for the year if such payments were made 
pursuant to improper wage garnishment. 
‘‘(E) APPEALS PROCESS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall make available a process through 
which a borrower can appeal the calcula-
tion of the borrower’s annual repayment 
amount, including a worksheet that en-
ables a borrower to calculate the bor-
rower’s annual repayment amount. 
‘‘(ii) GOOD
STANDING.—A borrower 
who makes an appeal under clause (i) with 
respect to a loan shall be considered in 
good standing on such loan during the du-
ration of the appeal. 
‘‘(iii) REGULATIONS.—The Secretary 
shall issue regulations outlining such proc-
ess not later than 18 months after the date 
of enactment of the LOAN Act of 2022. 
‘‘(F) DELINQUENT FOR FAILURE TO FILE 
A RETURN.— 
‘‘(i) IN GENERAL.—In a case in which 
the Secretary receives information from 
the Secretary of the Treasury under sub-
section (b) that a borrower with a loan 
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
made under this part after the date of en-
actment of the LOAN Act of 2022 in re-
payment status in the repayment plan 
under this section, has failed to file a re-
turn under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 and such bor-
rower was required to file such a return, 
the Secretary shall— 
‘‘(I) notify the borrower of the 
borrower’s failure to file such a re-
turn; and 
‘‘(II) if the borrower fails to file 
such a return within 90 days of re-
ceipt of the notice described in sub-
clause (I), consider the borrower’s 
loans made under this part after the 
date of enactment of the LOAN Act 
of 2022 in repayment status in the re-
payment plan under this section to be 
delinquent. 
‘‘(ii) APPEALS
PROCESS.—The Sec-
retary shall make available a process 
through which a borrower can appeal a de-
termination under clause (i) that the bor-
rower has failed to file a return under sec-
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
tion 6012(a)(1) of the Internal Revenue 
Code of 1986 and such borrower was re-
quired to file such a return. The Secretary 
shall issue regulations outlining such proc-
ess not later than 18 months after the date 
of enactment of the LOAN Act of 2022. 
‘‘(G) MONTHLY PAYMENTS PROCESS.—The 
Secretary shall— 
‘‘(i) establish a monthly payments 
process described in paragraph (2); and 
‘‘(ii) issue regulations establishing 
penalties for default on such monthly pay-
ments. 
‘‘(H) CALCULATING LOAN FORGIVENESS.— 
The Secretary shall determine appropriate loan 
forgiveness options for students who select the 
repayment plan under this section. 
‘‘(I) FINANCIAL HARDSHIPS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall establish a process for providing an 
adjustment in both the monthly payment 
and annual repayment amount obligations 
on a loan for a borrower experiencing ex-
treme unforeseen financial circumstances 
unrelated to a change in annual income. 
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(ii) REPAYMENT
STATUS.—A bor-
rower who receives an adjustment under 
clause (i) for a loan shall be deemed in re-
payment status with respect to such loan. 
‘‘(2) MONTHLY PAYMENTS PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a process under which a borrower, or 
one making payments on behalf of a borrower 
under paragraph (1)(D), shall make monthly 
payments towards the borrower’s annual repay-
ment amount. 
‘‘(B) INFORMATION REQUIRED.—The pro-
cedure for initiating the monthly payments 
process under subparagraph (A) shall include 
an income estimate based on the income 
verification provided by the Secretary of the 
Treasury under subsection (b). 
‘‘(C) 
AUTOMATIC
CONTINUATION.—The 
monthly payments process shall continue until 
the borrower’s loans made under this part after 
the date of enactment of the LOAN Act of 
2022 are repaid. 
‘‘(D) UPDATING PAYMENT AMOUNTS.— 
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(i) 
SECRETARY.—The 
Secretary 
shall automatically recalculate a borrower’s 
monthly payment amount— 
‘‘(I) at the beginning of a new 
taxable year using the most recent in-
come estimate provided under sub-
section (b)(1) by the Secretary of the 
Treasury; and 
‘‘(II) not later than 30 days after 
the date the borrower’s income esti-
mate is adjusted after an appeal 
under paragraph (1)(E). 
‘‘(ii) BORROWER.—A borrower may 
request that the Secretary update the bor-
rower’s income estimate to adjust monthly 
payment amounts pursuant to subpara-
graph (E) or (I) of paragraph (1) at any 
time. 
‘‘(d) BORROWER REPAYMENT.— 
‘‘(1) REPAYMENT PERIOD.—The repayment pe-
riod of a loan in the repayment plan under this sec-
tion shall— 
‘‘(A) begin on the first day of the first tax-
able year that begins after the borrower’s in- 
school deferment period; and 
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(B) continue until the loan is paid in full, 
except that the Secretary may grant a borrower 
deferment of the borrower’s annual repayment 
amount— 
‘‘(i) for a period not to exceed 60 
days, due to administrative or technical 
reasons; 
‘‘(ii) for a period not to exceed 3 
months, due to unusual circumstances that 
disrupt the borrower’s ability to make 
timely payments on the loan; or 
‘‘(iii) renewable at 12-month intervals 
for a period not to exceed 3 years, due to 
documented extreme economic hardship on 
the part of a borrower. 
‘‘(2) PREPAYMENT AUTHORIZED.—A borrower 
shall have the right to prepay all or part of such 
loan, at any time and without penalty. Any such pre-
payment amount shall be applied in accordance with 
section 455(r)(3)(C). 
‘‘(3) DETERMINATION OF INCOME-BASED RE-
PAYMENT OBLIGATION.— 
‘‘(A) IN GENERAL.—The repayment obliga-
tion under this section with respect to an indi-
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS
vidual for any taxable year is an amount equal 
to 10 percent of the amount by which— 
‘‘(i) the individual’s, and the individ-
ual’s spouse’s (if applicable), adjusted 
gross income; exceeds 
‘‘(ii) 150 percent of the poverty line 
applicable to the borrower’s family size as 
determined under section 673(2) of the 
Community Services Block Grant Act (42 
U.S.C. 9902(2)). 
‘‘(B) EXCLUSION
OF
CERTAIN
AMOUNTS 
PAID
ON
BEHALF
OF
INDIVIDUAL.—Any 
amount paid on the borrower’s behalf under 
subsection (c)(1)(D) shall not be taken into ac-
count in determining such borrower’s income- 
based repayment obligation. 
‘‘(C) INDIVIDUALS
NOT
FILING
A
RE-
TURN.—The income-based repayment obligation 
with respect to an individual not required to file 
a return under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 shall be treated as 
zero.’’. 
Æ 
VerDate Sep 11 2014 
16:17 Aug 01, 2022
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6301
E:\BILLS\H8472.IH
H8472
pamtmann on DSKBC07HB2PROD with BILLS