Sec. 223. Repayment plans
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Section 455(d) ( 20 U.S.C. 1087e(d) ) is amended by adding at the end the following: Notwithstanding paragraph
(1)and except as provided in subparagraph (E), the Secretary shall offer a borrower of a loan made under this part on or after July 1, 2023, two plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose— a standard repayment plan with a fixed monthly repayment amount paid over a fixed period of time, not to exceed 10 years; or an income-based repayment plan under section 460A. If such borrower does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the repayment plan described in subparagraph (A)(i). Subject to clause (ii), a borrower may change the borrower’s selection of a repayment plan under subparagraph (A), or the Secretary’s selection of a plan for the borrower under subparagraph (B), as the case may be, under such terms and conditions as may be established by the Secretary, except that the Secretary may not establish any terms or conditions with respect to whether a borrower may change the borrower’s repayment plan. Nothing in this subsection shall prohibit the Secretary from encouraging struggling borrowers from enrolling in the income-based repayment plan under section 460A. All loans made under this part on or after July 1, 2023, to a borrower shall be repaid under the same repayment plan under subparagraph (A), except that the borrower may repay an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 493C(a)) separately from other loans made under this part to the borrower. The Secretary may require a borrower who has defaulted on a loan made under this part on or after July 1, 2023, to— pay all reasonable collection costs associated with such loan; and repay the loan pursuant to the income-based repayment plan under section 460A. This paragraph shall not apply to any borrower who is student who is enrolled in a program of study at an institution of higher education as of June 30, 2023, or any loans made to (or on behalf of) such borrower, during the period required for the completion of such program. Nothing in this paragraph shall be construed to authorize, with respect to a borrower of loans made under this part on or after July 1, 2023— eligibility for a repayment plan that is not described in clause
(i)or
(ii)of subparagraph (A); or the Secretary to— carry out a repayment plan that is not described in such clause
(i)or (ii); or modify a repayment plan that is described in such clause
(i)or (ii). .
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