Sec. 221. Notification and automatic enrollment procedures for borrowers who are delinquent on loans
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Section 455(d) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(d) ), as amended by this Act, is further amended by adding at the end the following: The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to— use return information of the borrower (and the borrower's spouse, if applicable) disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986, pursuant to approval provided under section 494, to determine the income and family size of the borrower (and the borrower's spouse, if applicable) without further action by the borrower; allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the income and family size of the borrower (and the borrower's spouse, if applicable); and provide the borrower with an opportunity to update the return information so disclosed before the determination of the income and family size of the borrower for purposes of this paragraph.
With respect to each borrower of a loan made under this part who is not repaying such loan pursuant to the Income-Driven Repayment Plan under section 455A(c), who is at least 31 days delinquent on such loan, and who has not been subject to the procedures under this paragraph for such loan in the preceding 62 days, the Secretary shall, as soon as practicable after such 31-day delinquency, provide to the borrower the following: Notification that the borrower is at least 31 days delinquent on at least 1 loan made under this part, and a description of all delinquent covered loans, nondelinquent covered loans, and noncovered loans of the borrower.
A brief description of the repayment plans for which the borrower is eligible and the covered loans and noncovered loans of the borrower that may be eligible for such plans, based on information available to the Secretary. The amount of monthly payments for the covered and noncovered loans under each repayment plan identified under clause (ii), based on information available to the Secretary, including, if the income information of the borrower is available to the Secretary under subparagraph (A), the income, family size, tax filing status, and tax year information on which each such monthly payment is based.
Clear and simple instructions on how to select the repayment plans. An explanation that the Secretary shall take the actions under subparagraph
(C)with respect to such borrower, if— the borrower is 80 days delinquent on 1 or more loans made under this part and has not selected the Income-Driven Repayment Plan under section 455A(c) for borrower’s loans made under this part; and in the case of such a borrower whose existing repayment plan for the borrower’s loans made under this part is not such Income-Driven Repayment Plan, the monthly payments under such existing repayment plan are higher than such monthly payments would be under such Income-Driven Repayment Plan. Instructions on updating the information of the borrower obtained under subparagraph (A). With respect to each borrower described in subparagraph (B)(v) who has not selected the Income-Driven Repayment Plan under section 455A(c) for the borrower’s loans made under this part that are delinquent and who is at least 80 days delinquent on such a loan, the Secretary shall, as soon as practicable— enroll the borrower in such Income-Driven Repayment Plan; and authorize the borrower to change the Secretary’s selection of the Income-Driven Repayment Plan to the fixed-repayment plan under section 455A(b), as long as such selection is made in accordance with paragraphs
(6)and
(7)of section 455A(a). .
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Sec. 221
Notification and automatic enrollment procedures for borrowers who are delinquent on loans
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