‘‘(C) With respect to any loan for which 
payments may be made under subparagraph 
(B), be paid, or be treated as if no interest has 
accrued, by the Secretary— 
‘‘(i) for any period described in sub-
paragraph (B)(i); and 
‘‘(ii) for the 6-month period after the 
date the borrower ceases to carry at least 
one-half the normal full-time academic 
workload at an institution of higher edu-
cation, as determined by the institution, 
and during which the borrower is not earn-
ing any income. 
‘‘(D) Subsection (b)(7)(B) shall be applied 
by substituting ‘20 years’ for ‘25 years’. 
‘‘(E) A borrower of such a loan shall not 
be required to have a partial financial hardship 
and may elect, and remain enrolled in, the in-
come-based repayment plan under this sub-
section regardless of income level. 
‘‘(F) Subparagraph (A) of subsection 
(b)(6) shall not apply and a borrower’s monthly 
payment shall be determined in accordance with 
subparagraph (A) divided by 12, which may ex-
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ceed the monthly repayment amount under a 
standard 10-year repayment plan. 
‘‘(G) Subparagraph (B) of subsection 
(b)(3) shall not apply. 
‘‘(3) ADDITIONAL
SPECIAL
TERMS
FOR
CER-
TAIN BORROWERS.—A borrower described in para-
graph (1)(B)— 
‘‘(A) may choose to retain the repayment 
plan in which the borrower is enrolled on June 
30, 2022; 
‘‘(B) may elect to— 
‘‘(i) leave the repayment plan de-
scribed in subparagraph (A) and enter the 
income-based repayment plan under this 
subsection; 
‘‘(ii) leave the repayment plan de-
scribed in subparagraph (A) and enter a 
standard 10-year repayment plan under 
section 455(d)(A)(A); or 
‘‘(iii) not more than once per calendar 
year, switch between the repayment plans 
described in clauses (i) and (ii); 
‘‘(C) after electing to leave a repayment 
plan other than an income-based repayment 
plan described under this subsection or a stand-
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ard 10-year repayment plan under section 
455(d)(A)(A), shall not be permitted to re-elect 
a repayment plan that is not an income-based 
repayment plan under this subsection or such 
standard 10-year repayment plan; 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 subsection (b)(7)) any years of repay-
ment under another income-based or income- 
contingent repayment plan under this title. 
‘‘(4) CAP
ON
INTEREST
ACCRUAL.—Notwith-
standing any other provision of this Act, the total 
amount of interest that accrues during a borrower’s 
grace period and the time that a borrower is in re-
payment under this subsection shall not exceed 50 
percent of the original principal amount of the 
loan.’’. 
SEC. 402. TERMINATION OF CERTAIN REPAYMENT PLAN 
OPTIONS. 
(a) EFFECTIVE DATE; RULEMAKING REGARDING 
TERMINATION OF CERTAIN REPAYMENT PLANS.— 
(1) EFFECTIVE DATE.—The amendments made 
by this section shall take effect on July 1, 2022. 
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(2) REGULATIONS.—Before the effective date 
described in paragraph (1), the Secretary of Edu-
cation shall carry out a plan to end all eligibility for 
repayment plans other than a standard repayment 
plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) 
with a repayment period of 10 years and an income- 
based repayment plan described under section 
493C(f) for loans made under part B or D of title 
IV of the Higher Education Act of 1965, unless the 
borrower is enrolled in another repayment plan be-
fore such effective date, in accordance with the 
amendments made by this Act. 
(b) CHANGES TO CURRENT LAW.— 
(1) Section 428(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1078(b)) is amended— 
(A) in paragraph (1)— 
(i) in subparagraph (D)— 
(I) in clause (ii), by striking 
‘‘may annually change the selection of 
a repayment plan under this part,’’ 
and inserting ‘‘may at any time after 
July 1, 2022, and not more frequently 
than once per calendar year there-
after, change the selection of a repay-
ment plan under this part to one of 
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the 2 repayment plans described in 
paragraph (9)(C),’’; and 
(II) in clause (iii), by striking 
‘‘be subject to income-contingent re-
payment in accordance with sub-
section (m);’’ and inserting ‘‘be sub-
ject to income-based repayment in ac-
cordance with section 493C(f);’’; and 
(ii) in subparagraph (E)(i), by strik-
ing ‘‘the option of repaying the loan in ac-
cordance with a standard, graduated, in-
come-sensitive, or extended repayment 
schedule (as described in paragraph (9)) 
established by the lender in accordance 
with regulations of the Secretary; and’’ 
and inserting ‘‘the option of repaying the 
loan in accordance with a repayment plan 
described in paragraph (9)(C) established 
by the lender in accordance with regula-
tions of the Secretary; and’’; and 
(B) in paragraph (9), by adding at the end 
the following: 
‘‘(C) SELECTION
OF
REPAYMENT
PLANS 
ON AND AFTER JULY 1, 2022.— 
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‘‘(i) OPPORTUNITY
TO
CHANGE
RE-
PAYMENT
PLANS.—Notwithstanding any 
other provision of this paragraph, or any 
other provision of law, and in accordance 
with regulations, beginning on July 1, 
2022, the lender shall offer a borrower of 
a loan made, insured, or guaranteed under 
this part the opportunity to change repay-
ment plans not more than once per cal-
endar year, and to enroll in one of the fol-
lowing repayment plans: 
‘‘(I) A standard repayment plan 
under section 428(b)(9)(A)(i) with a 
repayment period of 10 years. 
‘‘(II) The income-based repay-
ment plan under section 493C(f).’’. 
(2) Section 455(d) is amended— 
(A) 
by 
redesignating 
paragraphs 
(2) 
through (5) as paragraphs (3) through (6), re-
spectively; 
(B) by inserting after paragraph (1), the 
following: 
‘‘(2) DESIGN AND SELECTION ON AND AFTER 
JULY 1, 2022.— 
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‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for the borrower of a loan made on 
or after July 1, 2022, 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 
shall be entitled to accelerate, without penalty, 
repayment on the borrower’s loans under this 
part. The borrower may choose— 
‘‘(i) a standard repayment plan under 
section 455(d)(1)(A) with a repayment pe-
riod of 10 years; 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, 2022, does not select a repay-
ment plan described in subparagraph (A), the 
Secretary may provide the borrower with a 
standard 
repayment 
plan 
under 
section 
455(d)(1)(A) with a repayment period of 10 
years. 
‘‘(C) CHANGES
IN
SELECTIONS.—Begin-
ning on July 1, 2022, a borrower of a loan 
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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. 
‘‘(D) BORROWER IN DEFAULT.—Beginning 
on July 1, 2022, the Secretary may require any 
borrower who has defaulted 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 an in-
come-based repayment plan under section 
493C(f).’’; and 
(C) by adding at the end the following: 
‘‘(7) BORROWERS
OF
LOANS
MADE
BEFORE 
JULY 1, 2022.—A borrower who is in repayment on 
a loan made under part B or part D before July 1, 
2022— 
‘‘(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); 
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‘‘(ii) enter a standard repayment plan 
under section 455(d)(1)(A) with a repay-
ment period of 10 years; or 
‘‘(iii) switch between the repayment 
plans described in clauses (i) and (ii) not 
more than once during a calendar year; 
‘‘(C) after electing to leave a repayment 
plan other than an income-based repayment 
plan described in this subsection or a standard 
repayment plan under section 455(d)(1)(A), 
shall not be permitted to re-elect a repayment 
plan that is not an income-based repayment 
plan described in this subsection or a standard 
repayment plan under section 455(d)(1)(A); 
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-
payment under another income-based or in-
come-contingent repayment plan under this 
title.’’. 
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SEC. 403. NOTIFICATION AND AUTOMATIC ENROLLMENT 
PROCEDURES FOR BORROWERS WHO ARE 
DELINQUENT ON LOANS. 
(a) 
INCOME-CONTINGENT
REPAYMENT.—Section 
455(d) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(d)) is further amended by adding at the end the 
following: 
‘‘(8) NOTIFICATION AND AUTOMATIC ENROLL-
MENT PROCEDURES FOR BORROWERS WHO ARE DE-
LINQUENT ON LOANS.— 
‘‘(A) AUTHORITY TO OBTAIN INCOME IN-
FORMATION.— 
‘‘(i) IN GENERAL.—In the case of any 
borrower who is at least 60 days delin-
quent on a covered loan, the Secretary may 
obtain such information as is reasonably 
necessary regarding the income and family 
size of the borrower (and the borrower’s 
spouse, if applicable). 
‘‘(ii) AVAILABILITY OF RETURNS AND 
RETURN INFORMATION.—Returns and re-
turn information (as defined in section 
6103 of the Internal Revenue Code of 
1986) may be obtained under this subpara-
graph only to the extent authorized by sec-
tion 6103(l)(13) of such Code. 
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‘‘(B) BORROWER NOTIFICATION.—With re-
spect to each borrower of a covered loan who is 
at least 60 days delinquent on such loan and 
who has not been subject to the procedures 
under this paragraph for such loan in the pre-
ceding 120 days, the Secretary shall, as soon as 
practicable after such 60-day delinquency, pro-
vide to the borrower the following: 
‘‘(i) Notification that the borrower is 
at least 60 days delinquent on at least 1 
covered loan, and a description of all delin-
quent covered loans, nondelinquent covered 
loans, and noncovered loans of the bor-
rower. 
‘‘(ii) A brief description of the repay-
ment plans for which the borrower is eligi-
ble and the covered loans and noncovered 
loans of the borrower that may be eligible 
for such plans, based on information avail-
able to the Secretary. 
‘‘(iii) Clear and simple instructions on 
how to select the repayment plans. 
‘‘(iv) The amount of monthly pay-
ments for the covered and noncovered 
loans under the repayment plans for which 
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the borrower is eligible, based on informa-
tion available to the Secretary, including, if 
the income information of the borrower is 
available to the Secretary under subpara-
graph (A)— 
‘‘(I) the amount of the monthly 
payment under each income-driven re-
payment plan for which the borrower 
is eligible for the borrower’s covered 
and noncovered loans, based on such 
income information; and 
‘‘(II) the income, family size, tax 
filing status, and tax year information 
on which each monthly payment is 
based. 
‘‘(v) An explanation that in the case 
of a borrower for whom adjusted gross in-
come is unavailable— 
‘‘(I) if the borrower selects to 
repay the covered loans of such bor-
rower pursuant to an income-driven 
repayment plan that defines discre-
tionary income in such a manner that 
an individual not required under sec-
tion 6012(a)(1) of the Internal Rev-
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enue Code of 1986 to file a return 
with respect to income taxes imposed 
by subtitle A of such Code may have 
a calculated monthly payment greater 
than $0, the borrower will be required 
to provide the Secretary with other 
documentation of income satisfactory 
to the Secretary, which documentation 
the Secretary may use to determine 
an appropriate repayment schedule; 
and 
‘‘(II) if the borrower selects to 
repay such loans pursuant to an in-
come-driven repayment plan that is 
not described in subclause (I), the 
borrower will not be required to pro-
vide the Secretary with such other 
documentation of income, and the bor-
rower will have a calculated monthly 
payment of $0. 
‘‘(vi) An explanation that the Sec-
retary shall take the actions under sub-
paragraph (C) with respect to such bor-
rower, if— 
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‘‘(I) the borrower is 120 days de-
linquent on one or more covered loans 
and has not selected a new repayment 
plan for the covered loans of the bor-
rower; and 
‘‘(II) in the case of such a bor-
rower whose repayment plan for the 
covered loans of the borrower is not 
an income-driven repayment plan, the 
monthly payments under such repay-
ment plan are higher than such 
monthly payments would be under an 
income-driven repayment plan for 
such loans. 
‘‘(vii) Instructions on updating the in-
formation of the borrower obtained under 
subparagraph (A). 
‘‘(C) SECRETARY’S INITIAL SELECTION OF 
PLAN.—With respect to each borrower de-
scribed in subparagraph (B) who has a repay-
ment plan for the covered loans of the borrower 
that meets the requirements of clause (vi)(II) of 
subparagraph (B) and has not selected a new 
repayment plan for such loans in accordance 
with the notice received under such subpara-
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as practicable after such period, carry out 
the procedures described in clauses (i) and 
(ii) of subparagraph (C) for the covered 
loans of the borrower, if such procedures 
would result in lower monthly repayment 
amounts on such loan. 
‘‘(ii) DESCRIPTION OF PERIOD.—The 
duration of the period described in clause 
(i) shall be the amount of time that the 
Secretary determines is sufficient to indi-
cate that the borrower may benefit from 
repaying such loan under a new repayment 
plan, but in no case shall such period be 
less than 60 days. 
‘‘(E) OPT-OUT.—A borrower of a covered 
loan shall have the right to opt-out of the pro-
cedures under this paragraph. 
‘‘(9) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LOAN.—The term ‘covered 
loan’ means— 
‘‘(i) a loan made under this part; 
‘‘(ii) a loan purchased under section 
459A; or 
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‘‘(iii) a loan that has been assigned to 
the Secretary under section 428(c)(8) or 
part E. 
‘‘(B) 
INCOME-DRIVEN
REPAYMENT 
PLAN.—The term ‘income-driven repayment 
plan’ means— 
‘‘(i) in the case of a covered loan 
made under this part, purchased under 
section 459A, or assigned to the Secretary 
before July 1, 2022, a plan described in 
subparagraph (D) or (E) of paragraph (1); 
and 
‘‘(ii) in the case of a covered loan 
made under this part, purchased under 
section 459A, or assigned to the Secretary 
before July 1, 2022, the income-based re-
payment plan under section 493C(f). 
‘‘(C) 
NONCOVERED
LOAN.—The 
term 
‘noncovered loan’ means a loan made, insured, 
or guaranteed under this title that is not a cov-
ered loan.’’. 
(b) CHANGING PLANS.—Section 493C(b)(8) of the 
Higher Education Act of 1965 (20 U.S.C. 1098e(b)(8)) 
is amended to read as follows: 
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‘‘(8) a borrower who is repaying a loan made, 
insured, or guaranteed under part B or D pursuant 
to income-based repayment may elect, at any time, 
to terminate repayment pursuant to income-based 
repayment and repay such loan under any repay-
ment plan for which the loan is eligible in accord-
ance with the requirements of part B or part D, re-
spectively; and’’. 
(c) EFFECTIVE DATE; APPLICATION.— 
(1) AUTOMATIC
ENROLLMENT.—The amend-
ments made by subsection (a) shall— 
(A) take effect as soon as the Secretary of 
Education determines practicable, but not later 
than 2 years after the date of enactment of this 
Act; and 
(B) apply to all borrowers of covered loans 
(as defined in section 455(d)(9) of the Higher 
Education Act of 1965, as added by subsection 
(a)). 
(2) CHANGING PLANS.—The amendment made 
by subsection (b) shall take effect on the date of en-
actment of this Act. 
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SEC. 404. AUTOMATIC RECERTIFICATION FOR INCOME- 
DRIVEN REPAYMENT PLANS. 
Section 455(e)(8)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(e)(8)(A)) is amended— 
(1) by striking ‘‘and’’ after clause (ii); 
(2) in clause (iii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(iv) in the case of a borrower for 
whom adjusted gross income is unavail-
able— 
‘‘(I) if the borrower has selected 
to repay the covered loans of such 
borrower pursuant to an income-con-
tingent repayment plan that defines 
discretionary income in such a man-
ner that an individual not required 
under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 to file a re-
turn with respect to income taxes im-
posed by subtitle A of such Code may 
have a calculated monthly payment 
greater than $0, the borrower will be 
required to provide the Secretary with 
other documentation of income satis-
factory to the Secretary, which docu-
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mentation the Secretary may use to 
determine an appropriate repayment 
schedule; or 
‘‘(II) if the borrower has selected 
to repay such loans pursuant to an in-
come-contingent repayment that is not 
described in subclause (I), the bor-
rower will not be required to provide 
the Secretary with such other docu-
mentation of income, and the bor-
rower will have a calculated monthly 
payment of $0.’’. 
Æ 
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