Sec. 103. Termination of certain repayment plan options
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Section 428(b) ( 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, 2020, change the selection of a repayment plan under this part or part G to one of the 2 repayment plans described in paragraph (9)(C), ; and in clause (iii), by inserting or, in the case of a default that occurs after July 1, 2020, be subject to income-based repayment in accordance with section 493C(c) before the semicolon at the end; 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 an applicable repayment plan described in paragraph (9)(C) ; and by striking subparagraph (L); and in paragraph (9)— in subparagraph (A)— in the subparagraph heading, by inserting after before July 1, 2020 ; and selection in the matter preceding clause (i)— by inserting or subparagraph (C), as applicable, after this subparagraph ; and by striking The borrower and inserting Before July 1, 2020, the borrower ; in subparagraph (B), by inserting before the period at the end or, for a borrower entering repayment after July 1, 2020, the lender shall provide the borrower with the fixed repayment plan described in section 493E ; and by adding at the end the following:
Notwithstanding any other provision of law, and in accordance with regulations promulgated, beginning on July 1, 2020, a lender shall offer a borrower of a loan made, insured, or guaranteed under this part the opportunity to change repayment plans at any time after July 1, 2020, and then not more than once per calendar year thereafter. The borrower may choose between the following repayment plans: A fixed repayment plan described in section 493E. The income-based repayment plan under section 493C(c). .
Section 455(d) ( 20 U.S.C. 1087e(d) ) is amended— by redesignating paragraphs
(2)through
(5)as paragraphs
(3)through (6), respectively; in paragraph (1)— in the paragraph heading, by inserting after before July 1, 2020 ; and selection in the matter preceding subparagraph (A), by inserting that enters repayment before July 1, 2020, before a variety ; by inserting after paragraph
(1)the following: Notwithstanding paragraph (1), for any borrower of a loan made under this part that enters repayment on or after July 1, 2020, and for any borrower subject to paragraph (7), the Secretary shall offer the borrower a choice between the following 2 plans for repayment of such loan, including principal and interest on the loan. The borrower may choose— a fixed repayment plan described in section 493E; or an income-based repayment plan under section 493C(c). A borrower in repayment shall be entitled to accelerate, without penalty, repayment on the borrower's loans under this part. If a borrower of a loan made under this part that enters repayment on or after July 1, 2020, does not select a repayment plan described in subparagraph
(A)before the first payment on such loan is due, the Secretary shall provide the borrower with a fixed repayment plan described in section 493E. A borrower of a loan made under this part that enters repayment or on after July 1, 2020, may change the borrower's selection of a repayment plan in accordance with subparagraphs
(B)and
(C)of paragraph (7). Beginning on July 1, 2020, in lieu of the requirements of paragraph (6), the Secretary may require any borrower who has defaulted on a loan made under this part on or after July 1, 2020, to repay the loan pursuant to an income-based repayment plan under section 493C(c). ; and by adding at the end the following: A borrower who is in repayment on a loan made under this part before July 1, 2020— may choose to retain the repayment plan that the borrower was enrolled in on the day before such date; may elect to— enter an income-based repayment plan under section 493C(c); enter a fixed repayment plan described in section 493E; or switch between the repayment plans described in clauses
(i)and (ii); after switching to a repayment plan described in clause
(i)or
(ii)of subparagraph (B), shall not be permitted to select a repayment plan not described in subparagraph
(B)for the loan; 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 payments on such loan under another income-based or income contingent repayment plan under this title that would otherwise be qualifying. . Section 433(b)(7)(B) ( 20 U.S.C. 1083(b)(7)(B) ) is amended by striking on a standard repayment plan and inserting , in the case of a borrower who has not selected a repayment plan, on the repayment plan designated under subparagraph
(B)of section 428(b)(9) .
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