Sec. 3. Automatic recertification of income
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Section 455(e) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(e) ) is amended by adding at the end the following: Beginning as soon as practicable after the Secretary finalizes the procedures under section 4 of the Streamlining Income-driven, Manageable Payments on Loans for Education Act , but not later than 2 years after the date of enactment of such Act, the Secretary shall establish and implement procedures for the following: With respect to any borrower who, on or after the date on which the Secretary establishes procedures for this subparagraph, selects (or for whom the Secretary selects) income contingent repayment for repayment of a loan made under this part— obtain (for each year of such repayment and without further action by the borrower) such information as is reasonably necessary regarding the income of such borrower (and the borrower’s spouse, if applicable), for the purpose of determining the repayment obligation of the borrower for such year, including information with respect to the borrower’s family size in accordance with the procedures under section 4 of the Streamlining Income-driven, Manageable Payments on Loans for Education Act ; allow the borrower to opt-out, at anytime, of the Secretary being able to obtain information under subclause
(I)without further action by the borrower; and provide the borrower with an opportunity to update the information obtained under subclause
(I)before the determination of the annual repayment obligation of the borrower; and in the case of a borrower for whom adjusted gross income is unavailable or does not reasonably reflect the borrower’s current income— if the borrower selects to repay such loan 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, such 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 if the borrower selects to repay such loan pursuant to an income-driven repayment plan that is not described in item (aa), 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. With respect to any borrower who selects income contingent repayment for repayment of a loan made under this part before the date on which the Secretary establishes procedures for this subparagraph, the Secretary— shall provide such borrower with the ability to opt into the procedures described in clause (i); and until the borrower has opted into such procedures, shall not be able to obtain information under clause (i)(I) without further action by the borrower. Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under subparagraph (A)(i)(I) only to the extent authorized by section 6103(l)(13) of such Code. The procedures established by the Secretary under this paragraph shall be consistent with the requirements of paragraphs
(1)through (7), except as otherwise provided in this paragraph. Beginning as soon as practicable after the Secretary finalizes the procedures under section 4 of the Streamlining Income-driven, Manageable Payments on Loans for Education Act , but not later than 2 years after the date of enactment of such Act, the Secretary shall— inform borrowers repaying a loan made under this part pursuant to an income-driven repayment plan (defined in section 455(d)(7)) of the benefits of automatic recertification procedures under paragraph (8)(A)(i); and encourage such borrowers to opt into such automatic recertification. . Section 493C(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1098e(c) ) is amended by adding at the end the following: Beginning as soon as practicable after the Secretary finalizes the procedures under section 4 of the . Streamlining Income-driven, Manageable Payments on Loans for Education Act , but not later than 2 years after the date of enactment of such Act, the Secretary shall carry out the procedures under 455(e)(8) with respect to income-based repayment under this section.
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