal to or greater than $30,000, and 
less than $40,000, shall repay such loan with a fixed 
monthly repayment amount paid over a period of— 
‘‘(A) 20 years; or 
‘‘(B) the period described in paragraph (1) 
or (2), if the borrower elects such period; and 
‘‘(4) is equal to or greater than $40,000, shall 
repay such loan with a fixed monthly repayment 
amount paid over a period of— 
‘‘(A) 25 years; or 
‘‘(B) the period described in any of para-
graphs (1) through (3), if the borrower elects 
such period. 
‘‘(c) TREATMENT
OF
CERTAIN
CONSOLIDATION 
LOANS.—In the case of a consolidation loan made under 
part B or D on or after the date of enactment of the ‘Sim-
plifying Student Loans Act’ that is being repaid under this 
section, any monthly payment made pursuant to any re-
payment plan listed in section 493C(b)(7)(B) on a loan 
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for which the liability has been discharged by the proceeds 
of such consolidation loan shall be treated as a monthly 
payment under this section on the portion of such consoli-
dation loan that is attributable to such discharged loan, 
except that in the case of a subsequent consolidation loan, 
any monthly payment on a loan for which the liability has 
been discharged by the first consolidation loan shall not 
be applicable for the purposes of this subsection.’’. 
Æ 
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