summary
Introduced
10/11/2019
10/11/2019
In Committee
10/11/2019
10/11/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend the Higher Education Act of 1965 to establish an income-based repayment for new loans on and after July 1, 2021, and for borrowers who enter income-based repayment after June 30, 2021, and for other purposes. This bill phases out existing repayment plans for federal student loans and replaces them with one fixed repayment plan and one income-based repayment plan. Under current law, a borrower may choose among eight plans for student loan repayment, such as standard repayment, extended repayment, and income-contingent repayment. The Department of Education must offer all borrowers a choice between the two new plans and allow borrowers of loans made prior to a date certain the option of continuing repayment under their original plan or electing to repay under one of the new plans.
AI Summary
This bill phases out existing repayment plans for federal student loans and replaces them with one fixed repayment plan and one income-based repayment plan. Under the new system, borrowers will have the option to choose between a fixed repayment plan with set monthly payments over a period of 10 to 25 years, or an income-based repayment plan where the monthly payment is 10% of the borrower's discretionary income. Borrowers with loans made prior to July 1, 2021 will have the option to continue their original repayment plan or switch to one of the new plans. The bill aims to simplify the student loan repayment process by reducing the number of plan options.
Committee Categories
Education
Sponsors (4)
Last Action
Referred to the House Committee on Education and Labor. (on 10/11/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/4670/all-info |
| BillText | https://www.congress.gov/116/bills/hr4670/BILLS-116hr4670ih.pdf |
| Bill | https://www.congress.gov/116/bills/hr4670/BILLS-116hr4670ih.pdf.pdf |
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