I 
116TH CONGRESS 
1ST SESSION H. R. 4079 
To simplify and improve the Federal student loan program through income- 
contingent repayment to provide stronger protections for borrowers, en-
courage responsible borrowing, and save money for taxpayers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Mr. ZELDIN introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To simplify and improve the Federal student loan program 
through income-contingent repayment to provide stronger 
protections for borrowers, encourage responsible bor-
rowing, and save money for taxpayers. 
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 ‘‘Earnings Contingent 
Education Loans Act of 2019’’ or the ‘‘ExCEL Act of 
2019’’. 
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SEC. 2. TERMINATION OF AUTHORITY TO MAKE FEDERAL 
DIRECT STAFFORD LOANS, FEDERAL DIRECT 
UNSUBSIDIZED STAFFORD LOANS, AND FED-
ERAL DIRECT PLUS LOANS TO STUDENTS 
UNDER THE WILLIAM D. FORD FEDERAL DI-
RECT LOAN PROGRAM. 
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: 
‘‘(4) TERMINATION
OF
AUTHORITY
TO
MAKE 
FEDERAL DIRECT STAFFORD LOANS, FEDERAL DI-
RECT UNSUBSIDIZED STAFFORD LOANS, AND FED-
ERAL DIRECT PLUS LOANS TO STUDENTS UNDER 
THIS PART.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
provision of this part or part B, for any period 
of instruction beginning on or after July 1, 
2019— 
‘‘(i) a student shall not be eligible to 
receive a Federal Direct Stafford Loan 
under this part; and 
‘‘(ii) a student shall not be eligible to 
receive a Federal Direct Unsubsidized 
Stafford Loan or Federal Direct PLUS 
Loan under this part, except as provided in 
subparagraph (B). 
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‘‘(B) EXCEPTIONS.—Subparagraph (A)(ii) 
shall not be applicable with respect to the fol-
lowing: 
‘‘(i) 
EXISTING
STUDENT
BOR-
ROWERS.—A student who, as of July 1, 
2019, has an outstanding balance of prin-
cipal or interest owing on any loan made, 
insured, or guaranteed under part B or 
this part may continue to be eligible to 
borrow a loan under this part, except for 
a Federal Direct Stafford Loan, in accord-
ance with subparagraph (C) until June 30, 
2021. 
‘‘(ii) PARENT PLUS LOANS.—An ex-
cepted PLUS loan or excepted consolida-
tion loan (as such terms are defined in sec-
tion 493C(a)) under this part that is made 
to a parent on behalf of an undergraduate 
dependent student. 
‘‘(iii) FEDERAL
DIRECT
CONSOLIDA-
TION LOANS.—A Federal Direct Consolida-
tion Loan under this part. 
‘‘(C) MAXIMUM
ANNUAL
AMOUNTS
OF 
FEDERAL
DIRECT
UNSUBSIDIZED
STAFFORD 
LOANS.—The maximum annual amount of Fed-
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eral Direct Unsubsidized Stafford Loans a stu-
dent described in subparagraph (B)(i) may bor-
row in an academic year (as defined in section 
481(a)(2)) or its equivalent shall be the max-
imum annual amount for such student deter-
mined under section 428H, plus an amount 
equal to the amount of Federal Direct Stafford 
Loans the student would have received in the 
absence of subparagraph (A)(i).’’. 
SEC. 3. ESTABLISHMENT OF THE INCOME DEPENDENT 
EDUCATION ASSISTANCE LOAN PROGRAM 
AND THE IDEA LOAN REPAYMENT PROGRAM. 
Title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070a et seq.) is amended by adding at the end 
the following new part: 
‘‘PART J—INCOME DEPENDENT EDUCATION 
ASSISTANCE LOANS 
‘‘Subpart 1—IDEA Loans 
‘‘SEC. 499A. PROGRAM AUTHORITY AND AGREEMENTS. 
‘‘(a) PROGRAM AUTHORITY.— 
‘‘(1) IN
GENERAL.—There are hereby made 
available, in accordance with the provisions of this 
part, such sums as may be necessary to make loans 
to all eligible students in attendance at participating 
institutions of higher education selected by the Sec-
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retary, to enable such students to pursue their 
courses of study at such institutions during the pe-
riod beginning July 1, 2019. Loans made under this 
part shall be made by participating institutions, or 
consortia thereof, that have agreements with the 
Secretary to originate loans, or by alternative origi-
nators designated by the Secretary to make loans for 
students in attendance at participating institutions. 
‘‘(2) DESIGNATION.—The program established 
under this subpart shall be referred to as the ‘In-
come Dependent Education Assistance Loan Pro-
gram’, or the ‘IDEA Loan Program’. 
‘‘(b) FUNDS
FOR
THE
ORIGINATION
OF
IDEA 
LOANS.—The Secretary shall provide funds for student 
loans under this part in the same manner as the Secretary 
provides funds for the origination of Federal Direct Stu-
dent Loans under part D in accordance with section 452. 
The requirements, rights, and limitations under section 
452 with respect to the Secretary and institutions for 
funds provided for loans under part D shall apply with 
respect to the Secretary and institutions for funds pro-
vided for loans under this part, except that funds under 
this part shall not be provided for parent loans. 
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stitution for participation or origination, respec-
tively, in the student loan program under part D, 
except that agreements for participation or origina-
tion under this part shall not apply to parent loans. 
‘‘(3) WITHDRAWAL AND TERMINATION PROCE-
DURES.—The Secretary shall establish procedures by 
which institutions or consortia may withdraw or be 
terminated from the program under this part. 
‘‘SEC. 499B. TERMS AND CONDITIONS OF IDEA LOANS. 
‘‘(a) PARALLEL TERMS, CONDITIONS, BENEFITS, 
AND AMOUNTS.—Unless otherwise specified in this part, 
Income Dependent Education Assistance Loans (herein-
after referred to as ‘IDEA Loans’) made to borrowers 
under this part shall have the same terms, conditions, and 
benefits, and be available in the same amounts, as Federal 
Direct Unsubsidized Stafford Loans made to borrowers 
under part D, and first disbursed on the day before the 
date of enactment of the Earnings Contingent Education 
Loans Act of 2019. 
‘‘(b) ELIGIBLE BORROWERS.— 
‘‘(1) IN GENERAL.—In addition to the require-
ments of section 484, to be eligible to receive a loan 
(other than an IDEA Consolidation Loan) under 
this part, a borrower— 
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‘‘(A) shall be an individual who, on the 
date of application for such loan, has no out-
standing balance of principal or interest owing 
on any loan made, insured, or guaranteed under 
part B or D (other than an excepted PLUS 
loan or an excepted consolidation loan (as such 
terms are defined in section 493C(a))); or 
‘‘(B) in the case of an individual with an 
outstanding balance of principal or interest 
owing on any loan described in subparagraph 
(A), shall consolidate all such existing loans 
into an IDEA Consolidation Loan under section 
499C. 
‘‘(2) ONLY STUDENT BORROWERS ELIGIBLE.— 
For purposes of this part, the term ‘borrower’ shall 
not include a parent borrower. 
‘‘(c) ANNUAL AND AGGREGATE LIMITS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the maximum annual amount of IDEA Loans in any 
academic year (as defined in section 481(a)(2)) or 
its equivalent, and the maximum aggregate amount 
of IDEA Loans that a student may borrow, shall be 
the maximum annual amounts and maximum aggre-
gate amounts, respectively, of Federal Direct Unsub-
sidized Stafford Loans under part D that such stu-
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dent would have been eligible to borrow in the ab-
sence of section 455(a)(4), as added by Earnings 
Contingent Education Loans Act of 2019. 
‘‘(2) GRADUATE
AND
PROFESSIONAL
STU-
DENTS.—In the case of a graduate or professional 
student who would have been eligible to borrow a 
Federal Direct PLUS Loan under part D in the ab-
sence of section 455(a)(4), as added by Earnings 
Contingent Education Loans Act of 2019, the max-
imum annual amounts and maximum aggregate 
amounts, respectively, of IDEA Loans that the stu-
dent may borrow as determined under paragraph (1) 
for any academic year (as defined in section 
481(a)(2)) or its equivalent, may be increased to an 
amount equal to the maximum annual amounts and 
maximum aggregate amounts, respectively, of Fed-
eral Direct PLUS Loans that such student would 
have been eligible to borrow in the absence of such 
section 455(a)(4). 
‘‘(d) LOAN FEE.—The Secretary shall charge the 
borrower of a loan (other than an IDEA Consolidation 
Loan) made under this part an origination fee. Such fee 
shall be the sum of— 
‘‘(1) for the portion of the principal amount of 
the loan that is equal to (or less than) the maximum 
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annual amount a student may borrow under sub-
section (c)(1), 1.0 percent of such portion of the 
principal amount of the loan, plus 
‘‘(2) for the portion of the principal amount of 
the loan that exceeds the maximum annual amount 
a student may borrow under subsection (c)(1), as 
authorized by subsection (c)(2), 4.0 percent of such 
portion of the principal amount of the loan. 
‘‘(e) INTEREST RATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for IDEA Loans for which the first dis-
bursement is made on or after July 1, 2019, the ap-
plicable rate of interest shall, during any 12-month 
period beginning on July 1 and ending on June 30, 
be determined on the preceding June 1 and be equal 
to— 
‘‘(A) the bond equivalent rate of 10-year 
Treasury bills auctioned at the final auction 
held prior to such June 1, plus 
‘‘(B) 3.0 percent. 
‘‘(2) CERTAIN GRADUATE AND PROFESSIONAL 
STUDENTS.—Notwithstanding paragraph (1), with 
respect to graduate or professional students who 
have increased maximum annual and aggregate loan 
limits under subsection (c)(2), for IDEA Loans for 
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which the first disbursement is made on or after 
July 1, 2019, the applicable rate of interest shall be 
the weighted average of— 
‘‘(A) the rate determined under paragraph 
(1) for the portion of the principal amount of 
the loan that is equal to (or less than) the max-
imum annual amount a student may borrow 
under subsection (c)(1); and 
‘‘(B) the rate determined under paragraph 
(1), except that ‘4.1 percent’ shall be sub-
stituted for ‘3.0 percent’ in such determination, 
for the portion of the principal amount of the 
loan that exceeds the maximum annual amount 
a student may borrow under subsection (c)(1), 
as authorized by subsection (c)(2). 
‘‘(3) CONSULTATION.—The Secretary shall de-
termine the applicable rate of interest under para-
graph (1) after consultation with the Secretary of 
the Treasury and shall publish such rate in the Fed-
eral Register as soon as practicable after the date of 
determination. 
‘‘(4) APPLICATION OF INTEREST RATE DURING 
THE LIFE OF THE LOAN.— 
‘‘(A) FIXED RATE UNTIL CAP.—The appli-
cable rate of interest determined under para-
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graph (1) or (2) for an IDEA Loan shall be 
fixed for the life of the loan, except that inter-
est shall cease to accrue when the total amount 
of interest (both paid and unpaid) that has ac-
crued during the borrower’s grace and repay-
ment periods equals 50 percent of the total 
amount of the loan (equal to the sum of the un-
paid principal, interest, penalties, and fees due 
on the loan) as of first day of the borrower’s 
grace period. 
‘‘(B) IN-SCHOOL
DEFERMENT
PERIOD.— 
Interest shall accrue and be capitalized or paid 
by the borrower (but periodic installments of 
principal need not be paid) during the in-school 
deferment period with respect to an IDEA 
Loan. For the purposes of this part, the in- 
school deferment period with respect to an 
IDEA Loan is the first period during which the 
borrower is pursuing at least one-half the nor-
mal full-time academic workload (as determined 
by the institution) in the course of study for 
which the borrower received such loan and end-
ing on the first day of the first month that be-
gins after the borrower ceases to carry at least 
one-half the normal full-time academic workload 
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(as determined by the institution) in the course 
of study. 
‘‘(C) GRACE AND REPAYMENT PERIODS.— 
Interest that accrues during the borrower’s 
grace period (for the purposes of this title, de-
fined as the period between the borrower’s in- 
school deferment period and the borrower’s re-
payment period) and during the borrower’s re-
payment period shall not be capitalized. 
‘‘(f) ARMED FORCES STUDENT LOAN INTEREST 
PAYMENT PROGRAM.—Using funds received by transfer to 
the Secretary under section 2174 of title 10, United States 
Code, for the payment of interest on a loan made under 
this part to a member of the Armed Forces, the Secretary 
shall pay the interest on the loan as due for a period not 
in excess of 36 consecutive months. The Secretary may 
not pay interest on such a loan out of any funds other 
than funds that have been so transferred. 
‘‘(g) NO ACCRUAL OF INTEREST FOR ACTIVE DUTY 
SERVICEMEMBERS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this part and in accordance with para-
graphs (2) and (4), interest shall not accrue for an 
eligible military borrower on a loan made under this 
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part for which the first disbursement is made on or 
after July 1, 2019. 
‘‘(2) IDEA CONSOLIDATION
LOANS.—In the 
case of any IDEA Consolidation loan made under 
this part that is disbursed on or after July 1, 2019, 
interest shall not accrue pursuant to this subsection 
only on such portion of such loan as was used to 
repay a loan made under part D for which the first 
disbursement is made on or after October 1, 2008. 
‘‘(3) ELIGIBLE MILITARY BORROWER.—In this 
subsection, the term eligible military borrower means 
an individual who— 
‘‘(A)(i) is serving on active duty during a 
war or other military operation or national 
emergency; or 
‘‘(ii) is performing qualifying National 
Guard duty during a war or other military op-
eration or national emergency; and 
‘‘(B) is serving in an area of hostilities in 
which service qualifies for special pay under 
section 310 of title 37, United States Code. 
‘‘(4) LIMITATION.—An individual who qualifies 
as an eligible military borrower under this sub-
section may receive the benefit of this subsection for 
not more than 60 months. 
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‘‘(h) LOAN CANCELLATION AND DISCHARGE.—The 
Secretary shall discharge a borrower’s liability on a loan 
made under this part in accordance with subsections (a) 
and (c) of section 437. 
‘‘(i) NO PUBLIC SERVICE LOAN FORGIVENESS.—A 
loan made under this part shall not be eligible for the pub-
lic service loan forgiveness program under section 455(m). 
‘‘SEC. 499C. IDEA CONSOLIDATION LOANS. 
‘‘(a) IDEA CONSOLIDATION LOANS.— 
‘‘(1) IN GENERAL.—Except as provided in this 
section, an IDEA Consolidation Loan under this sec-
tion shall have the same terms, conditions, and bene-
fits, as IDEA Loans under this part. 
‘‘(2) BORROWER AND LOAN ELIGIBILITY.—To 
be eligible to receive an IDEA Consolidation Loan 
under this section, a borrower— 
‘‘(A) shall— 
‘‘(i) meet the criteria described in sec-
tion 428C(a)(3)(A); and 
‘‘(ii) in the case of a borrower de-
scribed in section 499B(b)(1)(B), agree to 
consolidate into an IDEA Consolidation 
Loan all loans made to the borrower that 
are described in subparagraphs (A) and 
(C) of section 428C(a)(4) (other than an 
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excepted PLUS loan or an excepted con-
solidation loan (as such terms are defined 
in section 493C(a))); 
‘‘(B) may consolidate the loans described 
in subparagraphs (B), (D), and (E) of section 
428C(a)(4) into such IDEA Consolidation 
Loan; and 
‘‘(C) may not consolidate an IDEA Loan 
under section 499B into such IDEA Consolida-
tion Loan. 
‘‘(3) REQUIREMENTS FOR THE SECRETARY.— 
In making IDEA Consolidation Loans under this 
section, the Secretary— 
‘‘(A) shall ensure that— 
‘‘(i) each IDEA Consolidation Loan 
will be made, notwithstanding any other 
provision of this title limiting the annual or 
aggregate principal amount for all loans 
made to the borrower, in an amount which 
is equal to the sum of the unpaid principal, 
interest, penalties, and fees of all loans re-
ceived by the borrower which are selected 
by the borrower for consolidation under 
this section; and 
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‘‘(ii) the proceeds of each IDEA Con-
solidation Loan will be paid by the Sec-
retary to the holder or holders of the loans 
being consolidated to discharge the liability 
on such loans; 
‘‘(B) shall not discriminate against any 
borrower seeking such an IDEA Consolidation 
Loan— 
‘‘(i) based on the number or type of 
loans the borrower seeks to consolidate; 
‘‘(ii) based on the interest rate to be 
charged to the borrower with respect to the 
consolidation loan; or 
‘‘(iii) based on the type or category of 
institution of higher education that the 
borrower attends or attended; and 
‘‘(C) shall disclose to a prospective bor-
rower, in simple and understandable terms, at 
the time the Secretary provides an application 
for an IDEA Consolidation Loan— 
‘‘(i) whether consolidation would re-
sult in a loss of loan benefits under part 
B or part D, including loan forgiveness, 
cancellation, and deferment; 
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‘‘(ii) with respect to Federal Perkins 
Loans under part E— 
‘‘(I) that if a borrower includes a 
Federal Perkins Loan under part E in 
the consolidation loan, the borrower 
will lose all interest-free periods that 
would have been available for the Fed-
eral Perkins Loan, including— 
‘‘(aa) the periods during 
which no interest accrues on such 
loan while the borrower is en-
rolled in school at least half-time; 
‘‘(bb) the grace period under 
section 464(c)(1)(A); and 
‘‘(cc) the periods during 
which the borrower’s student 
loan repayments are deferred 
under section 464(c)(2); 
‘‘(II) that if a borrower includes 
a Federal Perkins Loan in the con-
solidation loan, the borrower will no 
longer be eligible for cancellation of 
part or all of the Federal Perkins 
Loan under section 465(a); and 
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