Sec. 105. Automatic recertification of income
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Section 493C of the Higher Education Act of 1965 ( 20 U.S.C. 1098e ) is amended by adding at the end the following: Beginning as soon as the Secretary determines practicable after the Secretary finalizes the procedures under section 107 of the Affordable Loans for Any Student Act , the Secretary shall establish and implement, with respect to any borrower described in paragraph (2), procedures to— obtain (for each year of 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 such section 107, subject to subparagraph (B); allow the borrower, at any time, to opt out of subparagraph
(A)and prevent the Secretary from obtaining information under such subparagraph without further action by the borrower; provide the borrower with an opportunity to update the information obtained under subparagraph
(A)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 (except as provided in paragraph (2)(B)), ensure that the borrower will not be required to provide the Secretary with other documentation of income and provide the borrower with a calculated monthly payment of $0. Paragraph
(1)shall apply to each borrower of a loan made under this part who, on or after the date on which the Secretary establishes procedures under such paragraph— selects, or for whom the Secretary selected under subparagraphs
(C)or
(D)of paragraph (8), or paragraph (9), of subsection (d), or section 428(m)(1), an income-based repayment plan; or recertifies income and family size under such plan. A borrower for whom adjusted gross income is unavailable because the borrower has been granted an extension on filing the borrower's income taxes or is undergoing an audit or examination by the Internal Revenue Service shall not automatically be eligible for the calculated monthly payment of $0 in accordance with paragraph (1)(D) during such period. When the extension, audit, or examination is completed, the Secretary shall resume consideration of the borrower for automatic recertification under the procedures described in paragraph (1), including subparagraph
(D)of such paragraph (if applicable). Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under paragraph (1)(A) only to the extent authorized by section 6103(l)(13) of such Code. . Section 455(e) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(e) ) is amended— in paragraph (3), by inserting , consistent with the procedures established under paragraph (8)(B)(iv) before the period at the end; and by adding at the end the following: Beginning as soon as the Secretary determines practicable after the Secretary finalizes the procedures under section 107 of the Affordable Loans for Any Student Act , the Secretary shall establish and implement procedures that allow the automatic recertification of income with respect to borrowers described in subparagraph (B). Such procedures shall, to the extent practicable, be the same procedures described in section 493C(f). Subparagraph
(A)shall apply to each borrower of a loan made under this part— who, on or after the date on which the Secretary establishes procedures under such subparagraph, applies to recertify income and family size under such plan; or for whom the Secretary selected an income-contingent repayment plan under section 428(m)(1). Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under subparagraph
(A)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. .
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