I 
109TH CONGRESS 
2D SESSION 
H. R. 6084 
To allow for the consolidation of Federal student loans into a single direct 
income-contingent loan repayment program. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2006 
Mr. PETRI introduced the following bill; which was referred to the Committee 
on Education and the Workforce, 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 allow for the consolidation of Federal student loans into 
a single direct income-contingent loan repayment program. 
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 ‘‘Income-Dependent 
Education Assistance Act of 2006’’. 
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TITLE I—SYSTEM FOR MAKING 
INCOME-DEPENDENT 
EDU-
CATION ASSISTANCE LOANS 
SEC. 101. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary of the Education 
shall, in accordance with the provisions of this title, estab-
lish a program to provide the borrowers of Federal student 
loans with the option of converting their loans to income 
contingent repayment by providing direct loans for the dis-
charge of such loans. Such income contingent repayment 
loans are hereinafter in this title referred to as ‘‘direct 
IDEA loans’’. 
(b) DURATION OF PROGRAM AUTHORITY.— 
(1) DURATION.—The authority to conduct the 
program authorized by subsection (a) is effective on 
July 1, 2007, and expires on July 1, 2013. 
(2) AUTHORITY TO PREPARE FOR PROGRAM.— 
Notwithstanding paragraph (1), the Secretary may, 
before July 1, 2007— 
(A) prescribe regulations to carry out this 
title; and 
(B) expend funds appropriated pursuant to 
this title to carry out activities necessary to the 
implementation of the programs authorized by 
subsection (a). 
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(3) LAPSE OF AUTHORITY NOT TO AFFECT OB-
LIGATIONS.—The expiration of authority under 
paragraph (1) shall not affect the obligations of any 
party to any insurance or loan agreement under this 
title entered into before such expiration. 
SEC. 102. LOAN AMOUNTS, TERMS, AND CONDITIONS. 
(a) PARALLEL TERMS, CONDITIONS, AND BENE-
FITS.—Unless otherwise specified in this title or section 
6307 of the Internal Revenue Code of 1986, loans made 
to borrowers under this title shall have the same terms, 
conditions, and benefits, as loans made to borrowers under 
section 428 of the Higher Education Act of 1965. 
(b) FORM OF NOTE: COLLECTION BY IRS.—The Sec-
retary shall, by regulation, prescribe the form of the note 
or other evidence of indebtedness for direct IDEA loans 
consistent with the requirements of this title. Such note 
or other evidence shall— 
(1) provide that the loan shall be collectible on 
an income contingent basis in accordance with sec-
tion 6307 of the Internal Revenue Code of 1986; 
(2) provide that the borrower agrees that— 
(A) any payment owed with respect to such 
loan shall be considered as an income tax, and 
shall be subject to collection by the Internal 
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Revenue Service in the same manner, and sub-
ject to the same penalties, as a tax due; 
(B) the borrower’s taxpayer identification 
number may be used for the purposes of identi-
fying the borrower’s IDEA account; 
(C) the borrower will make payments on 
such loan using the income tax withholding sys-
tem and will make appropriate adjustments to 
his or her withholding or estimated tax pay-
ments for such purposes; and 
(D) if the borrower files for relief under 
title 11, United States Code, the borrower’s re-
payment obligations on the IDEA loan will be 
treated the same as Federal income tax obliga-
tions; and 
(3) contains such additional terms and condi-
tions as the Secretary of the Treasury may prescribe 
by regulation. 
(c) NOTICE OF CONVERSION IN FEDERAL STUDENT 
LOAN NOTES.—The Secretary shall, by regulation, require 
that any note or other evidence of indebtedness for any 
Federal student loan, disbursed on or after July 1, 2007, 
shall— 
(1) provide that, if the borrower defaults on re-
payment, the loan shall be collectible on an income 
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