S.Amdt. 1745
What it does: Adds SEC. ___. INCOME-BASED REPAYMENT AMENDMENTS at the end of the bill
Sen. Richard Blumenthal (D-CT)What it changes
1 change to H.R. 1911 · shown in the bill's text
Adds SEC. ___. INCOME-BASED REPAYMENT AMENDMENTS at the end of the bill
Adds a sectionIn H.R. 1911 · Placed on Calendar Senate
Passed the House of Representatives May 23, 2013.
Inserted: SEC. ___. INCOME-BASED REPAYMENT AMENDMENTS.
Inserted: (a) Limitation on Repayment Amounts and Repayment Period.--Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) is amended--
Inserted: (1) in subsection (a)(3), by striking subparagraph (B) and inserting the following:
Inserted: "(B) 10 percent of the result obtained by calculating, on at least an annual basis, the amount by which--
Inserted: "(i) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds
Inserted: "(ii) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))."; and
Inserted: (2) in subsection (b)(7), by striking subparagraph (B) and inserting the following:
Inserted: "(B) for a period of time prescribed by the Secretary, not to exceed 20 years, meets 1 or more of the following requirements--
Inserted: "(i) has made reduced monthly payments under paragraph (1) or paragraph (6);
Inserted: "(ii) has made monthly payments of not less than the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection;
Inserted: "(iii) has made payments of not less than the payments required under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a repayment period of 10 years;
Inserted: "(iv) has made payments under an income-contingent repayment plan under section 455(d)(1)(D); or
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Inserted: "(v) has been in deferment due to an economic hardship described in section 435(o);".
Inserted: (b) Taxability of Discharge of Debt.--
Inserted: (1) In general.--Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended by striking "any student loan if" and all that follows and inserting "any student loan if--
Inserted: "(A) such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers, or
Inserted: "(B) such discharge was pursuant to section 493C(b)(7) of the Higher Education Act of 1965 (relating to income-based repayment).".
Inserted: (2) Effective date.--The amendment made by paragraph (1) shall apply to discharges of loans after December 31, 2013.
Original wording
At the end, add the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 1745. Mr. BLUMENTHAL submitted an amendment intended to be proposed by him to the bill H.R. 1911, of 1965 to establish interest rates for new loans made on or after July 1, 2013, to direct the Secretary of Education to convene the Advisory Committee on Improving Postsecondary Education Data to conduct a study on improvements to postsecondary education transparency at the Federal level, and for other purposes; which was ordered to lie on the table; as follows:
At the end, add the following:
SEC. ___. INCOME-BASED REPAYMENT AMENDMENTS.
(a) Limitation on Repayment Amounts and Repayment Period.--Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) is amended--
(1) in subsection (a)(3), by striking subparagraph (B) and inserting the following:
“(B) 10 percent of the result obtained by calculating, on at least an annual basis, the amount by which--
“(i) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds
“(ii) 150 percent of the poverty line applicable to the borrower's family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).”; and
(2) in subsection (b)(7), by striking subparagraph (B) and inserting the following:
“(B) for a period of time prescribed by the Secretary, not to exceed 20 years, meets 1 or more of the following requirements--
“(i) has made reduced monthly payments under paragraph (1) or paragraph (6);
“(ii) has made monthly payments of not less than the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection;
“(iii) has made payments of not less than the payments required under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A) with a repayment period of 10 years;
“(iv) has made payments under an income-contingent repayment plan under section 455(d)(1)(D); or
“(v) has been in deferment due to an economic hardship described in section 435(o);”.
(b) Taxability of Discharge of Debt.--
(1) In general.--Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended by striking “any student loan if” and all that follows and inserting “any student loan if--
“(A) such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers, or
“(B) such discharge was pursuant to section 493C(b)(7) of the Higher Education Act of 1965 (relating to income-based repayment).”.
(2) Effective date.--The amendment made by paragraph (1) shall apply to discharges of loans after December 31, 2013.
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Senate amendment submitted
July 23, 2013