Title: SIMPLE Act
Policy area: Education

Summary:
Streamlining Income-driven, Manageable Payments on Loans for Education Act or the SIMPLE Act
This bill directs the Department of Education (ED) to automatically request from the Internal Revenue Service a borrower's tax return information for purposes of determining (1) the borrower's continued eligibility for discharge of Federal Family Education Loans based on permanent and total disability, or (2) recertification of the borrower's income-contingent or income-based loan repayment plan.
The bill also establishes a process for ED to enroll a delinquent borrower who is in federal student loan repayment in an income-driven repayment plan.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3833 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3833

To amend the Higher Education Act of 1965 to provide for the automatic 
 recertification of income for income-driven repayment plans, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 18, 2019

     Ms. Bonamici (for herself, Mr. Mitchell, Mr. Moulton, and Mr. 
 Fitzpatrick) introduced the following bill; which was referred to the 
 Committee 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 amend the Higher Education Act of 1965 to provide for the automatic 
 recertification of income for income-driven repayment plans, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Streamlining Income-driven, 
Manageable Payments on Loans for Education Act'' or the ``SIMPLE Act''.

SEC. 2. AUTOMATIC INCOME MONITORING PROCEDURES AFTER A TOTAL AND 
              PERMANENT DISABILITY DISCHARGE.

    Section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087(a)) is amended by adding at the end the following:
            ``(3) Automatic income monitoring.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of the Streamlining Income-driven, 
                Manageable Payments on Loans for Education Act, the 
                Secretary shall, with respect to each borrower and each 
                income-monitoring period described in subparagraph 
                (B)--
                            ``(i) offer an opportunity for such 
                        borrower to opt out of clause (ii) and prevent 
                        the Secretary from obtaining information under 
                        such clause;
                            ``(ii) submit a written request to the 
                        Secretary of the Treasury under section 
                        6103(l)(13) of the Internal Revenue Code of 
                        1986 for disclosure of information relating to 
                        income, tax filing status, and number of 
                        dependents with respect to such borrower (and 
                        such borrower's spouse, if applicable) and such 
                        income-monitoring period, for the purpose of 
                        determining the borrower's continued 
                        eligibility for the loan discharge described in 
                        subparagraph (B) for such year; and
                            ``(iii) provide the borrower with an 
                        opportunity to update the information obtained 
                        under clause (ii) before the determination of 
                        the borrower's continued eligibility for such 
                        loan discharge for such year.
                    ``(B) Applicability.--Subparagraph (A) shall 
                apply--
                            ``(i) to each borrower who is a borrower of 
                        a covered loan (defined in section 455(d)(8)) 
                        that is discharged under this subsection or 
                        section 464(c)(1)(F) due to the permanent and 
                        total disability of the borrower; and
                            ``(ii) during the income-monitoring period 
                        under this subsection, defined in this 
                        paragraph as the period--
                                    ``(I) beginning on the date on 
                                which such loan is so discharged; and
                                    ``(II) during which the Secretary 
                                determines whether a reinstatement of 
                                the obligation of, and resumption of 
                                collection on, such loan may be 
                                necessary.
                    ``(C) Borrower with no earned income.--In the case 
                of a borrower whose information received under 
                subparagraph (A) indicates that the borrower has no 
                earned income for any year of such income-monitoring 
                period, such borrower shall be treated as not having 
                earned income in excess of the poverty line for such 
                year.''.

SEC. 3. NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR BORROWERS 
              WHO ARE DELINQUENT ON LOANS AND FOR BORROWERS WHO 
              REHABILITATED DEFAULTED LOANS.

    (a) Amendments.--
            (1) Notification and automatic enrollment procedures.--
        Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 
        1087e(d)) is amended by adding at the end the following:
            ``(6) Notification and automatic enrollment procedures for 
        borrowers who are delinquent on loans.--
                    ``(A) Authority to obtain income information.--In 
                the case of any borrower who is at least 60 days 
                delinquent on a covered loan, the Secretary shall 
                submit a written request to the Secretary of the 
                Treasury under section 6103(l)(13) of the Internal 
                Revenue Code of 1986 for disclosure of information 
                relating to income, tax filing status, and number of 
                dependents of such borrower (and such borrower's 
                spouse, if applicable).
                    ``(B) Borrower notification.--With respect 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 preceding 120 days, the Secretary shall, as soon as 
                practicable after such 60-day delinquency, provide 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 delinquent 
                        covered loans, nondelinquent covered loans, and 
                        noncovered loans of the borrower.
                            ``(ii) A brief description of the repayment 
                        plans for which the borrower is eligible and 
                        the covered loans and noncovered loans of the 
                        borrower that may be eligible for such plans, 
                        based on information available to the 
                        Secretary.
                            ``(iii) Clear and simple instructions on 
                        how to select the repayment plans.
                            ``(iv) The amount of monthly payments for 
                        the covered and noncovered loans under the 
                        repayment plans for which the borrower is 
                        eligible, based on information available to the 
                        Secretary, including, if the income information 
                        of the borrower is available to the Secretary 
                        under subparagraph (A)--
                                    ``(I) the amount of the monthly 
                                payment under each income-driven 
                                repayment plan for which the borrower 
                                is eligible for the borrower's covered 
                                and noncovered loans, based on such 
                                income information; and
                                    ``(II) the income, tax filing 
                                status, number of dependents, 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 income is 
                        unavailable--
                                    ``(I) if the borrower selects to 
                                repay the covered loans of such 
                                borrower pursuant to an income-driven 
                                repayment plan that defines 
                                discretionary income in such a manner 
                                that an individual not required under 
                                section 6012(a)(1) of the Internal 
                                Revenue 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 income-
                                driven repayment plan that is not 
                                described in subclause (I), the 
                                borrower will not be required to 
                                provide the Secretary with such other 
                                documentation of income, and the 
                                borrower will have a calculated monthly 
                                payment of $0.
                            ``(vi) An explanation that the Secretary 
                        shall take the actions under subparagraph (C) 
                        with respect to such borrower, if--
                                    ``(I) the borrower is 120 days 
                                delinquent on one or more covered loans 
                                and has not selected a new repayment 
                                plan for the covered loans of the 
                                borrower; and
                                    ``(II) in the case of such a 
                                borrower whose repayment plan for the 
                                covered loans of the borrower is not an 
                                income-driven repayment plan, the 
                                monthly payments under such repayment 
                                plan are higher than such monthly 
                                payments would be under an income-
                                driven repayment plan for such loans.
                            ``(vii) Instructions on updating the 
                        information of the borrower obtained under 
                        subparagraph (A).
                    ``(C) Secretary's initial selection of plan.--With 
                respect to each borrower described in subparagraph (B) 
                who has a repayment 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 subparagraph, and who is at 
                least 120 days delinquent on such a loan, the Secretary 
                shall, as soon as practicable--
                            ``(i) in a case in which any of the 
                        borrower's covered loans are eligible for an 
                        income-driven repayment plan--
                                    ``(I)(aa) provide the borrower with 
                                the income-driven repayment plan that 
                                requires the lowest monthly payment 
                                amount for each covered loan of the 
                                borrower, compared to any other such 
                                plan for which the borrower is 
                                eligible; or
                                    ``(bb) if more than one income-
                                driven repayment plan would offer the 
                                borrower the same lowest monthly 
                                payment amount, provide the borrower 
                                with the income-driven repayment plan 
                                that has the most favorable terms for 
                                the borrower;
                                    ``(II) if the plan selected under 
                                subclause (I) is not the income-driven 
                                repayment plan that would have the 
                                lowest monthly payment amount if the 
                                borrower were eligible for such plan 
                                for the borrower's covered loans and 
                                noncovered loans, notify the borrower 
                                of the actions, if any, the borrower 
                                may take to become eligible for such 
                                income-driven repayment plan; and
                                    ``(III) authorize the borrower to 
                                change the Secretary's selection of a 
                                plan under this clause to any plan 
                                described in paragraph (1) for which 
                                the borrower is eligible; and
                            ``(ii) in a case in which none of the 
                        borrower's covered loans are eligible for an 
                        income-driven repayment plan, notify the 
                        borrower of the actions, if any, the borrower 
                        may take for such loans to become eligible for 
                        such a plan.
                    ``(D) Secretary's additional selection of plan.--
                            ``(i) In general.--With respect to each 
                        borrower of a covered loan who selects a new 
                        repayment plan in accordance with the notice 
                        received under subparagraph (B) and who 
                        continues to be delinquent on such loan for a 
                        period described in clause (ii), the Secretary 
                        shall, as soon 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 indicate 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 procedures under this 
                paragraph.
                    ``(F) Procedures.--The Secretary shall establish 
                procedures as are necessary to effectively implement 
                this paragraph.
            ``(7) Notification and automatic enrollment procedures for 
        borrowers who are rehabilitating defaulted loans.--
                    ``(A) Authority to obtain income information.--In 
                the case of any borrower who is rehabilitating a 
                covered loan pursuant to section 428F(a), the Secretary 
                may submit a written request to the Secretary of the 
                Treasury under section 6103(l)(13) of the Internal 
                Revenue Code of 1986 for disclosure of information 
                relating to income, tax filing status, and number of 
                dependents of such borrower (and such borrower's 
                spouse, if applicable).
                    ``(B) Borrower notification.--Not later than 30 
                days after a borrower makes the 6th payment required 
                for the loan rehabilitation described in subparagraph 
                (A), the Secretary shall notify the borrower of the 
                process under subparagraph (C) with respect to such 
                loan.
                    ``(C) Secretary's selection of plan.--With respect 
                to each borrower who has made the 9th payment required 
                for the loan rehabilitation described in subparagraph 
                (A), the Secretary shall, as soon as practicable after 
                such payment--
                            ``(i) in a case in which any of the 
                        borrower's covered loans, without regard to 
                        whether the loan has been so rehabilitated, is 
                        eligible for an income-driven repayment plan--
                                    ``(I)(aa) provide the borrower with 
                                the income-driven repayment plan that 
                                requires the lowest monthly payment 
                                amount for each covered loan of the 
                                borrower, compared to any other such 
                                plan for which the borrower is 
                                eligible; or
                                    ``(bb) if more than one income-
                                driven repayment plan would offer the 
                                borrower the same lowest monthly 
                                payment amount, provide the borrower 
                                with the income-driven repayment plan 
                                that has the most favorable terms for 
                                the borrower; and
                                    ``(II) if the plan selected under 
                                subclause (I) is not the income-driven 
                                repayment plan that would have the 
                                lowest monthly payment amount if the 
                                borrower were eligible for such plan 
                                for the borrower's covered loans and 
                                noncovered loans, notify the borrower 
                                of the actions, if any, the borrower 
                                may take to become eligible for such 
                                income-driven repayment plan; and
                            ``(ii) in a case in which none of the 
                        borrower's covered loans are eligible for an 
                        income-driven repayment plan, notify the 
                        borrower of the actions, if any, the borrower 
                        may take for such a loan to become eligible for 
                        such a plan.
                    ``(D) Opt-out.--A borrower of a covered loan shall 
                have the right to opt out of the procedures under this 
                paragraph.
                    ``(E) Procedures.--The Secretary shall establish 
                procedures as are necessary to effectively implement 
                this paragraph.''.
            (2) Definitions.--Section 455(d) of the Higher Education 
        Act of 1965 (20 U.S.C. 1087e(d)), as amended by paragraph (1), 
        is further amended by adding at the end the following:
            ``(8) 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
                            ``(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 a plan described 
                in subparagraph (D) or (E) of paragraph (1).
                    ``(C) Noncovered loan.--The term `noncovered loan' 
                means a loan made, insured, or guaranteed under this 
                title that is not a covered loan.''.
            (3) 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:
            ``(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 repayment 
        plan for which the loan is eligible in accordance with the 
        requirements of part B or part D, respectively; and''.
    (b) Effective Date; Application.--
            (1) Automatic enrollment.--The amendments made by 
        paragraphs (1) and (2) of 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)(8) of the Higher Education 
                Act of 1965, as added by subsection (a)).
            (2) Changing plans.--The amendment made by subsection 
        (a)(3) shall take effect on the date of enactment of this Act.

SEC. 4. AUTOMATIC RECERTIFICATION OF INCOME.

    (a) Income Contingent Repayment.--Section 455(e) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(e)) is amended--
            (1) in paragraph (3)--
                    (A) by striking ``does not reasonably reflect the 
                borrower's current income'' and inserting ``whose 
                income has decreased relative to the adjusted gross 
                income available to the Secretary''; and
                    (B) by inserting ``, consistent with the procedures 
                established under paragraph (8)(B)(iv)'' before the 
                period at the end; and
            (2) by adding at the end the following:
            ``(8) Automatic recertification.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered loan' has the meaning given the term in 
                subsection (d)(8).
                    ``(B) In general.--Beginning as soon as the 
                Secretary determines practicable, but not later than 2 
                years after the date of enactment of the Streamlining 
                Income-driven, Manageable Payments on Loans for 
                Education Act, the Secretary shall, with respect to any 
                borrower described in subparagraph (C)--
                            ``(i) offer an opportunity for such 
                        borrower to opt out of clause (ii) and prevent 
                        the Secretary from obtaining information under 
                        such clause;
                            ``(ii) submit a written request to the 
                        Secretary of the Treasury under section 
                        6103(l)(13) of the Internal Revenue Code of 
                        1986 for disclosure of information relating to 
                        income, tax filing status, and number of 
                        dependents of such borrower (and such 
                        borrower's spouse, if applicable) for purposes 
                        of determining the repayment obligation of the 
                        borrower for such year; and
                            ``(iii) provide the borrower with an 
                        opportunity to update the information obtained 
                        under clause (ii) before the determination of 
                        the annual repayment obligation of the 
                        borrower.
                    ``(C) Applicability.--Subparagraph (B) shall apply 
                to each borrower of a covered loan who--
                            ``(i) selects, or for whom the Secretary 
                        selects under subparagraph (C) or (D) of 
                        paragraph (6) or paragraph (7)(C) of subsection 
                        (d), or section 428(m)(1), an income contingent 
                        repayment plan; or
                            ``(ii) recertifies income and family size 
                        under such plan.
                    ``(D) Borrower for whom adjusted gross income is 
                unavailable.--In the case of a borrower for whom 
                information is unavailable under subparagraph (B)--
                            ``(i) if the borrower has selected to repay 
                        the covered loans of such borrower pursuant to 
                        an income contingent repayment plan that 
                        defines discretionary income in such a manner 
                        that an individual not required under section 
                        6012(a)(1) of the Internal Revenue 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; or
                            ``(ii) if the borrower has selected to 
                        repay such loans pursuant to an income 
                        contingent repayment that is not described in 
                        clause (i), the borrower will not be required 
                        to provide the Secretary with such other 
                        documentation of income, and the borrower will 
                        have a calculated monthly payment of $0.
                    ``(E) Other requirements.--The Secretary's actions 
                under this paragraph shall be consistent with the 
                requirements of paragraphs (1) through (7), except as 
                otherwise provided in this paragraph.''.
    (b) Income-Based Repayment.--Section 493C(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1098e(c)) is amended--
            (1) by striking ``The Secretary shall establish'' and 
        inserting the following:
            ``(1) In general.--The Secretary shall establish'';
            (2) by striking ``The Secretary shall consider'' and 
        inserting the following:
            ``(2) Procedures for eligibility.--The Secretary shall--
                    ``(A) consider''; and
            (3) by striking ``428C(b)(1)(E).'' and inserting the 
        following: ``428C(b)(1)(E); and
                    ``(B) beginning as soon as the Secretary determines 
                practicable, carry out, with respect to borrowers of 
                any covered loan (as defined in section 455(d)(8)), 
                procedures for income-based repayment plans that are 
                equivalent to the procedures carried out under section 
                455(e)(8) with respect to income contingent repayment 
                plans.''.

SEC. 5. DISCLOSURE OF TAX RETURN INFORMATION TO CARRY OUT CERTAIN 
              HIGHER EDUCATION LOAN PROGRAMS.

    (a) In General.--Paragraph (13) of section 6103(l) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(13) Disclosure of returns and return information for 
        purposes of student loan administration.--
                    ``(A) In general.--The Secretary shall, subject to 
                such requirements and conditions as the Secretary may 
                prescribe, upon written request from the Secretary of 
                Education under section 437(a), section 455(d), or 
                section 455(e) of the Higher Education Act of 1965, 
                disclose to officers and employees of the Department of 
                Education returns and return information with respect 
                to a taxpayer described in such section.
                    ``(B) Restriction on use of disclosed 
                information.--Return information disclosed under 
                subparagraph (A) may be used by officers and employees 
                of the Department of Education only for the purposes 
                of, and to the extent necessary for purposes of--
                            ``(i) carrying out income monitoring under 
                        section 437(a) of the Higher Education Act of 
                        1965,
                            ``(ii) establishing the appropriate 
                        repayment amount under an applicable income-
                        driven repayment plan (as defined in section 
                        455(d)(8) of such Act) in connection with an 
                        applicable student loan for--
                                    ``(I) borrowers who have selected 
                                such a plan, and
                                    ``(II) in the case of any 
                                recertification under section 455(e)(8) 
                                or 493C(c)(2)(B) of the Higher 
                                Education Act of 1965, borrowers who 
                                are enrolled in such a plan,
                            ``(iii) in the case of borrowers who are at 
                        least 60 days delinquent on an applicable 
                        student loan--
                                    ``(I) providing notice of 
                                eligibility for an income-driven 
                                repayment plan (as so defined) pursuant 
                                to section 455(d)(6)(B) of the Higher 
                                Education Act of 1965, and
                                    ``(II) automatic enrollment in such 
                                an income-driven repayment plan after 
                                such borrowers are at least 120 days 
                                delinquent on such a loan pursuant to 
                                section 455(d)(6)(C) of such Act, and
                            ``(iv) in the case of borrowers who are 
                        rehabilitating defaulted loans, providing 
                        notice of eligibility for an income-driven 
                        repayment plan (as so defined) and automatic 
                        enrollment in such a plan pursuant to section 
                        455(d)(7) of the Higher Education Act of 1965.
                    ``(C) Disclosure to certain contractors.--Officers 
                and employees of the Department of Education may 
                disclose the information described in subparagraph (A) 
                to persons awarded contracts by the Secretary of 
                Education under section 456 of the Higher Education Act 
                of 1965 to the extent necessary for the purposes 
                described in subparagraph (B).
                    ``(D) Spousal information for married individuals 
                filing separate returns.--For purposes of this 
                paragraph, in the case of a married individual filing a 
                separate return, the term `taxpayer' includes the 
                spouse of that individual if the Secretary of Education 
                requests information from the spouse of that individual 
                and the individual and the spouse have consented in 
                writing.''.
    (b) Conforming Amendments.--
            (1) Section 6103(a)(3) of such Code is amended by inserting 
        ``(13),'' after ``(12),''.
            (2) Section 6103(p)(4) of such Code is amended by inserting 
        ``(13),'' after ``(l)(10),'' each place it occurs.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures made after the date of enactment of this Act.
                                 <all>