[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1971 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1971
To amend the Higher Education Act of 1965 to provide for loan repayment
simplification and income-driven repayment reform.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2023
Mr. Cornyn (for himself and Mr. Cassidy) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to provide for loan repayment
simplification and income-driven repayment reform.
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 Accountability and
Value in Education for Students Act''.
SEC. 2. LOAN REPAYMENT SIMPLIFICATION AND INCOME-DRIVEN REPAYMENT
REFORM.
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e)
is amended--
(1) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting ``not
later than June 30, 2024,'' before ``a
graduated'';
(ii) in subparagraph (C), by inserting
``not later than June 30, 2024,'' before ``an
extended'';
(iii) in subparagraph (D)--
(I) by inserting ``not later than
June 30, 2024,'' before ``an income
contingent''; and
(II) by striking ``and'' after the
semicolon;
(iv) in subparagraph (E)--
(I) by inserting ``and not later
than June 30, 2024,'' after ``beginning
on July 1, 2009''; and
(II) by striking the period at the
end and inserting ``; and''; and
(v) by adding at the end the following:
``(F) beginning on July 1, 2024, an income
contingent repayment plan known as the `Revised Pay As
You Earn Repayment plan', consistent with subsection
(e)(9).'';
(B) in paragraph (2), by striking ``in subparagraph
(A), (B), or (C) of paragraph (1)'' and inserting ``in
subparagraph (A) or (F) of paragraph (1)''; and
(C) in paragraph (4), by inserting ``not later than
June 30, 2024 and'' after ``The Secretary may
provide,''; and
(2) in subsection (e), by adding at the end the following:
``(9) Revised pay as you earn repayment plan.--
``(A) In general.--The Secretary shall carry out a
Revised Pay As You Earn Repayment plan in accordance
with section 685.209(c) of title 34, Code of Federal
Regulations, as in effect on December 17, 2015, except
as otherwise provided in this paragraph as follows:
``(i) A borrower may complete loan
rehabilitation on a defaulted loan through
making eligible payments in accordance with
this paragraph for 9 consecutive months.
``(ii) A borrower who no longer wishes to
repay under the REPAYE plan may change only to
a standard repayment plan.
``(iii) In addition to that provided under
paragraph (5)(iv) of such section 685.209(c), a
qualifying monthly payment may also include a
month for which the borrower received--
``(I) deferment under subsection
(f)(3) due to receiving treatment for
cancer;
``(II) deferment under subsection
(f)(2) for rehabilitation training;
``(III) deferment under subsection
(f)(2) for unemployment;
``(IV) deferment under subsection
(f)(2) for economic hardship, including
any period of deferment for Peace Corps
service;
``(V) deferment under subsection
(f)(2) for military service;
``(VI) deferment under subsection
(f)(2) for post-active duty service;
``(VII) forbearance under section
428(c)(3)(A)(i)(III), for national
service;
``(VIII) forbearance under section
685.205(a)(7) of title 34, Code of
Federal Regulations, for National Guard
Duty;
``(IX) forbearance under section
428(c)(3)(A)(i)(IV), for service for
which the borrower would qualify for a
partial repayment of his or her loan
under the Student Loan Repayment
Programs administered by the Department
of Defense; or
``(X) administrative forbearance
under paragraph (8) or (9) of section
685.205(b) of title 34, Code of Federal
Regulations.
``(iv) A borrower shall be automatically
enrolled in a Revised Pay As You Earn Repayment
plan for a loan at 75 days delinquent on such
loan.
``(v) A borrower who missed qualifying
payments during a forbearance or deferment
period not listed in clause (iii), shall have
the opportunity to provide a back payment for
the missed payments in order have those
payments counted toward the 20-year or 25-year
forgiveness period, except there shall be no
opportunity to provide a back payment for
periods of in-school deferment.
``(vi) For a borrower who is solely an
undergraduate borrower--
``(I) who has borrowed $10,000 or
less in total in loans under this part,
not including loan fees, the Secretary
may determine that the borrower has met
the loan forgiveness requirements after
120 payments under the Revised Pay As
You Earn Repayment plan;
``(II) who has borrowed more than
$10,000 but $11,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 132
payments under the Revised Pay As You
Earn Repayment plan;
``(III) who has borrowed more than
$11,000 but $12,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 144
payments under the Revised Pay As You
Earn Repayment plan;
``(IV) who has borrowed more than
$12,000 but $13,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 156
payments under the Revised Pay As You
Earn Repayment plan;
``(V) who has borrowed more than
$13,000 but $14,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 168
payments under the Revised Pay As You
Earn Repayment plan;
``(VI) who has borrowed more than
$14,000 but $15,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 180
payments under the Revised Pay As You
Earn Repayment plan;
``(VII) who has borrowed more than
$15,000 but $16,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 192
payments under the Revised Pay As You
Earn Repayment plan;
``(VIII) who has borrowed more than
$16,000 but $17,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 204
payments under the Revised Pay As You
Earn Repayment plan;
``(IX) who has borrowed more than
$17,000 but $18,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 216
payments under the Revised Pay As You
Earn Repayment plan; and
``(X) who has borrowed more than
$18,000 but $19,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 228
payments under the Revised Pay As You
Earn Repayment plan.
``(B) Transfer of borrowers in repayment.--
Notwithstanding any other provision of this Act, on
July 1, 2024, the Secretary shall transfer each
borrower who is in repayment on a loan made under this
part under an income contingent repayment plan pursuant
to subsection (d)(1)(D) to the Revised Pay As You Earn
Repayment plan under this paragraph.''.
SEC. 3. TAXPAYER AND CONSUMER PROTECTION ON STUDENT LOANS.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following:
``(30)(A) The institution certifies that no funds available
under this title may be used by an undergraduate student for
enrollment in an educational program offered by the institution
that is described in subparagraph (B).
``(B) An educational program at an institution is described
in this subparagraph if the program is a program--
``(i) in the case of a program that awards an
associate's degree or a lesser degree or credential, in
which the median earnings of students 6 years after the
date of entry into the program who are no longer
enrolled in the program and are working is, for not
less than 2 of the 3 years preceding the date of the
determination, less than the median earnings of a
working adult who is aged 25 to 34 with only a high
school diploma or its recognized equivalent, as
determined under subparagraph (C) and in accordance
with subparagraph (D); or
``(ii) in the case of a program that awards a
bachelor's degree, in which the median earnings of
students 10 years after the date of entry into the
program who are no longer enrolled in the program and
are working is, for not less than 2 of the 3 years
preceding the date of the determination, less than the
median earnings of a working adult who is aged 25 to 34
with only a high school diploma or its recognized
equivalent, as determined under subparagraph (C) and in
accordance with subparagraph (D).
``(C) The median earnings of a working adult who is aged 25
to 34 with only a high school diploma or its recognized
equivalent shall be based on data from the Census Bureau--
``(i) for the State in which the institution is
located; or
``(ii) if fewer than 50 percent of the students
enrolled in the institution reside in the State where
the institution is located, for the entire United
States.
``(D) For any year for which the programmatic cohort is
fewer than 30 individuals, the Secretary shall--
``(i) first, aggregate additional years of
programmatic data in order to achieve a cohort of at
least 30 individuals;
``(ii) second, aggregate additional cohort years of
programmatic data for degrees or certificates of
equivalent length in order to achieve a cohort of at
least 30 individuals; and
``(iii) if such data cannot be aggregated, use an
institution-based undergraduate-level measure, in lieu
of a programmatic measure.
``(E) An educational program shall not lose eligibility
under subparagraph (A) unless the institution has had the
opportunity to appeal the programmatic median earnings of
students working and not enrolled determination. During such
appeal, the Secretary may permit the educational program to
continue to participate in a program under this title. If an
educational program continues to participate in a program under
title, and the institution's appeal of the loss of eligibility
is unsuccessful, the institution shall pay to the Secretary an
amount equal to the amount of interest, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this title
to students attending, or planning to attend, that educational
program during the pendency of such appeal.
``(31)(A) The institution certifies that no funds available
under this title may be used by a graduate student for
enrollment in an educational program offered by the institution
that is described in subparagraph (B).
``(B) An educational program at an institution is described
in this subparagraph if the program is a program--
``(i) in the case of a program that awards a
master's degree or a lesser degree or credential, in
which the median earnings of students 6 years after the
date of entry into the program who are no longer
enrolled in the program and are working is, for not
less than 2 of the 3 years preceding the date of the
determination, less than the median earnings of a
working adult who is aged 25 to 34 with only a
bachelor's degree, as determined under subparagraph (C)
and in accordance with subparagraph (D); or
``(ii) in the case of program that awards a
professional degree or doctoral degree, in which the
median earnings of students 10 years after the date of
entry into the program who are no longer enrolled in
the program and are working is, for not less than 2 of
the 3 years preceding the date of the determination,
less than the median earnings of a working adult who is
aged 25 to 34 with only a bachelor's degree, as
determined under subparagraph (C) and in accordance
with subparagraph (D).
``(C) The median earnings of a working adult who is aged 25
to 34 with only a bachelor's degree shall be based on data from
the Census Bureau--
``(i) for the State in which the institution is
located; or
``(ii) if fewer than 50 percent of the students
enrolled in the institution reside in the State where
the institution is located, for the entire United
States.
``(D) For any year for which the programmatic cohort is
fewer than 30 individuals, the Secretary shall--
``(i) first, aggregate additional years of
programmatic data in order to achieve a cohort of at
least 30 individuals;
``(ii) second, aggregate additional cohort years of
programmatic data for degrees or certificates of
equivalent length in order to achieve a cohort of at
least 30 individuals; and
``(iii) if such data cannot be aggregated, use an
institution-based graduate-level measure, in lieu of a
programmatic measure.
``(E) An educational program shall not lose eligibility
under subparagraph (A) unless the institution has had the
opportunity to appeal the programmatic median earnings of
students working and not enrolled determination. During such
appeal, the Secretary may permit the educational program to
continue to participate in a program under this title. If an
educational program continues to participate in a program under
title, and the institution's appeal of the loss of eligibility
is unsuccessful, the institution shall pay to the Secretary an
amount equal to the amount of interest, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this title
to students attending, or planning to attend, that educational
program during the pendency of such appeal.''.
SEC. 4. PHASE OUT OF INCOME-BASED REPAYMENT.
Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e)
is amended--
(1) in subsection (b)(1), by inserting ``who enters
repayment on such loan before July 1, 2024 and'' after ``a
borrower of any loan made, insured, or guaranteed under part B
or D (other than an excepted PLUS loan or excepted
consolidation loan)''; and
(2) in subsection (e)--
(A) in the subsection heading by inserting ``and
Before July 1, 2024'' after ``July 1, 2014''; and
(B) by inserting ``, and before July 1, 2024''
after ``July 1, 2014''.
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