[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7530 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7530
To update the income-driven repayment plans and the public service loan
forgiveness program under the Higher Education Act of 1965, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 14, 2022
Ms. Wilson of Florida (for herself, Mr. Brendan F. Boyle of
Pennsylvania, Mr. Brown of Maryland, Ms. Brown of Ohio, Mr.
Butterfield, Mr. Carbajal, Mr. Carter of Louisiana, Mrs. Cherfilus-
McCormick, Ms. Clarke of New York, Mr. Cleaver, Mr. Courtney, Mr.
Evans, Ms. Lois Frankel of Florida, Mr. Green of Texas, Mrs. Hayes, Mr.
Jones, Mr. Lawson of Florida, Mrs. McBath, Ms. Newman, Ms. Norton, Ms.
Strickland, and Ms. Adams) introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To update the income-driven repayment plans and the public service loan
forgiveness program under the Higher Education Act of 1965, 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 ``Student Loan Borrower Relief Act''.
SEC. 2. INCOME-DRIVEN REPAYMENT REQUIREMENTS.
(a) Income-Contingent Repayment Plans.--Section 455 of the Higher
Education Act of 1965 (20 U.S.C. 1087e) is amended--
(1) in subsection (d)(1)(D), by striking ``25 years'' and
inserting ``15 years''; and
(2) in subsection (e)--
(A) in the matter preceding subparagraph (A), in
paragraph (7), by striking ``in effect for a
borrower,'' and inserting ``in effect for a borrower,
not to exceed 15 years,''; and
(B) by adding at the end the following:
``(1) Monthly payment requirements.--During any period a
borrower is repaying a loan made under this part pursuant to an
income contingent repayment plan under this subsection, the
following shall apply:
``(A)(i) The borrower's aggregate monthly payment
for all such loans shall not exceed the result
described in clause (ii) divided by 12.
``(ii) The result described in this clause shall be
10 percent of the result obtained by calculating, on at
least an annual basis, the amount by which--
``(I) the borrower's, and the borrower's
spouse's (if applicable), adjusted gross
income; exceeds
``(II) 250 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)).
``(B)(i) Subject to clause (ii), in a case in which
the borrower's aggregate monthly payment on such loans
is not sufficient to pay the accrued interest on such
loans, any such accrued interest that is not paid shall
be canceled by the Secretary.
``(ii)(I) Notwithstanding clause (i), any interest
due and not paid on such loans at a time described in
subclause (II) of this clause shall accrue but not be
capitalized.
``(II) This clause shall apply at each of the
following times:
``(aa) The borrower no longer has a partial
financial hardship, as defined by the
applicable income contingent repayment plan.
``(bb) The borrower begins making payments
of not less than the monthly amount calculated
under 455(d)(1)(A), based on a 10-year
repayment period, when the borrower first made
the election described in this subsection.''.
(b) Income-Based Repayment.--Section 493C of the Higher Education
Act of 1965 (20 U.S.C. 1098e) is amended--
(1) in subsection (a)(3)(B)--
(A) in the matter preceding clause (i), by striking
``15 percent'' and inserting ``10 percent''; and
(B) in clause (ii), by striking ``150'' and
inserting ``250''; and
(2) in subsection (b)--
(A) by striking paragraph (3) and inserting the
following:
``(3) any interest due and not paid under paragraph (2)--
``(A) subject to subparagraph (B), shall be
canceled or paid by the Secretary during the period
after the date of the borrower's election under
paragraph (1); and
``(B) shall accrue but not be capitalized, at the
time the borrower--
``(i) ends the election to make income-
based repayment under this subsection; or
``(ii) begins making payments of not less
than the amount specified in paragraph
(6)(A);''; and
(B) in paragraph (7)(B), by striking ``25 years''
and inserting ``15 years''.
(c) Application.--The amendments made by this section shall apply
to each borrower who--
(1) as of the effective date of such amendments, is
repaying loans under an income-contingent repayment plan under
section 455(e) of the Higher Education Act of 1965 (20 U.S.C.
1087e(e)) or an income-based repayment plan under section 493C
of such Act (20 U.S.C. 1098e); or
(2) on or after such effective date, selects, or is
required to repay such loan pursuant to such a repayment plan.
SEC. 3. PUBLIC SERVICE LOAN FORGIVENESS.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``cancel the balance'' and inserting ``cancel,
on an annual a basis for not more than 10 years, a
portion of the balance'';
(B) in subparagraph (A), by striking ``120'' and
inserting ``12''; and
(C) in subparagraph (B)(ii), by striking ``120''
and inserting ``12''; and
(2) by amending paragraph (2) to read as follows:
``(2) Loan cancellation amount.--
``(A) In general.--A borrower may submit an
application for loan cancellation under this subsection
after any employment period listed in subparagraph (B),
and upon a determination that the borrower is eligible
for such loan cancellation, the Secretary shall cancel
the portion of the balance due on the principal and
interest on the eligible Federal Direct Loans made to
the borrower under this part for which the borrower is
eligible under subparagraph (B).
``(B) Employment periods.--The employment periods
listed in this subparagraph are as follows:
``(i) First 12-month employment period.--
After the conclusion of the first 12-month
employment period described in paragraph (1),
the Secretary shall cancel 5 percent of 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.
``(ii) Second 12-month employment period.--
After the conclusion of the second 12-month
employment period described in paragraph (1),
the Secretary shall cancel 5 percent of 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.
``(iii) Third 12-month employment period.--
After the conclusion of the third 12-month
employment period described in paragraph (1),
the Secretary shall cancel 10 percent of 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.
``(iv) Fourth 12-month employment period.--
After the conclusion of the fourth 12-month
employment period described in paragraph (1),
the Secretary shall cancel 10 percent of 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.
``(v) Fifth 12-month employment period.--
After the conclusion of the fifth 12-month
employment period described in paragraph (1),
the Secretary shall cancel 15 percent of 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.
``(vi) Sixth 12-month employment period.--
After the conclusion of the sixth 12-month
employment period described in paragraph (1),
the Secretary shall cancel 15 percent of 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.
``(vii) Seventh 12-month employment
period.--After the conclusion of the seventh
12-month employment period described in
paragraph (1), the Secretary shall cancel 20
percent of 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.
``(viii) Eighth 12-month employment
period.--After the conclusion of the eighth 12-
month employment period described in paragraph
(1), the Secretary shall cancel 20 percent of
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.
``(ix) Ninth 12-month employment period.--
After the conclusion of the ninth 12-month
employment period described in paragraph (1),
the Secretary shall cancel 30 percent of 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.
``(x) Tenth 12-month employment period.--
After the conclusion of the tenth 12-month
employment period described in paragraph (1),
the Secretary shall cancel the remaining
obligation to repay the balance of principal
and interest due as of the time of such
cancellation.''.
SEC. 4. EFFECTIVE DATE.
(a) In General.--The amendments made by this Act shall take effect
on a date that is 2 years after the date of enactment of this Act.
(b) Early Effective Date Permitted.--The Secretary of Education may
implement the amendments made by this Act before (but not later than)
the date that is 2 years after the date of enactment of this Act. The
Secretary shall specify in a designation on what date, and under what
conditions the Secretary will implement such amendments prior to a date
that is 2 years after the date of enactment of this Act. The Secretary
shall publish any designation under this paragraph in the Federal
Register at least 60 days before implementation.
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