Escolar Documentos
Profissional Documentos
Cultura Documentos
S.L.C.
114TH CONGRESS
2D SESSION
S. ll
To simplify and improve the Federal student loan program through incomecontingent repayment to provide stronger protections for borrowers, encourage responsible borrowing, and save money for taxpayers.
A BILL
To simplify and improve the Federal student loan program
through income-contingent repayment to provide stronger
protections for borrowers, encourage responsible borrowing, and save money for taxpayers.
1
5 Act of 2016.
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(4) TERMINATION
OF AUTHORITY TO MAKE
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THIS PART.
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(A) IN
GENERAL.Notwithstanding
any
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2017
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subparagraph (B).
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lowing:
(i)
ROWERS.A
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2019.
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EXISTING
STUDENT
BOR-
(ii) PARENT
PLUS LOANS.An
ex-
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dependent student.
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(iii) FEDERAL
DIRECT CONSOLIDA-
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TION LOANS.A
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(C) MAXIMUM
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FEDERAL
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LOANS.The
DIRECT
ANNUAL
AMOUNTS
UNSUBSIDIZED
OF
STAFFORD
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EDUCATION
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ASSISTANCE
LOAN
PROGRAM
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ASSISTANCE LOANS
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GENERAL.There
are authorized to be
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(b) FUNDS
FOR
THE
ORIGINATION
OF
IDEA
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1 that funds under this part shall not be provided for parent
2 loans.
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(c) SELECTION
TION AND
TUTIONS.
OF
ORIGINATION,
INSTITUTIONS
AND
(1) SELECTION
FOR
PARTICIPA-
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(2) PARTICIPATION
Secretary shall
agreement with
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(3) WITHDRAWAL
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DURES.The
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1 date of enactment of the Dynamic Repayment Act of
2 2016.
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GENERAL.In
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499C.
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(2) ONLY
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(1) IN
GENERAL.Subject
to paragraph (2),
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(2) GRADUATE
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section 455(a)(4).
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(1) UNDERGRADUATE
STUDENTS.With
re-
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1
percent; or
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AND
PROFESSIONAL
STU-
DENTS.With
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tion; or
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(4) APPLICATION
(A) IN-SCHOOL
DEFERMENT PERIOD.
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of study.
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(B) GRACE
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(g) NO ACCRUAL
OF
INTEREST
FOR
ACTIVE DUTY
13 SERVICE MEMBERS.
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(1) IN
GENERAL.Notwithstanding
any other
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(2) IDEA
CONSOLIDATION LOANS.In
the
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(3) ELIGIBLE
MILITARY BORROWER.In
this
emergency; or
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AND
DISCHARGE.The
24 part shall be eligible for loan forgiveness under the fol25 lowing conditions:
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(c).
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(1) IN
GENERAL.Except
as otherwise pro-
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part.
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(2) BORROWER
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(A) shall
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2
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in section 493C(a)));
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Loan; and
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solidation Loan.
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(3) REQUIREMENTS
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on such loans;
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Loan
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consolidation loan; or
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the
periods
during
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which
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the
borrowers
student
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tion 465(a);
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loan.
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20 499B(e), an IDEA Consolidation Loan for which the ap21 plication is received on or after July 1, 2017, shall bear
22 interest at an annual rate on the unpaid principal balance
23 of the loan that is equal to the weighted average of the
24 interest rates on the loans consolidated, rounded to the
25 nearest higher one-eighth of one percent. Interest that ac-
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1 crues on such an IDEA Consolidation Loan shall not be
2 capitalized.
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7
8
URY.
9 payment Program established under this subpart, the Sec10 retary of the Treasury shall, with respect to each indi11 vidual for whom a loan made under this part is in repay12 ment status during a taxable year, transmit to the Sec13 retary of Education
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2 Secretary of the Treasury shall establish such other poli3 cies, procedures, and guidance as may be necessary to
4 carry out the purposes of this subpart, including measures
5 to prevent underreporting and evasion of repayment or fil6 ing.
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9 as part of the IDEA Loan Repayment Program estab10 lished under this subpart, the following activities:
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(1) CALCULATION
OF ANNUAL REPAYMENT
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AMOUNTS.The
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tion 499F(i).
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(2) COMMUNICATION
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OF THE TREASURY.The
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(3) ANNUAL
STATEMENTS.Upon
calculating
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with a loan made under this part, which lists the fol-
lowing:
able year.
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overpayment
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on
such
annual
repayment
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(4) DIRECT
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PAYMENT.The
Secretary shall
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(5) PAYMENTS
ON A BORROWERS BEHALF.
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the borrower.
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(6) CALCULATING
INTEREST ACCRUED.The
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(7) APPEALS
PROCESS.The
Secretary shall
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repayment amount.
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(8) DEFAULT
TURN.In
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(9) WITHHOLDING
OPT-OUT.The
Secretary
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(10) EMPLOYER
WITHHOLDING.The
Sec-
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(11) MONTHLY
PAYMENTS
PROCESS.The
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(b)
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REQUIREMENTS
FOR
EMPLOYER
WITH-
HOLDING.
(1) WITHHOLDING
ORDERS.In
carrying out
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(A) NEW
EMPLOYMENT.Upon
deter-
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(B) OTHER
PURPOSES.Upon
notifica-
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the
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employers
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retary.
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information
to
(C) STOP
provided
withhold
and
under
section
transmit
the
WITHHOLDING ORDER.Upon
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(D) TRANSFER
OF PAYMENTS.Outline
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(E) ELECTRONIC
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(i) IN
TRANSMISSION.
GENERAL.Make
available
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ployers.
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(ii) NO
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TRONIC TRANSMISSION.Nothing
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in this
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(2) EMPLOYER
(A) IN
REMITTANCE.
GENERAL.In
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(3) WITHHOLDING
AMOUNT.The
amount
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and
paragraph (4)(C).
(4) WITHHOLDING
PREFERENCES.The
Sec-
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ployer
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this subsection;
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graph (3).
(5) EMPLOYEE
PROTECTION.An
employer
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section shall
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by law to be withheld.
(c) MONTHLY PAYMENTS PROCESS.
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(1) IN
GENERAL.The
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subsection (b).
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(2) INFORMATION
REQUIRED.The
procedure
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(A) INCOME
ESTIMATE.A
requirement
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(B) AMORTIZATION
SCHEDULE.In
the
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of years.
(3) MONTHLY
PAYMENTS
AMOUNTS.The
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year; or
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(4) AUTOMATIC
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CONTINUATION.The
month-
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(5) UPDATING
PAYMENT AMOUNTS.
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rower.
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TION LOANS
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disbursed; and
amount
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the loan; or
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of a borrower.
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section 499E(a)(1); or
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(c) METHODS
OF
4 expects to have an annual repayment amount for the tax5 able year that is greater than the amount specified in sub6 section (f)(1)(D) shall make payments through the fol7 lowing methods:
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section 499E(a)(10).
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entire obligation.
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The
process
described
in
section
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(d) ORDER
OF
CREDITING.Payments on loans
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1 the method of such payments, first toward penalties due
2 on the loans, next toward any fees due on the loans, then
3 toward any interest due on the loans, and finally toward
4 the principal due on the loan with the highest applicable
5 rate of interest among such loans.
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(f) UNDERPAYMENTS.
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(1) PENALTIES
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(A) IN
FOR UNDERPAYMENTS.
GENERAL.Subject
to subpara-
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(B) INCREASE
OF ANNUAL REPAYMENT
AMOUNT.A
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9
borrowers
(C) EXCEPTION
annual
repayment
borrower
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(D) DE
MINIMUS EXCEPTION.A
bor-
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(2) RECONCILING
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(A) IN
UNDERPAYMENTS.
GENERAL.If,
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amounts
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(bb)
any
penalties
cal-
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and
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by the Secretary;
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nual
statement
described
in
section
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MENTS.In
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accordingly.
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(i) DETERMINATION
MENT
OF
INCOME-BASED REPAY-
OBLIGATION.
(1) IN
GENERAL.The
income-based repay-
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excess of
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(2) EXCLUSION
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ON BEHALF OF INDIVIDUAL.Any
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(3) EXEMPTION
amount paid on
AMOUNT.For
purposes of
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are available).
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(4) INDIVIDUALS
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AND
CANCELLATION
FOR
9 TEACHERS.
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(1) LOAN
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428H,; and
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or 428H; and
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(A)
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428C.A
LOANS
loan; and
MADE
UNDER
SECTION
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CONSOLIDATION
LOAN.A
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or 428H..
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(2) LOAN
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Federal
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Direct
Unsubsidized
Stafford
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3
4
(A) FEDERAL
LOAN.A
DIRECT
CONSOLIDATION
loan; and
(B) IDEA
CONSOLIDATION
LOAN.A
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15
or 428H..
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FOR
SERVICE
IN
AREAS
OF
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3
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FOR
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or 499C;
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following:
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(d)
MASTER
PROMISSORY
NOTE.Section
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part J.
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ents);
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(f) FUNDS
FOR
ADMINISTRATIVE EXPENSES.Sec-
(1) by striking this part and part B and inserting this part, part B, and part J; and
(2) by inserting before the period at the end the
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E and inserting E, or J;
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J; and
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inserting E, and J.
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(h) INSTITUTIONAL
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FORMATION FOR
AND
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Loan) or part J;
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part E; and
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(12) INFORMATION
STUDENT LOANS.
(A) FURNISHING
OF INFORMATION BY
THE
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SECRETARY
OF
EDUCATION.The
(B) REQUIREMENT
Sec-
TO SEEK MINIMUM
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INFORMATION.The
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subparagraph (A).
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(C) DUTIES
Secretary of Education
OF THE SECRETARY.
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(i) INFORMATION
DISCLOSURE.The
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paragraph.
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(ii) CONDITION
ON DISCLOSURE.
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part.
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(D) PROHIBITION
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AND UNAUTHORIZED
USE.
(i) IN
GENERAL.Individual
data
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(ii) PENALTIES
FOR UNAUTHORIZED
DISCLOSURE
years, or both.
(E) USE
OF
DATA.Any
individual
OR DISCLOSURE OF INFORMA-
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(F) REIMBURSEMENT
OF HHS COSTS.
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paragraph.
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(G) COMPLIANCE
WITH FERPA.In
car-
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GRAM.
(23) DISCLOSURE
OF RETURN INFORMATION
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ADMINISTERING
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GRAM.
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(A) IN
IDEA
LOAN
REPAYMENT
GENERAL.The
PRO-
Secretary shall,
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(B) RESTRICTION
ON DISCLOSURE.Re-
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Program..
10 of the Internal Revenue Code of 1986 is amended by strik11 ing any student loan if and all that follows and inserting
12 any student loan if
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ity)..
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