Sec. 304. Automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans
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Section 455(d) ( 20 U.S.C. 1087e(d) ), as amended by section 103 and 302, is further amended by adding at the end the following: In the case of any borrower who is at least 60 days delinquent on a loan made under this part, the Secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower's spouse, if applicable). Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code.
With respect to each borrower of a loan made under this part who is at least 60 days delinquent on such loan and who has not been subject to the procedures under this paragraph for such loan in the preceding 120 days, the Secretary shall, as soon as practicable after such 60-day delinquency, provide to the borrower the following: Notification that the borrower is at least 60 days delinquent on at least 1 loan under this part, and a description of all delinquent loans under this part, and nondelinquent loans under this part, of the borrower.
A brief description of the repayment plans for which the borrower is eligible and the borrower's loans made under this part, and loans made, insured, or guaranteed under part B or E, that may be eligible for such plans, based on information available to the Secretary. Clear and simple instructions on how to select the repayment plans. The amount of monthly payments for the loans made under this part, and any loans made, insured, or guaranteed under part B or E, under the repayment plans for which the borrower is eligible, based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A)— the amount of the monthly payment under the income-based repayment plan under section 493C(c) for which the borrower is eligible for the borrower's loans made under this part, based on such income information; and the income, family size, tax filing status, and tax year information on which each the monthly payment is based.
An explanation that the Secretary shall take the actions under subparagraph
(C)with respect to such borrower, if— the borrower is 120 days delinquent on one or more loans under this part and has not selected a new repayment plan for the borrower's loans under this part; and in the case of such a borrower whose repayment plan for any loans made under this part is not an income-based repayment plan under section 493C(c), the monthly payments under such repayment plan are higher than such monthly payments would be under an income-based repayment plan for such loans. Instructions on updating the information of the borrower obtained under subparagraph (A). With respect to each borrower described in subparagraph
(B)who has a repayment plan for loans made under this part that meets the requirements of clause (v)(II) of subparagraph (B), who has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph, and who is at least 120 days delinquent on such a loan, the Secretary shall, as soon as practicable— in a case in which any of the borrower's loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), provide the borrower with the income-based repayment plan; and in a case in which none of the borrower's loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), notify the borrower of the actions, if any, the borrower may take for such loans to become eligible for such a plan. With respect to each borrower of a loan made under this part who selects a new repayment plan in accordance with the notice received under subparagraph
(B)and who continues to be delinquent on such loan for a period described in clause (ii), the Secretary shall, as soon as practicable after such period, carry out the procedures described in subparagraph
(C)for the borrower's loans made under this part, if such procedures would result in lower monthly repayment amounts on such loan. The duration of the period described in clause
(i)shall be the amount of time that the Secretary determines is sufficient to indicate that the borrower may benefit from repaying such loan under a new repayment plan, but in no case shall such period be less than 60 days. A borrower of a loan made under this part shall have the right to opt out of the procedures under this paragraph. The Secretary shall establish procedures as are necessary to effectively implement this paragraph. In the case of any borrower who is rehabilitating a loan made under this part pursuant to section 428F(a), the Secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower's spouse, if applicable). Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code. Not later than 30 days after a borrower makes the 6th payment required for the loan rehabilitation described in subparagraph (A), the Secretary shall notify the borrower of the process under subparagraph
(C)with respect to such loan. With respect to each borrower who has made the 9th payment required for the loan rehabilitation described in subparagraph
(A)and is eligible for the income-based repayment plan under section 493C(c), the Secretary shall, as soon as practicable after such payment, provide the borrower with the income-based repayment plan. A borrower of a loan made under this part shall have the right to opt out of the procedures under this paragraph. The Secretary shall establish procedures as are necessary to effectively implement this paragraph. . The amendments made by subsection
(a)shall— take effect as soon as the Secretary of Education determines practicable after the Secretary finalizes the procedures under section 107; and apply to all borrowers of loans made under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.).
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Sec. 304
Automatic enrollment into income-based repayment for borrowers who are delinquent on loans and for borrowers who rehabilitate defaulted loans
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