Sec. 7. Revised income-driven repayment plans for new borrowers on or after July 1, 2017
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Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— in subsection (d)(1)(D), by adding at the end before the semicolon the following: , and such plan shall meet the requirements of subsection (e)(8) with respect to any loan made under this part to a new borrower on or after July 1, 2017 ; and in subsection (e), by adding at the end the following: With respect to any loan made under this part to a new borrower on or after July 1, 2017, and eligible to be repaid pursuant to income contingent repayment, such borrower may repay such loan pursuant to an income contingent repayment plan under the following conditions:
Notwithstanding any partial hardship requirement for the income contingent repayment plan— during any period during which the borrower’s (and the borrower’s spouse, if applicable) adjusted gross income is equal to or less than 225 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ), the borrower’s aggregate monthly payment for all such loans shall be equal to $0; and during any period during which the borrower’s (and the borrower’s spouse, if applicable) adjusted gross income exceeds 225 percent of such poverty line, the borrower’s aggregate monthly payment for all such loans shall be determined in accordance with the terms and conditions, and borrower benefits, of such plan.
The interest on any such loan shall not accrue, or if accrued, shall be paid by the Secretary for the following periods: The period described in subparagraph (A)(i). The 6-month period after the date the borrower ceases to carry at least one-half the normal full-time academic workload at an institution of higher education, as determined by the institution, and during which the borrower is not earning any income. . Section 493C(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1098e(b) ) is amended— in paragraph (1)— by striking
(1)a borrower and inserting the following: a borrower ; by adding or at the end of subparagraph (A); and by adding at the end the following: with respect to any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan) to a new borrower on or after July 1, 2017, such borrower may elect— during any period during which the borrower’s (and the borrower’s spouse, if applicable) adjusted gross income is equal to or less than 225 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ), to have the borrower’s aggregate monthly payment for all such loans equal to $0; and during any period during which the borrower’s (and the borrower’s spouse, if applicable) adjusted gross income exceeds 225 percent of such poverty line, to have the borrower’s aggregate monthly payment for all such loans not exceed, the lesser of— the result described in subsection (a)(3)(B) divided by 12; or the monthly amount calculated under section 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection; ; and in paragraph (3)— at the end of subparagraph (A), by striking and ; by adding and at the end of subparagraph (B); and by adding at the end the following: shall, on any loan for which payments may be made under paragraph (1)(B), be paid, or be treated as if no interest has accrued, by the Secretary— for any period described in paragraph (1)(B)(i); and for the 6-month period after the date the borrower ceases to carry at least one-half the normal full-time academic workload at an institution of higher education, as determined by the institution, and during which the borrower is not earning any income; .
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Sec. 7
Revised income-driven repayment plans for new borrowers on or after July 1, 2017
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