Know Your Repayment Options Act

I 116TH CONGRESS 1ST SESSION H. R. 3095 To amend the Higher Education Act of 1965 to direct the Secretary of Education to provide each borrower with an individualized repayment guide. IN THE HOUSE OF REPRESENTATIVES JUNE 4, 2019 Mr. SWALWELL of California (for himself, Mr. MOULTON, Mrs. NAPOLITANO, Ms. NORTON, Mr. BRENDAN F. BOYLE of Pennsylvania, and Mr. KIL- MER) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to direct the Secretary of Education to provide each borrower with an individualized repayment guide. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Know Your Repayment 4 Options Act’’. 5 SEC. 2. INDIVIDUALIZED REPAYMENT PLAN GUIDE. 6 (a) EXIT COUNSELING.—Section 485(b)(1)(A)(i) of 7 the Higher Education Act of 1965 (20 U.S.C. 8 1092(b)(1)(A)(i)) is amended by inserting, ‘‘or, if avail- 9 VerDate Sep 11 2014 01:58 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3095.IH H3095 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3095 IH able, the information described in subsection (n)(1),’’ after 1 ‘‘monthly payments,’’. 2 (b) INDIVIDUALIZED REPAYMENT PLAN GUIDE.— 3 Section 485 of the Higher Education Act of 1965 (20 4 U.S.C. 1092) is amended by adding at the end the fol- 5 lowing: 6 ‘‘(n) INDIVIDUALIZED REPAYMENT PLAN GUIDE.— 7 Beginning 1 year after a borrower receives exit counseling 8 under subsection (b), and annually thereafter until the 9 borrower has repaid each loan of the borrower that is 10 made, insured, or guaranteed under part B (other than 11 loans made pursuant to section 428C or loans under sec- 12 tion 428B made on behalf of a student) or made under 13 part D (other than Federal Direct Consolidation Loans 14 or Federal Direct PLUS Loans made on behalf of a stu- 15 dent), the Secretary shall— 16 ‘‘(1) provide the borrower (based on the bor- 17 rower’s annual income and the outstanding balance 18 of principal and interest due on all such loans), for 19 each repayment plan available for such loans— 20 ‘‘(A) the average anticipated monthly pay- 21 ment amount; 22 ‘‘(B) the yearly payment amount; 23 ‘‘(C) the lifetime payment amount; 24 VerDate Sep 11 2014 01:58 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3095.IH H3095 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3095 IH ‘‘(D) the number of months remaining to 1 pay off the loans; 2 ‘‘(E) the amount of the loans that have 3 been forgiven; 4 ‘‘(F) a link to the place on the Web site 5 of the Department that allows borrowers to 6 change repayment plans or provides information 7 about changing such plans; and 8 ‘‘(G) any other information the Secretary 9 determines may be helpful to the borrower in 10 determining which repayment payment plan the 11 borrower should choose; 12 ‘‘(2) establish procedures for annual verification 13 of the borrower’s annual income and the outstanding 14 balance of principal and interest due on all such 15 loans, and such other procedures as are necessary to 16 effectively provide the information under paragraph 17 (1), including procedures that allow the borrower to 18 consent to the sharing of such data between the In- 19 ternal Revenue Service and the Department for the 20 entire period the borrower is provided the informa- 21 tion under paragraph (1), in a manner that is as 22 least burdensome as practical to the borrower; and 23 VerDate Sep 11 2014 01:58 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3095.IH H3095 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3095 IH ‘‘(3) enable the borrower, at any time, to opt 1 out of being provided the information under para- 2 graph (1) on an annual basis.’’. 3 Æ VerDate Sep 11 2014 01:58 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3095.IH H3095 pamtmann on DSKBFK8HB2PROD with BILLS