This Act may be cited as the “Student Debt Relief and College Affordability Act”.

(a) Federal Direct Loans.—Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following:

“(r) Loan cancellation for Federal Pell Grant recipients.—

“(1) IN GENERAL.—Beginning not later than 180 days after the date of enactment of the Student Debt Relief and College Affordability Act, the Secretary shall cancel the amount determined under paragraph (2) of interest and principal due, in accordance with paragraph (3), on eligible Federal Direct Loans that are in repayment status on or after such date of enactment for a borrower who received a Federal Pell Grant.

“(2) AMOUNT.—The amount determined under this paragraph is equal to—

“(A) if the total amount of Federal Pell Grants received by the borrower is equal to or less than the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower, the total amount of Federal Pell Grants received by the borrower; or

“(B) if the total amount of Federal Pell Grants received by the borrower is more than the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower, the balance of interest and principal due on the date of cancellation on eligible Federal Direct Loans received by the borrower.

“(3) LOAN CANCELLATION.—The Secretary shall cancel the obligation to repay the amount determined under paragraph (2) of principal and interest due on the date of cancellation on the eligible Federal Direct Loans made to the borrower under this part.

“(4) ELIGIBLE FEDERAL DIRECT LOAN.—In this subsection, the term ‘eligible Federal Direct Loan’ means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.

“(5) MAXIMUM ASSISTANCE.—A borrower shall not receive a total amount of loan cancellation and loan forgiveness, if applicable, under this subsection, section 493E, and section 470, that exceeds the total amount of Federal Pell Grants received by the borrower.”.

(b) FFEL Loan.—Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

(c) Perkins Loans.—Part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.) is amended by adding at the end the following:

(a) Award year 2023–2024.—Section 401(b)(7)(C)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)(iii)) is amended—

(1) by inserting “(except as provided in the second sentence of this clause)” after “each subsequent award year”; and

(2) by adding at the end the following: “For award year 2023–2024, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to $1,475.”.

(b) Subsequent award years.—

(1) IN GENERAL.—Section 401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is further amended—

(A) in paragraph (1)(B)(i), by striking “paragraph (5)(A)” and inserting “paragraph (5)”; and

(B) by striking paragraph (5) and inserting the following:

“(5) MAXIMUM FEDERAL PELL GRANT.—

“(A) AWARD YEAR 2024–2025.—For award year 2024–2025, the total maximum Federal Pell Grant award shall be $9,000.

“(B) AWARD YEAR 2025–2026.—For award year 2025–2026, the total maximum Federal Pell Grant award shall be $9,500.

“(C) AWARD YEAR 2026–2027.—For award year 2026–2027, the total maximum Federal Pell Grant award shall be $10,000.

“(D) AWARD YEAR 2027–2028.—For award year 2027–2028, the total maximum Federal Pell Grant award shall be $10,500.

“(E) AWARD YEAR 2028–2029.—For award year 2028–2029, the total maximum Federal Pell Grant award shall be $11,000.

“(F) AWARD YEAR 2029–2030.—For award year 2029–2030, the total maximum Federal Pell Grant award shall be $11,500.

“(G) AWARD YEAR 2030–2031.—For award year 2030–2031, the total maximum Federal Pell Grant award shall be $12,000.

“(H) AWARD YEAR 2031–2032.—For award year 2031–2032, the total maximum Federal Pell Grant award shall be $12,500.

“(I) AWARD YEAR 2032–2033 AND SUBSEQUENT YEARS.—For award year 2032–2033, and each subsequent award year, the total maximum Federal Pell Grant award shall be $13,000.”.

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260; 134 Stat. 3191) and in accordance with section 701(b) of such Act.

This title may be cited as the “Affordable Loans for Any Student Act”.

Except as otherwise expressly provided in this title, wherever an amendment or repeal is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

Section 493C (20 U.S.C. 1098e) is amended to read as follows:

Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

(a) FFEL program repayment plan options.—Section 428(b) (20 U.S.C. 1078(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (D)—

(i) in clause (ii), by striking “may annually change the selection of a repayment plan under this part,” and inserting “may at any time on or after January 1, 2026, change the selection of a repayment plan under this part or part G to one of the 2 repayment plans described in paragraph (9)(C),”; and

(ii) in clause (iii), by inserting “or, in the case of a default that occurs on or after January 1, 2026, be subject to income-based repayment in accordance with section 493C(c)” before the semicolon at the end;

(B) in subparagraph (E)(i), by striking “the option of repaying the loan in accordance with a standard, graduated, income-sensitive, or extended repayment schedule (as described in paragraph (9)) established by the lender in accordance with regulations of the Secretary; and” and inserting “the option of repaying the loan in accordance with an applicable repayment plan described in paragraph (9)(C)”; and

(C) by striking subparagraph (L); and

(2) in paragraph (9)—

(A) in subparagraph (A)—

(i) in the subparagraph heading, by inserting “before January 1, 2026” after “Selection”; and

(ii) in the matter preceding clause (i)—

(I) by inserting “or subparagraph (C), as applicable,” after “this subparagraph”; and

(II) by striking “The borrower” and inserting “Before January 1, 2026, the borrower”;

(B) in subparagraph (B), by inserting before the period at the end “or, for a borrower entering repayment on or after January 1, 2026, the lender shall provide the borrower with the fixed repayment plan described in section 493E”; and

(C) by adding at the end the following:

“(C) SELECTION OF REPAYMENT PLANS ON AND AFTER JANUARY 1, 2026.—Notwithstanding any other provision of law, and in accordance with regulations promulgated, beginning on January 1, 2026, a lender shall offer a borrower of a loan made, insured, or guaranteed under this part the opportunity to change repayment plans at any time on or after January 1, 2026, and then not more than once per calendar year thereafter. The borrower may choose between the following repayment plans:

“(i) A fixed repayment plan described in section 493E.

“(ii) The income-based repayment plan under section 493C(c).”.

(b) Federal direct loan program repayment plan options.—Section 455(d) (20 U.S.C. 1087e(d)) is amended—

(1) by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively;

(2) in paragraph (1)—

(A) in the paragraph heading, by inserting “before January 1, 2026” after “Selection”; and

(B) in the matter preceding subparagraph (A), by inserting “that enters repayment before January 1, 2026,” before “a variety”;

(3) by inserting after paragraph (1) the following:

“(2) DESIGN AND SELECTION BEGINNING JANUARY 1, 2026.—

“(A) IN GENERAL.—Notwithstanding paragraph (1), for any borrower of a loan made under this part that enters repayment on or after January 1, 2026, and for any borrower subject to paragraph (7), the Secretary shall offer the borrower a choice between the following 2 plans for repayment of such loan, including principal and interest on the loan. The borrower may choose—

“(i) a fixed repayment plan described in section 493E; or

“(ii) an income-based repayment plan under section 493C(c).

“(B) ACCELERATION.—A borrower in repayment shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part.

“(C) SELECTION BY THE SECRETARY.—If a borrower of a loan made under this part that enters repayment on or after January 1, 2026, does not select a repayment plan described in subparagraph (A) before the first payment on such loan is due, the Secretary shall provide the borrower with a fixed repayment plan described in section 493E.

“(D) CHANGES IN SELECTIONS.—A borrower of a loan made under this part that enters repayment or on after January 1, 2026, may change the borrower’s selection of a repayment plan in accordance with subparagraphs (B) and (C) of paragraph (7).

“(E) BORROWER IN DEFAULT.—Beginning on January 1, 2026, in lieu of the requirements of paragraph (6), the Secretary may require any borrower who has defaulted on a loan made under this part on or after January 1, 2026, to repay the loan pursuant to an income-based repayment plan under section 493C(c).”; and

(4) by adding at the end the following:

“(7) BORROWERS OF LOANS MADE BEFORE JANUARY 1, 2026.—A borrower who is in repayment on a loan made under this part before January 1, 2026—

“(A) may choose to retain the repayment plan that the borrower was enrolled in on the day before such date;

“(B) may elect to—

“(i) enter an income-based repayment plan under section 493C(c);

“(ii) enter a fixed repayment plan described in section 493E; or

“(iii) switch between the repayment plans described in clauses (i) and (ii);

“(C) after switching to a repayment plan described in clause (i) or (ii) of subparagraph (B), shall not be permitted to select a repayment plan not described in subparagraph (B) for the loan; and

“(D) shall retain, for purposes of repayment or cancellation of any outstanding balance of principal and interest due on a loan (as described in section 493C(b)(7)), any payments on such loan under another income-based or income contingent repayment plan under this title that would otherwise be qualifying.”.

(c) Conforming amendment.—Section 433(b)(7)(B) (20 U.S.C. 1083(b)(7)(B)) is amended by striking “on a standard repayment plan” and inserting “, in the case of a borrower who has not selected a repayment plan, on the repayment plan designated under subparagraph (B) of section 428(b)(9)”.

(a) Enabling consolidation in order To simplify repayment.—Section 455(g) (20 U.S.C. 1087e(g)) is amended—

(1) by striking “A borrower of” and inserting the following:

“(1) IN GENERAL.—A borrower of”;

(2) by striking the second sentence; and

(3) by adding at the end the following:

“(2) ELIGIBILITY.—To be eligible for a Federal Direct Consolidation Loan under this part, a borrower shall meet the eligibility criteria set forth in section 428C(a)(3), except that, notwithstanding section 428C(a)(3)(B), a borrower may obtain a Federal Direct Consolidation Loan if the borrower—

“(A) obtains the Federal Direct Consolidation Loan for the purpose of—

“(i) selecting the income-based repayment plan under section 493C(c) or fixed- income repayment plan under section 495E; or

“(ii) participating in the pause payment process under section 460B; and

“(B) meets the requirements of section 428C(a)(3)(A).”.

(b) Incentives for simplified repayment plans.—Part G of title IV (20 U.S.C. 1088 et seq.), as amended by section 312, is further amended by adding at the end the following:

(a) In general.—The Secretary of Education, acting jointly with the Secretary of the Treasury, shall—

(1) not later than 1 year after the date of enactment of this Act, publish, in the Federal Register, notice of the Secretary’s intent to conduct a study on the effect of using data from the Internal Revenue Service such as personal exemptions, filing status, or child tax credits, as proxies for family size in an income-driven repayment plan, and invite public comment regarding the study;

(2) after reviewing any public comments provided under paragraph (1), conduct the study and publish the results of the study in the Federal Register;

(3) use the results of the study conducted under paragraph (1) to develop procedures for determining family size for the automatic recertification of income for an income-driven repayment plan in a manner that minimizes burdens and unintended harm to borrowers;

(4) publish the procedures developed under paragraph (3) in the Federal Register; and

(5) after a notice and comment period on such procedures, use such comments to finalize the procedures.

(b) Specifications.—The study conducted under subsection (a) shall—

(1) be completed, with the results published pursuant to subsection (a)(2), not later than 3 years after the date of enactment of this Act;

(2) determine how closely personal exemptions, filing status, or child tax credits match the family size that borrowers report on their income-driven repayment plan request form;

(3) compare the borrower’s actual monthly payment amount with the monthly payment amount borrowers would have using family size information derived from tax returns;

(4) include data from tax year 2018 or later tax years; and

(5) use data from more than one year, where possible, to analyze how much family size changes over time.

(c) Definition.—The term “income-driven repayment plan” means any of the following authorized under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.):

(1) The income-contingent repayment plan.

(2) The income-based repayment plan.

(3) The PAYE repayment plan.

(4) The REPAYE repayment plan.

Section 455 (20 U.S.C. 1087e) is amended—

(a) Repeal of origination fees.—Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is repealed.

(b) Effective date.—The amendment made by subsection (a) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first disbursement of principal is made on or after January 1, 2026.

Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding at the end the following:

(a) FFEL loans.—Section 428F(a)(5) (20 U.S.C. 1078–6(a)(5)) is amended by striking “one time per loan” and inserting “2 times per loan”.

(b) Direct loans.—Section 455(d) (20 U.S.C. 1087e(d)), as amended by section 313, is further amended by adding at the end the following:

“(8) LOAN REHABILITATION.—In carrying out the process for loan rehabilitation described in section 428F(a)(5) with respect to loans made under this part and in accordance with subsection (a), the Secretary shall allow a borrower to obtain the benefits available under such section not more than 2 times per loan.”.

(a) Establishment of pause payment process.—Part D of title IV (20 U.S.C. 1087a et seq.), as amended by section 331, is further amended by adding at the end the following:

(b) Conforming amendments.—Section 455 (20 U.S.C. 1087e) is amended—

(1) in subsection (e)(7)(B)(i), by striking “is in deferment” and inserting “is under pause payment pursuant to section 460B”;

(2) by striking subsection (f) and inserting the following:

“(f) reserved”; and

(3) in subsection (l)—

(A) by striking “Program.—” and all that follows through “Using funds” and inserting the following: “Program.—Using funds”; and

(B) by striking paragraph (2).

(a) Notification and automatic enrollment procedures.—Section 455(d) (20 U.S.C. 1087e(d)), as amended by sections 313 and 332, is further amended by adding at the end the following:

“(9) NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR BORROWERS WHO ARE DELINQUENT ON LOANS.—

“(A) AUTHORITY TO OBTAIN INCOME INFORMATION.—

“(i) IN GENERAL.—In the case of any borrower who is at least 60 days delinquent on a loan made under this part, the Secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower’s spouse, if applicable).

“(ii) AVAILABILITY OF RETURNS AND RETURN INFORMATION.—Returns and return information (as defined in section 6103 of the Internal Revenue Code of may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code).

“(B) BORROWER NOTIFICATION.—With respect to each borrower of a loan made under this part who is at least 60 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 60-day delinquency, provide to the borrower the following:

“(i) Notification that the borrower is at least 60 days delinquent on at least 1 loan under this part, and a description of all delinquent loans under this part, and nondelinquent loans under this part, of the borrower.

“(ii) A brief description of the repayment plans for which the borrower is eligible and the borrower’s loans made under this part, and loans made, insured, or guaranteed under part B or E, 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) The amount of monthly payments for the loans made under this part, and any loans made, insured, or guaranteed under part B or E, 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 the income-based repayment plan under section 493C(c) for which the borrower is eligible for the borrower’s loans made under this part, based on such income information; and

“(II) the income, family size, tax filing status, and tax year information on which each the monthly payment is based.

“(v) An explanation that the Secretary shall take the actions under subparagraph (C) with respect to such borrower, if—

“(I) the borrower is 120 days delinquent on one or more loans under this part and has not selected a new repayment plan for the borrower’s loans under this part; and

“(II) in the case of such a borrower whose repayment plan for any loans made under this part is not an income-based repayment plan under section 493C(c), the monthly payments under such repayment plan are higher than such monthly payments would be under an income-based repayment plan for such loans.

“(vi) 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 loans made under this part that meets the requirements of clause (v)(II) of subparagraph (B), who has not selected a new repayment plan for such loans in accordance with the notice received under such subparagraph, and who is at least 120 days delinquent on such a loan, the Secretary shall, as soon as practicable—

“(i) in a case in which any of the borrower’s loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), provide the borrower with the income-based repayment plan; and

“(ii) in a case in which none of the borrower’s loans made under part B or E are eligible for an income-based repayment plan under section 493C(c), 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 loan made under this part 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 subparagraph (C) for the borrower’s loans made under this part, 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 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.

“(E) OPT-OUT.—A borrower of a loan made under this part shall have the right to opt out of the procedures under this paragraph.

“(F) PROCEDURES.—The Secretary shall establish procedures as are necessary to effectively implement this paragraph.

“(10) NOTIFICATION AND AUTOMATIC ENROLLMENT PROCEDURES FOR BORROWERS WHO ARE REHABILITATING DEFAULTED LOANS.—

“(A) AUTHORITY TO OBTAIN INCOME INFORMATION.—

“(i) IN GENERAL.—In the case of any borrower who is rehabilitating a loan made under this part pursuant to section 428F(a), the Secretary may obtain such information as is reasonably necessary regarding the income and family size of the borrower (and the borrower’s spouse, if applicable).

“(ii) AVAILABILITY OF RETURNS AND RETURN INFORMATION.—Returns and return information (as defined in section 6103 of the Internal Revenue Code of may be obtained under this subparagraph only to the extent authorized by section 6103(l)(13) of such Code).

“(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 AUTOMATIC ENROLLMENT.—With respect to each borrower who has made the 9th payment required for the loan rehabilitation described in subparagraph (A) and is eligible for the income-based repayment plan under section 493C(c), the Secretary shall, as soon as practicable after such payment, provide the borrower with the income-based repayment plan.

“(D) OPT-OUT.—A borrower of a loan made under this part shall have the right to opt out of the procedures for enrollment in an income-based repayment plan under this paragraph.

“(E) PROCEDURES.—The Secretary shall establish procedures as are necessary to effectively implement this paragraph.”.

(b) Effective date.—The amendments made by subsection (a) shall—

(1) take effect as soon as the Secretary of Education determines practicable after the Secretary finalizes the procedures under section 315; and

(2) apply to all borrowers of loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.).

(a) In general.—Section 455(g) (20 U.S.C. 1087e(g)), as amended by section 314, is further amended by adding at the end the following:

“(3) SEPARATING JOINT CONSOLIDATION LOANS.—

“(A) IN GENERAL.—A married couple, or 2 individuals who were previously a married couple, and who received a joint consolidation loan as such married couple under subparagraph (C) of section 428C(a)(3) (as such subparagraph was in effect on or before June 30, 2006), may apply to the Secretary for each individual borrower in the married couple (or previously married couple) to receive a separate Federal Direct Consolidation Loan under this part—

“(i) that shall—

“(I) unless the Secretary receives notice of an agreement described in subclause (II)(aa), be equal to the sum of—

“(aa) the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that, as of the day before such joint consolidation loan was made, was attributable to the loans of the individual borrower for whom such separate consolidation loan is being made; and

“(bb) any other loans described in section 428C(a)(4) that such individual borrower selects for consolidation under this part; or

“(II) be equal to the sum of—

“(aa) the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that, as of the date of application under this paragraph, the married couple (or previously married couple) agrees shall be considered attributable to the loans of the individual borrower for whom such separate consolidation loan is being made; and

“(bb) any other loans described in section 428C(a)(4) that such individual borrower selects for consolidation under this part;

“(ii) the proceeds of which shall be paid by the Secretary to the holder or holders—

“(I) of the joint consolidation loan for the purpose of discharging the liability on the percentage of such joint consolidation loan described in subclause (I)(aa) or (II)(aa) of clause (i); and

“(II) of the loans selected for consolidation under subclause (I)(bb) or of clause (i) for the purpose of discharging the liability on such loans;

“(iii) except as otherwise provided in this paragraph, that has the same terms and conditions, and rate of interest as the joint consolidation loan, except if other loans are included in such Federal Direct Consolidation Loan after the date the Federal Direct Consolidation Loan is first made under this paragraph;

“(iv) for which any payment made under subsection (m)(1)(A) on the joint consolidation loan during a period in which the individual borrower for whom such separate consolidation loan is being made was employed in a public service job described in subsection (m)(1)(B) shall be treated as if such payment were made on such separate consolidation loan; and

“(v) for which any payment made under an income contingent repayment plan under subsection (d)(1)(D), or an income-based repayment plan under paragraph (1)(E) or (2)(A)(ii) of subsection (d), on the joint consolidation loan shall be treated as if such payment were made on such separate consolidation loan.

“(B) APPLICATION FOR SEPARATE DIRECT CONSOLIDATION LOANS.—

“(i) JOINT APPLICATION.—Except as provided in clause (ii), to receive separate consolidation loans under subparagraph (A), both individual borrowers in a married couple (or previously married couple) shall jointly apply under such subparagraph.

“(ii) SEPARATE APPLICATION.—An individual borrower in a married couple (or previously married couple) may apply for a separate consolidation loan under subparagraph (A) separately and without regard to whether or when the other individual borrower in the married couple (or previously married couple) applies under such subparagraph, and shall be relieved of any remaining liability for the joint consolidation loan, in a case in which—

“(I) the individual borrower has experienced from the other individual borrower—

“(aa) domestic violence (as defined in section 40002(a) of the Violence Against Women Act of 1994 (34 U.S.C. 12291(a)));

“(bb) economic abuse (including behaviors that control such borrower’s ability to acquire, use, and maintain access to money, credit, or the joint financial obligations of both borrowers); or

“(cc) other exceptional circumstances, as determined by the Secretary; and

“(II) the Secretary determines that authorizing each individual borrower to apply separately under subparagraph (A) would be in the best fiscal interests of the Federal Government, including by reducing the risk of delinquency or default.

“(C) BORROWER ELIGIBILITY.—Notwithstanding section 428C(a)(3)(A), the Secretary shall provide a consolidation loan under this part to each borrower who—

“(i) applies for such loan under subparagraph (A); and

“(ii) meets the requirements of subparagraphs (A) and (B).”.

(b) Conforming amendment.—Section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078–3(3)(B)(i)(V)) is amended—

(1) by striking “or” at the end of item (bb);

(2) by striking the period at the end of item (cc) and inserting “; or”; and

(3) by adding at the end the following:

“(dd) for the purpose of separating a joint consolidation loan into 2 separate Federal Direct Consolidation Loans under section 455(g)(3).”.

(a) Removal of requirement.—Section 484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by striking “shall be required to pay, in addition to other charges specified in this title, reasonable collection costs” and inserting “shall not be required to pay collection costs”.

(b) Repayment after default.—Section 455(d)(6) (20 U.S.C. 1087e(d)(6)), as redesignated under section 313(b), is amended by striking “to—” and all that follows through the period at the end and inserting “to repay the loan pursuant to an income-based repayment plan under section 493C(c).”.

(a) Student loan contract.—Section 455 (20 U.S.C. 1087e), as amended by section 322, is further amended by inserting after subsection (b) the following:

“(c) Student loan contract; simplifying loan disclosures.—

“(1) STUDENT LOAN CONTRACT.—

“(A) IN GENERAL.—Any master promissory note form described in section 432(m)(1)(D) that is developed or used for covered loans shall be referred to as a ‘student loan contract’.

“(B) CLARIFICATION ON USE.—Notwithstanding section 432(m)(1)(D)(i), each student loan contract for a covered loan shall—

“(i) not be entered into by a student unless the student has completed all required counseling related to such loan, including counseling required under section 485(l);

“(ii) be signed by the student entering such student loan contract after completion of such counseling;

“(iii) be signed by the student during the first award year of such student’s enrollment at an institution;

“(iv) be valid for each award year after the award year described in clause (iii) in which the student remains enrolled at the same institution; and

“(v) include options for the student to enter both the student’s current contact information and permanent contact information that is likely to remain valid upon the student’s exit from the institution.

“(C) COVERED LOAN.—

“(i) IN GENERAL.—In this subsection, the term ‘covered loan’ means a loan made under this part on or after the effective date of the Affordable Loans for Any Student Act, except with respect to a borrower described in clause (ii).

“(ii) EXCEPTION.—A borrower is described in this clause if the loan made under this part on or after the effective date of the Affordable Loans for Any Student Act with respect to such borrower is for the award year during which the Affordable Loans for Any Student Act is enacted and the borrower has already taken out a loan under this part (other than a Federal Direct Consolidation Loan) for such award year (including any such loan for attendance at another institution from which the student transferred or in which the student had previously enrolled).

“(2) LOAN DISCLOSURES.—For loans made under this part for periods of enrollment beginning on or after the effective date of the Affordable Loans for Any Student Act, the Secretary shall take such steps as are necessary to streamline the student loan disclosure requirements under this Act. The Secretary shall ensure that information required to be disclosed to a student who is applying for, receiving, or preparing to repay a loan under this part shall be consumer-tested and delivered in a manner that—

“(A) reduces and simplifies the paperwork students are required to complete;

“(B) limits the number of times a student is presented with disclosures by incorporating the streamlined disclosures into required student loan counseling under section 485(l), the student loan contract under this subsection, or both; and

“(C) is effective in helping the student understand the student’s rights and obligations as a Federal student loan borrower.

“(3) LOAN ACCEPTANCE.—Prior to making the first disbursement of a covered loan (other than a Federal Direct Consolidation Loan) to a borrower, the eligible institution shall ensure that the borrower—

“(A) has completed the applicable counseling under paragraph (2) or (3) of section 485(l); and

“(B) after completing such counseling, accepts the loan by—

“(i) signing and returning to the institution the student loan contract described in section 455(c)(1) that affirmatively states that the borrower accepts the loan; or

“(ii) electronically signing an electronic version of such student loan contract, which may be done through the online counseling tool in accordance with section 485(n)(1)(B).”.

(b) Conforming amendment.—Section 487(a)(7) (20 U.S.C. 1094(a)(7)) is amended by striking “section 485” and inserting “sections 455(c)(3) and 485”.

Section 485(l) (20 U.S.C. 1092(l)) is amended to read as follows:

Section 485(b) (20 U.S.C. 1092(b)) is amended to read as follows:

Section 485 (20 U.S.C. 1092), as amended by this Act, is further amended by adding at the end the following:

(a) Amendments to the higher education act of 1965.—

(1) IN GENERAL.—Section 487(a) (20 U.S.C. 1094(a)) is amended by striking paragraph (28) and inserting the following:

“(28) (A) The institution shall—

“(i) upon the request of a private educational lender, acting in connection with an application initiated by a borrower for a private education loan in accordance with section 128(e)(3) of the Truth in Lending Act, provide certification to such private educational lender—

“(I) that the student who initiated the application for the private education loan, or on whose behalf the application was initiated, is enrolled or is scheduled to enroll at the institution;

“(II) of such student’s cost of attendance at the institution as determined under part F; and

“(III) of the difference between—

“(aa) the cost of attendance at the institution; and

“(bb) the student’s estimated financial assistance received under this title and other assistance known to the institution, as applicable; and

“(ii) provide the certification described in clause (i), or notify the private educational lender that the institution has received the request for certification and will need additional time to comply with the certification request—

“(I) within 15 business days of receipt of such certification request; and

“(II) only after the institution has completed the activities described in subparagraph (B).

“(B) The institution shall, upon receipt of a certification request described in subparagraph (A)(i), and prior to providing such certification—

“(i) determine whether the student who initiated the application for the private education loan, or on whose behalf the application was initiated, has applied for and exhausted the Federal financial assistance available to such student under this title and inform the student accordingly; and

“(ii) provide the borrower whose loan application has prompted the certification request by a private education lender, as described in subparagraph (A)(i), with the following information and disclosures:

“(I) If the borrower has not yet exhausted the financial assistance available to the borrower under this title, the amount of additional Federal student assistance for which the borrower is eligible and the potential advantages of Federal loans under this title, including disclosure of—

“(aa) the fixed interest rates and pause payment processes;

“(bb) the option for and terms of income-based repayment, loan forgiveness programs, and additional protections; and

“(cc) the higher student loan limits for dependent students whose parents are not eligible for a Federal Direct PLUS Loan.

“(II) The borrower’s ability to select a private educational lender of the borrower’s choice.

“(III) The impact of a proposed private education loan on the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title.

“(IV) The borrower’s right to accept or reject a private education loan within the 30-day period following a private educational lender’s approval of a borrower’s application, and a borrower’s 3-day right to cancel period under section 128(e)(7) of the Truth in Lending Act (15 U.S.C. 1650(e)(7)).

“(C) For purposes of this paragraph, the terms ‘private educational lender’ and ‘private education loan’ have the meanings given such terms in section 140 of the Truth in Lending Act (15 U.S.C. 1650).”.

(2) NATIONAL STUDENT LOAN DATA SYSTEM.—Section 485B (20 U.S.C. 1092b) is amended—

(A) in subsection (a), by striking “and loans made under parts D and E” and inserting “, loans made under parts D and E, and private education loans (in accordance with subsection (i))”;

(B) in subsection (g), in the subsection heading, by inserting “for Federal Loans” after “Data Reporting”; and

(C) by adding at the end the following:

“(j) Private education loan reporting.—The Secretary shall include in the National Student Loan Data System the information regarding private education loans that the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary, determines necessary to be included pursuant to section 128(e)(9)(B)(ii) of the Truth in Lending Act (15 U.S.C. 1638(e)(9)(B)(ii)).”.

(3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) shall take effect on the effective date of the regulations described in subsection (b)(3).

(b) Amendments to the truth in lending act.—

(1) IN GENERAL.—Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is amended—

(A) by striking paragraph (3) and inserting the following:

“(3) INSTITUTIONAL CERTIFICATION REQUIRED.—

“(A) IN GENERAL.—Except as provided in subparagraph (B), before a private educational lender may issue any funds with respect to a private education loan, the private educational lender shall obtain, from the relevant institution of higher education where such loan is to be used for a student, a certification in accordance with section 485(a)(28)(A) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(28)(A))—

“(i) confirming that the student is enrolled or is scheduled to be enrolled at the institution; and

“(ii) stating—

“(I) the student’s cost of attendance at the institution, as determined by the institution under part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.); and

“(II) the difference between—

“(aa) such cost of attendance; and

“(bb) the student’s estimated financial assistance, including such assistance received under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and other financial assistance known to the institution, as applicable.

“(B) TIMING.—Pursuant to section 485(a)(28)(A) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(28)(A)), a private education lender shall receive the certification described in subparagraph (A) within 15 days of a request by the private education lender, unless the institution of higher education notifies the private educational lender pursuant to section 485(a)(28)(A)(ii) of such Act that additional time is needed.

“(C) ADDITIONAL REQUIREMENTS.—Upon receiving the certification described in subparagraph (A) for a private education loan, the private educational lender—

“(i) may proceed to issue funds with respect to the private education loan; and

“(ii) after issuing the private education loan, shall—

“(I) notify the institution of higher education involved that the private education loan has been issued to the borrower, and the amount of such loan; and

“(II) provide the Director of the Consumer Financial Protection Bureau and the Secretary of Education with the information described in paragraph (9)(B).”;

(B) by redesignating paragraphs (9), (10), and (11), as paragraphs (10), (11), and (12), respectively; and

(C) by inserting after paragraph (8) the following:

“(9) PROVISION OF INFORMATION.—

“(A) PROVISION OF INFORMATION TO BORROWERS.—

“(i) LOAN STATEMENTS.—A private educational lender that issues any funds with respect to a private education loan shall—

“(I) send loan statements, if the loan is to be used for a student, to borrowers of the funds not less than once every 3 months during the time that the student is enrolled at an institution of higher education; and

“(II) in the case of a private education loan that includes a cosigner, annually send a loan statement to the borrower’s cosigner, notifying the cosigner of the terms, conditions, and status of such private education loan.

“(ii) CONTENTS OF LOAN STATEMENT.—Each statement described in clause (i) shall—

“(I) report the borrower’s total remaining debt to the private educational lender, including accrued but unpaid interest and capitalized interest;

“(II) report any debt increases since the last statement; and

“(III) list the current interest rate for each loan.

“(B) PROVISION OF INFORMATION TO FEDERAL AGENCIES.—

“(i) INFORMATION FROM LENDER.—Each private educational lender shall—

“(I) submit to the Director of the Consumer Financial Protection Bureau and the Secretary of Education such information regarding a private education loan as may be determined necessary by the Director and the Secretary under clause (ii) for inclusion in the National Student Loan Data System under section 485B(i) of the Higher Education Act of 1965 (20 U.S.C. 1092b(i)); and

“(II) prepare and submit an annual report to the Consumer Financial Protection Bureau regarding the private education loans issued by the private educational lender.

“(ii) PROMULGATION OF REGULATIONS.—Not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations regarding the private education loan information required to be submitted under clause (i), including the content, method, and format for submission. The information required for inclusion in the National Student Loan Data System shall include—

“(I) information identifying the borrower, including the borrower’s name and social security number;

“(II) the name of the institution of higher education that has certified the private education loan;

“(III) the name of the lender;

“(IV) the amount of the private education loan;

“(V) the term, or other enrollment period, for which the private education loan is issued; and

“(VI) whether a cosigner was required as a condition of the private education loan.”.

(2) DEFINITION OF PRIVATE EDUCATION LOAN.—Section 140(a)(8)(A) of the Truth in Lending Act (15 U.S.C. 1650(a)(8)(A)) is amended—

(A) by redesignating clause (ii) as clause (iii);

(B) in clause (i), by striking “and” after the semicolon; and

(C) by adding after clause (i) the following:

“(ii) is not made, insured, or guaranteed under title VII or title VIII of the Public Health Service Act (42 U.S.C. 292 et seq. and 296 et seq.); and”.

(3) REGULATIONS.—

(A) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations to implement paragraphs (3) and (9) of section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)), as amended by paragraph (1) of this subsection.

(B) EFFECTIVE DATE.—The regulations promulgated under subparagraph (A) shall take effect on the date that is 180 days after the date on which the regulations are promulgated.

(a) Effective date.—Except as otherwise specifically provided, this title, and the amendments made by this title, shall take effect on January 1, 2026.

(b) Applicability with respect to forbearance and deferment for direct loan borrowers.—With respect to any borrower of a loan under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) that is, or has been, in forbearance or deferment as of the day before the effective date described in subsection (a), the Secretary shall take such steps as are necessary—

(1) to transfer a borrower with a loan in forbearance or deferment as of such day automatically into relief provided under the pause payment process established under section 460B of such Act (as amended by this Act); and

(2) to ensure that the period of time for which a borrower is eligible for pause payment under such section 460B for a loan is appropriately reduced to account for any time the loan was previously in forbearance or deferment.

(c) Regulations.—Before the effective date described in subsection (a), the Secretary of Education shall carry out a plan to end all eligibility for repayment plans other than a fixed repayment plan described in section 493E of the Higher Education Act of 1965, as added by this Act, and an income-based repayment plan under section 493C(c) of such Act (20 U.S.C. 1098e(f)) for loans made under part B or D of title IV of such Act, unless the borrower is enrolled in another repayment plan before such effective date, in accordance with the amendments made by this Act.

(d) Implementation.—In carrying out the amendments made by this Act, or any regulations promulgated under this Act, the Secretary of Education may waive the application of—

(1) subchapter I of chapter 35 of title 44, United States Code (commonly known as the “Paperwork Reduction Act”);

(2) the master calendar requirements under section 482 of the Higher Education Act of 1965 (20 U.S.C. 1089);

(3) negotiated rulemaking under section 492 of the Higher Education Act of 1965 (20 U.S.C. 1098a); and

(4) the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of section 552a(e) of title 5, United States Code (commonly known as the “Privacy Act of 1974”).

(a) In general.—Subtitle D is amended by inserting after chapter 36 the following new chapter:

“Sec. 4501. Repurchase of corporate stock.

(b) Tax not deductible.—Paragraph (6) of section 275(a) is amended by inserting “37,” before “41”.

(c) Clerical amendment.—The table of chapters for subtitle D is amended by inserting after the item relating to chapter 36 the following new item:

(d) Effective date.—The amendments made by this section shall apply to repurchases (within the meaning of section 4501(c) of the Internal Revenue Code of 1986, as added by this section) of stock after December 31, 2022.

(a) In general.—Section 1411 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(f) Application to certain high income individuals.—

“(1) IN GENERAL.—In the case of any individual whose modified adjusted gross income for the taxable year exceeds the high income threshold amount, subsection (a)(1) shall be applied by substituting ‘the greater of specified net income or net investment income’ for ‘net investment income’ in subparagraph (A) thereof.

“(2) PHASE-IN OF INCREASE.—The increase in the tax imposed under subsection (a)(1) by reason of the application of paragraph (1) of this subsection shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this paragraph) as—

“(A) the excess described in paragraph (1) bears to; and

“(B) $100,000 (½ such amount in the case of a married taxpayer (as defined in section 7703) filing a separate return).

“(3) HIGH INCOME THRESHOLD AMOUNT.—For purposes of this subsection, the term ‘high income threshold amount’ means—

“(A) except as provided in subparagraph (B) or (C), $400,000;

“(B) in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $500,000; and

“(C) in the case of a married taxpayer (as defined in section 7703) filing a separate return, ½ of the dollar amount determined under subparagraph (B).

“(4) SPECIFIED NET INCOME.—For purposes of this section, the term ‘specified net income’ means net investment income determined—

“(A) without regard to the phrase ‘other than such income which is derived in the ordinary course of a trade or business not described in paragraph (2)’ in subsection (c)(1)(A)(i);

“(B) without regard to the phrase ‘described in paragraph (2)’ in subsection (c)(1)(A)(ii);

“(C) without regard to the phrase ‘other than property held in a trade or business not described in paragraph (2)’ in subsection (c)(1)(A)(iii);

“(D) without regard to paragraphs (2), (3), and (4) of subsection (c); and

“(E) by treating paragraphs (5) and (6) of section 469(c) as applying for purposes of subsection (c) of this section.”.

(b) Application to trusts and estates.—Section 1411(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “undistributed net investment income” and inserting “the greater of undistributed specified net income or undistributed net investment income”.

(c) Clarifications with respect to determination of net investment income.—

(1) WAGES SUBJECT TO FICA NOT TAKEN INTO ACCOUNT.—Section 1411(c)(6) of the Internal Revenue Code of 1986 is amended by inserting “or wages received with respect to employment on which a tax is imposed under section 3101(b)” before the period at the end.

(2) NET OPERATING LOSSES NOT TAKEN INTO ACCOUNT.—Section 1411(c)(1)(B) of the Internal Revenue Code of 1986 is amended by inserting “(other than section 172)” after “this subtitle”.

(3) INCLUSION OF CERTAIN FOREIGN INCOME.—

(A) IN GENERAL.—Section 1411(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of clause (ii), by striking “over” at the end of clause (iii) and inserting “and”, and by adding at the end the following new clause:

“(iv) any amount includible in gross income under section 951, 951A, 1293, or 1296, over.”.

(B) PROPER TREATMENT OF CERTAIN PREVIOUSLY TAXED INCOME.—Section 1411(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(7) CERTAIN PREVIOUSLY TAXED INCOME.—The Secretary shall issue regulations or other guidance providing for the treatment of distributions of amounts previously included in gross income for purposes of chapter 1 but not previously subject to tax under this section.”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2022.

(e) Transition rule.—The regulations or other guidance issued by the Secretary under section 1411(c)(7) of the Internal Revenue Code of 1986 (as added by this section) shall include provisions which provide for the proper coordination and application of clauses (i) and (iv) of section 1411(c)(1)(A) with respect to—

(1) taxable years beginning on or before December 31, 2022; and

(2) taxable years beginning after such date.