[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9192 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9192
To amend the Higher Education Act of 1965 to include notification and
automatic enrollment procedures for borrowers who are delinquent on
loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2024
Ms. Bonamici (for herself, Mr. Moulton, Mrs. Hayes, Mr. Takano, Mrs.
McBath, Ms. Wilson of Florida, and Ms. Tokuda) introduced the following
bill; which was referred to the Committee on Education and the
Workforce, and in addition to the Committee on Ways and Means, 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 include notification and
automatic enrollment procedures for borrowers who are delinquent on
loans, 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 ``Streamlining Income-driven,
Manageable Payments on Loans for Education Act'' or the ``SIMPLE Act''.
SEC. 2. NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR BORROWERS
WHO ARE DELINQUENT ON LOANS AND FOR BORROWERS WHO ARE
REHABILITATING DEFAULTED LOANS.
(a) Amendments.--
(1) Notification and automatic enrollment procedures.--
Section 455(d) of the Higher Education Act of 1965 (20 U.S.C.
1087e(d)) is 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 covered loan 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 120 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 covered
loan, 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) Clear and simple instructions on
how to select the repayment plans.
``(iv) In the case of a borrower of a loan
under section 428B, or a Federal Direct PLUS
Loan, that is made, insured, or guaranteed on
behalf of a dependent student, an explanation
that the borrower may qualify for an income-
driven repayment plan if the borrower
consolidates such loan into a Federal Direct
Consolidation Loan, and the amount of the
monthly payment of such consolidation loan if
the borrower does so consolidate.
``(v) The amount of monthly payments for
the covered and noncovered loans under the
repayment plans for which the borrower is
eligible, based on information available to the
Secretary, including, if the income information
of the borrower is available to the Secretary
under subparagraph (A)--
``(I) the amount of the monthly
payment under each income-driven
repayment plan for which the borrower
is eligible for the borrower's covered
and noncovered loans, based on such
income information; and
``(II) the income, family size, tax
filing status, and tax year information
on which each monthly payment is based.
``(vi) An explanation that in the case of a
borrower for whom adjusted gross income is
unavailable--
``(I) if the borrower selects to
repay the covered loans of such
borrower pursuant to an income-driven
repayment plan that defines
discretionary income in such a manner
that an individual not required under
section 6012(a)(1) of the Internal
Revenue Code of 1986 to file a return
with respect to income taxes imposed by
subtitle A of such Code may have a
calculated monthly payment greater than
$0, the borrower will be required to
provide the Secretary with other
documentation of income satisfactory to
the Secretary, which documentation the
Secretary may use to determine an
appropriate repayment schedule; and
``(II) if the borrower selects to
repay such loans pursuant to an income-
driven repayment plan that is not
described in subclause (I), the
borrower will not be required to
provide the Secretary with such other
documentation of income, and the
borrower will have a calculated monthly
payment of $0.
``(vii) An explanation that the Secretary
shall take the actions under subparagraph (C)
with respect to such borrower, if--
``(I) the borrower is 75 days
delinquent on one or more covered loans
and has not selected a new repayment
plan for the covered loans of the
borrower; and
``(II) in the case of such a
borrower whose repayment plan for the
covered loans of the borrower is not an
income-driven repayment plan, the
monthly payments under such repayment
plan are higher than such monthly
payments would be under an income-
driven repayment plan for such loans.
``(viii) Instructions on updating the
information of the borrower obtained under
subparagraph (A).
``(C) Secretary's initial selection of plan.--With
respect to each borrower described in subparagraph (B)
who has a repayment plan for the covered loans of the
borrower that meets the requirements of clause (vi)(II)
of subparagraph (B) and has not selected a new
repayment plan for such loans in accordance with the
notice received under such subparagraph, and who is at
least 75 days delinquent on such a loan, the Secretary
shall, as soon as practicable--
``(i) in a case in which any of the
borrower's covered loans are eligible for an
income-driven repayment plan--
``(I)(aa) provide the borrower with
the income-driven repayment plan that
requires the lowest monthly payment
amount for each covered loan of the
borrower, compared to any other such
plan for which the borrower is
eligible; or
``(bb) if more than one income-
driven repayment plan would offer the
borrower the same lowest monthly
payment amount, provide the borrower
with the income-driven repayment plan
that has the most favorable terms for
the borrower;
``(II) if the plan selected under
subclause (I) is not the income-driven
repayment plan that would have the
lowest monthly payment amount if the
borrower were eligible for such plan
for the borrower's covered loans and
noncovered loans, notify the borrower
of the actions, if any, the borrower
may take to become eligible for such
income-driven repayment plan; and
``(III) authorize the borrower to
change the Secretary's selection of a
plan under this clause to any plan
described in paragraph (1) for which
the borrower is eligible; and
``(ii) in a case in which none of the
borrower's covered loans are eligible for an
income-driven repayment plan, notify the
borrower of the actions, if any, the borrower
may take for such loans to become eligible for
such a plan.
``(D) Secretary's additional selection of plan.--
``(i) In general.--With respect to each
borrower of a covered loan who selects a new
repayment plan in accordance with the notice
received under subparagraph (B) and who
continues to be delinquent on such loan for a
period described in clause (ii), the Secretary
shall, as soon as practicable after such
period, carry out the procedures described in
clauses (i) and (ii) of subparagraph (C) for
the covered loans of the borrower, if such
procedures would result in lower monthly
repayment amounts on such loan.
``(ii) Description of period.--The duration
of the period described in clause (i) shall be
the amount of time that the Secretary
determines is sufficient to indicate that the
borrower may benefit from repaying such loan
under a new repayment plan, but in no case
shall such period be less than 60 days.
``(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 covered loan
pursuant to section 428F(a), 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
for the loan rehabilitation described in subparagraph
(A), 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
for the loan rehabilitation described in subparagraph
(A), the Secretary shall, as soon as practicable after
such payment--
``(i) in a case in which any of the
borrower's covered loans, without regard to
whether the loan has been so rehabilitated, is
eligible for an income-driven repayment plan--
``(I)(aa) provide the borrower with
the income-driven repayment plan that
requires the lowest monthly payment
amount for each covered loan of the
borrower, compared to any other such
plan for which the borrower is
eligible; or
``(bb) if more than one income-
driven repayment plan would offer the
borrower the same lowest monthly
payment amount, provide the borrower
with the income-driven repayment plan
that has the most favorable terms for
the borrower; and
``(II) if the plan selected under
subclause (I) is not the income-driven
repayment plan that would have the
lowest monthly payment amount if the
borrower were eligible for such plan
for the borrower's covered loans and
noncovered loans, notify the borrower
of the actions, if any, the borrower
may take to become eligible for such
income-driven repayment plan; and
``(ii) in a case in which none of the
borrower's covered loans are eligible for an
income-driven repayment plan, notify the
borrower of the actions, if any, the borrower
may take for such a loan to become eligible for
such a plan.''.
(2) Definitions.--Section 455(d) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(d)), as amended by paragraph (1),
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 section 428(c)(8).
``(B) Income-driven repayment plan.--The term
`income-driven repayment plan' means a plan described
in subparagraph (D) or (E) of paragraph (1).
``(C) Noncovered loan.--The term `noncovered loan'
means a loan made, insured, or guaranteed under this
title that is not a covered loan.''.
(3) Automatic recertification.--
(A) Borrower for whom adjusted gross income is
unavailable.--Section 455(e)(8)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(e)(8)(A)) is
amended--
(i) by striking ``and'' at the end of
clause (ii);
(ii) by redesignating clause (iii) as
clause (iv);
(iii) in clause (iv) (as so redesignated),
by striking the period at the end and inserting
``; and''; and
(iv) by inserting after clause (ii), the
following:
``(iii) in the case of a borrower who has
selected to repay a covered loan (as defined in
subsection (d)(8)) 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) Inclusion of covered loans.--Section
455(e)(8)(B) of the Higher Education Act of 1965 (20
U.S.C. 1087e(e)(8)(B)) is amended by striking ``a loan
made under this part'' and inserting ``a covered loan
(as defined in subsection (d)(8))''.
(4) Changing plans.--Section 493C(b)(8) of the Higher
Education Act of 1965 (20 U.S.C. 1098e(b)(8)) is amended to
read as follows:
``(8) a borrower who is repaying a loan made, insured, or
guaranteed under part B or D pursuant to income-based repayment
may elect, at any time, to terminate repayment pursuant to
income-based repayment and repay such loan under any repayment
plan for which the loan is eligible in accordance with the
requirements of part B or part D, respectively; and''.
(5) 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--
(A) in paragraph (2)--
(i) 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
(ii) in subparagraph (B), by striking ``a
loan under part D'' and inserting ``a covered
loan (as defined in section 455(d)(8))''; and
(B) 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 covered loan
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 for borrowers who are
delinquent on loans 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 covered loan pursuant to
section 428F(a), 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.
``(C) Covered loan defined.--In this paragraph, the
term `covered loan' has the meaning given the term in
section 455(d)(8).''.
(b) Secure Disclosure of Tax-Return Information.--
(1) In general.--Section 6103(l)(13) of the Internal
Revenue Code of 1986 is amended by redesignating subparagraphs
(D), (E), and (F) as paragraphs (E), (F), and (G),
respectively, and by inserting after subparagraph (C) the
following new subparagraph:
``(D) Notification and automatic enrollment for
certain borrowers.--The Secretary shall, upon written
request from the Secretary of Education, disclose to
any authorized person, only for the purpose of (and to
the extent necessary in) carrying out paragraphs (6)
and (7) of section 455(d) of the Higher Education Act
of 1965, return information described in clauses (i)
through (vi) of subparagraph (A) from returns of an
individual certified by the Secretary of Education as
having provided approval under section 494(a)(4) of
such Act (as in effect on the date of enactment of this
paragraph) for such disclosure.''.
(2) Conforming amendments.--
(A) Section 6103(l)(13)(A) of the Internal Revenue
Code of 1986 is amended by striking ``loans under part
D of such title'' and inserting ``covered loans (as
defined in section 455(d)(8) of such Act)''.
(B) Section 6103(l)(13)(E)(i) of the Internal
Revenue Code of 1986 (as redesignated by paragraph (1))
is amended by striking ``and (C)'' and inserting ``(C),
and (D)''.
(C) Subparagraphs (F) and (G) of section
6103(l)(13) of the Internal Revenue Code of 1986 (as
redesignated by paragraph (1)) are each amended by
striking ``or (C)'' and inserting ``(C), or (D)''.
(c) Effective Date; Application.--
(1) Automatic enrollment.--The amendments made by
paragraphs (1), (2), (3), and (5) of subsection (a) shall--
(A) apply to all borrowers of covered loans (as
defined in section 455(d)(8) of the Higher Education
Act of 1965, as added by subsection (a)); and
(B) take effect on July 1, 2026, and shall apply
with respect to award year 2026-2027 and each
subsequent award year, as determined under the Higher
Education Act of 1965.
(2) Changing plans.--The amendment made by subsection
(a)(4) shall take effect on the date of enactment of this Act.
(3) Disclosure.--The amendments made by subsection (b)
shall apply to disclosures after the date of enactment of this
Act.
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