106 
ble to such student under this paragraph for 
such academic year.’’. 
(b) TERMINATION OF AUTHORITY TO MAKE FED-
ERAL DIRECT PLUS LOANS TO ANY STUDENT OR PARENT 
BORROWER.—Section 455(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1087e(a)) is amended by adding at 
the end the following: 
‘‘(6) TERMINATION
OF
AUTHORITY
TO
MAKE 
FEDERAL
DIRECT
PLUS
LOANS.—Notwithstanding 
any provision of this part or part B, except as pro-
vided in paragraph (3)(E), for any period of instruc-
tion beginning on or after July 1, 2025, no Federal 
Direct PLUS loans may be made to any parent bor-
rower or graduate or professional student bor-
rower.’’. 
SEC. 222. LOAN REPAYMENT. 
(a) REPAYMENT PLANS.—Section 455(d) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is 
amended— 
(1) in paragraph (1)(D) by inserting ‘‘(includ-
ing a repayment assistance plan under 455(e)(9))’’ 
after ‘‘an income contingent repayment plan’’; and 
(2) by adding at the end the following: 
‘‘(6) REPAYMENT PLANS FOR LOANS MADE ON 
OR AFTER JULY 1, 2024.— 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS
107 
‘‘(A) DESIGN AND SELECTION.—Notwith-
standing paragraph (1), beginning on July 1, 
2024, the Secretary shall offer a borrower of a 
loan made under this part on or after July 1, 
2024, two plans for repayment of such loan, in-
cluding principal and interest on the loan. The 
borrower shall be entitled to accelerate, without 
penalty, repayment on such loans. The borrower 
may choose— 
‘‘(i) a standard repayment plan with a 
fixed monthly repayment amount paid over 
a fixed period of time, not to exceed 10 
years; or 
‘‘(ii) a repayment assistance plan 
under section 455(e)(9). 
‘‘(B) SELECTION BY SECRETARY.—If such 
borrower does not select a repayment plan de-
scribed in subparagraph (A), the Secretary shall 
provide the borrower with the repayment plan 
described in subparagraph (A)(i). 
‘‘(C) CHANGES IN SELECTION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), a borrower may change the borrower’s 
selection of a repayment plan under sub-
paragraph (A), or the Secretary’s selection 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS
108 
of a plan for the borrower under subpara-
graph (B), as the case may be. Nothing in 
this subsection shall prohibit the Secretary 
from encouraging distressed borrowers 
from enrolling in the repayment assistance 
plan under section 455(e)(9). 
‘‘(ii) SAME
REPAYMENT
PLAN
RE-
QUIRED.—All loans made under this part 
on or after July 1, 2024, to a borrower 
shall be repaid under the same repayment 
plan under subparagraph (A), except that 
the borrower may repay an excepted PLUS 
loan or an excepted consolidation loan (as 
such 
terms 
are 
defined 
in 
section 
455(e)(9)) separately from other loans 
made under this part to the borrower. 
‘‘(D) REPAYMENT AFTER DEFAULT.—The 
Secretary may require a borrower who has de-
faulted on a loan made under this part to— 
‘‘(i) pay all reasonable collection costs 
associated with such loan; and 
‘‘(ii) repay the loan pursuant to the 
repayment assistance plan under section 
455(e)(9). 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS
109 
‘‘(E) PROHIBITIONS.—The Secretary may 
not— 
‘‘(i) authorize a borrower of a loan 
made under this part on or after July 1, 
2024, to repay such loan pursuant to a re-
payment plan that is not described in 
clause (i) or (ii) of subparagraph (A); or 
‘‘(ii) carry out or modify a repayment 
plan for any loan made under this part on 
or after July 1, 2024, that is not described 
in such clause (i) or (ii).’’. 
(b) REPAYMENT ASSISTANCE PLAN.—Section 455(e) 
of the Higher Education Act of 1965 (20 U.S.C. 
1087e(e)) is amended by adding at the end the following: 
‘‘(9) REPAYMENT ASSISTANCE PLAN.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this Act, beginning on July 
1, 2024, the Secretary shall carry out a repay-
ment assistance program that shall have the 
terms and conditions of an income-contingent 
repayment plan described in paragraphs (1) 
through (8), except that— 
‘‘(i) a borrower of any loan made 
under this part (other than an excepted 
PLUS loan or excepted consolidation loan), 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS
110 
may elect to have the borrower’s aggregate 
monthly payment for all such loans not ex-
ceed the applicable monthly payment for 
the borrower, except that a borrower may 
not be precluded from repaying an amount 
that exceeds such applicable monthly pay-
ment for any month; 
‘‘(ii) the Secretary shall apply the bor-
rower’s monthly payment under this para-
graph first toward interest due on such a 
loan, next toward any fees due on the loan, 
and then toward the principal of the loan; 
‘‘(iii) any principal due and not paid 
under clause (ii) shall be deferred; 
‘‘(iv) the amount of time the borrower 
makes monthly payments under clause (i) 
may exceed 10 years; 
‘‘(v) notwithstanding paragraph (7), 
the Secretary shall repay or cancel any 
outstanding balance of principal and inter-
est due on all loans made under this part 
(other than excepted PLUS loans or ex-
cepted consolidation loans) to a borrower— 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS
111 
‘‘(I) who, at any time, elected to 
participate in a repayment assistance 
plan under clause (i); 
‘‘(II) whose final monthly pay-
ment for such loans prior to the loan 
cancellation under this clause was 
made under such repayment assist-
ance plan; and 
‘‘(III) who has repaid on such 
loans (pursuant to a repayment assist-
ance plan under clause (i), a standard 
repayment 
plan 
under 
subsection 
(d)(6)(A)(i), or a combination of any 
such plan or any of the repayment 
plans listed in clause (ii), (iii), (iv), or 
(v) of paragraph (7)(B), or, in the 
case of a consolidation loan, pursuant 
to a repayment schedule described 
item (aa)(BB) of this subclause) an 
amount that is equal to— 
‘‘(aa)(AA) the total amount 
of principal and interest that the 
borrower 
would 
have 
repaid 
under a standard repayment plan 
under 
paragraph 
(1)(A) 
or 
VerDate Sep 11 2014 
19:21 Jan 29, 2024
Jkt 049200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H6951.IH
H6951
ssavage on LAPJG3WLY3PROD with BILLS