Sec. 422. Improvements to military loan deferment; clarification of SCRA protections; simplification of income-based repayment options
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Section 428 ( 20 U.S.C. 1078 ) is amended— in subsection (b)— in paragraph (1)— in subparagraph (D), by striking may, following a default by the borrower, be subject to income contingent repayment in accordance with subsection
(m)and inserting may, following a default by the borrower, be subject to income-based repayment in accordance with subsection
(m)and section 493C(d) ; in subparagraph (E)(i), by striking standard, graduated and all that follows and inserting standard, graduated, income-based, or extended repayment schedule (as described in paragraph (9)), established by the lender in accordance with the regulations of the Secretary ; and in subparagraph (M)— by redesignating clause
(iv)as clause (v); in clause (iii), by striking the borrower— and all that follows through described in subclause
(I)or (II); or and inserting the borrower is performing eligible military service, and for the 180-day period following the demobilization date for such eligible military service; ; and by inserting after clause
(iii)the following: not in excess of 180 days after the effective movement date listed on the military orders of a borrower's spouse if that spouse is a member of the Armed Forces who has received military orders for a permanent change of station; or ; and in paragraph (9)(A)(iii), by inserting and an income-sensitive repayment plan shall be available only for borrowers who have selected or been required to use such a plan before the date that is 1 year after the date of enactment of the before the semicolon at the end; Higher Education Affordability Act in subsection (d), by striking section 207 of the Servicemembers Civil Relief Act ( and inserting 50 U.S.C. App. 527 ) the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) ; and by striking subsection
(m)and inserting the following: The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans under an income-based repayment plan, under terms and conditions established by the Secretary that are the same, or similar to, the terms and conditions established under such section. A loan made under this part may be required to be repaid under this subsection if the note or other evidence of the loan has been assigned to the Secretary pursuant to subsection (c)(8). . By not later than 1 year after the date of enactment of this Act, the Secretary of Education shall promulgate a final rule ending all eligibility for income contingent and income-sensitive repayment plans for loans made under part B or D of title IV of the Higher Education Act of 1965 unless the borrowers have selected, and remained continuously enrolled in, such payment plans before the date that is 1 year after the date of enactment of this Act, in accordance with the amendments made by this Act. The amendments made by clauses
(i)and
(ii)of subparagraph (A), and subparagraph (B), of paragraph (1), and by paragraph (3), of subsection
(a)shall take effect on the date that is 1 year after the date of enactment of this Act.
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Sec. 422
Improvements to military loan deferment; clarification of SCRA protections; simplification of income-based repayment options
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