Sec. 402. Termination of certain repayment plan options
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The amendments made by this section shall take effect on July 1, 2018. Before the effective date described in paragraph (1), the Secretary of Education shall carry out a plan to end all eligibility for repayment plans other than a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a repayment period of 10 years and an income-based repayment plan described under section 493C(f) for loans made under part B or D of title IV of the Higher Education Act of 1965, unless the borrower is enrolled in another repayment plan before such effective date, in accordance with the amendments made by this Act.
Section 428(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b) ) is amended— in paragraph (1)— in subparagraph (D)— in clause (ii), by striking may annually change the selection of a repayment plan under this part, and inserting may at any time after July 1, 2018, and not more frequently than once per calendar year thereafter, change the selection of a repayment plan under this part to one of the 2 repayment plans described in paragraph (9)(C), ; and in clause (iii), by striking be subject to income-contingent repayment in accordance with subsection (m); and inserting be subject to income-based repayment in accordance with section 493C(f); ; and in subparagraph (E)(i), by striking the option of repaying the loan in accordance with a standard, graduated, income-sensitive, or extended repayment schedule (as described in paragraph (9)) established by the lender in accordance with regulations of the Secretary; and and inserting the option of repaying the loan in accordance with a repayment plan described in paragraph (9)(C) established by the lender in accordance with regulations of the Secretary; and ; and in paragraph (9), by adding at the end the following:
Notwithstanding any other provision of this paragraph, or any other provision of law, and in accordance with regulations, beginning on July 1, 2018, the lender shall offer a borrower of a loan made, insured, or guaranteed under this part the opportunity to change repayment plans not more than once per calendar year, and to enroll in one of the following repayment plans: A standard repayment plan under section 428(b)(9)(A)(i) with a repayment period of 10 years. The income-based repayment plan under section 493C(f). ; and in section 455(d)— by redesignating paragraphs
(2)through
(5)as paragraphs
(3)through (6), respectively; and by inserting after paragraph (1), the following: Notwithstanding paragraph (1), for the borrower of a loan made on or after July 1, 2018, and for other borrowers subject to paragraph (7), the Secretary shall offer a borrower of a loan made under this part 2 plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on the borrower's loans under this part. The borrower may choose— a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years; or the income-based repayment plan under section 493C(f). If a borrower of a loan made under this part on or after July 1, 2018, does not select a repayment plan described in subparagraph (A), the Secretary may provide the borrower with a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years. Beginning on July 1, 2018, a borrower of a loan made under this part may change the borrower's selection of a repayment plan in accordance with paragraph
(7)and under such terms and conditions as may be established by the Secretary. Beginning on July 1, 2018, the Secretary may require any borrower who has defaulted on a loan made under this part to— pay all reasonable collection costs associated with such loan; and repay the loan pursuant to an income-based repayment plan under section 493C(f). ; and by adding at the end the following: A borrower who is in repayment on a loan made under part B or part D before July 1, 2018— may choose to retain the repayment plan that the borrower was enrolled in on the day before such date; may elect to— enter the income-based repayment plan under section 493C(f); enter a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years; or switch between the repayment plans described in clauses
(i)and
(ii)not more than once during a calendar year; after electing to leave a repayment plan other than an income-based repayment plan described under this subsection or a standard repayment plan under section 455(d)(1)(A), shall not be permitted to re-elect a repayment plan that is not an income-based repayment plan under this subsection or a standard repayment plan under section 455(d)(1)(A); and shall retain, for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan (as described in section 493C(b)(7)) any years of repayment under another income-based or income-contingent repayment plan under this title. .
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Sec. 402
Termination of certain repayment plan options
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