I 
115TH CONGRESS 
1ST SESSION H. R. 2580 
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 
MAY 19, 2017 
Mr. ZELDIN introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Com-
mittee 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 2017’’ or the ‘‘ExCEL Act of 
2017’’. 
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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, 
2017— 
‘‘(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, 
2017, 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, 2017. 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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‘‘(c) SELECTION OF INSTITUTIONS FOR PARTICIPA-
TION AND ORIGINATION, AND AGREEMENTS WITH INSTI-
TUTIONS.— 
‘‘(1) SELECTION OF INSTITUTIONS FOR PAR-
TICIPATION AND ORIGINATION.—The Secretary shall 
enter into agreements with institutions of higher 
education to participate in the IDEA Loan Program 
under this part and agreements with institutions of 
higher education, or consortia thereof, to originate 
loans in such program for academic years beginning 
on or after July 1, 2017. The provisions of section 
453 shall apply with respect to agreements under 
this section. The Secretary shall provide alternative 
origination services for loans under this part, as ap-
propriate, in a manner consistent with the provisions 
of sections 453 and 456 related to alternative origi-
nation services for loans under part D. 
‘‘(2) PARTICIPATION AND ORIGINATION AGREE-
MENTS
WITH
INSTITUTIONS.—An agreement with 
any institution of higher education for participation 
in the IDEA Loan Program under this part, and an 
agreement with any institution of higher education, 
or consortia thereof, to originate loans in such pro-
gram, shall have the same terms as the terms re-
quired under section 454 for agreements with an in-
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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 2017. 
‘‘(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 2017. 
‘‘(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 2017, 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, 2017, 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, 2017, 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, 2017. 
‘‘(2) IDEA CONSOLIDATION
LOANS.—In the 
case of any IDEA Consolidation loan made under 
this part that is disbursed on or after July 1, 2017, 
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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‘‘(III) the occupations listed in 
section 465 that qualify for Federal 
Perkins Loan cancellation under sec-
tion 465(a); 
‘‘(iii) the options of the borrower to 
prepay the IDEA Consolidation Loan; 
‘‘(iv) the consequences of default on 
the IDEA Consolidation Loan; and 
‘‘(v) that by applying for an IDEA 
Consolidation Loan, the borrower is not 
obligated to agree to take the consolidation 
loan. 
‘‘(b) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
499B(e), an IDEA Consolidation Loan for which the 
application is received on or after July 1, 2017, shall 
bear interest at an annual rate on the unpaid prin-
cipal balance of the loan that is equal to the weight-
ed average of the interest rates on the loans consoli-
dated, rounded to the nearest higher one-eighth of 
one percent. Interest that accrues on such an IDEA 
Consolidation Loan shall not be capitalized. 
‘‘(2) APPLICATION OF INTEREST RATE DURING 
THE LIFE OF THE LOAN.—The applicable rate of in-
terest determined under paragraph (1) shall be fixed 
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for the life of the IDEA Consolidation Loan, except 
that interest shall cease to accrue when the total 
amount of interest (both paid and unpaid) that has 
accrued on such Loan equals 50 percent of the total 
amount of the loans consolidated (as calculated on 
the date such Consolidation Loan is made, and equal 
to the sum of the unpaid principal, interest, pen-
alties, and fees of all loans received by the borrower 
which are selected by the borrower for consolidation 
under this section). 
‘‘Subpart 2—IDEA Loan Repayment Program 
‘‘CHAPTER 1—ESTABLISHMENT OF THE 
IDEA LOAN REPAYMENT PROGRAM 
‘‘SEC. 499D. DUTIES OF THE SECRETARY OF THE TREAS-
URY. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury, 
in consultation with the Secretary of Education, shall es-
tablish a program (hereinafter referred to as the ‘IDEA 
Loan Repayment Program’) that provides for— 
‘‘(1) repaying loans under this part through vol-
untary wage withholding and quarterly estimated 
payments as provided in subsection (b); and 
‘‘(2) transmitting to the Secretary of Edu-
cation— 
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‘‘(A) an account of the amounts collected 
under subsection (b) with respect to each indi-
vidual for whom a loan made under this part is 
in repayment status; and 
‘‘(B) such tax return information of each 
such individual as is necessary to determine the 
individual’s income-based repayment obligation 
as provided in subsection (c). 
‘‘(b) WAGE WITHHOLDING AND ESTIMATED PAY-
MENTS.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall, under rules similar to the rules of 
chapter 24 of the Internal Revenue Code of 1986, 
provide for employers making payment of wages to 
deduct and withhold upon such wages amounts de-
termined in accordance with tables or computational 
procedures prescribed by the Secretary with respect 
to an employee who elects withholding under this 
subsection with respect to a loan made under this 
part that is in repayment status and, if so elected, 
with respect to any such loans of the employee’s 
spouse. 
‘‘(2) WITHHOLDING REQUIREMENTS.—The ta-
bles, procedures, and guidance prescribed under 
paragraph (1) shall provide— 
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‘‘(3) 
QUARTERLY
ESTIMATED
TAX
PAY-
MENTS.—In the case of taxpayers who make quar-
terly estimated tax return payments under section 
6654 of the Internal Revenue Code of 1986 and who 
have a loan made under this part in repayment sta-
tus, the Secretary shall provide similar tables and 
procedures for making voluntary repayments of 
loans made under this part concurrently with such 
quarterly payments. 
‘‘(4) 
COLLECTION
AND
PAYMENT.—The 
amounts required to be deducted and withheld under 
paragraph (1), and amounts required to be paid 
under paragraph (3), shall be collected by the Sec-
retary of the Treasury and shall be paid into the 
general fund of the Treasury of the United States. 
‘‘(c) DETERMINATION
OF INCOME-BASED REPAY-
MENT OBLIGATION.— 
‘‘(1) IN
GENERAL.—As soon as practicable 
after an individual for whom a loan made under this 
part is in repayment status during the taxable year 
files an income tax return for such taxable year, the 
Secretary of the Treasury shall transmit to the Sec-
retary of Education such tax information as is nec-
essary to determine— 
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‘‘(A) the amount deducted and withheld 
under subsection (b)(1), and the amount paid 
under subsection (b)(3), for the taxable year 
with respect to such individual; and 
‘‘(B) the income-based repayment obliga-
tion for the taxable year for such individual. 
‘‘(2) 
INCOME-BASED
REPAYMENT
OBLIGA-
TION.—For purposes of this section: 
‘‘(A) IN GENERAL.—The income-based re-
payment obligation with respect to an individual 
for any taxable year is an amount equal to 15 
percent of the excess of— 
‘‘(i) the sum of— 
‘‘(I) the wages, salaries, tips, and 
other employee compensation of the 
taxpayer, but only if such amounts 
are includible in gross income for the 
taxable year (determined without re-
gard to section 911, 931, or 933), 
‘‘(II) the amount of the tax-
payer’s net earnings from self-employ-
ment for the taxable year (within the 
meaning of section 1402(a)), deter-
mined with regard to the deduction al-
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lowed to the taxpayer by section 
164(f), plus 
‘‘(III) any other amount included 
in total income of the taxpayer for the 
taxable year but not described in sub-
clause (I) or (II), over 
‘‘(ii) the sum of— 
‘‘(I) the exemption amount with 
respect to such individual, plus 
‘‘(II) the lesser of the amount de-
termined with respect to the taxpayer 
under subclauses (II) and (III) of 
clause (i), or $3,000. 
‘‘(B) SPECIAL RULES FOR MARRIED INDI-
VIDUALS.— 
‘‘(i) EACH SPOUSE WITH LOAN.—Ex-
cept as provided in clause (ii), in the case 
of a joint return of two individuals who 
each have a loan made under this part in 
repayment status, the income-based repay-
ment obligation with respect to each 
spouse shall be an amount determined 
under subparagraph (A) by apportioning 
1⁄2 of the total income on such return to 
each spouse. 
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‘‘(ii) SPECIAL RULE FOR FIRST YEAR 
OF
MARRIAGE.—In the case of the first 
taxable year for which any two individuals 
make a joint return, the income-based re-
payment obligation with respect to such an 
individual shall be an amount equal to the 
lesser of— 
‘‘(I) the amount determined with 
respect to such individual under this 
paragraph (determined without regard 
to this clause), or 
‘‘(II) the amount determined 
with respect to such individual under 
this paragraph (determined by allo-
cating to each spouse the amounts de-
scribed in subclauses (I) and (II) of 
subparagraph (A)(i) in proportion to 
the amounts attributable to each 
spouse, by allocating 1⁄2 of the amount 
described in subparagraph (A)(i)(III) 
to each spouse, and without regard to 
clause (i)). 
‘‘(C) EXCLUSION
OF
CERTAIN
AMOUNTS 
PAID
ON
BEHALF
OF
INDIVIDUAL.—Any 
amount paid on the borrower’s behalf under 
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section 499E(5) shall not be taken into account 
in determining such borrower’s income-based 
repayment obligation. 
‘‘(3) EXEMPTION
AMOUNT.—For purposes of 
this section: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the exemption amount with 
respect to an individual shall be an amount 
equal to 150 percent of the poverty line for the 
individual’s household size (as determined 
under section 673(2) of the Community Serv-
ices Block Grant Act (42 U.S.C. 9902(2))) for 
the calendar year in which the taxable year 
ends. 
‘‘(B) SPECIAL RULE FOR MARRIED INDI-
VIDUALS WHO BOTH HAVE LOANS MADE UNDER 
THIS PART.—If for any taxable year an indi-
vidual is married, files a joint return, and has 
a spouse with a loan made under this part in 
repayment status, then the exemption amount 
with respect to such individual shall be an 
amount equal to the sum of— 
‘‘(i) 150 percent of the poverty line 
for a household size of one (as determined 
under section 673(2) of the Community 
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Services Block Grant Act (42 U.S.C. 
9902(2))) for the calendar year in which 
the taxable year ends, and 
‘‘(ii) 1⁄2 of the excess of— 
‘‘(I) 150 percent of the poverty 
line for the individual’s household size 
minus 1 (as determined under section 
673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2))) 
for the calendar year in which the tax-
able year ends, over 
‘‘(II) the amount determined 
under clause (i). 
‘‘(C) HOUSEHOLD SIZE.—For purposes of 
this paragraph, an individual’s household size 
shall be determined by reference to the indi-
vidual, the number of dependents of the tax-
payer with respect to whom the taxpayer is en-
titled to a deduction under section 151(c) of the 
Internal Revenue Code of 1986, and, if married 
and filing jointly, such individual’s spouse. 
‘‘(4) INDIVIDUALS NOT FILING A RETURN.— 
‘‘(A) INDIVIDUALS
NOT
REQUIRED
TO 
FILE.—The income-based repayment obligation 
with respect to an individual not required to file 
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a return under section 6012(a)(1) of the Inter-
nal Revenue Code of 1986 shall be treated as 
zero. 
‘‘(B) FAILURE TO FILE.—In the case of an 
individual who makes an election under sub-
section (b) with respect to a loan made under 
this part in repayment status and fails to file 
a return under section 6012(a)(1), the Sec-
retary of the Treasury shall transmit to the 
Secretary of Education any such tax informa-
tion of the individual as may be necessary to 
determine whether such individual is in default 
under the terms of such loan. 
‘‘(5) SUBSEQUENT
TRANSMISSION
OF
EM-
PLOYER
INFORMATION
REPORTING.—As soon as 
practicable after receiving from an employer infor-
mation reporting with respect to withholding under 
subsection (b)(1) of an individual, the Secretary of 
the Treasury shall transmit to the Secretary of Edu-
cation such information as may be useful in 
verifying the information with respect to withholding 
transmitted under paragraph (1). 
‘‘(d) ADDITIONAL PROGRAM REQUIREMENTS.—The 
Secretary of the Treasury shall establish such other poli-
cies, procedures, and guidance as may be necessary to 
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carry out the purposes of this section, including measures 
to prevent underwithholding, underreporting, and evasion 
of repayment or filing. Amounts shall be deducted and 
withheld under this section as the Secretary determines 
to be most appropriate to carry out the purposes of the 
IDEA Loan Repayment Program and to reflect, as accu-
rately as is practicable, an individual’s income-based re-
payment obligation. 
‘‘SEC. 499E. DUTIES OF THE SECRETARY OF EDUCATION. 
‘‘The Secretary shall carry out the following activities 
as part of the IDEA Loan Repayment Program estab-
lished under this chapter: 
‘‘(1) CALCULATION
OF
ANNUAL
REPAYMENT 
AMOUNTS.—The Secretary shall calculate the annual 
repayment amounts under 499F(b) for borrowers 
with 1 or more loans made under this part in repay-
ment status, including the income-based repayment 
obligations of such borrowers in accordance with sec-
tion 499D(c)(2). 
‘‘(2) COMMUNICATION
WITH
THE
SECRETARY 
OF THE TREASURY.—The Secretary shall transmit 
to the Secretary of the Treasury such information as 
is necessary for the Secretary of the Treasury to 
carry out section 499D. 
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‘‘(3) ANNUAL STATEMENTS.—Upon calculating 
the annual repayment amounts under paragraph (1) 
for a taxable year, the Secretary shall provide a 
statement, on an annual basis, to each borrower 
with a loan made under this part, which lists the fol-
lowing: 
‘‘(A) Total payments made on the bor-
rower’s annual repayment amount for such tax-
able year. 
‘‘(B) The borrower’s annual repayment 
amount for such taxable year. 
‘‘(C) In the case of a borrower who, ac-
cording to section 499F(f), has underpaid such 
annual repayment amount, the amount of such 
underpayment and the process for paying such 
underpayment under section 499F(f)(2). 
‘‘(D) In the case of a borrower with an 
overpayment 
on 
such 
annual 
repayment 
amount, the amount of such overpayment and 
the process for requesting a refund of such 
amount under section 499F(g), if applicable. 
‘‘(E) The outstanding balances on all the 
loans made to the borrower under this part. 
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‘‘(F) A description of how the borrower’s 
annual repayment amount was calculated under 
paragraph (1) or (2) of section 499F(b). 
‘‘(4) DIRECT PAYMENT.—The Secretary shall 
enable a borrower to make direct payments on the 
borrower’s annual repayment amount for the taxable 
year to the Secretary throughout the year, including 
by providing a process for the borrower to make 
such payments automatically, on a periodic basis, 
and in an amount specified by the borrower. 
‘‘(5) PAYMENTS ON A TAXPAYER’S BEHALF.— 
The Secretary shall— 
‘‘(A) provide a mechanism for other indi-
viduals or entities to make payments on the an-
nual repayment amount of a borrower for a tax-
able year; and 
‘‘(B) notify the borrower that any pay-
ments made under subparagraph (A) for the 
taxable year that exceed the annual repayment 
amount for the year shall not be refunded to 
the borrower. 
‘‘(6) CALCULATING INTEREST ACCRUED.—The 
Secretary shall calculate the interest accrued for the 
taxable year as if the borrower’s payments under 
wage withholding or quarterly estimated payments 
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under section 499D(b) for the taxable year were 
made in 12 equal increments throughout the year. 
‘‘(7) MANAGING LOANS.—The Secretary shall 
provide, through the Internet, a tool that has an 
interface that is consistent for all borrowers with a 
loan under this part, which enables each such bor-
rower to— 
‘‘(A) view the outstanding balances on the 
borrower’s loans made under this part; 
‘‘(B) make a direct payment on the bor-
rower’s annual repayment amount or indicate 
that any overpayment should be refunded or ap-
plied to such loans as a prepayment amount; 
‘‘(C) view prior annual statements for such 
loans provided under paragraph (3); 
‘‘(D) view a history of payments made on 
such loans (including the method and source of 
each payment, such as tax withholding, esti-
mated taxes, direct payment, or payments made 
on the borrower’s behalf); 
‘‘(E) view the borrower’s annual repay-
ment amount for that year, the amount already 
paid on such annual repayment amount, and 
any amount owed by the borrower or due to be 
refunded to the borrower; 
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‘‘(F) view the borrower’s loans made under 
this part that have been paid off; 
‘‘(G) enable the borrower to initiate an ap-
peal process under paragraph (8); and 
‘‘(H) easily determine whether benefits 
under the Servicemembers Civil Relief Act (50 
U.S.C. App. 501 et seq.), if applicable, have 
been applied to the borrower’s loans made 
under this part. 
‘‘(8) APPEALS PROCESS.—The Secretary shall 
make available a process through which a borrower 
can appeal the calculation of the borrower’s annual 
repayment amount, including a worksheet that en-
ables a borrower to calculate the borrower’s annual 
repayment amount. 
‘‘(9) DEFAULT FOR FAILURE TO FILE A RE-
TURN.—In a case in which the Secretary receives in-
formation from the Secretary of the Treasury under 
section 499D(c)(4) that a borrower with a loan 
made under this part in repayment status has failed 
to file a return under section 6012(a)(1) of the In-
ternal Revenue Code of 1986 and such borrower was 
required to file such a return, the Secretary shall— 
‘‘(A) notify the borrower of the borrower’s 
failure to file such a return; and 
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