Title: ExCEL Act of 2019
Policy area: Education

Summary:
Earnings Contingent Education Loans Act of 2019 or the ExCEL Act of 2019
This bill replaces existing federal student loan programs with the Income Dependent Education Assistance (IDEA) Loan Program and the IDEA Loan Repayment Program. Loans under these programs are not eligible for the federal public service loan forgiveness program. The repayment program offers a single repayment plan that caps annual debt repayments based on the borrower's income.
The Department of Education (ED) must provide an online tool to enable borrowers to make payments and access specified details regarding loans.
The bill provides ED with access to information in the National Directory of New Hires to identify when borrowers are hired and remind them of their repayment status and obligation to provide accurate employment information.
The bill requires (1) the total amount deducted and withheld under the IDEA Loan Repayment Program to be reported on W-2 forms, and (2) the Department of the Treasury to disclose to ED tax return information necessary to carry out the IDEA Loan Repayment Program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4079 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4079

   To simplify and improve the Federal student loan program through 
    income-contingent repayment to provide stronger protections for 
    borrowers, encourage responsible borrowing, and save money for 
                               taxpayers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2019

  Mr. Zeldin 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 simplify and improve the Federal student loan program through 
    income-contingent repayment to provide stronger protections for 
    borrowers, encourage responsible borrowing, and save money for 
                               taxpayers.

    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 ``Earnings Contingent Education Loans 
Act of 2019'' or the ``ExCEL Act of 2019''.

SEC. 2. TERMINATION OF AUTHORITY TO MAKE FEDERAL DIRECT STAFFORD LOANS, 
              FEDERAL DIRECT UNSUBSIDIZED STAFFORD LOANS, AND FEDERAL 
              DIRECT PLUS LOANS TO STUDENTS UNDER THE WILLIAM D. FORD 
              FEDERAL DIRECT 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 direct unsubsidized stafford loans, and 
        federal 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, 2019--
                            ``(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).
                    ``(B) Exceptions.--Subparagraph (A)(ii) shall not 
                be applicable with respect to the following:
                            ``(i) Existing student borrowers.--A 
                        student who, as of July 1, 2019, has an 
                        outstanding balance of principal 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 
                        accordance with subparagraph (C) until June 30, 
                        2021.
                            ``(ii) Parent plus loans.--An excepted PLUS 
                        loan or excepted consolidation loan (as such 
                        terms are defined in section 493C(a)) under 
                        this part that is made to a parent on behalf of 
                        an undergraduate dependent student.
                            ``(iii) Federal direct consolidation 
                        loans.--A Federal Direct Consolidation Loan 
                        under this part.
                    ``(C) Maximum annual amounts of federal direct 
                unsubsidized stafford loans.--The maximum annual amount 
                of Federal Direct Unsubsidized Stafford Loans a student 
                described in subparagraph (B)(i) may borrow in an 
                academic year (as defined in section 481(a)(2)) or its 
                equivalent shall be the maximum annual amount for such 
                student determined 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 Secretary, to enable such students to pursue 
        their courses of study at such institutions during the period 
        beginning July 1, 2019. 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 originators 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 `Income Dependent Education 
        Assistance Loan Program', 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 
Student 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 
provided for loans under this part, except that funds under this part 
shall not be provided for parent loans.
    ``(c) Selection of Institutions for Participation and Origination, 
and Agreements With Institutions.--
            ``(1) Selection of institutions for participation 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, 2019. 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 
        appropriate, in a manner consistent with the provisions of 
        sections 453 and 456 related to alternative origination 
        services for loans under part D.
            ``(2) Participation and origination agreements 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 
        program, shall have the same terms as the terms required under 
        section 454 for agreements with an institution for 
        participation or origination, respectively, in the student loan 
        program under part D, except that agreements for participation 
        or origination under this part shall not apply to parent loans.
            ``(3) Withdrawal and termination procedures.--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 (hereinafter 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 2019.
    ``(b) Eligible Borrowers.--
            ``(1) In general.--In addition to the requirements of 
        section 484, to be eligible to receive a loan (other than an 
        IDEA Consolidation Loan) under this part, a borrower--
                    ``(A) shall be an individual who, on the date of 
                application for such loan, has no outstanding 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 aggregate amounts, 
        respectively, of Federal Direct Unsubsidized Stafford Loans 
        under part D that such student would have been eligible to 
        borrow in the absence of section 455(a)(4), as added by 
        Earnings Contingent Education Loans Act of 2019.
            ``(2) Graduate and professional students.--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 
        absence of section 455(a)(4), as added by Earnings Contingent 
        Education Loans Act of 2019, the maximum annual amounts and 
        maximum aggregate amounts, respectively, of IDEA Loans that the 
        student 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 
        Federal 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 annual amount a 
        student may borrow under subsection (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 paragraph (2), for 
        IDEA Loans for which the first disbursement is made on or after 
        July 1, 2019, the applicable 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 which the first disbursement is made on or after July 1, 
        2019, 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 maximum 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 substituted 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 determine the 
        applicable rate of interest under paragraph (1) after 
        consultation with the Secretary of the Treasury and shall 
        publish such rate in the Federal 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 applicable rate of 
                interest determined under paragraph (1) or (2) for an 
                IDEA Loan shall be fixed for the life of the loan, 
                except that interest shall cease to accrue when the 
                total amount of interest (both paid and unpaid) that 
                has accrued during the borrower's grace and repayment 
                periods equals 50 percent of the total amount of the 
                loan (equal to the sum of the unpaid 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 normal full-time academic 
                workload (as determined by the institution) in the 
                course of study for which the borrower received such 
                loan and ending on the first day of the first month 
                that begins after the borrower ceases to carry at least 
                one-half the normal full-time academic workload (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, defined as the period between 
                the borrower's in-school deferment period and the 
                borrower's repayment period) and during the borrower's 
                repayment 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 paragraphs (2) and (4), 
        interest shall not accrue for an eligible military borrower on 
        a loan made under this part for which the first disbursement is 
        made on or after July 1, 2019.
            ``(2) IDEA consolidation loans.--In the case of any IDEA 
        Consolidation loan made under this part that is disbursed on or 
        after July 1, 2019, 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 operation 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 subsection may receive 
        the benefit of this subsection for not more than 60 months.
    ``(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 public 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 section shall have the same 
        terms, conditions, and benefits, 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 
                        section 428C(a)(3)(A); and
                            ``(ii) in the case of a borrower described 
                        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 excepted PLUS loan or an 
                        excepted consolidation 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 Consolidation 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 received by 
                        the borrower which are selected by the borrower 
                        for consolidation under this section; and
                            ``(ii) the proceeds of each IDEA 
                        Consolidation Loan will be paid by the 
                        Secretary 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 borrower, in 
                simple and understandable terms, at the time the 
                Secretary provides an application for an IDEA 
                Consolidation Loan--
                            ``(i) whether consolidation would result in 
                        a loss of loan benefits under part B or part D, 
                        including loan forgiveness, cancellation, and 
                        deferment;
                            ``(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 
                                Federal Perkins Loan, including--
                                            ``(aa) the periods during 
                                        which no interest accrues on 
                                        such loan while the borrower is 
                                        enrolled 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 
                                consolidation loan, the borrower will 
                                no longer be eligible for cancellation 
                                of part or all of the Federal Perkins 
                                Loan under section 465(a); and
                                    ``(III) the occupations listed in 
                                section 465 that qualify for Federal 
                                Perkins Loan cancellation under section 
                                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, 2019, shall bear interest at an annual rate on 
        the unpaid principal balance of the loan that is equal to the 
        weighted average of the interest rates on the loans 
        consolidated, 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 interest determined under 
        paragraph (1) shall be fixed 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, penalties, 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 TREASURY.

    ``(a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Education, shall establish a program (hereinafter 
referred to as the `IDEA Loan Repayment Program') that provides for--
            ``(1) repaying loans under this part through voluntary wage 
        withholding and quarterly estimated payments as provided in 
        subsection (b); and
            ``(2) transmitting to the Secretary of Education--
                    ``(A) an account of the amounts collected under 
                subsection (b) with respect to each individual 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 Payments.--
            ``(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 determined 
        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 tables, procedures, 
        and guidance prescribed under paragraph (1) shall provide--
                    ``(A) for the election to have amounts withheld as 
                provided under this subsection;
                    ``(B) procedures and forms for an employee to 
                indicate--
                            ``(i) whether the employee (and, in the 
                        case of a married individual, whether the 
                        employee's spouse) has a loan made under this 
                        part that is in repayment status;
                            ``(ii) in the case of a married individual, 
                        whether the employee anticipates filing jointly 
                        (and accompanying guidance explaining that if 
                        filing status for the taxable year is uncertain 
                        the employee should indicate filing jointly to 
                        avoid underwithholding);
                            ``(iii) whether the exemption amount to 
                        which the employee is entitled under this 
                        section should be taken into account in 
                        determining withholding (and accompanying 
                        guidance explaining that, in order to avoid 
                        underwithholding, the employee should only take 
                        into account the exemption in the case of the 
                        employee's primary employer, unless total wages 
                        from more than one place of employment will not 
                        exceed the exemption amount);
                            ``(iv) in the case of a married individual, 
                        whether the exemption amount to which the 
                        employee's spouse is entitled under this 
                        section should be taken into account in 
                        determining withholding from the wages of the 
                        employee (and accompanying guidance explaining 
                        that, in order to avoid underwithholding, the 
                        employee should only take into account such 
                        exemption if such spouse is not employed, or if 
                        the total wages from the employee's job and the 
                        spouse's employment will not exceed the 
                        exemption amount);
                            ``(v) the number of dependents of the 
                        employee with respect to whom the employee is 
                        entitled to a deduction under section 151(c) of 
                        the Internal Revenue Code of 1986, and, if a 
                        different number, in the case of a married 
                        employee, the number of dependents of the 
                        employee's spouse with respect to whom such 
                        spouse is entitled to such deduction; and
                            ``(vi) an election to have additional 
                        amounts withheld; and
                    ``(C) for withholding with respect to any employee 
                in an amount equal to the sum of--
                            ``(i) in the case of an employee who has a 
                        loan made under this part in repayment status, 
                        the percentage of so much of the employee's 
                        wages that would count towards the employee's 
                        income-based repayment obligation provided in 
                        subsection (c) as exceeds any exemption amount 
                        taken into account with respect to the employee 
                        under subparagraph (A)(iii) (prorated to the 
                        payroll period), plus
                            ``(ii) in the case of an employee who 
                        indicates that the employee's spouse has a loan 
                        made under this part in repayment status, the 
                        percentage of so much of the employee's wages 
                        that would count towards the employee's 
                        spouse's income-based repayment obligation (as 
                        provided in subsection (c)) as exceeds any 
                        exemption amount taken into account with 
                        respect to the employee's spouse under 
                        subparagraph (A)(iv) (prorated to the payroll 
                        period).
            ``(3) Quarterly estimated tax payments.--In the case of 
        taxpayers who make quarterly 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 status, 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 
        Secretary of the Treasury and shall be paid into the general 
        fund of the Treasury of the United States.
    ``(c) Determination of Income-Based Repayment 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 Secretary of Education such tax information as is 
        necessary to determine--
                    ``(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 obligation for the 
                taxable year for such individual.
            ``(2) Income-based repayment obligation.--For purposes of 
        this section:
                    ``(A) In general.--The income-based repayment 
                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 regard 
                                to section 911, 931, or 933),
                                    ``(II) the amount of the taxpayer's 
                                net earnings from self-employment for 
                                the taxable year (within the meaning of 
                                section 1402(a)), determined with 
                                regard to the deduction allowed 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 
                                subclause (I) or (II), over
                            ``(ii) the sum of--
                                    ``(I) the exemption amount with 
                                respect to such individual, plus
                                    ``(II) the lesser of the amount 
                                determined with respect to the taxpayer 
                                under subclauses (II) and (III) of 
                                clause (i), or $3,000.
                    ``(B) Special rules for married individuals.--
                            ``(i) Each spouse with loan.--Except 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 repayment 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.
                            ``(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 repayment 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 allocating to 
                                each spouse the amounts described 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 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 
                Services Block Grant Act (42 U.S.C. 9902(2))) for the 
                calendar year in which the taxable year ends.
                    ``(B) Special rule for married individuals who both 
                have loans made under this part.--If for any taxable 
                year an individual 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 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 taxable 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 individual, the number 
                of dependents of the taxpayer with respect to whom the 
                taxpayer is entitled 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 a return under section 
                6012(a)(1) of the Internal Revenue Code of 1986 shall 
                be treated as zero.
                    ``(B) Failure to file.--In the case of an 
                individual who makes an election under subsection (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 Secretary of the Treasury shall 
                transmit to the Secretary of Education any such tax 
                information 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 employer information 
        reporting.--As soon as practicable after receiving from an 
        employer information reporting with respect to withholding 
        under subsection (b)(1) of an individual, the Secretary of the 
        Treasury shall transmit to the Secretary of Education 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 policies, procedures, and guidance 
as may be necessary to 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 accurately as is practicable, an individual's income-based 
repayment 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 established 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 repayment status, including the income-based repayment 
        obligations of such borrowers in accordance with section 
        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.
            ``(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 
        following:
                    ``(A) Total payments made on the borrower's annual 
                repayment amount for such taxable year.
                    ``(B) The borrower's annual repayment amount for 
                such taxable year.
                    ``(C) In the case of a borrower who, according 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.
                    ``(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 individuals or 
                entities to make payments on the annual repayment 
                amount of a borrower for a taxable year; and
                    ``(B) notify the borrower that any payments 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 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 borrower to--
                    ``(A) view the outstanding balances on the 
                borrower's loans made under this part;
                    ``(B) make a direct payment on the borrower's 
                annual repayment amount or indicate that any 
                overpayment should be refunded or applied 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, estimated taxes, direct payment, or 
                payments made on the borrower's behalf);
                    ``(E) view the borrower's annual repayment 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;
                    ``(F) view the borrower's loans made under this 
                part that have been paid off;
                    ``(G) enable the borrower to initiate an appeal 
                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 enables a borrower to calculate the borrower's 
        annual repayment amount.
            ``(9) Default for failure to file a return.--In a case in 
        which the Secretary receives information 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 Internal 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
                    ``(B) if the borrower fails to file such a return 
                within 90 days of receipt of the notice described in 
                subparagraph (A), consider the borrower's loans made 
                under this part in repayment status to be in default.
            ``(10) National directory of new hires.--The Secretary 
        shall send notices to borrowers under paragraph (5) of section 
        435(i) of the Social Security Act (42 U.S.C. 653(i)), as added 
        by section 5 of the Earnings Contingent Education Loans Act of 
        2019.

 ``CHAPTER 2--BORROWER REPAYMENT OF IDEA LOANS AND IDEA CONSOLIDATION 
                                 LOANS

``SEC. 499F. BORROWER REPAYMENT.

    ``(a) Repayment Period.--The repayment period of a loan made under 
this part shall--
            ``(1) begin on the first day of the first taxable year that 
        begins after the borrower's in-school deferment period, or in 
        the case of an IDEA Consolidation Loan, on the first day of the 
        first taxable year that begins after such Consolidation Loan is 
        disbursed; and
            ``(2) continue until the loan is paid in full, except that 
        the Secretary may grant a borrower forbearance of the 
        borrower's annual repayment amount--
                    ``(A) for a period not to exceed 60 days, due to 
                administrative or technical reasons;
                    ``(B) 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
                    ``(C) 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.
    ``(b) Annual Repayment Amount.--The annual repayment amount under 
this part for a taxable year for a borrower with 1 or more loans made 
under this part in repayment status shall be equal to the lesser of--
            ``(1) the income-based repayment obligation for such 
        borrower for such year, as calculated under section 499E(1); or
            ``(2) an amount equal to the sum of the outstanding 
        balances (equal to the sum of the unpaid principal, interest, 
        penalties, and fees) that the borrower owes on such loans.
    ``(c) Methods of Repayment.--In repaying an annual repayment amount 
owed by a borrower for a taxable year, a borrower may--
            ``(1) with respect to any wages earned by the borrower that 
        are subject to Federal income tax withholding, have amounts 
        withheld upon such wages under section 499D(b)(2);
            ``(2) in the case of a borrower who makes quarterly 
        estimated tax return payments under section 6654 of the 
        Internal Revenue Code of 1986 for the year, pay such annual 
        repayment amount concurrently with such quarterly payments 
        under section 499D(b)(3);
            ``(3) make direct payments under section 499E(4) on such 
        amount to the Secretary throughout the year; or
            ``(4) have other individuals or entities make payments 
        under section 499E(5) on the borrower's annual repayment amount 
        for the year.
    ``(d) Order of Crediting.--Payments on loans made under this part 
shall be applied, without regard to the method of such payments, first 
toward penalties due on the loans, next toward any fees due on the 
loans, then toward any interest due on the loans, and finally toward 
the principal due on the loan with the highest applicable rate of 
interest among such loans.
    ``(e) Prepayment Authorized.--A borrower shall have the right to 
prepay all or part of such loan, at any time and without penalty. Any 
such prepayment amount will be applied to loans made under this part in 
the same order as described in subsection (d).
    ``(f) Underpayments.--
            ``(1) Penalties for underpayments.--
                    ``(A) In general.--Subject to subparagraph (C), if, 
                as of the last day of a taxable year, a borrower has 
                not paid at least 90 percent of the borrower's annual 
                repayment amount for such year, the borrower shall be 
                charged a penalty in an amount equal to 10 percent of 
                the difference between--
                            ``(i) an amount equal to 90 percent of the 
                        borrower's annual repayment amount for such 
                        year; and
                            ``(ii) the amount paid on such annual 
                        repayment amount as of such day.
                    ``(B) Increase of annual repayment amount.--A 
                borrower's annual repayment amount calculated under 
                subsection (b) for such year shall be increased by the 
                amount of such penalty, but such penalty shall not be 
                treated as a principal or interest amount for a loan 
                made under this part.
                    ``(C) Exception.--A borrower who has paid 100 
                percent of the borrower's annual repayment amount for 
                the taxable year preceding the taxable year described 
                in subparagraph (A) shall not be subject to the penalty 
                under this paragraph for the taxable year described in 
                subparagraph (A).
            ``(2) Reconciling underpayments.--
                    ``(A) In general.--If, as of the last day of a 
                taxable year, the sum of the payments made on a 
                borrower's annual repayment amount for such year is 
                less than the total amount of the borrower's annual 
                repayment amount for such year, the borrower--
                            ``(i) in the case of the first year that 
                        the borrower has a difference between such 
                        amounts--
                                    ``(I) may request, in such manner 
                                as the Secretary shall require, that 
                                the Secretary reduce the borrower's 
                                annual repayment amount for such year 
                                to the sum of--
                                            ``(aa) the payments made, 
                                        as of such day, on the 
                                        borrower's annual repayment 
                                        amount for such year; and
                                            ``(bb) any penalties 
                                        calculated under paragraph (1) 
                                        resulting from such 
                                        underpayment; and
                                    ``(II) if the borrower qualifies 
                                for the reduction requested under 
                                subclause (I), shall pay the sum 
                                calculated under such subclause at such 
                                time and in such manner as required by 
                                the Secretary;
                            ``(ii) if the borrower does not qualify for 
                        a reduction under clause (i) or does not 
                        request such a reduction, shall pay to the 
                        Secretary an amount equal to the difference 
                        between such amounts within the 30-day period 
                        beginning on the date of receipt by the 
                        borrower of the borrower's annual statement 
                        described in section 499E(3) for such year; or
                            ``(iii) if the borrower fails to pay the 
                        amount owed by the borrower as calculated under 
                        clause (ii) within the 30-day period, shall be 
                        charged a penalty equal to 2 percent of such 
                        amount for each month (prorated based on the 
                        percentage of a month such penalty is charged) 
                        that such amount is owed or until the borrower 
                        defaults on the loan for which such amount is 
                        owed, whichever occurs first.
                    ``(B) Default.--A loan for which an amount is owed 
                under subparagraph (A) and that is not paid within 360 
                days after the date of receipt by the borrower of the 
                borrower's annual statement described in subparagraph 
                (A) shall be considered to be default.
    ``(g) Overpayments.--If, as of the last day of a taxable year, the 
sum of the payments made on a borrower's annual repayment amount for 
such year is greater than the total amount of the borrower's annual 
repayment amount for such year, the Secretary shall--
            ``(1) refund the overpayment amount, if the borrower 
        notifies the Secretary, within the 90-day period beginning on 
        the date of receipt of the borrower's annual statement 
        described in section 499E(3) for such year and in a manner 
        prescribed by the Secretary, that the borrower desires to have 
        the overpayment amount refunded; or
            ``(2) if a borrower fails to notify the Secretary of the 
        borrower's desire for a refund of such amount within such 90-
        day period, apply such amount as a prepayment to the borrower's 
        loans made under this part in the same manner as a prepayment 
        authorized under subsection (e).
    ``(h) Employer Failure To Withhold Payments.--In the case of a 
borrower whose employer fails to withhold amounts under section 
499D(b)(2) upon any wages earned by the borrower that are subject to 
Federal income tax withholding and with respect to which the borrower 
made an election to have amounts withheld under section 499(b)(2), the 
Secretary shall--
            ``(1) reduce the borrower's annual repayment to an amount 
        equal to the borrower's annual repayment amount had wages from 
        such employer been excluded when calculating the borrower's 
        annual repayment amount; and
            ``(2) reduce any penalties for underpayments calculated 
        under subsection (f)(1) and refund any overpayments on such 
        annual repayment amount, accordingly.''.

SEC. 4. CONFORMING CHANGES TO THE HIGHER EDUCATION ACT OF 1965.

    (a) Loan Forgiveness and Cancellation for Teachers.--
            (1) Loan forgiveness for teachers.--Section 428J of the 
        Higher Education Act of 1965 (20 U.S.C. 1078-10) is amended--
                    (A) in subsection (b), by inserting ``or for an 
                IDEA loan made under part J,'' after ``or 428H,''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), by inserting ``or an 
                        IDEA loan made under part J'' after ``or 
                        428H''; or
                            (ii) in paragraph (2)--
                                    (I) by striking ``A loan'' and 
                                inserting the following:
                    ``(A) Loans made under section 428c.--A loan''; and
                                    (II) by adding at the end the 
                                following new subparagraph:
                    ``(B) IDEA consolidation loan.--A loan amount for 
                an IDEA Consolidation Loan may be a qualified loan 
                amount for purposes of this subsection only to the 
                extent that such loan amount was used to repay a 
                Federal Direct Stafford Loan, a Federal Direct 
                Consolidation Loan, a Federal Direct Unsubsidized 
                Stafford Loan, or a loan made under section 428, 428C, 
                or 428H.''.
            (2) Loan cancellation for teachers.--Section 460 of such 
        Act (20 U.S.C. 1087j) is amended--
                    (A) in subsection (b), by inserting ``or for an 
                IDEA loan made under part J'' after ``under this 
                part''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), by striking ``or a 
                        Federal Direct Unsubsidized Stafford Loan'' and 
                        inserting ``, a Federal Direct Unsubsidized 
                        Stafford Loan, or an IDEA loan made under part 
                        J''; and
                            (ii) in paragraph (2)--
                                    (I) by striking ``A loan'' and 
                                inserting the following:
                    ``(A) Federal direct consolidation loan.--A loan''; 
                and
                                    (II) by adding at the end the 
                                following new subparagraph:
                    ``(B) IDEA consolidation loan.--A loan amount for 
                an IDEA Consolidation Loan may be a qualified loan 
                amount for purposes of this subsection only to the 
                extent that such loan amount was used to repay a 
                Federal Direct Stafford Loan, a Federal Direct 
                Consolidation Loan, a Federal Direct Unsubsidized 
                Stafford Loan, or a loan made under section 428, 428C, 
                or 428H.''.
    (b) Loan Forgiveness for Service in Areas of National Need.--
Section 428K(a)(2) of such Act (20 U.S.C. 1078-11(a)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) to cancel the qualified loan amount for a 
                loan made under part J of this title.''.
    (c) Loan Repayment for Civil Legal Assistance Attorneys.--Section 
428L(b)(2)(A) of such Act (20 U.S.C. 1078-12(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``or part E'' and inserting 
        ``, part E, or part J''; and
            (2) in clause (ii)--
                    (A) in the matter preceding subclause (I), by 
                striking ``or 455(g)'' and inserting ``, 455(g), or 
                499C'';
                    (B) by striking ``or'' at the end of subclause 
                (II);
                    (C) by redesignating subclause (III) as subclause 
                (IV); and
                    (D) by inserting after subclause (II) the 
                following:
                                    ``(III) a Federal Direct 
                                Consolidation loan or a loan made under 
                                section 428C, in the case of a loan 
                                made under section 499C; or''.
    (d) Master Promissory Note.--Section 432(m)(1)(D) of such Act (20 
U.S.C. 1082(m)(1)(D)) is amended--
            (1) by striking ``this part and part D'' each place it 
        appears and inserting ``this part, part D, and part J''; and
            (2) by striking ``this part or part D'' each place it 
        appears and inserting ``this part, part D, or part J''.
    (e) Contracts.--Section 456 of such Act (20 U.S.C. 1087f) is 
amended--
            (1) in subsection (a)(2), by striking ``this part'' each 
        place it appears and inserting ``this part or part J''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``or the program 
                under part J'' after ``(or their parents)'';
                    (B) in paragraph (2), by inserting ``or part J'' 
                after ``this part'';
                    (C) in paragraph (3), by inserting ``or part J'' 
                after ``this part''; and
                    (D) in paragraph (4), by inserting ``or the IDEA 
                Loan Program'' after ``loan program''.
    (f) Funds for Administrative Expenses.--Section 458(a)(3) of such 
Act (20 U.S.C. 1087h(a)(3)) is amended--
            (1) by striking ``this part and part B'' and inserting 
        ``this part, part B, and part J''; and
            (2) by inserting before the period at the end the 
        following: ``and part J''.
    (g) Student Eligibility.--Section 484 of such Act (20 U.S.C. 1091) 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (3), by striking ``or D'' and 
                inserting ``, D, or E''; and
                    (B) in paragraph (4), by striking ``or E'' and 
                inserting ``E, or J'';
            (2) in subsection (d), by striking ``and E'' and inserting 
        ``E, and J'';
            (3) in subsection (f), by striking ``or part E'' each place 
        it appears and inserting ``part E, or part J''; and
            (4) in subsection (m), by striking ``and E'' and inserting 
        ``E, and J''.
    (h) Institutional and Financial Assistance Information for 
Students.--Section 485 of such Act (20 U.S.C. 1092) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(M), by striking ``and E'' and 
                inserting ``E, and J''; and
                    (B) in paragraph (7)(A)(i), by striking ``Loan)'' 
                each place it appears and inserting ``Loan) or part 
                J'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) in the matter preceding clause (i), by 
                        inserting ``or made under part J'' after ``part 
                        E''; and
                            (ii) in clause (vii)--
                                    (I) by inserting ``or an IDEA 
                                Consolidation Loan'' after ``Federal 
                                Direct Consolidation Loan''; and
                                    (II) by striking ``and E'' and 
                                inserting ``E, and J''; and
                    (B) in paragraph (2)(A), by striking ``or E'' and 
                inserting ``E, or J''; and
            (3) in subsection (l)(1)--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by inserting ``or made under part J'' after 
                ``student)''; and
                    (B) in subparagraph (B), by striking ``or D'' and 
                inserting ``, D, or J''.

SEC. 5. NATIONAL DIRECTORY OF NEW HIRES.

    Section 453(i) of the Social Security Act (42 U.S.C. 653(i)) is 
amended by adding at the end the following new paragraph:
            ``(5) Sending notice to borrowers of certain student 
        loans.--The Secretary of Education shall have access to the 
        information in the National Directory of New Hires for purposes 
        of--
                    ``(A) identifying, on at least a monthly basis, 
                newly hired employees with an IDEA Loan or IDEA 
                Consolidation loan made under part J of title IV of the 
                Higher Education Act of 1965 in repayment status; and
                    ``(B) sending a notice to each such individual to 
                remind such individual that--
                            ``(i) the individual has 1 or more loans 
                        described in subparagraph (A) in repayment 
                        status;
                            ``(ii) the individual is responsible for 
                        providing accurate information to the 
                        individual's employer to ensure that the 
                        employer will deduct and withhold upon such 
                        wages amounts to repay such loans in accordance 
                        with section 499D(b) of the Higher Education 
                        Act of 1965; and
                            ``(iii) failure to provide such accurate 
                        information will likely result in significant 
                        penalties, default, or collections 
                        proceedings.''.

SEC. 6. WITHHELD AMOUNTS INCLUDED ON W-2.

    (a) In General.--Section 6051(a) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of paragraph (16), by 
striking the period at the end of paragraph (17) and inserting ``, 
and'', and by inserting after paragraph (17) the following new 
paragraph:
            ``(18) the total amount deducted and withheld under the 
        IDEA Loan Repayment Program established under chapter 1 of 
        subpart 2 of part J of title IV of the Higher Education Act of 
        1965.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts deducted and withheld after the date of the enactment 
of this Act.

SEC. 7. DISCLOSURE OF RETURN INFORMATION FOR PURPOSES OF IDEA LOAN 
              REPAYMENT PROGRAM.

    (a) In General.--Section 6103(l) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(23) Disclosure of return information to department of 
        education for purposes of administering idea loan repayment 
        program.--
                    ``(A) In general.--The Secretary shall, upon 
                written request, disclose to the Department of 
                Education such return information as is necessary for 
                purposes of carrying out the IDEA Loan Repayment 
                Program established under subpart 2 of part J of the 
                Higher Education Act of 1965.
                    ``(B) Restriction on disclosure.--Return 
                information disclosed under subparagraph (A) may be 
                used by officers, employees, and contractors of the 
                Department of Education only for purposes of, and to 
                the extent necessary in--
                            ``(i) determining income-based repayment 
                        obligations under the IDEA Loan Repayment 
                        Program, and
                            ``(ii) determining amounts deducted and 
                        withheld, and amounts paid concurrently with 
                        quarterly estimated taxes, under the IDEA Loan 
                        Repayment Program.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 8. SENSE OF CONGRESS.

    It is the sense of Congress that any loan repayment or forgiveness 
program available under a Federal law outside of the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.) to students with loans made under 
part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
et seq.) should be available to students with loans made under part J 
of such title of such Act.
                                 <all>