H.R.4652 - CLEAR Act114th Congress (2015-2016)
|Sponsor:||Rep. Takai, Mark [D-HI-1] (Introduced 02/29/2016)|
|Committees:||House - Education and the Workforce; Ways and Means|
|Latest Action:||House - 09/19/2016 Referred to the Subcommittee on Higher Education and Workforce Training. (All Actions)|
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Summary: H.R.4652 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in House (02/29/2016)
Clarity in Lending for Education and Repayment Act or the CLEAR Act
This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to revise federal student loan repayment plan options for new borrowers of Direct Loan (DL) program loans issued on or after July 1, 2016.
Specifically, the bill terminates several existing repayment plan options, including the graduated, extended, income-contingent, and income-based repayment plans. It retains the existing standard repayment plan and establishes a new revised pay-as-you-earn repayment plan that, among other things, caps monthly payments at 10% of discretionary income and sets a 20-year maximum repayment period.
A new borrower of a DL program subsidized Stafford, unsubsidized Stafford, PLUS, or consolidation loan issued on or after July 1, 2016, must enroll in the standard or revised pay-as you earn repayment plan.
The Department of Education must consult with students, family members, institutions of higher education, and other experts to improve the required disclosures with respect to federal Direct Loans.
Finally, the bill amends the Internal Revenue Code to exclude from an individual's gross income the amount of federal student loans discharged due to the death or disability of the student.