I 
115TH CONGRESS 
1ST SESSION H. R. 4372 
To amend the Higher Education Act of 1965 to require borrowers to repay 
Federal student loans under an income-based repayment plan or a stand-
ard repayments plan, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 13, 2017 
Mr. FERGUSON (for himself, Mr. MITCHELL, and Mr. GARRETT) introduced 
the following bill; which was referred to the Committee on Education and 
the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to require 
borrowers to repay Federal student loans under an in-
come-based repayment plan or a standard repayments 
plan, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Help Students Repay 
Act’’. 
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SEC. 2. STREAMLINING REPAYMENT PLANS FOR NEW BOR-
ROWERS. 
Section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e) is amended by striking subsection (d) and 
inserting the following: 
‘‘(d) REPAYMENT PLANS.— 
‘‘(1) DESIGN AND SELECTION FOR BORROWERS 
BEFORE JULY 1, 2018.—With respect to a borrower 
of a loan made under this part before July 1, 2018, 
and consistent with criteria established by the Sec-
retary, the Secretary shall offer such borrower a va-
riety of plans for repayment of such loan, including 
principal and interest on the loan. The borrower 
shall be entitled to accelerate, without penalty, re-
payment on the borrower’s loans under this part. 
The borrower may choose— 
‘‘(A) a standard repayment plan, con-
sistent with subsection (a)(1) of this section 
and with section 428(b)(9)(A)(i); 
‘‘(B) a graduated repayment plan, con-
sistent with section 428(b)(9)(A)(ii); 
‘‘(C) an extended repayment plan, con-
sistent with section 428(b)(9)(A)(iv), except 
that the borrower shall annually repay a min-
imum amount determined by the Secretary in 
accordance with section 428(b)(1)(L); 
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‘‘(D) an income contingent repayment 
plan, with varying annual repayment amounts 
based on the income of the borrower, paid over 
an extended period of time prescribed by the 
Secretary, not to exceed 25 years, except that 
the plan described in this subparagraph shall 
not be available to the borrower of a Federal 
Direct PLUS loan made on behalf of a depend-
ent student; and 
‘‘(E) an income-based repayment plan that 
enables borrowers who have a partial financial 
hardship to make a lower monthly payment in 
accordance with section 493C, except that the 
plan described in this subparagraph shall not be 
available to the borrower of a Federal Direct 
PLUS Loan made on behalf of a dependent 
student or a Federal Direct Consolidation 
Loan, if the proceeds of such loan were used to 
discharge the liability on such Federal Direct 
PLUS Loan or a loan under section 428B 
made on behalf of a dependent student. 
‘‘(2) DESIGN AND SELECTION FOR BORROWERS 
ON OR AFTER JULY 1, 2018.—The Secretary shall 
offer a borrower of a loan made under this part on 
or after July 1, 2018, the following plans for repay-
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ment of such loan, including principal and interest 
on the loan. The borrower shall be entitled to accel-
erate, without penalty, repayment on the borrower’s 
loans under this part. The borrower may choose— 
‘‘(A) a standard repayment plan, con-
sistent with subsection (a)(1) of this section 
and with section 428(b)(9)(A)(i); or 
‘‘(B) an income-based repayment plan, 
consistent with section 460A, except the plan 
described in this subparagraph shall not be 
available to a borrower of a Federal Direct 
PLUS Loan made on behalf of a dependent 
student, a Federal Direct Consolidation Loan, 
if the proceeds of such loan were used to dis-
charge the liability on such Federal Direct 
PLUS Loan or a loan under section 428B 
made on behalf of a dependent student. 
‘‘(3) BORROWER
NON-SELECTION.—If a bor-
rower of a loan made under this part does not select 
a repayment plan described in paragraph (1) or (2), 
the Secretary may provide the borrower with a re-
payment plan described in subparagraph (A), (B), or 
(C) of paragraph (1) in the case of a borrower of a 
loan first disbursed before July 1, 2018, or a repay-
ment plan described in paragraph (2)(A) in the case 
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of a borrower of a loans first disbursed on or after 
July 1, 2018. 
‘‘(4) CHANGES IN SELECTIONS.—The borrower 
of a loan made under this part may change the bor-
rower’s selection of a repayment plan under para-
graph (1) or (2), or the Secretary’s selection of a 
plan for the borrower under paragraph (3), as the 
case may be, under such terms and conditions as 
may be established by the Secretary. 
‘‘(5) REPAYMENT AFTER DEFAULT.—For any 
borrower who has defaulted on a loan made under 
this part, the Secretary— 
‘‘(A) may require the borrower to pay all 
reasonable collection costs associated with such 
loan; and 
‘‘(B) if such loan was made— 
‘‘(i) to any borrower who, before July 
1, 2018, had an outstanding balance on a 
student loan made, insured, or guaranteed 
under this part or part B, may require the 
borrower to repay the loan pursuant to an 
income contingent repayment plan, as de-
scribed in paragraph (1)(D), or an income- 
based repayment plan, as described in 
paragraph (1)(E); or 
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‘‘(ii) to a new borrower (as defined in 
section 460A(a)(2)), may provide the bor-
rower the option to enroll in the repayment 
plan described in paragraph (2)(B). 
‘‘(6) APPLICABILITY PROVISION.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (5) and subparagraph (B), the re-
payment plans under subparagraphs (B), (C), 
(D), and (E) of paragraph (1) are not available 
for a borrower who received the borrower’s first 
disbursement of a Federal Direct Loan on or 
after July 1, 2018. 
‘‘(B) EXCEPTION.—The repayment plans 
available to a borrower of a Federal Direct 
PLUS Loan made on behalf of a dependent 
student or a Federal Direct Consolidation Loan 
whose proceeds were used to discharge the li-
ability of a Federal Direct PLUS Loan made 
on behalf of a dependent student or a loan 
under section 428B made on behalf of a de-
pendent student on or after July 1, 2018, shall 
be those described under subparagraphs (A), 
(B), and (C) of paragraph (1).’’. 
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SEC. 3. INCOME-BASED REPAYMENT FOR NEW BORROWERS 
AND NEW LOANS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 460A. INCOME-BASED REPAYMENT PLAN. 
‘‘(a) DEFINITIONS.— 
‘‘(1) COVERED FEDERAL DIRECT LOAN.—The 
term ‘covered Federal Direct Loan’ means a Federal 
Direct Stafford Loan, a Federal Direct Unsubsidized 
Stafford Loan, a Federal Direct Consolidation Loan 
(other than an excepted consolidation loan), or a 
Federal Direct PLUS Loan (other than an excepted 
plus loan) made under this part. 
‘‘(2) NEW
BORROWER.—The term ‘new bor-
rower’ means a borrower who— 
‘‘(A) as of July 1, 2018, has no out-
standing balance on a student loan made, in-
sured, or guaranteed under part B or D; or 
‘‘(B) has no outstanding balance on a stu-
dent loan made, insured, or guaranteed under 
part B or D on the date the borrower receives 
a loan made under part D on or after July 1, 
2018. 
‘‘(3) EXCEPTED PLUS LOAN; EXCEPTED CON-
SOLIDATION LOAN.—The terms ‘excepted plus loan’ 
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and ‘excepted consolidation loan’ have the meanings 
given such terms in section 493C. 
‘‘(4) INCOME-BASED CALCULATION.—The term 
‘income-based calculation’ means 15 percent of the 
result obtained by calculating, on at least an annual 
basis, the amount by which— 
‘‘(A) the borrower’s, and the borrower’s 
spouse’s (if applicable), adjusted gross income; 
exceeds, as defined by the Secretary; exceeds 
‘‘(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)). 
‘‘(b) REVISED
INCOME-BASED
PLAN.—Notwith-
standing any other provision of this Act, the Secretary 
shall carry out a program for new borrowers and any bor-
rowers of covered Federal Direct Loans made on or after 
July 1, 2018, that meets the following requirements: 
‘‘(1) MONTHLY PAYMENT AMOUNT.—Except as 
otherwise provided in this subsection, a new bor-
rower of any covered Federal Direct Loan, or any 
borrower of any covered Federal Direct Loan, may 
elect to have the borrower’s aggregate monthly pay-
ment for all such loans not to exceed the result of 
the income-based calculation divided by 12. 
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‘‘(2) APPLICATION
OF
PAYMENT.—The Sec-
retary shall apply the borrower’s monthly payment 
under this subsection on such a loan first toward in-
terest due on the loan, next toward any fees due on 
the loan, and then toward the principal of the loan. 
‘‘(3) INTEREST.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if the borrower’s monthly payment 
amount under paragraph (1) is not sufficient to 
pay the accrued interest on the borrower’s loan, 
such interest shall be paid by the borrower or 
be capitalized. 
‘‘(B) NO ACCRUAL OF INTEREST AFTER 10 
YEARS.—Notwithstanding section 455(b)(8) or 
any other provision of this title, interest shall 
cease accruing on a loan being repaid under 
this subsection, after the borrower has made 
payments under this subsection on such loan in 
an amount equal to— 
‘‘(i) the amount the borrower would 
have repaid under 455(d)(1)(A) on such 
loan, based on a 10-year repayment period, 
when the borrower first made the election 
described in this subsection, plus 
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‘‘(ii) the amount of any interest that 
accrued (or was capitalized) during a for-
bearance or deferment period or any simi-
lar period, on the portion of the loan that 
was being repaid in accordance with clause 
(i). 
‘‘(4) SELECTION
OF
DIFFERENT
REPAYMENT 
PLAN.—A borrower who no longer wishes to repay 
under the plan under this section may change to a 
standard repayment plan in accordance with section 
455(d)(3). 
‘‘(c) ELIGIBILITY DETERMINATIONS.—The Secretary 
shall establish procedures for annually determining the 
borrower’s eligibility for income-based repayment, includ-
ing verification of a borrower’s annual income and the an-
nual amount due on the total amount of covered Federal 
Direct Loans, and such other procedures as are necessary 
to effectively implement income-based repayment under 
this section. The Secretary shall consider, but is not lim-
ited to, the procedures established in accordance with sec-
tion 455(e)(1) or section 493C, or in connection with in-
come sensitive repayment schedules under section 
428(b)(9)(A)(iii) or 428C(b)(1)(E). 
‘‘(d) SPECIAL RULE FOR MARRIED BORROWERS FIL-
ING SEPARATELY.—In the case of a married borrower who 
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files a separate Federal income tax return, the Secretary 
shall calculate the amount of the borrower’s income-based 
repayment under this section solely on the basis of the 
borrower’s student loan debt and adjusted gross income.’’. 
Æ 
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