Sec. 401. Loan repayment simplification and income-driven repayment reform
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Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— in subsection (d)— in paragraph (1)— in subparagraph (B), by inserting not later than June 30, 2024, before a graduated ; in subparagraph (C), by inserting not later than June 30, 2024, before an extended ; in subparagraph (D)— by inserting not later than June 30, 2024, before an income contingent ; and by striking and after the semicolon; in subparagraph (E)— by inserting and not later than June 30, 2024, after beginning on July 1, 2009, ; and by striking the period at the end and inserting ; and ; and by adding at the end the following: beginning on July 1, 2024, an income contingent repayment plan known as the Revised Pay As You Earn Repayment plan , consistent with subsection (e)(9). ; in paragraph (2), by striking in subparagraph (A), (B), or
(C)of paragraph
(1)and inserting in subparagraph
(A)or
(F)of paragraph
(1); and in paragraph (4), by inserting not later than June 30, 2024, and after The Secretary may provide, ; and in subsection (e), by adding at the end the following: The Secretary shall carry out a Revised Pay As You Earn Repayment plan in accordance with section 685.209(c) of title 34, Code of Federal Regulations, as in effect on December 17, 2015, except as otherwise provided in this paragraph as follows: A borrower may complete loan rehabilitation on a defaulted loan through making eligible payments in accordance with this paragraph for 9 consecutive months. A borrower who no longer wishes to repay under the Revised Pay As You Earn Repayment plan may change only to a standard repayment plan. In addition to that provided under paragraph (5)(iv) of such section 685.209(c), a qualifying monthly payment may also include a month for which the borrower received— deferment under subsection (f)(3) due to receiving treatment for cancer; deferment under subsection (f)(2) for rehabilitation training; deferment under subsection (f)(2) for unemployment; deferment under subsection (f)(2) for economic hardship, including any period of deferment for Peace Corps service; deferment under subsection (f)(2) for military service; deferment under subsection (f)(2) for post-active duty service; forbearance under section 428(c)(3)(A)(i)(III), for national service; forbearance under section 685.205(a)(7) of title 34, Code of Federal Regulations, for National Guard Duty; forbearance under section 428(c)(3)(A)(i)(IV), for service for which the borrower would qualify for a partial repayment of his or her loan under the Student Loan Repayment Programs administered by the Department of Defense; or administrative forbearance under paragraph
(8)or
(9)of section 685.205(b) of title 34, Code of Federal Regulations. A borrower shall be automatically enrolled in a Revised Pay As You Earn Repayment plan for a loan at 75 days delinquent on such loan. A borrower who missed qualifying payments during a forbearance or deferment period not listed in clause (iii), shall have the opportunity to provide a back payment for the missed payments in order have those payments counted toward the 20-year or 25-year forgiveness period, except there shall be no opportunity to provide a back payment for periods of in-school deferment. For a borrower who is solely an undergraduate borrower— who has borrowed $10,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 120 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $10,000 but $11,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 132 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $11,000 but $12,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 144 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $12,000 but $13,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 156 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $13,000 but $14,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 168 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $14,000 but $15,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 180 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $15,000 but $16,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 192 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $16,000 but $17,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 204 payments under the Revised Pay As You Earn Repayment plan; who has borrowed more than $17,000 but $18,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 216 payments under the Revised Pay As You Earn Repayment plan; and who has borrowed more than $18,000 but $19,000 or less in total in loans under this part, not including loan fees, the Secretary may determine that the borrower has met the loan forgiveness requirements after 228 payments under the Revised Pay As You Earn Repayment plan. Notwithstanding any other provision of this Act, on July 1, 2024, the Secretary shall transfer each borrower who is in repayment on a loan made under this part under an income contingent repayment plan pursuant to subsection (d)(1)(D) to the Revised Pay As You Earn Repayment plan under this paragraph. .
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Sec. 401
Loan repayment simplification and income-driven repayment reform
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