H.R. 4862

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4862 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 4862

To amend the Higher Education Act of 1965 to double the Pell Grant 
award amount, improve the Public Service Loan Forgiveness program, and 
reduce interest rates, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

August 1, 2025

Mr. Scott of Virginia (for himself, Mr. Subramanyam, Ms. Underwood, Ms. 
Moore of Wisconsin, and Mr. Thanedar) introduced the following bill; 
which was referred to the Committee on Education and Workforce, and in 
addition to the Committee on the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee 
concerned

_______________________________________________________________________

A BILL

To amend the Higher Education Act of 1965 to double the Pell Grant 
award amount, improve the Public Service Loan Forgiveness program, and 
reduce interest rates, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Lowering Obstacles to Achievement 
Now Act'' or the ``LOAN Act''.

SEC. 2. REPEAL.

Subtitles A through F of title VIII of Public Law 119-21 are 
repealed. The provisions of the Higher Education Act of 1965 (20 U.S.C. 
1001 et seq.) amended by such subtitles are restored and revived as if 
such subtitles had not been enacted.

SEC. 3. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Repeal.
Sec. 3. Table of contents.
TITLE I--FEDERAL PELL GRANTS

Sec. 101. Doubling Federal Pell Grants and providing all Federal Pell 
Grants through mandatory funding.
Sec. 102. Providing increased Federal Pell Grants and other assistance 
for recipients of means-tested benefits.
Sec. 103. Federal aid eligibility for dreamer students.
Sec. 104. Restoring the total semesters of Federal Pell Grant 
eligibility.
Sec. 105. Reducing financial aid penalties from satisfactory academic 
progress determinations.
Sec. 106. Federal Pell Grants for graduate students.
TITLE II--AMENDMENTS TO TERMS AND CONDITIONS OF LOANS AND REPAYMENT 
PLANS

Part A--General Terms and Conditions

Sec. 201. Subsidized loans for graduate and professional students.
Sec. 202. Repeal of origination fees.
Sec. 203. Prepayment amounts.
Sec. 204. Default requirements.
Part B--One Income-Contingent Repayment Plan and One Fixed Repayment 
Plan

Sec. 211. Notification to borrowers.
Sec. 212. New repayment plans.
Sec. 213. Maximum repayment period for income-contingent repayment and 
income-based repayment.
Sec. 214. Borrowers ineligible for loans.
Part C--Automatic Enrollment in the Income-Driven Repayment Plan for 
Certain Borrowers

Sec. 221. Notification and automatic enrollment procedures for 
borrowers who are delinquent on loans.
Sec. 222. Notification and automatic enrollment procedures for 
borrowers who are rehabilitating defaulted 
loans.
Sec. 223. Covered loan and non-covered loan defined.
Sec. 224. Automatic recertification of income for income-driven 
repayment plans.
Sec. 225. Procedure and requirement for requesting tax return 
information from the IRS.
Part D--Streamlining Public Service Loan Forgiveness

Sec. 231. Amendments to terms and conditions of public service loan 
forgiveness.
Sec. 232. Terms and conditions of employment.
Sec. 233. Online portal and database of public service jobs.
Sec. 234. Treatment of consolidated and refinanced loans.
Sec. 235. Loan forgiveness for teachers.
Sec. 236. GAO study on data matching agreements for public service loan 
forgiveness.
Part E--Support for Borrowers in Default

Sec. 241. Removal of record of default.
Sec. 242. Removal of record of default from credit history upon loan 
consolidation.
Sec. 243. Default reduction program.
TITLE III--INTEREST CAPITALIZATION

Sec. 301. Elimination of interest capitalization.
Sec. 302. Elimination of disclosure requirements relating to 
capitalization.
TITLE IV--INTEREST RATES

Sec. 401. Interest rate provisions for new Federal student loans on or 
after July 1, 2026.
Sec. 402. Refinancing FFEL and Federal Direct Loans.
Sec. 403. Refinancing private student loans.

TITLE I--FEDERAL PELL GRANTS

SEC. 101. DOUBLING FEDERAL PELL GRANTS AND PROVIDING ALL FEDERAL PELL 
GRANTS THROUGH MANDATORY FUNDING.

(a) Amount of Minimum Federal Pell Grants.--Section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1070a) is amended--
(1) in subsection (a)(2)(F), by striking ``10 percent'' and 
inserting ``5 percent'';
(2) in subsection (b)--
(A) in paragraph (1)(B)(i), by striking ``paragraph 
(5)(A)'' and inserting ``paragraph (5)'';
(B) by striking paragraph (5) and inserting the 
following:
``(5) Total maximum federal pell grant.--
``(A) Award year 2026-2027.--For award year 2026-
2027, the total maximum Federal Pell Grant award shall 
be $10,000.
``(B) Award year 2027-2028.--For award year 2027-
2028, the total maximum Federal Pell Grant award shall 
be $11,000.
``(C) Award year 2028-2029.--For award year 2028-
2029, the total maximum Federal Pell Grant award shall 
be $12,000.
``(D) Award year 2029-2030.--For award year 2029-
2030, the total maximum Federal Pell Grant award shall 
be $13,000.
``(E) Award year 2030-2031.--For award year 2030-
2031, the total maximum Federal Pell Grant award shall 
be $14,000.
``(F) Award year 2031-2032 and subsequent years.--
For award year 2031-2032, and each subsequent award 
year, the total maximum Federal Pell Grant award shall 
be $14,000--
``(i) increased by the adjustment 
percentage for the award year for which the 
amount under this subparagraph is being 
determined; and
``(ii) rounded to the nearest $50.
``(G) Definition of adjustment percentage.--In this 
paragraph, the term `adjustment percentage,' as applied 
to an award year, is equal to the percentage increase 
in the Consumer Price Index, as defined in section 
478(f), for the most recent calendar year ending prior 
to the beginning of the award year.'';
(C) by striking paragraphs (6) and (7) and 
inserting the following:
``(6) Appropriation of funds.--There are authorized to be 
appropriated, and there are appropriated, out of any money in 
the Treasury not otherwise appropriated, such sums as may be 
necessary for fiscal year 2026 and each subsequent fiscal year 
to provide the total maximum Federal Pell Grant for which a 
student shall be eligible under this section during an award 
year.''; and
(D) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively;
(3) in subsection (d)(5)(B)(ii)--
(A) in subclause (I)(bb), by striking ``or'' after 
the semicolon;
(B) in subclause (II)(bb)(CC), by striking the 
period and inserting ``; or''; and
(C) by adding at the end the following:
``(III) during a period for which 
the student did not receive a loan 
under this title but for which, if the 
student had received such a loan, such 
loan would have been discharged under 
the circumstances described in 
subclause (II)(bb)(CC).'';
(4) by striking subsections (g) and (h); and
(5) by redesignating subsections (i) and (j) as subsections 
(g) and (h), respectively.
(b) Repeal of Scoring Requirement.--
(1) In general.--Section 406 of H. Con. Res. 95 (109th 
Congress) is amended--
(A) by striking subsection (b); and
(B) by striking ``(a) In General.--Upon'' and 
inserting the following: ``Upon''.
(2) Effective date.--The amendments made by paragraph (1) 
shall take effect beginning on July 1, 2026.
(c) Student Support Services.--Section 402D(d)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a-14(d)(1)) is amended by striking 
``the minimum'' and inserting ``10 percent of the maximum''.
(d) Scholarship Component.--Section 404E(d) of the Higher Education 
Act of 1965 (20 U.S.C. 1070a-25(d)) is amended by striking ``less than 
the minimum'' and inserting ``less than 10 percent of the maximum''.

SEC. 102. PROVIDING INCREASED FEDERAL PELL GRANTS AND OTHER ASSISTANCE 
FOR RECIPIENTS OF MEANS-TESTED BENEFITS.

(a) Increased Amount of Maximum Federal Pell Grants for Students 
With Negative Student Aid Indexes.--Section 401(b)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(1)), as amended by section 
101 of this Act, is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking 
``A student'' and inserting ``Except in the case of a 
student with a student aid index of less than zero, a 
student'';
(B) by striking clause (i); and
(C) by redesignating clauses (ii) and (iii) as 
clauses (i) and (ii), respectively;
(2) by redesignating subparagraphs (B) through (E) as 
subparagraphs (C) through (F), respectively;
(3) by inserting after subparagraph (A) the following:
``(B) A student with a student aid index of less 
than zero shall be eligible for a Federal Pell Grant 
award that exceeds the total maximum Federal Pell Grant 
by an amount equal to the amount by which the student's 
student aid index is less than zero.'';
(4) in subparagraph (C), as redesignated by paragraph (2)--
(A) in the matter preceding clause (i), by striking 
``subparagraph (A) for an academic year,'' and 
inserting ``subparagraph (A), or an increased Federal 
Pell Grant under subparagraph (B), for an academic 
year,''; and
(B) in clause (ii), by striking ``, except that a 
student aid index of less than zero shall be considered 
to be zero for the purposes of this clause'';
(5) in subparagraph (D), as redesignated by paragraph (2), 
by striking ``(A) or (B)'' and inserting ``(A), (B), or (C)'';
(6) in subparagraph (E), as redesignated by paragraph (2), 
by inserting ``or an increased Federal Pell Grant under 
subparagraph (B)'' after ``subparagraph (A)''; or
(7) in subparagraph (F), as redesignated by paragraph (2), 
by striking ``or a minimum Federal Pell Grant under 
subparagraph (C)'' and inserting ``an increased Federal Pell 
Grant under subparagraph (B), or a minimum Federal Pell Grant 
under subparagraph (D)''.
(b) Special Student Aid Index Rule for Recipients of Means-Tested 
Benefits.--Section 473 of the Higher Education Act of 1965 (20 U.S.C. 
1087mm) is amended by adding at the end the following:
``(d) Special Rule for Means-Tested Benefit Recipients.--
Notwithstanding subsection (b), for an applicant (or, as applicable, an 
applicant and spouse, or an applicant's parents) who, at any time 
during the previous 24-month period, received a benefit under a means-
tested Federal benefit program (or whose parent or spouse received such 
a benefit, as applicable), the Secretary shall for the purposes of this 
title consider the student aid index as equal to -$1,500 for the 
applicant.''.

SEC. 103. FEDERAL AID ELIGIBILITY FOR DREAMER STUDENTS.

Section 484 of the Higher Education Act of 1965 (20 U.S.C. 1091) is 
amended--
(1) in subsection (a)(5), by inserting ``, or be a Dreamer 
student, as defined in subsection (u)'' after ``becoming a 
citizen or permanent resident''; and
(2) by adding at the end the following:
``(u) Dreamer Students.--
``(1) In general.--In this section, the term `Dreamer 
student' means an individual who--
``(A)(i) is not a citizen or national of the United 
States; and
``(ii) is inadmissible or deportable under the 
Immigration and Nationality Act (8 U.S.C. 1101 et 
seq.); and
``(B)(i) in the case of such an individual who was 
younger than 18 years of age on the date on which the 
individual initially entered the United States--
``(I) has earned a high school diploma, the 
recognized equivalent of such diploma from a 
secondary school, or a high school equivalency 
diploma recognized by State law, or is 
scheduled to complete the requirements for such 
a diploma or equivalent before the next 
academic year begins;
``(II) is enrolled at an institution of 
higher education pursuant to subsection (d);
``(III) has served in the uniformed 
services (as such term is defined in section 
101 of title 10, United States Code) for not 
less than 2 years and, if discharged, received 
an honorable discharge;
``(IV) has acquired a degree, certificate, 
or recognized postsecondary credential from an 
institution of higher education or area career 
and technical education school (as such term is 
defined in section 3 of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 
U.S.C. 2302)); or
``(V) has completed not less than 2 years 
in a postsecondary program at an institution of 
higher education, or area career and technical 
education school, in the United States and has 
made satisfactory academic progress, as defined 
in subsection (c), during such time period; or
``(ii)(I) is, or at any time was, eligible for a 
grant of deferred action pursuant to--
``(aa) the memorandum of the Department of 
Homeland Security entitled `Exercising 
Prosecutorial Discretion with Respect to 
Individuals Who Came to the United States as 
Children' issued on June 15, 2012; or
``(bb) the memorandum of the Department of 
Homeland Security entitled `Exercising 
Prosecutorial Discretion with Respect to 
Individuals Who Came to the United States as 
Children and with Respect to Certain 
Individuals Who Are the Parents of U.S. 
Citizens or Permanent Residents' issued on 
November 20, 2014; or
``(II) would have been eligible for such a grant of 
deferred action if the applicable memorandum described 
in subclause (I) had been fully in effect since the 
date on which it was issued.
``(2) Hardship exception.--The Secretary shall issue 
regulations that direct when the Department shall waive the age 
requirement of paragraph (1)(B)(i) for an individual to qualify 
as a Dreamer student under such paragraph, if the individual 
demonstrates compelling circumstances, such as economic 
hardship (as defined in section 435(o)).''.

SEC. 104. RESTORING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT 
ELIGIBILITY.

Section 401(d)(5)(A) of the Higher Education Act of 1965 is amended 
by striking ``12'' each place the term appears and inserting ``18''.

SEC. 105. REDUCING FINANCIAL AID PENALTIES FROM SATISFACTORY ACADEMIC 
PROGRESS DETERMINATIONS.

Section 484(c) of the Higher Education Act of 1965 (20 U.S.C. 
1091(c)) is amended to read as follows:
``(c) Satisfactory Progress.--
``(1) Definitions.--In this subsection:
``(A) Appeal.--The term `appeal' means a process by 
which a student who is not meeting the institution's 
satisfactory academic progress standards petitions the 
institution for reconsideration of the student's 
eligibility for assistance under this title.
``(B) Financial aid probation.--The term `financial 
aid probation' means a status assigned by an 
institution to a student who fails to make satisfactory 
academic progress and who has appealed and has had 
eligibility for aid reinstated.
``(C) Financial aid warning.--The term `financial 
aid warning' means a status assigned to a student who 
fails to make satisfactory academic progress at the end 
of the semester or equivalent period in which the 
student first fails to make such progress.
``(D) Payment period.--The term `payment period' 
means the applicable payment period described in 
section 668.4 of title 34, Code of Federal Regulations, 
or any successor regulation.
``(2) Satisfactory academic progress policy.--An 
institution shall establish a reasonable satisfactory academic 
progress policy for determining whether an otherwise eligible 
student is making satisfactory academic progress in the 
student's educational program and may receive assistance under 
this title. The Secretary shall consider the institution's 
policy to be reasonable if--
``(A) the policy is at least as strict as the 
policy the institution applies to a student who is not 
receiving assistance under this title;
``(B) the policy provides for consistent 
application of standards to all students, including 
full-time, part-time, undergraduate, and graduate 
students, and all educational programs established by 
the institution;
``(C)(i) the policy specifies the grade point 
average that a student must achieve at each evaluation, 
or if a grade point average is not an appropriate 
qualitative measure, a comparable assessment measured 
against a norm; and
``(ii) if a student is enrolled in an educational 
program of more than 2 academic years, the policy 
specifies that at the end of the second academic year, 
the student must have a grade point average of at least 
a `C' or its equivalent, or have academic standing 
consistent with the institution's requirements for 
graduation;
``(D) the policy provides for measurement of the 
student's progress at each evaluation;
``(E) the policy describes--
``(i) how a student's grade point average 
and the pace at which the student progresses 
toward completion are affected by course 
incompletes, withdrawals, or repetitions, or 
transfers of credit from other institutions, 
including that credit hours from another 
institution that are accepted toward the 
student's educational program are counted as 
both attempted and completed hours; and
``(ii) how after a student reenrolls after 
the student's satisfactory academic progress 
was reset pursuant to paragraph (3)(B), the 
student may have any credits that were earned 
before the student was determined not to be 
making satisfactory academic progress counted 
for purposes of determining progress when the 
student reenrolls, but any attempted hours that 
were not earned by the student (including 
incompletes, withdrawn courses, and failed 
courses) before the student was determined not 
to be making satisfactory academic progress 
will not negatively impact the determination of 
whether the student made satisfactory academic 
progress after such reset;
``(F) the policy provides that, except as provided 
in subparagraph (G) with respect to a student placed on 
financial aid warning or financial aid probation and 
paragraph (3), a student is no longer eligible to 
receive assistance under this title if the student has 
not achieved the required grade point average or who is 
not making progress toward completion in the student's 
educational program--
``(i) at the time of each evaluation with 
respect to a student who is in an educational 
program of 2 academic years or less in length; 
or
``(ii) at the end of the second academic 
year with respect to a student who is in an 
educational program of more than 2 academic 
years in length;
``(G) the policy describes when students will be 
placed on financial aid warning or financial aid 
probation, in accordance with paragraph (4), and 
provides that--
``(i) a student on financial aid warning--
``(I) shall receive assistance 
under this title for one payment period 
despite a determination that the 
student is not making satisfactory 
academic progress; and
``(II) may be assigned such status 
without an appeal or other action by 
the student; and
``(ii)(I) a student on financial aid 
probation may receive assistance under this 
title for one payment period and the 
institution may require the student to fulfill 
specific terms and conditions, such as taking a 
reduced course load or enrolling in specific 
courses; and
``(II) at the end of such one payment 
period, the student is required to meet the 
institution's satisfactory academic progress 
standards, or meet the requirements of the 
academic plan developed by the institution and 
the student, in order to qualify for continued 
assistance under this title;
``(H) if the institution permits a student to 
appeal a determination by the institution that the 
student is not making satisfactory academic progress, 
the policy describes--
``(i) how the student may reestablish the 
student's eligibility to receive assistance 
under this title;
``(ii) the basis on which the student may 
file an appeal, including because of the death 
of a relative, an injury or illness of the 
student, or another special circumstance; and
``(iii) information the student is required 
to submit regarding why the student failed to 
make satisfactory academic progress, and what 
has changed in the student's situation that 
will allow the student to demonstrate 
satisfactory academic progress at the next 
evaluation;
``(I) if the institution does not permit a student 
to appeal a determination by the institution that the 
student is not making satisfactory academic progress, 
the policy describes how the student may reestablish 
the student's eligibility to receive assistance under 
this title;
``(J) the policy provides for notification to 
students of the results of an evaluation that impacts 
the student's eligibility for assistance under this 
title; and
``(K) the policy does not impose satisfactory 
progress limitations on need-based institutional aid 
that are more stringent than the standard applied under 
this subsection without demonstrating to the Secretary 
the effectiveness of such limitations on improving 
student persistence in, and completion of, 
postsecondary study.
``(3) Regaining eligibility.--
``(A) Students who remain in school.--Whenever a 
student fails to meet the eligibility requirements of 
subsection (a)(2) as a result of the application of 
this subsection and, subsequent to that failure, the 
student has academic standing for any grading period 
consistent with the requirements for staying on track 
to graduate within 150 percent of the published length 
of the educational program, as determined by the 
institution, the student shall again be eligible under 
subsection (a)(2) for a grant, loan, or work assistance 
under this title, as long as the student maintains 
satisfactory academic progress under paragraph (2) 
beginning on and after the date that the student 
regains eligibility.
``(B) Students who leave school.--
``(i) In general.--If a student has not 
been enrolled in any institution of higher 
education for the immediately preceding 2 
years, any previous failure to meet the 
eligibility requirements of subsection (a)(2) 
shall not be used in any determination of 
eligibility of such student under such 
subsection. Such student shall, on the date of 
enrollment subsequent to such 2-year period, 
have the student's eligibility for a grant, 
loan, or work assistance under this title reset 
and be deemed as meeting the requirements 
described in paragraph (2). Beginning on and 
after such date, the student's satisfactory 
academic progress shall be determined in 
accordance with paragraph (2)(E)(ii).
``(ii) Maximum number of resets.--A student 
shall be eligible for a reset of eligibility 
pursuant to this subparagraph not more than 2 
times.
``(C) Duties of the secretary.--The Secretary 
shall--
``(i) send, to each student who failed to 
meet the eligibility requirements of subsection 
(a)(2) and who has not regained eligibility for 
a grant, loan, or work assistance under 
subparagraph (A), a notice, two years after 
such failure, that includes--
``(I) a notification that, if the 
student has not been enrolled in any 
institution of higher education for the 
preceding two years and has not 
received two resets of eligibility 
under subparagraph (B), the student may 
use grant, loan, or work assistance 
under this title for enrollment at any 
eligible institution, including an 
institution other than the institution 
in which the student was previously 
enrolled;
``(II) a notification that, if the 
student has remained enrolled, or 
resumed enrollment, at an institution 
of higher education, the student may be 
eligible for a grant, loan, or work 
assistance under this title subject to 
the requirements of subparagraph (A);
``(III) information on how many 
semesters of eligibility for a grant, 
loan, or work assistance under this 
title to which the student still has 
access; and
``(IV) a notification that the 
student should ask any prospective 
eligible institution how many of the 
student's previously completed credits 
the student would be able to transfer; 
and
``(ii) submit an annual report to Congress 
on the outcomes of students who have received a 
reset of eligibility pursuant to this 
paragraph, including--
``(I) the number of students who 
reenroll in an eligible institution 
after such reset, disaggregated by race 
or ethnicity, sex, age, socioeconomic 
status, and disability status;
``(II) the 250 eligible 
institutions with the highest numbers 
of enrolled students receiving grant, 
loan, or work assistance under this 
title after such a reset;
``(III) the 250 eligible 
institutions with the highest share of 
enrolled students receiving grant, 
loan, or work assistance under this 
title after such a reset; and
``(IV) the average completion rate 
and time to completion for students who 
reenroll in an eligible institution 
after such reset, disaggregated by 
institution.
``(4) Evaluation of academic progress.--
``(A) In general.--An institution that determines 
that a student is not making satisfactory academic 
progress under its policy may disburse funds provided 
through student financial assistance programs under 
this title (including work-study programs under 
subtitle C) to the student in accordance with 
subparagraphs (B), (C), and (D).
``(B) Payment period following not making 
satisfactory academic progress.--For the payment period 
following the payment period in which a student did not 
make satisfactory academic progress, the institution 
shall place the student on financial aid warning and 
disburse funds under this title to the student.
``(C) Payment period following financial aid 
warning.--For the payment period following a payment 
period during which a student was on financial aid 
warning, the institution may place the student on 
financial aid probation, and disburse funds under this 
title to the student if--
``(i) the institution evaluates the 
student's progress and determines that student 
did not make satisfactory academic progress 
during the payment period the student was on 
financial aid warning;
``(ii) the student appeals the 
determination; and
``(iii)(I) the institution determines that 
the student should be able to meet the 
institution's satisfactory academic progress 
standards by the end of the subsequent payment 
period; or
``(II) the institution develops an academic 
plan for the student that, if followed, will 
ensure that the student is able to meet the 
institution's satisfactory academic progress 
standards by a specific point in time.
``(D) Payment period following financial aid 
probation.--A student on financial aid probation for a 
payment period may not receive funds under this title 
for the subsequent payment period unless the student 
makes satisfactory academic progress or the institution 
determines that the student met the requirements 
specified by the institution in the academic plan for 
the student developed under subparagraph (C)(iii)(II).
``(E) Frequency of academic progress evaluation and 
communication.--
``(i) In general.--Subject to clause (ii), 
for the purpose of determining whether 
presently enrolled students are maintaining 
satisfactory progress, each institution of 
higher education that enrolls students who 
receive any grant, loan, or work assistance 
under this title shall review the progress of 
such students at the end of each payment 
period.
``(ii) Shorter payment periods.--For each 
institution described in clause (i) that has 
payment periods that are shorter than on the 
semester system basis (such as on a quarterly 
or trimester system basis or by clock hour 
program or non-term program), such institution 
shall review the progress of presently enrolled 
students at the end of each semester or 
equivalent period of 12 to 18 weeks.
``(iii) Financial aid warning.--At the end 
of each payment period (or, in the case of an 
institution described in clause (ii), at the 
end of each semester or equivalent period), 
each institution shall send a financial aid 
warning to presently enrolled students that do 
not meet the grade point average requirement 
described in paragraph (2), or its equivalent 
or academic standing consistent with the 
requirements for graduation, as determined by 
the institution, that informs the students of 
their risk of being determined to not be 
maintaining satisfactory progress and therefore 
losing eligibility for grant, loan, or work 
assistance under this title and provides 
information on--
``(I) the specific criteria of the 
institution's academic requirements 
that the student is not meeting and the 
specific improvements needed to meet 
the requirements; and
``(II) how to meet with the 
student's academic advisor to get the 
academic support the student needs.
``(5) Detailing requirements to students.--Each institution 
of higher education that enrolls students who receive any 
grant, loan, or work assistance under this title shall detail 
the institution's requirements regarding students maintaining 
satisfactory academic progress--
``(A) to such students before the students begin 
classes at the institution through a detailed 
communication that may be separate from a financial aid 
offer; and
``(B) on the financial aid webpage of the website 
of the institution.
``(6) Consumer testing.--The Secretary--
``(A) shall conduct consumer testing to develop 
exemplary practices and templates--
``(i) to support institutions of higher 
education in carrying out paragraph (5); and
``(ii) which shall be available as 
resources for institutions of higher education; 
and
``(B) shall not require the use of such practices 
and templates by institutions of higher education.''.

SEC. 106. FEDERAL PELL GRANTS FOR GRADUATE STUDENTS.

Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) 
is amended--
(1) in subsection (b)(8)(A), by inserting ``or as a 
postbaccalaureate student in accordance with subsection 
(d)(1)'' after ``as an undergraduate''; and
(2) in subsection (d)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--The period during which a student may 
receive Federal Pell Grants shall be the period required for 
the completion of the first undergraduate baccalaureate course 
of study being pursued by that student at the institution at 
which the student is in attendance except that--
``(A) any 1-year period during which the student is 
enrolled in a noncredit or remedial course of study as 
defined in paragraph (2) shall not be counted for the 
purpose of this paragraph; and
``(B) the period during which a student may receive 
Federal Pell Grants shall also include the period 
required for the completion of the first 
postbaccalaureate course of study in a case in which--
``(i) the student received a Federal Pell 
Grant during the period required for the 
completion of the student's first undergraduate 
baccalaureate course of study for at least 1 
but fewer than 18 semesters, or the equivalent 
of at least 1 but fewer than 18 semesters, as 
determined under paragraph (5);
``(ii) the student would otherwise be 
eligible for a Federal Pell Grant, but for the 
completion of such baccalaureate course of 
study; and
``(iii) the period during which the student 
receives Federal Pell Grants does not exceed 
the student's duration limits under paragraph 
(5).''; and
(B) in paragraph (2), by striking ``or 
certificate'' and inserting ``, certificate, or first 
postbaccalaureate degree''.

TITLE II--AMENDMENTS TO TERMS AND CONDITIONS OF LOANS AND REPAYMENT 
PLANS

PART A--GENERAL TERMS AND CONDITIONS

SEC. 201. SUBSIDIZED LOANS FOR GRADUATE AND PROFESSIONAL STUDENTS.

Section 455(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(a)(3)) is amended--
(1) in subparagraph (A), in the matter preceding clause 
(i), by striking ``subparagraph (B)'' and inserting 
``subparagraphs (B) and (C)''; and
(2) by adding at the end the following:
``(C) Authority to make interest subsidized loans 
to graduate and professional students.--
``(i) In general.--Beginning on or after 
July 1, 2026, a graduate or professional 
student shall be eligible to receive a Federal 
Direct Stafford loan under this part for a 
graduate or professional program at a covered 
institution of higher education.
``(ii) Covered institution of higher 
education.--In this subparagraph, the term 
`covered institution of higher education'--
``(I) means an institution of 
higher education defined in section 101 
or section 102(a)(1)(C); and
``(II) does not include a graduate 
medical school, nursing school, or a 
veterinary school, located outside the 
United States that does not meet the 
requirements of section 101(a)(4).''.

SEC. 202. REPEAL OF ORIGINATION FEES.

Section 455(c)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(c)(2)) is amended--
(1) by striking ``and'' at the end of subparagraph (D); and
(2) by adding at the end the following:
``(E) by substituting `0.0 percent' for `4.0 
percent' with respect to loans for which the first 
disbursement of principal is made on or after July 1, 
2026.''.

SEC. 203. PREPAYMENT AMOUNTS.

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088) is amended by adding at the end the following:

``SEC. 494A. PREPAYMENT AMOUNTS.

``(a) Prepayments Authorized.--A borrower may pay, without penalty, 
an amount in excess of the amount due on an outstanding loan made under 
part B or D, and such excess amount shall be referred to as a 
`prepayment amount' for purposes of this subsection. Except as provided 
in subsection (b) a prepayment amount shall be applied first toward the 
fees (including any collection costs and authorized late charges) owed 
by the borrower on such loan, next on outstanding principal, and then 
on outstanding interest. If the prepayment amount exceeds the monthly 
payment amount owed on such loan, the due date of the next payment 
shall be advanced, unless the borrower requests otherwise, and the 
Secretary shall notify the borrower of such revised due date for the 
next payment.
``(b) Application of Prepayment Amounts.--
``(1) Borrowers without fee balances.--
``(A) In general.--Subject to subparagraph (B), 
with respect to a borrower who does not owe an 
outstanding balance of fees (including collection costs 
and authorized late charges) on any loan made under 
part B or D, and who makes a prepayment on 2 or more 
loans made under this part--
``(i) if such loans have different 
applicable rates of interest, the holder of 
such loans shall apply the borrower's 
prepayment amount, first toward the outstanding 
balance of principal due on the loan with the 
highest applicable rate of interest among such 
loans, next on any fees owed on such loan, and 
then on outstanding interest owed on such loan; 
or
``(ii) if such loans have the same 
applicable rates of interest, the holder of 
such loans shall apply the borrower's 
prepayment amount, first toward the outstanding 
balance of principal due on the loan with the 
highest principal balance among such loans, 
next on any fees on such loan, and then on 
outstanding interest owed on such loan.
``(B) Written exception.--A borrower described in 
subparagraph (A) who does not want prepayment amounts 
applied in the manner described in clause (i) or (ii) 
of such subparagraph shall provide to the Secretary, a 
written request for a different application of 
prepayment amounts.
``(2) Borrowers with fee balances.--With respect to a 
borrower who owes fees (which may include collection costs and 
authorized late charges) on a loan made under part B or part D, 
a prepayment amount made by the borrower shall be applied first 
toward the fees (including any collection costs and authorized 
late charges) owed by the borrower on such loan, next on 
outstanding principal, and then on outstanding interest.''.

SEC. 204. DEFAULT REQUIREMENTS.

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088), as amended by the preceding section, is further amended by 
adding at the end the following:

``SEC. 494B. DEFAULT REQUIREMENTS.

``(a) In General.--If a borrower defaults on a loan made under part 
B or D--
``(1) the entire unpaid balance and accrued interest shall 
be immediately due and payable; and
``(2) the Secretary shall assess collection charges.
``(b) Collection of a Defaulted Loan.--The Secretary may, with 
respect to a borrower who defaults on a loan made under part B or D--
``(1) take any action authorized by law to collect such 
loan, including filing a lawsuit against the borrower, 
reporting the default to nationwide consumer reporting 
agencies, requesting the Internal Revenue Service to offset the 
borrower's Federal income tax refund, and garnishing the 
borrower's wages; and
``(2) may designate the Income-Driven Repayment Plan under 
section 455A(c) for the borrower.''.

PART B--ONE INCOME-CONTINGENT REPAYMENT PLAN AND ONE FIXED REPAYMENT 
PLAN

SEC. 211. NOTIFICATION TO BORROWERS.

(a) In General.--Beginning on the date of enactment of this Act, 
the Secretary of Education, in coordination with the Director of the 
Consumer Financial Protection Bureau, shall undertake a campaign to 
alert all borrowers of loans made under part D of title IV of the 
Higher Education Act of 1965 that they are eligible to change repayment 
plans and to enroll in one of the following repayment plans:
(1) The fixed repayment plan under section 455A(b) of the 
Higher Education Act of 1965, as added by section 212.
(2) The Income-Driven Repayment plan under section 455A(c) 
of the Higher Education Act of 1965, as added by section 212.
(b) Campaign Activities.--The campaign shall include the following 
activities:
(1) Developing consumer information materials about the 
opportunity to change repayment plans and to enroll in one of 
the repayment plans described in paragraphs (1) and (2) of 
subsection (a).
(2) Requiring servicers of loans made under part D of title 
IV of the Higher Education Act of 1965 to provide such consumer 
information to borrowers in a manner determined appropriate by 
the Secretary.

SEC. 212. NEW REPAYMENT PLANS.

(a) Sunset of Repayment Plans Available Before July 1, 2026.--
Section 455(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(d)(1)) is amended, in the matter preceding subparagraph (A), by 
inserting ``, before July 1, 2026'' after ``may choose''.
(b) Repayment Plans Available on and After July 1, 2026.--Part D of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) 
is amended by inserting after section 455 the following:

``SEC. 455A. REPAYMENT PLANS AVAILABLE ON AND AFTER JULY 1, 2026.

``(a) Repayment Plans for Loans Made on or After July 1, 2026.--
``(1) Sunset of repayment plans available before july 1, 
2026.--Paragraphs (1) through (5) of section 455(d) shall only 
apply to loans made under this part before July 1, 2026.
``(2) Prohibitions.--The Secretary may not, for any loan 
made under this part on or after July 1, 2026--
``(A) authorize a borrower of such a loan to repay 
such loan pursuant to a repayment plan that is not 
described in paragraph (3); or
``(B) carry out or modify a repayment plan that is 
not described in such paragraph.
``(3) Design and selection.--Notwithstanding section 
455(d), beginning on July 1, 2026, the Secretary shall offer a 
borrower of a loan made under this part on or after such date 
(including a Federal Direct Stafford Loan, a Federal Direct 
PLUS Loan (including such a loan made on behalf of a dependent 
student), a Federal Direct Consolidation Loan (including such a 
loan that discharged the liability on a Federal Direct PLUS 
Loan made on behalf of a dependent student), and a Federal 
Direct Unsubsidized Stafford Loan) two plans for repayment of 
such loan in accordance with subsection (d), including 
principal and interest on the loan. The borrower shall be 
entitled to accelerate, without penalty, repayment on the 
borrower's loan under this part. The borrower may choose--
``(A) a fixed repayment plan under subsection (b); 
or
``(B) the Income-Driven Repayment Plan under 
subsection (c).
``(4) Selection by secretary.--If a borrower of a loan made 
under this part on or after July 1, 2026, does not select a 
repayment plan described in paragraph (3), the Secretary shall 
provide the borrower with the fixed repayment plan described in 
subsection (b).
``(5) Selection available for each new loan.--Each time a 
borrower receives a new loan made under this part on or after 
July 1, 2026, the borrower may select either the fixed 
repayment plan under subsection (b) or the Income-Driven 
Repayment Plan under subsection (c), which shall apply to all 
such loans of the borrower in accordance with paragraph (6).
``(6) Same repayment plan required.--
``(A) Loans made on or after july 1, 2026.--All 
loans made to a borrower under this part on or after 
July 1, 2026, must be repaid together under the same 
repayment plan.
``(B) Loans made before and on or after july 1, 
2026.--A borrower with a loan made under this part 
before July 1, 2026, and with a loan made on or after 
July 1, 2026, (including a Federal Direct PLUS loan 
made on behalf of a dependent student made before, on, 
or after such date) may repay such loans on different 
repayment plans, provided that--
``(i) all such loans made on or after July 
1, 2026, are repaid under the same repayment 
plan in accordance with subparagraph (A); and
``(ii) all such loans made before July 1, 
2026, are repaid under the repayment plan that 
the borrower was enrolled in with respect to 
each such loan on June 30, 2026.
``(7) Permissible changes of repayment plan.--
``(A) Change from fixed repayment plan.--A borrower 
may change the borrower's selection of a fixed 
repayment plan under subsection (b), or the Secretary's 
selection of such plan for the borrower under paragraph 
(4), as applicable, to the Income-Driven Repayment Plan 
under subsection (c) at any time.
``(B) Change from the income-driven repayment 
plan.--A borrower may change the borrower's selection 
of the Income-Driven Repayment Plan under subsection 
(c) to a fixed repayment plan under subsection (b), 
provided that the required fixed monthly payment amount 
of the borrower under such plan is determined based 
on--
``(i) the total amount of the outstanding 
principal and interest and fees on the loans of 
the borrower to be repaid under such fixed 
plan, as of the date on which the borrower's 
change in selection takes effect;
``(ii) the interest rates on such loans; 
and
``(iii) the applicable repayment period 
determined under subsection (b)(2).
``(8) Treatment of borrowers with loans made before july 1, 
2026.--With respect to an outstanding loan made under this part 
(including a Federal Direct PLUS loan made on behalf of a 
dependent student) before July 1, 2026, a borrower with such a 
loan--
``(A) shall not be eligible to change the 
borrower's selection of a repayment plan under 
paragraph (1) of section 455(d), or the Secretary's 
selection of a plan for the borrower under paragraph 
(2) of such section, as applicable, to another 
repayment plan under such paragraph (1) on or after 
July 1, 2026;
``(B) may, at any time, change the borrower's 
selection of a repayment plan to a repayment plan 
described in paragraph (3); and
``(C) upon changing the borrower's selection of a 
repayment plan in accordance with subparagraph (B), 
shall make any such subsequent change in selection in 
accordance with paragraphs (6) and (7).
``(b) Fixed Repayment Plan.--
``(1) In general.--The fixed repayment plan made available 
to borrowers in accordance with this section shall be a 
repayment plan consistent with subsection (a)(1) of section 455 
and section 428(b)(9)(A)(i), except as expressly provided in 
this subsection, with a fixed annual repayment amount paid over 
a fixed period of time. Except as provided in paragraph (3), 
the required fixed monthly payment amount of a borrower shall 
be determined based on the total amount of the outstanding 
principal and interest of the Federal Direct Loans of the 
borrower to be repaid pursuant to such plan, the interest rates 
on such loans, and the applicable repayment period determined 
under this subsection.
``(2) Applicable repayment period.--
``(A) Direct loans other than consolidation 
loans.--The applicable repayment period of a Federal 
Direct loan under this part, other than a Federal 
Direct Consolidation Loan, shall be 10 years.
``(B) Direct consolidation loans.--The applicable 
repayment period for a Federal Direct Consolidation 
loan made on or after July 1, 2026, repaid pursuant to 
a fixed repayment plan with a total outstanding amount 
of principal and interest on all of the borrower's 
Federal Direct Loans, including such Consolidation loan 
(as of the day before entering repayment on such 
Consolidation loan) is--
``(i) less than $7,500, shall be 10 years;
``(ii) equal to or greater than $7,500 but 
less than $10,000, shall be 12 years;
``(iii) equal to or greater than $10,000 
but less than $20,000, shall be 15 years;
``(iv) equal to or greater than $20,000 but 
less than $40,000, shall be 20 years;
``(v) equal to or greater than $40,000 but 
less than $60,000, shall be 25 years; and
``(vi) equal to or greater than $60,000, 
shall be 30 years.
``(C) Minimum period.--No fixed repayment plan may 
require a borrower to repay a loan in less than 10 
years unless the borrower, during the 6 months 
immediately preceding the start of the repayment 
period, specifically requests that repayment be made 
over a shorter period.
``(3) Minimum monthly payment.--The minimum monthly payment 
amount of a borrower under a fixed repayment plan shall be $50 
per month, except that the final payment of the borrower 
pursuant to such plan may be less than $50.
``(4) Periods of deferment and forbearance.--The fixed 
repayment plan period applicable to a borrower shall not 
include periods when the borrower is in authorized deferment or 
forbearance.
``(5) Adjustments for variable interest rates.--The number 
of payments or the fixed monthly repayment amount may be 
adjusted to reflect changes in the variable interest rate 
identified in section 685.202(a) of title 34, Code of Federal 
Regulations (as in effect on July 1, 2026).
``(c) Income-Driven Repayment Plan.--
``(1) Terms and conditions.--Notwithstanding any other 
provision of this Act, beginning on July 1, 2026, the Secretary 
shall carry out an income-contingent repayment plan, to be 
known as the `Income-Driven Repayment Plan', that shall have 
the following terms and conditions:
``(A) A borrower of any loan made under this part 
may elect to have the borrower's total monthly payment 
amount owed for all of the loans of the borrower made 
under this part that are repaid under the Income-Driven 
Repayment Plan not exceed the applicable monthly 
payment of the borrower.
``(B) The Secretary shall apply the borrower's 
applicable monthly payment first towards principal due, 
next toward any fees due on the loan, and then toward 
the interest due on the loan.
``(C) In the case of an applicable monthly payment 
that does not fully cover the amount of interest that 
has accrued on the borrower's loans for the month to 
which such applicable monthly payment applies, the 
Secretary shall not charge such remaining interest to 
the borrower and such remaining interest shall not be 
capitalized.
``(D) The Secretary shall have the discretion to 
determine--
``(i) how a borrower's applicable monthly 
payment is applied to each outstanding loan of 
the borrower repayed under the Income-Driven 
Repayment Plan; and
``(ii) the amount of principal, fees, and 
interest due on each outstanding loan of the 
borrower repayed under the Income-Driven 
Repayment Plan.
``(E) The Secretary shall cancel any outstanding 
balance of principal and interest due on all loans of 
the borrower repaid under the Income-Driven Repayment 
Plan by a borrower, without the need for an application 
or other documentation from the borrower, on the 
earlier of--
``(i) in the case of a borrower who does 
not have at least one outstanding loan under 
this part attributable to a graduate or 
professional course of study, the date that the 
borrower has made 240 qualifying payments over 
a period of at least 20 years;
``(ii) in the case of a borrower who has at 
least one outstanding loan under this part 
attributable to a graduate or professional 
course of study, the date that the borrower has 
made 300 qualifying payments over a period of 
at least 25 years; or
``(iii) the date that the borrower has 
made--
``(I) in the case of a borrower 
with a total original balance of 
principal due on all such loans that is 
equal to or less than $12,000, 120 
qualifying payments over a period of at 
least 10 years; or
``(II) in the case of a borrower 
with a total original balance of 
principal due on all such loans that is 
greater than $12,000--
``(aa) 120 qualifying 
payments over a period of at 
least 10 years; plus
``(bb) for each increment 
of $1 to $1,000 above $12,499 
of such total original 
principal balance, 12 
additional qualifying payments 
over a period of at least 1 
year.
``(2) Annual income verification.--
``(A) In general.--The procedures established by 
the Secretary under section 455(e)(8) shall apply for 
annually determining the borrower's eligibility for the 
Income-Driven Repayment Plan, including verification of 
a borrower's annual income and the annual amount due on 
the total amount of loans eligible to be repaid under 
this subsection, and such other procedures as are 
necessary to effectively implement the Income-Driven 
Repayment Plan. With respect to carrying out section 
494(a)(2) for the Income-Driven Repayment Plan, an 
individual may elect to opt out of the disclosures 
required under section 494(a)(2)(A)(ii) in accordance 
with the procedures established under 455(e)(8).
``(B) Additional procedures.--In addition to 
carrying out the procedures described in subparagraph 
(A), the Secretary shall establish and implement--
``(i) in the case that the Secretary 
receives the return information disclosed under 
section 6103(l)(13) of the Internal Revenue 
Code of 1986, pursuant to approval provided 
under section 494, to determine the repayment 
obligation of the borrower but is unable to 
determine the repayment obligation of the 
borrower, procedures to require the borrower to 
provide such information as the Secretary may 
require to determine such repayment obligation 
under the Income-Driven Repayment Plan; and
``(ii) such other procedures as are 
necessary to implement effectively the Income- 
Driven Repayment Plan.
``(C) Reconsideration.--
``(i) In general.--In the case that a 
borrower believes that the annual repayment 
obligation of the borrower determined pursuant 
to this paragraph is not reflective of the 
borrower's income or family size, the borrower 
may request that the Secretary recalculate such 
annual repayment obligation. Such request shall 
include documentation of income or family size 
not based on tax information to account for a 
decrease in income since the borrower last 
filed a tax return, the borrower's separation 
from a spouse with whom the borrower had 
previously filed a joint tax return, the birth 
or impending birth of a child, or other 
comparable circumstances.
``(ii) Adjustment to repayment 
obligation.--If the Secretary determines that 
the annual repayment obligation of the borrower 
determined pursuant to this paragraph is not 
reflective of the borrower's income or family 
size based on a request described in clause 
(i), the Secretary shall adjust the annual 
repayment obligation of the borrower as 
determined appropriate by the Secretary and in 
a manner consistent with this subsection.
``(D) Forbearance.--In the case that a borrower 
provides information or documentation pursuant to 
subparagraph (B)(i) or subparagraph (C)(i), the 
Secretary shall grant the borrower administrative 
forbearance for a period of up to 60 days in order for 
the Secretary to collect and process such information 
or documentation.
``(3) Repayment disclosure.--After the Secretary obtains 
sufficient information to calculate a borrower's annual 
repayment obligation under the Income-Driven Repayment Plan 
pursuant to paragraph (2) and not later than 3 months before 
any payments in accordance with such annual repayment 
obligation are due, the Secretary shall provide to the borrower 
a repayment disclosure that--
``(A) specifies the borrower's applicable monthly 
payment amount;
``(B) explains how such applicable monthly payment 
amount was calculated;
``(C) informs the borrower of the terms and 
conditions of the Income-Driven Repayment Plan; and
``(D) informs the borrower of how to contact the 
Secretary if the calculated applicable monthly payment 
amount is not reflective of the borrower's current 
income or family size.
``(4) Failure to provide information.--In the case that the 
Secretary requires information from the borrower to determine 
the annual repayment obligation of the borrower and the 
borrower does not provide the necessary information to the 
Secretary in accordance with the procedures described in 
paragraph (2), the Secretary shall remove the borrower from the 
Income-Driven Repayment Plan and provide the borrower with the 
fixed repayment plan described in subsection (b).
``(5) Treatment of consolidation loans.--With respect to 
cancelling any outstanding balance of principal and interest 
due on all loans of the borrower repaid under the Income-Driven 
Repayment Plan pursuant to paragraph (1)(E), the Secretary 
shall--
``(A) for a borrower with an outstanding Federal 
Direct Consolidation Loan that discharges the liability 
on loans with more than one period of qualifying 
payments, determine the number of qualifying payments 
made towards such Direct Consolidation Loan based on 
the weighted average of the number of qualifying 
payments made on each such discharged loan.
``(B) for a borrower with an outstanding joint 
consolidation loan that is separated into individual 
Federal Direct Consolidation Loans, determine the 
number of qualifying payments made towards each such 
separated loan based on the number of qualifying 
payments that the borrower made prior to the 
separation.
``(6) Definitions.--In this subsection:
``(A) Applicable monthly payment.--
``(i) In general.--The term `applicable 
monthly payment' means, when used with respect 
to a borrower and except as provided in clause 
(ii), the amount equal to--
``(I) $0 for the portion of the 
borrower's income (and the borrower's 
spouse's income, if applicable) that is 
less than or equal to 225 percent of 
the poverty line applicable to the 
borrower's family size (as determined 
under section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 
9902(2))); plus
``(II) in the case of a borrower 
with an outstanding loan made under 
this part for an undergraduate program 
of study, 5 percent of the portion of 
the borrower's income (and the 
borrower's spouse's income, if 
applicable) that is greater than 225 
percent of the poverty line applicable 
to the borrower's family size (as 
determined under section 673(2) of the 
Community Services Block Grant Act (42 
U.S.C. 9902(2))), prorated by the 
percentage that is the result of 
dividing--
``(aa) the borrower's total 
outstanding balance of loans 
that is attributable to loans 
made under this part for an 
undergraduate program of study, 
determined at the time the 
borrower enters into repayment 
for such loans; by
``(bb) the result of 
dividing--

``(AA) the 
borrower's total 
outstanding balance of 
loans made under this 
part, determined at the 
time the borrower 
enters into repayment 
for such loans; by

``(BB) 12; plus

``(III) in the case of a borrower 
with an outstanding loan made under 
this part not described in subclause 
(II), 10 percent of the portion of the 
borrower's income (and the borrower's 
spouse's income, if applicable) that is 
greater than 225 percent of the poverty 
line applicable to the borrower's 
family size (as determined under 
section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 
9902(2))), prorated by the percentage 
that is the result of dividing--
``(aa) the difference 
between--

``(AA) the 
borrower's total 
outstanding balance of 
loans made under this 
part, determined at the 
time the borrower 
enters into repayment 
for such loans; and

``(BB) the balance 
of loans subject to 
subclause (II); by

``(bb) the result of 
dividing--

``(AA) the 
borrower's total 
outstanding balance of 
loans made under this 
part, determined at the 
time the borrower 
enters into repayment 
for such loans; by

``(BB) 12.

``(ii) Adjustments to applicable monthly 
payment.--Notwithstanding clause (i), the 
applicable monthly payment of a borrower shall 
be--
``(I) in the case that the amount 
calculated for such borrower pursuant 
to clause (i) is less than $5, $0;
``(II) in the case that the amount 
calculated for such borrower pursuant 
to clause (i) is greater than $5 but 
less than $10, $10; or
``(III) in the case of a married 
borrower who is not an exempted 
borrower, the amount resulting by 
multiplying--
``(aa) the amount 
calculated for such borrower 
pursuant to clause (i); by
``(bb) the result of 
dividing--

``(AA) the 
outstanding balance of 
principal and interest 
due on all loans of the 
borrower made under 
this part; by

``(BB) the sum of 
the amount described in 
subitem (AA) plus the 
outstanding balance of 
principal and interest 
due on all loans of the 
borrower's spouse made 
under this part.

``(B) Income.--The term `income', when used with 
respect to a borrower, means--
``(i) the borrower's (and the borrower's 
spouse, if applicable) adjusted gross income as 
reported to the Internal Revenue Service; or
``(ii) the amount calculated based on 
alternative documentation of all forms of 
taxable income received by the borrower (and 
the borrower's spouse, if applicable) and 
provided to the Secretary.
``(C) Adjusted gross income.--The term `adjusted 
gross income', when used with respect to a borrower, 
means--
``(i) in the case of an exempted borrower, 
the borrower's adjusted gross income (as such 
term is defined in section 62 of the Internal 
Revenue Code of 1986) of such borrower for the 
most recent taxable year; and
``(ii) in the case of a married borrower 
who is not an exempted borrower, the sum of the 
adjusted gross income (as such term is defined 
in section 62 of the Internal Revenue Code of 
1986) of the borrower and of the borrower's 
spouse for the most recent taxable year.
``(D) Exempted borrower.--The term `exempted 
borrower' means a borrower--
``(i) who is unmarried;
``(ii) who is married and files a Federal 
income tax return separately from the 
borrower's spouse; or
``(iii) who is married, files a Federal 
income tax return jointly with the borrower's 
spouse, and certifies at the time the borrower 
applies for a repayment plan or submits 
information for annual income verification 
that--
``(I) the borrower is separated 
from the borrower's spouse; or
``(II) the borrower is unable to 
reasonably assess the income of the 
borrower's spouse.
``(E) Qualifying payment.--The term `qualifying 
payment', when used with respect to a borrower, means 
any of the following:
``(i) An applicable monthly payment.
``(ii) A monthly payment made under the 
fixed repayment plan described in subsection 
(b).
``(iii) A monthly payment made under a 
repayment plan described in paragraph (1) of 
section 455(d).
``(iv) A payment under a repayment plan 
with payments that are as least as much as they 
would have been under a standard repayment plan 
for a term of 10 years consistent with 
subsection (a)(1) of section 455 and section 
428(b)(9)(A)(i), except that, in the case of a 
borrower who was moved by the Secretary to such 
a repayment plan due to the borrower's failure 
to submit information for annual income 
verification or their failure to provide other 
necessary information, no more than 12 payments 
made under such a repayment plan may be counted 
as qualifying payments.
``(v) A forbearance or deferment of an 
applicable monthly payment otherwise due under 
the Income-Driven Repayment Plan pursuant to 
any of the following:
``(I) Cancer treatment deferment 
under section 455(f)(3), section 
428(b)(1)(M)(v), or section 
427(a)(2)(C)(iv).
``(II) Rehabilitation training 
program deferment under section 
455(f)(2)(A)(ii), section 
428(b)(1)(M)(i)(II), or section 
427(a)(2)(C)(i)(II).
``(III) Deferment relating to a 
period of unemployment under section 
455(f)(2)(B) or section 
428(b)(1)(M)(ii).
``(IV) Deferment due to an economic 
hardship described in section 435(o), 
section 428(b)(1)(M)(iv), or section 
427(a)(2)(C)(iii).
``(V) Deferment provided in 
connection with services in the Peace 
Corps.
``(VI) Military service deferment 
under section 455(f)(2)(C) or section 
428(b)(1)(M)(iii).
``(VII) Post-active-duty student 
deferment under section 493D.
``(VIII) Forbearance provided under 
section 428(c)(3)(A)(i)(III) on or 
after July 1, 2024, because the 
borrower is serving in a national 
service position for which the borrower 
receives a national service educational 
award under the National and Community 
Service Trust Act of 1993 (42 U.S.C. 
12501 et seq.).
``(IX) National Guard Duty 
forbearance under section 
682.211(h)(2)(iii) or section 
685.205(a)(7) of title 34, Code of 
Federal Regulations (or successor 
regulations), on or after July 1, 2024.
``(X) Department of Defense student 
loan repayment program forbearance 
under section 428(c)(3)(A)(i)(IV) on or 
after July 1, 2024.
``(XI) Administrative forbearance 
or mandatory administrative forbearance 
under section 428(c)(3)(D) or section 
428H(e)(7) on or after July 1, 2024.
``(XII) Forbearance granted by the 
Secretary while the Secretary 
determines whether the borrower is 
eligible for the Secretary to discharge 
the borrower's liability on a loan due 
to the borrower's bankruptcy.
``(vi) A payment for any month in which the 
borrower was in a period of deferment or 
forbearance not described in clause (iv) (other 
than an in-school deferment) if such payment--
``(I) is made not later than 3 
years after such period of deferment or 
forbearance ended; and
``(II) is equal to or greater than 
the applicable monthly payment of the 
borrower.''.

SEC. 213. MAXIMUM REPAYMENT PERIOD FOR INCOME-CONTINGENT REPAYMENT AND 
INCOME-BASED REPAYMENT.

(a) ICR.--Section 455(e)(7)(B) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(e)(7)(B)) is further amended--
(1) by striking ``or'' at the end of clause (iv);
(2) by striking the period at the end of clause (v) and 
inserting a semicolon; and
(3) by adding at the end the following:
``(vi) makes payments under the Income-
Driven Repayment Plan under section 455A(c); or
``(vii) makes payments under the fixed 
repayment plan under section 455A(b);''.
(b) IBR.--Section 493C(b)(7)(B) of the Higher Education Act of 1965 
(20 U.S.C. 1098e(b)(7)(B)) is amended--
(1) in clause (iv), by striking ``or'';
(2) in clause (v), by adding ``or'' at the end; and
(3) by adding at the end the following:
``(vi) makes payments under the Income-
Driven Repayment Plan under section 455A(c); or
``(vii) makes payments under the fixed 
repayment plan under 455A(b);''.

SEC. 214. BORROWERS INELIGIBLE FOR LOANS.

(a) Ineligible Borrowers.--Section 484 of the Higher Education Act 
of 1965 (20 U.S.C. 1091) is amended--
(1) in subsection (a)(6), by striking ``if the'' and 
inserting ``if, in accordance with subsection (u), the''; and
(2) by adding at the end the following:
``(u) Ineligible Borrowers.--
``(1) In general.--The Secretary determines that a borrower 
is ineligible pursuant to subsection (a)(6) if, at the time the 
loan was made and without the knowledge of the institution of 
higher education or the Secretary, the borrower (or the student 
on whose behalf a parent borrowed) provided false or erroneous 
information, has been convicted of, or has pled nolo contendere 
or guilty to, a crime involving fraud in obtaining funds under 
this title, or took actions that caused the borrower or 
student--
``(A) to receive a loan for which the borrower is 
wholly or partially ineligible;
``(B) to receive interest benefits for which the 
borrower was ineligible; or
``(C) to receive loan proceeds for a period of 
enrollment for which the borrower was not eligible.
``(2) Demand letter.--
``(A) In general.--If the Secretary makes the 
determination described in paragraph (1), the Secretary 
shall send an ineligible borrower a demand letter that 
requires that, within 30 days from the date the letter 
is mailed, the borrower repay any principal amount for 
which the borrower is ineligible and any accrued 
interest, including interest subsidized by the 
Secretary, through the previous quarter.
``(B) Default.--If a borrower fails to comply with 
the demand letter described in paragraph (2), the 
borrower shall be in default on the entire loan.
``(3) Prohibition on consolidation.--A borrower may not 
consolidate a loan under this part for which the borrower is 
wholly or partially ineligible.''.

PART C--AUTOMATIC ENROLLMENT IN THE INCOME-DRIVEN REPAYMENT PLAN FOR 
CERTAIN BORROWERS

SEC. 221. NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR 
BORROWERS WHO ARE DELINQUENT ON LOANS.

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:
``(6) Notification and automatic enrollment procedures for 
borrowers who are delinquent on loans.--
``(A) Authority to obtain income information.--The 
Secretary shall establish and implement, with respect 
to any borrower described in subparagraph (B), 
procedures to--
``(i) 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;
``(ii) 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
``(iii) 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.
``(B) Borrower notification.--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:
``(i) 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.
``(ii) 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.
``(iii) 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.
``(iv) Clear and simple instructions on how 
to select the repayment plans.
``(v) An explanation that the Secretary 
shall take the actions under subparagraph (C) 
with respect to such borrower, if--
``(I) 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
``(II) 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.
``(vi) Instructions on updating the 
information of the borrower obtained under 
subparagraph (A).
``(C) Secretary's selection of a plan.--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--
``(i) enroll the borrower in such Income-
Driven Repayment Plan; and
``(ii) 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).''.

SEC. 222. NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR 
BORROWERS WHO ARE REHABILITATING DEFAULTED LOANS.

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:
``(7) Notification and automatic enrollment procedures for 
borrowers who are rehabilitating defaulted loans.--
``(A) Authority to obtain income information.--The 
Secretary shall establish and implement, with respect 
to any borrower who is rehabilitating a loan made under 
this part pursuant to section 428F(d), procedures to--
``(i) use return information of the 
borrower (and the borrower's spouse, if 
applicable) disclosed section 6103(l)(13) of 
the Internal Revenue Code of 1986, pursuant to 
approval provided under section 494, to obtain 
such information as is reasonably necessary 
regarding the income and family size of the 
borrower (and the borrower's spouse, if 
applicable);
``(ii) 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 obtain such 
information; and
``(iii) provide the borrower with an 
opportunity to update the return information so 
disclosed before the determination of income 
and family size of the borrower (and the 
borrower's spouse, if applicable) for purposes 
of this paragraph.
``(B) Borrower notification.--Not later than 30 
days after a borrower makes the 6th payment required on 
such loan pursuant to section 428F(d), the Secretary 
shall notify the borrower of the process under 
subparagraph (C) with respect to such loan.
``(C) Secretary's selection of plan.--With respect 
to each borrower who has made the 9th payment required 
on such loan pursuant to section 428F(d), the Secretary 
shall, as soon as practicable after such payment, carry 
out the procedures described in paragraph (6)(C) with 
respect to such loan.''.

SEC. 223. COVERED LOAN AND NON-COVERED LOAN DEFINED.

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:
``(8) Definitions.--In this subsection:
``(A) Covered loan.--The term `covered loan' 
means--
``(i) a loan made under this part;
``(ii) a loan purchased under section 459A; 
or
``(iii) a loan that has been assigned to 
the Secretary under subsection (c)(8) or 
(j)(3)(B) of section 428, or subsection 
(a)(1)(A)(ii) or (a)(1)(G) of section 428F.
``(B) Noncovered loan.--The term `noncovered loan' 
means a loan made, insured, or guaranteed under this 
title that is not a covered loan.''.

SEC. 224. AUTOMATIC RECERTIFICATION OF INCOME FOR INCOME-DRIVEN 
REPAYMENT PLANS.

(a) Income-Contingent Repayment Plans.--Section 455(e)(8)(A) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(e)(8)(A)) is amended--
(1) by striking ``and'' at the end of clause (ii);
(2) by redesignating clause (iii) as clause (iv);
(3) in clause (iv) (as so redesignated), by striking the 
period at the end and inserting ``; and''; and
(4) by inserting after clause (ii), the following:
``(iii) in the case of a borrower who has 
selected to repay a loan made under this part 
pursuant to an income contingent repayment plan 
that defines discretionary income in such a 
manner that the borrower would have a 
calculated monthly payment equal to $0, not 
require the borrower to provide the Secretary 
the information described in clause (i) or 
(ii), and ensure that the borrower will have a 
calculated monthly payment of $0; and''.
(b) Income-Based Repayment Plans.--Section 493C(c)(2)(B) of the 
Higher Education Act of 1965 (20 U.S.C. 1098e(c)(2)(B)) is amended by 
striking ``any loan made under part D (other than an excepted PLUS loan 
or excepted consolidation loan)'' and inserting ``any covered loan (as 
defined in section 455(d)(8))''.

SEC. 225. PROCEDURE AND REQUIREMENT FOR REQUESTING TAX RETURN 
INFORMATION FROM THE IRS.

Section 494(a) of the Higher Education Act of 1965 (20 U.S.C. 
1098h(a)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), in the matter preceding 
clause (i), by striking ``a loan under part D'' and 
inserting ``a covered loan (as defined in section 
455(d)(8)''; and
(B) in subparagraph (B), by striking ``a loan under 
part D'' and inserting ``a covered loan (as defined in 
section 455(d)(8))''; and
(2) by adding at the end the following:
``(4) Loan delinquency and rehabilitation.--
``(A) Borrowers delinquent on loans.--In the case 
of an individual who is a borrower of a loan made under 
this part and who is at least 31 days delinquent on 
such loan, the Secretary, with respect to such 
individual and any spouse of such individual, shall--
``(i) provide to such individuals the 
notification described in paragraph (1)(A)(i); 
and
``(ii) require, as a condition of 
eligibility for the notification and automatic 
enrollment procedures under section 455(d)(6), 
that such individuals--
``(I) affirmatively approve the 
disclosure described in paragraph 
(1)(A)(i) and agree that such approval 
shall serve as an ongoing approval of 
such disclosure until the date on which 
the individual elects to opt out of 
such disclosure under section 
455(d)(6)(A)(ii); or
``(II) provide such information as 
the Secretary may require to carry out 
the procedures under section 455(d)(6) 
with respect to such individual.
``(B) Loan rehabilitation.--In the case of any 
written or electronic application by an individual for 
the rehabilitation of a loan made under this part 
pursuant to section 428F(d), the Secretary, with 
respect to such individual and any spouse of such 
individual, shall--
``(i) provide to such individuals the 
notification described in paragraph (1)(A)(i); 
and
``(ii) require, as a condition of 
eligibility for loan rehabilitation pursuant to 
section 428F(a), that such individuals--
``(I) affirmatively approve the 
disclosure described in paragraph 
(1)(A)(i) and agree that such approval 
shall serve as an ongoing approval of 
such disclosure until the date on which 
the individual elects to opt out of 
such disclosure under section 
455(d)(7)(A)(ii); or
``(II) provide such information as 
the Secretary may require to carry out 
the procedures under section 455(d)(7) 
with respect to such individual.''.

PART D--STREAMLINING PUBLIC SERVICE LOAN FORGIVENESS

SEC. 231. AMENDMENTS TO TERMS AND CONDITIONS OF PUBLIC SERVICE LOAN 
FORGIVENESS.

(a) Number of Monthly Payments.--Paragraph (1) of section 455(m) of 
the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended--
(1) in the matter preceding subparagraph (A), by striking 
``a borrower who'' and inserting ``a borrower'';
(2) by amending subparagraph (A) to read as follows:
``(A) who--
``(i) has made 96 qualifying monthly 
payments on the eligible Federal Direct Loan 
after October 1, 2007; and
``(ii) has been employed in a public 
service job during the period in which the 
borrower makes each of the 96 qualifying 
monthly payments; and''; and
(3) by amending subparagraph (B) to read as follows:
``(B) without regard to the employment status of 
the borrower at the time of such cancellation.''.
(b) Redesignations.--Section 455(m) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(m)) is further amended by redesignating 
paragraphs (2), (3), and (4), as paragraphs (3), (6), and (7), 
respectively.
(c) Monthly Payments.--Section 455(m) of the Higher Education Act 
of 1965 (20 U.S.C. 1087e(m)) is further amended--
(1) by inserting after paragraph (1), as so amended, the 
following:
``(2) Monthly payments.--
``(A) Qualifying monthly payments.--For the purpose 
of determining under paragraph (1) the number of 
qualifying monthly payments made by a borrower on an 
eligible Federal Direct Loan, the Secretary shall 
consider the borrower to have made a qualifying monthly 
payment for each month that--
``(i) the borrower pays (as a lump sum or 
in multiple installments) an amount that is not 
less than the monthly payment amount due on the 
eligible Federal Direct Loan pursuant to any 
one or a combination of the following--
``(I) payments under an income-
based repayment plan under section 
493C;
``(II) payments under a standard 
repayment plan under subsection 
(d)(1)(A), based on a 10-year repayment 
period;
``(III) monthly payments under a 
repayment plan under subsection (d)(1) 
or (g) of not less than the monthly 
amount calculated under subsection 
(d)(1)(A), based on a 10-year repayment 
period;
``(IV) payments under an income 
contingent repayment plan under 
subsection (d)(1)(D);
``(V) payments under the Income-
Driven Repayment Plan under section 
455A(c); or
``(VI) payments under the fixed 
repayment plan under section 455A(b); 
or
``(ii) in lieu of a payment described in 
clause (i), the borrower is in one of the 
following periods of deferment or forbearance--
``(I) cancer treatment deferment 
under section 427(a)(2)(C)(iv), 
428(b)(1)(M)(v), or 455(f)(3);
``(II) rehabilitation training 
program deferment under section 
427(a)(2)(C)(i)(II), 
428(b)(1)(M)(i)(II), or 
455(f)(2)(A)(ii);
``(III) military service deferment 
under section 428(b)(1)(M)(iii) or 
455(f)(2)(C);
``(IV) unemployment deferment under 
section 427(a)(2)(C)(ii), 
428(b)(1)(M)(ii), 428B(d)(1)(A)(i), or 
455(f)(2)(B);
``(V) deferment due to an economic 
hardship described in section 
427(a)(2)(C)(iii), section 
428(b)(1)(M)(iv), section 
428B(d)(1)(A)(i), section 435(o), or 
section 455(f)(2)(D);
``(VI) Peace Corps service 
deferment under section 
682.210(b)(2)(ii) or 682.210(k) of 
title 34, Code of Federal Regulations 
(or successor regulations), as made 
applicable to Direct Loan borrowers 
under section 685.204(j) of such title 
34;
``(VII) post-active-duty student 
deferment under section 493D;
``(VIII) AmeriCorps forbearance 
under section 428(c)(3)(A)(i)(III);
``(IX) National Guard Duty 
forbearance under section 
682.211(h)(2)(iii) or 685.205(a)(7) of 
title 34, Code of Federal Regulations 
(or successor regulations);
``(X) Department of Defense student 
loan repayment program forbearance 
under section 428(c)(3)(A)(i)(IV);
``(XI) administrative forbearance 
or mandatory administrative forbearance 
under section 428(c)(3)(D) or 
428H(e)(7); or
``(XII) student loan debt burden 
forbearance under section 
428(c)(3)(A)(i)(II).
``(B) Prepayments.--
``(i) In general.--Subject to clause (ii), 
if, for any month, a borrower makes a 
qualifying monthly payment on an eligible 
Federal Direct Loan in an amount that exceeds 
the monthly payment amount due on such loan for 
such month, the Secretary shall--
``(I) if the excess amount is less 
than the monthly payment amount due for 
the subsequent month on such loan, 
apply the excess amount toward the 
monthly payment amount due for such 
subsequent month;
``(II) if the excess amount is 
equal to the monthly payment amount due 
for the subsequent month on such loan, 
treat the excess amount as the monthly 
payment for such subsequent month;
``(III) if the excess amount is 
greater than the monthly payment amount 
due for the subsequent month on such 
loan, but less than the total monthly 
payment amounts due for the 2 
subsequent months on such loan--
``(aa) treat the portion of 
the excess amount that covers 
the monthly payment amount due 
for the subsequent month as the 
monthly payment for such 
subsequent month; and
``(bb) apply the remainder 
of the excess amount toward the 
monthly payment amount due for 
the second subsequent month;
``(IV) if the excess amount is 
equal to or greater than the monthly 
payment amount due for the 2 subsequent 
months on such loan, but less than the 
total monthly payment amounts due for 
the 3 subsequent months on such loan--
``(aa) treat the portion of 
the excess amount that covers 
the monthly payment amounts due 
for the subsequent month and 
the second subsequent month as 
the monthly payments for such 
months; and
``(bb) apply any remainder 
of such excess amount toward 
the monthly payment amount due 
for the third subsequent month;
``(V) if the excess amount is equal 
to the monthly payment amounts due for 
the 3 subsequent months on such loan, 
treat the excess amount as the monthly 
payments for such months;
``(VI) if the excess amount is 
greater than the monthly payment 
amounts due for the 3 subsequent months 
on such loan--
``(aa) treat the portion of 
the excess amount that covers 
the monthly payment amounts due 
for the 3 subsequent months as 
the monthly payments for such 
months; and
``(bb) apply any remainder 
of such excess amount to the 
principal balance of the 
eligible Federal Direct loan; 
and
``(VII) notwithstanding subclauses 
(I) through (VI), if the borrower has a 
monthly payment amount due on such loan 
for such month that is equal to $0, 
apply any excess amount for such month 
to the principal balance of the 
eligible Federal Direct loan.
``(ii) Alternative application.--Prior to 
or at the time of making a payment that exceeds 
the monthly payment amount due on an eligible 
Federal Direct Loan for such month, a borrower 
may request that any excess amount for such 
month be applied to the principal balance of an 
eligible Federal Direct loan in lieu of such 
excess amount being applied in accordance with 
clause (i).
``(C) Buyback payment process.--
``(i) In general.--The Secretary shall 
establish a buyback payment process under which 
a qualified borrower of an eligible Federal 
Direct Loan may make a buyback payment in order 
to have eligible months of the borrower's 
public service employment period during which 
the borrower did not make a qualifying monthly 
payment on such loan be treated as if the 
borrower had made a qualifying monthly payment 
on such loan.
``(ii) Qualified borrower.--A borrower is a 
qualified borrower for the purposes of making a 
buyback payment in accordance with this 
subparagraph if the borrower--
``(I) has an eligible Federal 
Direct Loan that is not in default;
``(II) has been employed in a 
public service job for not less than a 
96 month employment period, but during 
such employment period has made fewer 
than 96 qualifying monthly payments on 
an eligible Federal Direct Loan; and
``(III) requests to make a buyback 
payment in accordance with this 
subparagraph.
``(iii) Eligible month.--For the purposes 
of this subparagraph, an eligible month means a 
month during which a qualified borrower was 
employed in a public service job, was not in an 
in-school deferment or grace period, and did 
not make a qualifying monthly payment on an 
eligible Federal Direct Loan for such month--
``(I) because the borrower made a 
monthly payment on such eligible 
Federal Direct Loan pursuant to a 
repayment plan that is not a qualifying 
repayment plan;
``(II) because the borrower was in 
a period of deferment or forbearance 
other than a period described in clause 
(ii) of subparagraph (A); or
``(III) for another reason 
determined appropriate by the 
Secretary.
``(iv) Buyback payment requirements.--A 
buyback payment made in accordance with this 
subparagraph--
``(I) shall be made by a qualified 
borrower as a lump sum payment amount, 
and in an amount that equals the total 
amount the borrower would have paid in 
qualifying monthly payments on the 
eligible Federal Direct Loan for all 
eligible months the borrower is 
requesting to buyback, pursuant to a 
qualifying repayment plan applicable to 
the borrower, in accordance with 
section 685.219(g)(6) of title 34, Code 
of Federal Regulations (as such section 
is in effect on the date of enactment 
of this paragraph) or any other 
relevant regulations in effect on such 
date;
``(II) may not be made with respect 
to an eligible Federal Direct Loan that 
has been paid off, discharged, or 
cancelled; and
``(III) with respect to an eligible 
Federal Direct Loan that is a 
consolidation loan, may not be used to 
buyback eligible months that occurred 
before the date of the consolidation of 
such loan.
``(D) Hold harmless against retroactive 
determinations.--For purposes of determining under 
paragraph (1) the number of qualifying monthly payments 
made by a borrower, any payment or period of deferment 
or forbearance that is determined to be a qualifying 
monthly payment may not, at a later time, be determined 
not to be a qualifying monthly payment.''; and
(2) in paragraph (6), as redesignated by subsection (b), by 
adding at the end the following:
``(C) Qualifying repayment plan.--The term 
`qualifying repayment plan' means any of the repayment 
plans listed in clause (i) of paragraph (2)(A).''.
(d) Loan Cancellation.--Paragraph (3) of section 455(m) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(m)), as redesignated by 
subsection (b), is amended to read as follows:
``(3) Loan cancellation amount.--Upon certification by a 
borrower of completion of 96 qualifying monthly payments by the 
borrower, the Secretary shall determine whether the borrower 
meets each of the requirements of paragraph (1), and--
``(A) if the Secretary determines that the borrower 
does meet such requirements, cancel the obligation to 
repay the balance of principal and interest due as of 
the time of such cancellation on the eligible Federal 
Direct Loans made to the borrower under this part, 
without further action by the borrower; or
``(B) if the Secretary determines that the borrower 
does not meet such requirements, notify the borrower of 
such determination in accordance with paragraph (4).''.
(e) Reconsideration Process.--Section 455(m) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(m)), as redesignated by 
subsection (b), is further amended by inserting after paragraph (3), as 
so amended, the following:
``(4) Initial determination of ineligibility for loan 
cancellation.--In a case in which the Secretary determines that 
a borrower has not met the requirements of paragraph (1), the 
Secretary shall--
``(A) notify the borrower that--
``(i) the borrower's application has been 
denied, including the basis for such denial;
``(ii) the borrower is in a 90-day 
forbearance period described in subparagraph 
(B); and
``(iii) the Secretary will resume 
collection of the eligible Federal Direct Loans 
for which the borrower was seeking loan 
cancellation under this subsection after such 
90-day forbearance period, unless the borrower 
opts to extend such forbearance period under 
paragraph (5)(A)(ii); and
``(B) grant the borrower a 90-day forbearance 
period, beginning on the date of the notice described 
in subparagraph (A) provided to the borrower, and 
during which--
``(i) payments of principal and interest 
need not be made on the eligible Federal Direct 
Loans for which the borrower was seeking loan 
cancellation under this subsection; and
``(ii) any interest accrued and not paid 
may not be capitalized.
``(5) Reconsideration process.--
``(A) Request for reconsideration.--Not later than 
90 days after the date of the notice described in 
paragraph (4)(A) provided to the borrower--
``(i) the borrower may request, on a form 
approved by the Secretary, that the Secretary 
reconsider the basis for the Secretary's denial 
under paragraph (4)(A)(i); and
``(ii) if the Secretary grants the 
borrower's reconsideration request, offer the 
borrower an extension of the 90-day forbearance 
period described in paragraph (4)(B), which 
shall--
``(I) begin on the date of the 
borrower's reconsideration request 
under this subparagraph; and
``(II) end on the date of the 
notice provided to the borrower under 
subparagraph (C)(i)(I) of the 
Secretary's reconsideration decision.
``(B) Consideration of reconsideration request.--In 
evaluating a reconsideration request from a borrower, 
the Secretary shall consider any relevant evidence or 
supporting documentation that may assist the Secretary 
in determining whether the borrower meets each of the 
requirements of paragraph (1) to qualify for loan 
cancellation under this subsection.
``(C) Decision by the secretary.--
``(i) In general.--Not later than 6 months 
after receipt of a borrower's reconsideration 
request, the Secretary shall--
``(I) notify the borrower of the 
reconsideration decision and the reason 
for the Secretary's determination;
``(II) in a case in which the 
reconsideration request is granted, 
adjust the borrower's number of 
qualifying monthly payments under 
paragraph (1) or cancel the loan under 
paragraph (3); and
``(III) in a case in which the 
Secretary denies the reconsideration 
request, with respect to a borrower who 
agrees to the forbearance extension 
described in subparagraph (A)(ii), 
include in the notice provided to the 
borrower under subclause (I), a 
reminder that the Secretary will resume 
collection of the eligible Federal 
Direct Loans for which the borrower was 
seeking loan cancellation under this 
subsection as of the date of such 
notice.
``(ii) Final decision.--After the Secretary 
makes a decision on the borrower's 
reconsideration request, the Secretary's 
decision is final, and the borrower will not 
receive additional reconsideration.''.

SEC. 232. TERMS AND CONDITIONS OF EMPLOYMENT.

(a) Independent Contractors.--Section 455(m) is further amended by 
adding at the end the following:
``(8) Treatment of independent contractors.--For purposes 
of this subsection, each reference to `employment' and 
`employed' shall be treated as including work as an independent 
contractor.''.
(b) Definitions.--Paragraph (6) of section 455(m) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(m)), as redesignated by section 
231(b), is further amended by adding at the end the following:
``(D) Full-time.--The term `full-time' means, with 
respect to a public service job, working 1 or more such 
jobs--
``(i) a minimum average of 30 hours per 
week during the period being certified;
``(ii) a minimum of 30 hours per week 
throughout a contractual or employment period 
of at least 8 months in a 12-month period; and
``(iii) with respect to an individual who 
is in nontenure track employment at an 
institution of higher education, the equivalent 
of 30 hours per week as determined by 
multiplying each credit or contact hour taught 
by such individual per week by a number to be 
determined by the Secretary.
``(E) Independent contractor.--The term 
`independent contractor' means an individual who is not 
an employee and who is working in a public service job 
in a position or providing services which, under 
applicable State law, cannot be filled or provided by 
an employee of the public service job.''.

SEC. 233. ONLINE PORTAL AND DATABASE OF PUBLIC SERVICE JOBS.

Section 455(m) of the Higher Education Act of 1965 is further 
amended by adding at the end the following:
``(9) Online portal and database of public service jobs.--
``(A) Online portal.--
``(i) Borrowers.--The Secretary shall 
establish an online portal that provides to 
borrowers of eligible Federal Direct Loans the 
following information:
``(I) Instructions on how to access 
the database established under 
subparagraph (B) so that the borrower 
can determine whether the borrower is 
employed in a public service job.
``(II) An identification of the 
loans of the borrower that are eligible 
Federal Direct Loans, and an 
identification of the qualifying 
repayment plans for which such eligible 
Federal Direct Loans qualify.
``(III) With respect to each such 
eligible Federal Direct Loan--
``(aa) the number of 
qualifying monthly payments the 
borrower has made in accordance 
with paragraph (1); and
``(bb) the estimated number 
of qualifying monthly payments 
under such paragraph remaining 
on such loan before the 
borrower may be eligible for 
loan cancellation under this 
subsection.
``(IV) With respect to each loan of 
the borrower that is not eligible for 
loan cancellation under paragraph (3) 
of this subsection, an explanation of 
why the loan is not so eligible and 
instructions on how what, if anything, 
the borrower may do to make the loan so 
eligible.
``(V) Instructions for the 
submission of any forms associated with 
such loan cancellation, and an ability 
for the borrower to use the portal to 
electronically sign and submit such 
forms.
``(VI) In a case in which a 
borrower submits to the Secretary an 
application for loan cancellation under 
this subsection that is denied by the 
Secretary--
``(aa) a notice of such 
denial that meets each of the 
requirements of paragraph 
(4)(A), including an 
explanation of the 90-day 
forbearance period;
``(bb) a form that meets 
each of the requirements of 
paragraph (5)(A), which the 
borrower may use to request 
reconsideration of such denial, 
including accepting an 
extension of the 90-day 
forbearance period; and
``(cc) a notice of the 
Secretary's reconsideration 
decision, which meets each of 
the requirements of paragraph 
(5)(C).
``(VII) An explanation of the 
buyback payment process described in 
paragraph (2)(C), and a form to request 
such a buyback, including the eligible 
months for which the borrower may 
request a buyback, and the amount that 
the borrower would be required to pay 
for such buyback.
``(VIII) An explanation of how 
consolidating one or more Direct Loans 
into a Direct Consolidation Loan, 
including a Direct PLUS Loan made to a 
parent borrower, will affect the number 
of qualifying monthly payments 
attributed to the borrower.
``(ii) Appropriate contacts.--The Secretary 
shall ensure that an appropriate contact for a 
public service job of a borrower has the option 
to electronically sign and submit any forms 
associated with loan cancellation under 
paragraph (3) of this subsection.
``(iii) Information.--The Secretary shall 
ensure that any information provided through 
the online portal described in this 
subparagraph contains up-to-date information.
``(B) Database of public service jobs.--
``(i) In general.--The Secretary, in 
consultation with the Secretary of Labor, shall 
establish and regularly update a database that 
lists public service jobs.
``(ii) Public availability.--The database 
established under clause (i) shall be made 
available on a publicly accessible website of 
the Department of Education in an easily 
searchable format.''.

SEC. 234. TREATMENT OF CONSOLIDATED AND REFINANCED LOANS.

Section 455(m)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)(2)), as amended by the preceding provisions of this Act, is 
further amended by inserting after subparagraph (D) the following:
``(E) Determination of number of qualifying monthly 
payments for consolidation loans.--With respect to 
determining the number of qualifying monthly payments 
for a borrower seeking loan forgiveness under this 
subsection who consolidates one or more Direct Loans 
into a Direct Consolidation Loan, including a Direct 
PLUS Loan made to a parent borrower, the Secretary 
shall use the weighted average of the payments the 
borrower made on the Direct Loans prior to 
consolidating that met the criteria under this 
subsection.''.

SEC. 235. LOAN FORGIVENESS FOR TEACHERS.

(a) In General.--The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is further amended--
(1) in section 428J(g)(2) (20 U.S.C. 1078-10(g)(2))--
(A) in subparagraph (A), by inserting ``or'' after 
the semicolon at the end;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as 
subparagraph (B); and
(2) in section 460(g)(2) (20 U.S.C. 1087j(g)(2))--
(A) in subparagraph (A), by inserting ``or'' after 
the semicolon at the end;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as 
subparagraph (B).
(b) Conforming Amendment.--Section 455(m)(7) of the Higher 
Education Act of 1965, as redesignated by section 231(b) of this Act, 
is amended by striking ``section 428J, 428K, 428L, or 460'' and 
inserting ``section 428K or 428L''.

SEC. 236. GAO STUDY ON DATA MATCHING AGREEMENTS FOR PUBLIC SERVICE LOAN 
FORGIVENESS.

(a) In General.--The Comptroller General of the United States shall 
conduct a study on the feasibility of establishing data matching 
agreements for public service loan forgiveness under section 455(m) of 
the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) that would allow 
a borrower to forego requesting certification of employment from the 
appropriate contact for the public service job of the borrower. The 
study shall include an examination of the Department of Education and 
the Department of Defense's progress towards automatic data matching 
for military and veteran borrowers.
(b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit a report to the 
Committee on Education and Workforce of the House of Representatives 
and the Committee on Health, Education, Labor, and Pensions of the 
Senate containing the findings and recommendations resulting from the 
study required under subsection (a).
(c) Cooperation.--The head of each relevant Federal agency, 
including the Secretary of Education, Secretary of Defense, and 
Commissioner of Internal Revenue, shall cooperate with the Comptroller 
General to facilitate the completion of the study required under 
subsection (a).

PART E--SUPPORT FOR BORROWERS IN DEFAULT

SEC. 241. REMOVAL OF RECORD OF DEFAULT.

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.), as amended by this Act, is further amended by adding at 
the end the following:

``SEC. 494C. REMOVAL OF RECORD OF DEFAULT.

``Upon repaying in full the amount due on a defaulted loan made, 
insured, or guaranteed under this title, the Secretary, guaranty 
agency, or other holder of the loan shall request any consumer 
reporting agency to which the Secretary, guaranty agency, or holder, as 
applicable, reported the default of the loan, to remove any adverse 
item of information relating to such loan from the borrower's credit 
history.''.

SEC. 242. REMOVAL OF RECORD OF DEFAULT FROM CREDIT HISTORY UPON LOAN 
CONSOLIDATION.

Section 455(g) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(g)) is amended by adding at the end the following:
``(3) Consumer reporting agencies.--Upon obtaining a 
Federal Direct Consolidation Loan that discharges the liability 
on a defaulted loan made, insured, or guaranteed under this 
title, the Secretary, guaranty agency, or other holder of the 
loan shall request any consumer reporting agency to which the 
Secretary, guaranty agency or holder, as applicable, reported 
the default of the loan, to remove any adverse item of 
information relating to such loan from the borrower's credit 
history.''.

SEC. 243. DEFAULT REDUCTION PROGRAM.

Section 428F of the Higher Education Act of 1965 (20 U.S.C. 1078-
6(a)) is amended by adding at the end the following:
``(d) Default Reduction Program.--Notwithstanding subsection (a), 
beginning on July 1, 2026, with respect to a defaulted loan made, 
insured, or guaranteed under this part or part D, the following shall 
apply:
``(1) Rehabilitation authorized.--
``(A) In general.--Such a defaulted loan (other 
than a loan described in subparagraph (B)) shall be 
rehabilitated if the borrower makes 9 voluntary, 
reasonable and affordable monthly payments within 20 
days of the due date during 10 consecutive months. The 
Secretary determines the amount of a borrower's 
reasonable and affordable payment on the basis of a 
borrower's total financial circumstances.
``(B) Ineligible loans.--A defaulted loan may not 
be eligible for rehabilitation under this subsection 
if--
``(i) a judgment has been obtained on such 
loan; or
``(ii) such loan has been obtained by fraud 
for which the borrower has been convicted of, 
or has pled nolo contendere or guilty to, a 
crime involving fraud in obtaining financial 
assistance under this title.
``(C) Limitation on borrower.--A borrower may 
obtain the benefits available under this subsection 
with respect to rehabilitating a loan not more than two 
times per loan.
``(D) Limitation on the secretary.--During the 
rehabilitation period described in this paragraph, the 
Secretary shall limit contact with the borrower on the 
loan being rehabilitated to collection activities that 
are required by law or regulation and to communications 
that support the rehabilitation.
``(2) Determination of reasonable and affordable payment.--
``(A) In general.--Subject to subparagraphs (A) 
through (H), the Secretary shall consider the 
borrower's reasonable and affordable payment amount to 
be an amount equal to the minimum payment required 
under the Income-Driven Repayment Plan, except that if 
such amount is less than $5, the borrower's monthly 
payment shall be $5.
``(B) Documentation requirement.--The Secretary may 
calculate the payment amount based on information 
provided orally by the borrower or the borrower's 
representative and provide the borrower with a 
rehabilitation agreement using that amount. The 
Secretary requires the borrower to provide 
documentation to confirm the borrower's adjusted gross 
income and family size. If the borrower does not 
provide the Secretary with any documentation requested 
by the Secretary to calculate or confirm the reasonable 
and affordable payment amount within a reasonable time 
deadline set by the Secretary, the rehabilitation 
agreement provided is null and void. A borrower may 
request that the monthly payment amount be adjusted due 
to a change in the borrower's total financial 
circumstances only upon providing the documentation 
specified in paragraph (3).
``(C) Prohibitions.--For purposes of subparagraph 
(A), a reasonable and affordable payment amount shall 
not--
``(i) be a required minimum loan payment 
amount if the Secretary determines that a 
smaller amount is reasonable and affordable;
``(ii) a percentage of the borrower's total 
loan balance; or
``(iii) based on other criteria unrelated 
to the borrower's total financial 
circumstances.
``(D) Rehabilitation payment agreement.--
``(i) In general.--Not later than 15 
business days of the Secretary's determination 
of the borrower's loan rehabilitation payment 
amount, the Secretary shall provide the 
borrower with a written rehabilitation 
agreement which shall include--
``(I) the borrower's reasonable and 
affordable payment amount, a prominent 
statement that the borrower may object 
orally or in writing to the reasonable 
and affordable payment amount with the 
method and timeframe for raising such 
an objection;
``(II) a statement that the 
rehabilitation is null and void if the 
borrower does not provide the 
documentation required to calculate the 
reasonable and affordable payment 
amount;
``(III) an explanation of any other 
terms and conditions applicable to the 
required series of payments that must 
be made; and
``(IV) information on the effects 
of having the loans rehabilitated.
``(ii) Acceptance by the borrower.--To 
accept the agreement, the borrower shall sign 
and return the agreement or accept the 
agreement electronically under a process 
provided by the Secretary.
``(iii) Prohibition.--The Secretary may not 
impose any other conditions unrelated to the 
amount or timing of the rehabilitation payments 
in the rehabilitation agreement.
``(E) Statement confirming reasonable and 
affordable payment amount.--The Secretary shall provide 
the borrower with a written statement that--
``(i) confirms the borrower's reasonable 
and affordable payment amount, as determined by 
the Secretary;
``(ii) explains any other terms and 
conditions applicable to the required series of 
payments that shall be made before the 
borrower's account can be rehabilitated;
``(iii) informs the borrower that the 
borrower may object to the terms and conditions 
of the rehabilitation agreement; and
``(iv) explains the method and timeframe 
for objecting to the terms and conditions of 
the rehabilitation agreement.
``(F) Objection by borrower.--If the borrower 
objects to the monthly payment amount described in the 
statement under subparagraph (E), the Secretary shall 
recalculate the payment based solely on information 
provided on a form approved by the Secretary and, if 
requested, supporting documentation from the borrower 
and other sources, and shall consider each of the 
following:
``(i) The borrower's, and if applicable, 
the spouse's current disposable income, 
including public assistance payments, and other 
income received by the borrower and the spouse, 
such as welfare benefits, Social Security 
benefits, Supplemental Security Income, and 
workers' compensation. Spousal income is not 
considered if the spouse does not contribute to 
the borrower's household income.
``(ii) Family size.
``(iii) Reasonable and necessary expenses, 
which shall include--
``(I) Food.
``(II) Housing.
``(III) Utilities.
``(IV) Basic communication 
expenses.
``(V) Necessary medical and dental 
costs.
``(VI) Necessary insurance costs.
``(VII) Transportation costs.
``(VIII) Dependent care and other 
work-related expenses.
``(IX) Legally required child and 
spousal support.
``(X) Other student loan payments 
for loans made, insured, or guaranteed 
under this title, or any other Federal 
law.
``(XI) Other expenses approved by 
the Secretary.
``(G) New rehabilitation agreement.--The Secretary 
shall provide the borrower with a new written 
rehabilitation agreement confirming the borrower's 
recalculated reasonable and affordable payment amount. 
To accept the agreement, the borrower must sign and 
return the agreement or accept the agreement 
electronically under a process provided by the 
Secretary.
``(H) Change in circumstances.--A borrower may 
request that the monthly payment amount be adjusted due 
to a change in the borrower's total financial 
circumstances only upon providing the documentation 
specified in subparagraph (F).
``(3) Administrative wage garnishment.--
``(A) In general.--If a borrower's loan is being 
collected by administrative wage garnishment while the 
borrower is also making monthly payments on the same 
loan under a loan rehabilitation agreement, the 
Secretary shall continue collecting the loan by 
administrative wage garnishment until the borrower 
makes five qualifying monthly payments under the 
rehabilitation agreement, unless the Secretary is 
otherwise precluded from doing so.
``(B) Suspension.--After the borrower makes the 
fifth qualifying monthly payment, the Secretary, unless 
otherwise directed by the borrower, suspends the 
garnishment order issued to the borrower's employer.
``(C) Limitation.--A borrower may only obtain the 
benefit of a suspension of administrative wage 
garnishment while also attempting to rehabilitate a 
defaulted loan once.
``(4) Instruction to consumer reporting agency.--If a 
defaulted loan is rehabilitated, the Secretary shall instruct 
any consumer reporting agency to which the default was reported 
to remove the default, and any adverse item of information 
relating to such loan, from the borrower's credit history.
``(e) Removal From Default.--Beginning on July 1, 2026, the 
Secretary shall not consider a borrower in default on a loan if--
``(1) the borrower provides information necessary to 
calculate a payment under an income-contingent or income-based 
repayment plan under this part or;
``(2) the payment calculated pursuant to such a repayment 
plan is $0; and
``(3) the income information used to calculate such payment 
covers the date on which the loan defaulted.''.

TITLE III--INTEREST CAPITALIZATION

SEC. 301. ELIMINATION OF INTEREST CAPITALIZATION.

(a) Federal PLUS Loans.--Section 428B(d)(2) of the Higher Education 
Act of 1965 (20 U.S.C. 1078-2(d)(2)) is amended to read as follows:
``(2) No capitalization of interest.--Interest on loans 
made under this section for which payments of principal are 
deferred pursuant to paragraph (1) shall be paid by the 
borrower and shall not be capitalized.''.
(b) Federal Consolidation Loans Deferrals.--Section 
428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 (20 U.S.C. 
1078-3(b)(4)(C)(III)) is amended by striking ``or capitalized,''.
(c) Default Reduction Program.--Section 428F(a)(1)(E) of such Act 
of 1965 (20 U.S.C. 1078-6(a)(1)(E)) is amended to read as follows:
``(E) Duties upon assignment.--With respect to a 
loan assigned under subparagraph (A)(ii)--
``(i) the guaranty agency shall add to the 
principal and interest outstanding at the time 
of the assignment of such loan an amount equal 
to the amount described in subparagraph 
(D)(i)(II)(aa);
``(ii) the Secretary shall pay the guaranty 
agency, for deposit in the agency's Operating 
Fund established pursuant to section 422B, an 
amount equal to the amount added to the 
principal and interest outstanding at the time 
of the assignment in accordance with clause 
(i);
``(iii) for a loan assigned on or after the 
date of enactment of the LOAN Act, the interest 
outstanding at the time of the assignment of 
such loan, and any interest accruing after such 
time, shall not be capitalized; and
``(iv) beginning on the date of enactment 
of LOAN Act, interest shall only accrue on the 
percentage of such a loan that is equal to--
``(I) the amount of the outstanding 
principal on the original loan on the 
date it was assigned; divided by
``(II) the total amount of such 
assigned loan, including interest 
outstanding at the time of the 
assignment of such loan and the amount 
added by the guaranty agency in 
accordance with clause (i), on the date 
such loan was assigned.''.
(d) Loan Limits for Unsubsidized Stafford Loans.--Section 
428H(d)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-8(d)(5)) 
is amended by inserting ``before the date of enactment of the LOAN 
Act'' after ``Interest capitalized''.
(e) Unsubsidized Stafford Loans for Middle Income Borrowers.--
Section 428H(e)(2) of the Higher Education Act of 1965 (20 U.S.C. 1078-
8(e)(2)) is amended--
(1) in the header, by striking ``Capitalization'' and 
inserting ``No capitalization'';
(2) in subparagraph (A), in the matter before clause (i), 
by striking ``, if agreed upon by the borrower and the lender'' 
and all that follows through clause (ii)(IV) and inserting ``be 
paid by the borrower and shall not be capitalized.'';
(3) by striking subparagraph (B); and
(4) by redesignating subparagraph (C) as subparagraph (B).
(f) Income Contingent Repayment.--Section 455(e)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(e)(5)) is amended by striking 
the last sentence and inserting ``No interest may be capitalized on 
such loan on or after the date of the enactment of the LOAN Act, and 
the Secretary shall promulgate regulations with respect to the 
treatment of accrued interest that is not capitalized''.
(g) Deferment and Forbearance.--
(1) In general.--Section 455(f) of the Higher Education Act 
of 1965 (20 U.S.C. 1087e(f)) is amended--
(A) in the subsection heading, by inserting at the 
end the following: ``and Forbearance'';
(B) in subparagraph (B), by striking ``capitalized 
or''; and
(C) by adding at the end the following:
``(6) Forbearance.--At the expiration of a period of 
forbearance, interest shall not be capitalized on any loans 
made under this part.''.
(2) Application of amendment.--The amendments made by 
paragraph (1) shall apply to any deferment or forbearance 
period in effect on the date of enactment of this Act, or any 
deferment or forbearance period beginning on or after such date 
of enactment.
(h) Income-Based Repayment Program.--Section 493C(b)(3) of the 
Higher Education Act of 1965 (20 U.S.C. 1098e(b)(3)) is amended to read 
as follows:
``(3) on subsidized loans, any interest due and not paid 
under paragraph (2) shall be paid by the Secretary for a period 
of not more than 3 years after the date of the borrower's 
election under paragraph (1), except that such period shall not 
include any period during which the borrower is in deferment 
due to an economic hardship described in section 435(o);''.
(i) Notes and Insurance Certificates in Combined Payment Plans.--
Section 485A(f) of the Higher Education Act of 1965 (20 U.S.C. 
1092a(f)) is amended by adding at the end the following new paragraph:
``(3) Treatment of interest.--Not withstanding paragraphs 
(1) and (2), beginning on the date of enactment of the LOAN 
Act, interest on a loan reissued under subsection (e) shall not 
be capitalized, and interest shall only accrue on the 
percentage of such reissued loan that is equal to--
``(A) the amount of the outstanding principal on 
the original loan on the date it was reissued; divided 
by
``(B) the total amount of such reissued loan on the 
date such loan was reissued.''.

SEC. 302. ELIMINATION OF DISCLOSURE REQUIREMENTS RELATING TO 
CAPITALIZATION.

(a) Insurance Program Agreements To Qualify Loans for Interest 
Subsidies.--Section 428(b)(1)(Y) of the Higher Education Act of 1965 
(20 U.S.C. 1078(b)(1)(Y)) is amended--
(1) in clause (i)(IV), by inserting ``and'' after the 
semicolon;
(2) in clause (ii), by striking ``; and'' and inserting a 
period; and
(3) by striking clause (iii).
(b) Forbearance.--Section 428(c)(3)(C) of such Act of 1965 (20 
U.S.C. 1078(c)(3)(C)) is amended--
(1) in clause (ii), by inserting ``and'' after the 
semicolon; and
(2) by striking clauses (iii) and (iv) and inserting the 
following:
``(iii) the lender shall contact the 
borrower not less often than once every 180 
days during the period of forbearance to inform 
the borrower of--
``(I) the amount of unpaid 
principal and the amount of interest 
that has accrued since the last 
statement of such amounts provided to 
the borrower by the lender;
``(II) the fact that interest will 
accrue on the loan for the period of 
forbearance;
``(III) the responsibility of the 
borrower to pay the interest that has 
accrued; and
``(IV) the borrower's option to 
discontinue the forbearance at any 
time; and''.
(c) Required Disclosure Before Disbursement.--Section 433(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1083(a)) is amended--
(1) by amending paragraph (6) to read as follows:
``(6) for loans made under section 428H or to a student 
borrower under section 428B, an explanation that the borrower 
has the option to pay the interest that accrues on the loan 
while the borrower is a student at an institution of higher 
education;''; and
(2) in paragraph (7)--
(A) in subparagraph (A), by inserting ``and'' after 
the semicolon;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as 
subparagraph (B).
(d) Required Disclosure Before Repayment.--Section 433(b)(3) of the 
Higher Education Act of 1965 (20 U.S.C. 1083(b)(3)) is amended by 
striking ``(including, if applicable, the estimated amount of interest 
to be capitalized)''.
(e) Special Disclosure Rules on PLUS Loans and Unsubsidized 
Loans.--Section 433(d) of the Higher Education Act of 1965 (20 U.S.C. 
1083(d)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``resulting from capitalization of 
interest''; and
(B) by striking ``borrower of--'' and inserting 
``borrower of paying the interest as the interest 
accrues.''; and
(2) by striking paragraphs (1) and (2).
(f) Disclosure Required Prior to Perkins Repayment.--Section 
463A(b)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087cc-
1(b)(3)) is amended by striking ``(including, if applicable, the 
estimated amount of interest to be capitalized)''.
(g) Departmental Publication of Descriptions of Assistance 
Programs.--Section 485(d)(1) of the Higher Education Act of 1965 (20 
U.S.C. 1092(d)(1)) is amended by striking ``, including the increase in 
debt that results from capitalization of interest''.
(h) Information To Be Provided During Entrance Counseling for 
Borrowers.--Section 485(l)(2)(C) of the Higher Education Act of 1965 
(20 U.S.C. 1092(l)(2)) is amended by striking ``and is capitalized''.

TITLE IV--INTEREST RATES

SEC. 401. INTEREST RATE PROVISIONS FOR NEW FEDERAL STUDENT LOANS ON OR 
AFTER JULY 1, 2026.

Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)) is amended--
(1) in paragraph (8)--
(A) in the paragraph heading, by inserting ``, and 
before july 1, 2026'' before the period; and
(B) by inserting ``and before July 1, 2026,'' after 
``July 1, 2013,'' each place it appears;
(2) by redesignating paragraphs (9) and (10) as paragraphs 
(10) and (11), respectively; and
(3) by inserting after paragraph (8) the following new 
paragraph:
``(9) Interest rate provisions for new loans on or after 
july 1, 2026.--
``(A) Rate for fdsl, fdusl, and plus loans.--
Notwithstanding the preceding paragraphs of this 
subsection, for Federal Direct Stafford Loans, Federal 
Direct Unsubsidized Stafford Loans, and Federal Direct 
PLUS Loans, for which the first disbursement is made on 
or after July 1, 2026, the applicable rate of interest 
shall, for loans disbursed during any 12-month period 
beginning on July 1 and ending on June 30, be 
determined on the preceding June 1 and be equal to the 
lesser of--
``(i) a rate equal to the high yield of the 
10-year Treasury note auctioned at the final 
auction held prior to such June 1; or
``(ii) 5.0 percent.
``(B) Consolidation loans.--Notwithstanding the 
preceding paragraphs of this subsection, any Federal 
Direct Consolidation Loan for which the application is 
received on or after July 1, 2026, shall--
``(i) bear interest at an annual rate on 
the unpaid principal balance of the loan that 
is equal to the lesser of--
``(I) the weighted average of the 
interest rates on the loans 
consolidated, rounded to the nearest 
higher one-eighth of one percent; or
``(II) 5.0 percent; and
``(ii) only accrue interest on the 
percentage of such Federal Direct Consolidation 
Loan that is equal to--
``(I) the amount of the sum of the 
unpaid principal on the loans 
consolidated; divided by
``(II) the total amount of such 
Federal Direct Consolidation Loan.
``(C) Consultation.--The Secretary shall determine 
the applicable rate of interest under this paragraph 
after consultation with the Secretary of the Treasury 
and shall publish such rate in the Federal Register as 
soon as practicable after the date of determination.
``(D) Fixed rate.--The applicable rate of interest 
determined under this paragraph for a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Stafford 
Loan, a Federal Direct PLUS Loan, or a Federal Direct 
Consolidation Loan shall be fixed for the period of the 
loan.''.

SEC. 402. REFINANCING FFEL AND FEDERAL DIRECT LOANS.

Part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.) is amended by adding at the end the following:

``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.

``(a) In General.--The Secretary shall establish a program under 
which the Secretary, upon the receipt of an application from a 
qualified borrower, makes a loan under this part, in accordance with 
the provisions of this section, in order to permit the borrower to 
obtain the interest rate provided under subsection (c).
``(b) Refinancing Direct Loans.--
``(1) Federal direct loans.--Upon application of a 
qualified borrower, the Secretary shall repay a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a 
Federal Direct PLUS Loan, or a Federal Direct Consolidation 
Loan of the qualified borrower, for which the first 
disbursement was made, or the application for the consolidation 
loan was received, before July 1, 2026, with the proceeds of a 
refinanced Federal Direct Stafford Loan, a Federal Direct 
Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a 
Federal Direct Consolidation Loan, respectively, issued to the 
borrower in an amount equal to the sum of the unpaid principal, 
accrued unpaid interest, and late charges of the original loan.
``(2) Refinancing ffel program loans as refinanced federal 
direct loans.--Upon application of a qualified borrower for any 
loan that was made, insured, or guaranteed under part B and for 
which the first disbursement was made, or the application for 
the consolidation loan was received, before July 1, 2010, the 
Secretary shall make a loan under this part, in an amount equal 
to the sum of the unpaid principal, accrued unpaid interest, 
and late charges of the original loan to the borrower in 
accordance with the following:
``(A) The Secretary shall pay the proceeds of such 
loan to the eligible lender of the loan made, insured, 
or guaranteed under part B, in order to discharge the 
borrower from any remaining obligation to the lender 
with respect to the original loan.
``(B) A loan made under this section that was 
originally--
``(i) a loan originally made, insured, or 
guaranteed under section 428 shall be a Federal 
Direct Stafford Loan;
``(ii) a loan originally made, insured, or 
guaranteed under section 428B shall be a 
Federal Direct PLUS Loan;
``(iii) a loan originally made, insured, or 
guaranteed under section 428H shall be a 
Federal Direct Unsubsidized Stafford Loan; and
``(iv) a loan originally made, insured, or 
guaranteed under section 428C shall be a 
Federal Direct Consolidation Loan.
``(C) The interest rate for each loan made by the 
Secretary under this paragraph shall be the rate 
provided under subsection (c).
``(c) Interest Rates.--
``(1) In general.--The interest rate for the refinanced 
Federal Direct Stafford Loans, Federal Direct Unsubsidized 
Stafford Loans, Federal Direct PLUS Loans, and Federal Direct 
Consolidation Loans, shall be a rate equal to--
``(A) in any case where the original loan was a 
loan under section 428, 428B, 428H, a Federal Direct 
Stafford loan, a Federal Direct Unsubsidized Stafford 
Loan, or a Federal Direct PLUS Loan, a rate equal to 
the interest rate determined under section 455(b)(9)(A) 
for the date on which the refinanced loan is made; and
``(B) in any case where the original loan was a 
loan under section 428C or a Federal Direct 
Consolidation Loan, a rate calculated in accordance 
with paragraph (2).
``(2) Interest rates for consolidation loans.--
``(A) Method of calculation.--In order to determine 
the interest rate for any refinanced Federal Direct 
Consolidation Loan under paragraph (1)(B), the 
Secretary shall--
``(i) determine each of the component loans 
that were originally consolidated in the loan 
under section 428C or the Federal Direct 
Consolidation Loan, and calculate the 
proportion of the unpaid principal balance of 
the loan under section 428C or the Federal 
Direct Consolidation Loan that each component 
loan represents;
``(ii) use the proportions determined in 
accordance with clause (i) and the interest 
rate applicable for each component loan, as 
determined under subparagraph (B), to calculate 
the weighted average of the interest rates on 
the loans consolidated into the loan under 
section 428C or the Federal Direct 
Consolidation Loan; and
``(iii) make the applicable interest rate 
for the refinanced Federal Direct Consolidation 
Loan the lesser of--
``(I) the weighted average 
calculated under clause (ii); or
``(II) 5.0 percent.
``(B) Interest rates for component loans.--The 
interest rates for the component loans of a loan made 
under section 428C or a Federal Direct Consolidation 
Loan shall be the following:
``(i) The interest rate for any loan under 
section 428, 428B, 428H, Federal Direct 
Stafford Loan, Federal Direct Unsubsidized 
Stafford Loan, or Federal Direct PLUS Loan 
shall be a rate equal to the lesser of--
``(I) the interest rate determined 
under section 455(b)(9)(A) for the date 
on which the component loan is made; or
``(II) the original interest rate 
of the component loan.
``(ii) The interest rate for any component 
loan that is a loan under section 428C or a 
Federal Direct Consolidation Loan shall be the 
lesser of--
``(I) the weighted average of the 
interest rates that would apply under 
this subparagraph for each loan 
comprising the component consolidation 
loan; or
``(II) 5 percent.
``(iii) The interest rate for any eligible 
loan that is a component of a loan made under 
section 428C or a Federal Direct Consolidation 
Loan and is not described in clauses (i) or 
(ii) shall be the lesser of--
``(I) the interest rate on the 
original component loan; or
``(II) 5 percent.
``(3) Fixed rate.--The applicable rate of interest 
determined under paragraph (1) for a refinanced loan under this 
section shall be fixed for the period of the loan.
``(4) Capitalized interest and fees excluded.--With respect 
to a refinanced loan under this section, interest shall only 
accrue on the percentage of such refinanced loan that is equal 
to--
``(A) the amount of the unpaid principal of the 
original loan, or in the case of a refinanced Federal 
Direct Consolidation Loan, the sum of the unpaid 
principal of all the component loans, comprising the 
refinanced loan; divided by
``(B) the total amount of such refinanced loan.
``(d) Terms and Conditions of Loans.--
``(1) In general.--A loan that is refinanced under this 
section shall have the same terms and conditions as the 
original loan, except as otherwise provided in this section.
``(2) No automatic extension of repayment period.--
Refinancing a loan under this section shall not result in the 
extension of the duration of the repayment period of the loan, 
and the borrower shall retain the same repayment term that was 
in effect on the original loan. Nothing in this paragraph shall 
be construed to prevent a borrower from electing a different 
repayment plan at any time in accordance with section 455A(a).
``(e) Definition of Qualified Borrower.--For purposes of this 
section, the term `qualified borrower' means a borrower--
``(1) of a loan under this part or part B for which the 
first disbursement was made, or the application for a 
consolidation loan was received, before July 1, 2026; and
``(2) who has one or more loans described in paragraph (1) 
or (2) of subsection (b) with an interest rate that exceeds 5 
percent.
``(f) Notification to Borrowers.--The Secretary, in coordination 
with the Director of the Bureau of Consumer Financial Protection, shall 
undertake a campaign to alert borrowers of loans that are eligible for 
refinancing under this section that the borrowers are eligible to apply 
for such refinancing. The campaign shall include the following 
activities:
``(1) Developing consumer information materials about the 
availability of Federal student loan refinancing.
``(2) Requiring servicers of loans under this part or part 
B to provide such consumer information to borrowers in a manner 
determined appropriate by the Secretary, in consultation with 
the Director of the Bureau of Consumer Financial Protection.''.

SEC. 403. REFINANCING PRIVATE STUDENT LOANS.

Part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.), as amended by section 402, is further amended by adding 
at the end the following:

``SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.

``(a) Definitions.--In this section:
``(1) Eligible private education loan.--The term `eligible 
private education loan' means a private education loan, as 
defined in section 140(a) of the Truth in Lending Act (15 
U.S.C. 1650(a)), that--
``(A) was disbursed to the borrower before July 1, 
2026; and
``(B) was for the borrower's own postsecondary 
educational expenses for an eligible program at an 
institution of higher education participating in the 
loan program under this part, as of the date that the 
loan was disbursed.
``(2) Federal direct refinanced private loan.--The term 
`Federal Direct Refinanced Private Loan' means a loan issued 
under subsection (b)(1).
``(3) Private educational lender.--The term `private 
educational lender' has the meaning given the term in section 
140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
``(4) Qualified borrower.--The term `qualified borrower' 
means an individual who--
``(A) has an eligible private education loan;
``(B) has been current on payments on the eligible 
private education loan for the 6 months prior to the 
date of the qualified borrower's application for 
refinancing under this section, and is in good standing 
on the loan at the time of such application;
``(C) is not in default on the eligible private 
education loan or on any loan made, insured, or 
guaranteed under this part or part B or E; and
``(D) meets the eligibility requirements described 
in subsection (b)(2).
``(b) Program Authorized.--
``(1) In general.--The Secretary, in consultation with the 
Secretary of the Treasury, shall carry out a program under 
which the Secretary, upon application by a qualified borrower 
who has an eligible private education loan, shall issue such 
borrower a loan under this part in accordance with the 
following:
``(A) The loan issued under this program shall be 
in an amount equal to the sum of the unpaid principal, 
accrued unpaid interest, and late charges of the 
private education loan.
``(B) The Secretary shall pay the proceeds of the 
loan issued under this program to the private 
educational lender of the private education loan, in 
order to discharge the qualified borrower from any 
remaining obligation to the lender with respect to the 
original loan.
``(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the relevant information and counseling 
required under section 485(l)(2) before the loan is 
refinanced in accordance with this section, and before 
the proceeds of such loan are paid to the private 
educational lender.
``(D) The Secretary shall issue the loan as a 
Federal Direct Refinanced Private Loan, which shall 
have the same terms, conditions, and benefits as a 
Federal Direct Unsubsidized Stafford Loan, except as 
otherwise provided in this section.
``(E) The interest rate for each loan made by the 
Secretary under this section shall be the rate provided 
under subsection (c).
``(2) Borrower eligibility.--The Secretary, in consultation 
with the Secretary of the Treasury and the Director of the 
Consumer Financial Protection Bureau, shall establish 
eligibility requirements--
``(A) to ensure eligibility only for borrowers in 
good standing;
``(B) to minimize inequities between Federal Direct 
Refinanced Private Loans and other Federal student 
loans;
``(C) to preclude windfall profits for private 
educational lenders; and
``(D) to ensure full access to the program 
authorized in this subsection for borrowers with 
private loans who otherwise meet the criteria 
established in accordance with subparagraph (A).
``(c) Interest Rate.--
``(1) In general.--The interest rate for a Federal Direct 
Refinanced Private Loan is a rate equal to the interest rate 
determined under section 455(b)(9)(A) for the date on which the 
refinanced private loan is made.
``(2) Fixed rate.--The interest rate determined under this 
subsection for a Federal Direct Refinanced Private Loan shall 
be fixed for the period of the loan.
``(3) Capitalized interest and fees excluded.--With respect 
to a Federal Direct Refinanced Private Loan under this section, 
interest shall only accrue on the percentage of such Refinanced 
Private Loan that is equal to--
``(A) the amount of the unpaid principal of the 
original loan comprising the Refinanced Private Loan on 
the date such original loan was refinanced; divided by
``(B) the total amount of such Refinanced Private 
Loan.
``(d) No Inclusion in Aggregate Limits.--The amount of a Federal 
Direct Refinanced Private Loan, or a Federal Direct Consolidated Loan 
to the extent such loan was used to repay a Federal Direct Refinanced 
Private Loan, shall not be included in calculating a borrower's annual 
or aggregate loan limits under section 428 or 428H.
``(e) No Eligibility for Service-Related Repayment.--A Federal 
Direct Refinanced Private Loan, or any Federal Direct Consolidation 
Loan to the extent such loan was used to repay a Federal Direct 
Refinanced Private Loan, shall not be eligible for any loan repayment 
or loan forgiveness program under section 428K, 428L, or 460 or for the 
loan cancellation repayment plan for public service employees under 
section 455(m).
``(f) Private Educational Lender Reporting Requirement.--
``(1) Reporting required.--The Secretary, in consultation 
with the Secretary of the Treasury and the Director of the 
Bureau of Consumer Financial Protection, shall establish a 
requirement that, in order to allow for an assessment of the 
private education loan market, private educational lenders 
report the data described in paragraph (2) to--
``(A) the Secretary;
``(B) the Secretary of the Treasury;
``(C) the Director of the Consumer Financial 
Protection Bureau;
``(D) the Committee on Education and Workforce of 
the House of Representatives;
``(E) the Committee on Financial Services of the 
House of Representatives;
``(F) the Senate Committee on Health, Education, 
Labor, and Pensions; and
``(G) the Senate Committee on Banking, Housing, and 
Urban Affairs.
``(2) Contents of reporting.--The data that private 
educational lenders shall report in accordance with paragraph 
(1) shall include each of the following about private education 
loans (as defined in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a))):
``(A) The total amount of private education loan 
debt the lender holds.
``(B) The total number of private education loan 
borrowers the lender serves.
``(C) The average interest rate on the outstanding 
private education loan debt held by the lender.
``(D) The proportion of private education loan 
borrowers who are in default on a loan held by the 
lender.
``(E) The proportion of the outstanding private 
education loan volume held by the lender that is in 
default.
``(F) The proportions of outstanding private 
education loan borrowers who are 30, 60, and 90 days 
delinquent.
``(G) The proportions of outstanding private 
education loan volume that is 30, 60, and 90 days 
delinquent.
``(g) Notification to Borrowers.--The Secretary, in coordination 
with the Secretary of the Treasury and the Director of the Consumer 
Financial Protection Bureau, shall undertake a campaign to alert 
borrowers about the availability of private student loan refinancing 
under this section.''.
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