Sec. 423. Simplification of income-based repayment options for Federal Consolidation Loans

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Section 428C of such Act ( 20 U.S.C. 1078–3 ) is amended— by striking subclause

(V)of subsection (a)(3)(B)(i) and inserting the following: an individual may obtain a subsequent consolidation loan under section 455(g) only— for the purposes of obtaining income-based repayment under section 493C, and only if the loan has been submitted to the guaranty agency for default aversion or if the loan is already in default; for the purposes of using the public service loan forgiveness program under section 455(m); or for the purpose of using the no accrual of interest for active duty service members benefit offered under section 455(o). ; in subsection (b)— by striking subparagraph

(E)of paragraph

(1)and inserting the following: that the lender shall— offer an income-based repayment schedule, established by the lender in accordance with section 493C and regulations promulgated by the Secretary, to the borrower of any consolidation loan made by the lender on or after July 1, 1994, and before July 1, 2010; and only in the case of any borrower who has selected, before the date that is 1 year after the date of enactment of the Higher Education Affordability Act , an income-sensitive repayment schedule, in accordance with regulations promulgated by the Secretary and as in effect on the day before the date that is 1 year before such date of enactment, continue to offer such borrower the income-sensitive repayment schedule until the borrower selects an alternative repayment schedule; ; and in paragraph (5), by inserting (if such borrower has selected an income contingent repayment schedule before the date that is 1 year after the date of enactment of the after Higher Education Affordability Act ) income contingent repayment under part D of this title ; and in subsection (c)— in the matter preceding clause

(i)of paragraph (2)(A), by inserting , except that an income-sensitive repayment schedule shall only be available to borrowers who have selected such schedule before the date that is 1 year after the date of enactment of the after Higher Education Affordability Act regulations of the Secretary ; and in paragraph (3)(B), by inserting for borrowers who have selected income contingent repayment before the date that is 1 year after the date of enactment of the after Higher Education Affordability Act subsection (b)(5) . The amendments made by subsection

(a)shall take effect on the date that is 1 year after the date of enactment of this Act.

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20 USC 1078–3

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Sec. 423

Simplification of income-based repayment options for Federal Consolidation Loans

Cite20 USC 1078–3

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