Responsible Education Assistance through Loan Reforms Act
This bill makes various changes to the federal student loan system, including by (1) limiting the authority of the Department of Education to issue regulations, (2) establishing a new income-based repayment plan, (3) repealing the Public Service Loan Forgiveness program for new borrowers, and (4) allowing certain workforce development programs to be eligible for Pell Grants.
To streamline and improve the Federal student loan program to protect 
   borrowers and taxpayers, prohibit the Secretary of Education from 
exercising regulatory overreach and abusing its authorities granted by 
 Congress, and extend Federal Pell Grant eligibility to certain short-
                  term workforce development programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Responsible 
Education Assistance through Loan Reforms Act'' or the ``Responsible 
Education Assistance through Loan Reforms Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
                TITLE I--LIMITS ON SECRETARIAL AUTHORITY

Sec. 101. Limitation on authority of Secretary to propose or issue 
                            regulations and executive actions.
                         TITLE II--LOAN REFORMS

                       Part A--Current Borrowers

Sec. 201. Income-contingent and income-based repayment plans.
              Part B--Loan Rehabilitation and Loan Limits

Sec. 211. Loan rehabilitation.
Sec. 212. Loan limits.
Part C--Repayment Terms and Conditions for Loans Made on or After July 
                                1, 2023

Sec. 221. Repayment terms for Federal Direct Consolidation Loans.
Sec. 222. Repayment incentives.
Sec. 223. Repayment plans.
Sec. 224. Public service loan forgiveness.
Sec. 225. Income-based repayment plan.
Sec. 226. Deferment on loans made on or after July 1, 2023.
             Part D--Elimination of Interest Capitalization

Sec. 231. Elimination of interest capitalization.
                    TITLE III--WORKFORCE PELL GRANTS

Sec. 301. Data collection and dissemination related to Workforce Pell.
Sec. 302. Program eligibility for Workforce Pell grants.
Sec. 304. Workforce Pell Grants.
Sec. 305. Accrediting agency determination of eligibility requirements 
                            for the Workforce Pell Grants program.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act 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 a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

                TITLE I--LIMITS ON SECRETARIAL AUTHORITY

SEC. 101. LIMITATION ON AUTHORITY OF SECRETARY TO PROPOSE OR ISSUE 
              REGULATIONS AND EXECUTIVE ACTIONS.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 492 the following:

``SEC. 492A. LIMITATION ON AUTHORITY OF THE SECRETARY TO PROPOSE OR 
              ISSUE REGULATIONS AND EXECUTIVE ACTIONS.

    ``(a) Draft Regulations.--Beginning after the date of enactment of 
this section, a draft regulation implementing this title (as described 
in section 492(b)(1)) that is determined by the Secretary to be 
economically significant shall be subject to the following requirements 
(regardless of whether negotiated rulemaking occurs):
            ``(1) The Secretary shall determine whether the draft 
        regulation, if implemented, would result in an increase in a 
        subsidy cost resulting from a loan modification.
            ``(2) If the Secretary determines under paragraph (1) that 
        the draft regulation would result in an increase in a subsidy 
        cost resulting from a loan modification, then the Secretary may 
        take no further action with respect to such regulation.
    ``(b) Proposed or Final Regulations and Executive Actions.--
Beginning after the date of enactment of this section, the Secretary 
may not issue a proposed rule, final regulation, or executive action 
implementing this title if the Secretary determines that the rule, 
regulation, or executive action--
            ``(1) is economically significant; and
            ``(2) would result in an increase in a subsidy cost 
        resulting from a loan modification.
    ``(c) Relationship to Other Requirements.--The analyses required 
under subsections (a) and (b) shall be in addition to any other cost 
analysis required under law for a regulation implementing this title, 
including any cost analysis that may be required pursuant to Executive 
Order 12866 (58 Fed. Reg. 51735; relating to regulatory planning and 
review), Executive Order 13563 (76 Fed. Reg. 3821; relating to 
improving regulation and regulatory review), or any related or 
successor orders.
    ``(d) Definition.--In this section, the term `economically 
significant', when used with respect to a draft, proposed, or final 
regulation or executive action, means that the regulation or executive 
action is likely, as determined by the Secretary--
            ``(1) to have an annual effect on the economy of 
        $100,000,000 or more; or
            ``(2) adversely to affect in a material way the economy, a 
        sector of the economy, productivity, competition, jobs, the 
        environment, public health or safety, or State, local, or 
        tribal governments or communities.''.

                         TITLE II--LOAN REFORMS

                       PART A--CURRENT BORROWERS

SEC. 201. INCOME-CONTINGENT AND INCOME-BASED REPAYMENT PLANS.

    (a) Income-Contingent Repayment.--
            (1) Excessive interest cap.--Section 455(e) (20 U.S.C. 
        1087e(e)) is amended by adding at the end the following:
            ``(9) Excessive interest cap.--The Secretary shall cancel 
        any outstanding balance due on all loans made under this part 
        (other than an excepted PLUS Loan or an excepted Consolidation 
        Loan as such terms are defined in section 493C) to a borrower--
                    ``(A) for whom an income contingent repayment plan 
                under this subsection is in effect, without regard to 
                the period of time for which such plan has been so in 
                effect for such borrower;
                    ``(B) who, in the absence of this paragraph, would 
                not yet be eligible for loan cancellation under such 
                plan; and
                    ``(C) who has repaid, pursuant to paragraph (7)--
                            ``(i)(I) subject to subclause (II), an 
                        amount on such loans that is equal to the total 
                        amount of principal and interest that the 
                        borrower would have repaid under a standard 
                        repayment plan under section 455(d)(1)(A), 
                        based on a 10-year repayment period, when the 
                        borrower entered repayment on such loans; or
                            ``(II) in the case of a Federal Direct 
                        Consolidation Loan, an amount on such loan that 
                        is equal to the total amount of principal and 
                        interest that the borrower would have repaid 
                        under the repayment schedule established for 
                        such loan under section 428C(c)(2) on the date 
                        on which such loan was made; and
                            ``(ii) an amount equal to the amount of any 
                        unpaid interest that has accrued, but was not 
                        included in the calculation of the total amount 
                        principal and interest that would have been 
                        repaid under the standard repayment plan or 
                        schedule described in clause (i)--
                                    ``(I) during any deferment period 
                                described in clause (i) or (ii) of 
                                section 455(f)(2)(A); and
                                    ``(II) during any forbearance 
                                period while serving in a medical or 
                                dental internship or residency program 
                                as described in section 
                                428(c)(3)(A)(i)(I); and''.
            (2) Excessive interest cap for distressed borrowers.--
        Section 455(e) (20 U.S.C. 1087e(e)) is further amended by 
        adding at the end the following:
            ``(10) Excessive interest cap for distressed borrowers.--
                    ``(A) In general.--The Secretary shall cancel the 
                balance of interest due (in accordance with 
                subparagraph (B)) on any loan made under this part 
                (other than an excepted PLUS or excepted consolidation 
                loan (as defined in section 493C)) to a borrower--
                            ``(i)(I) who has been in repayment for not 
                        less than a 10-year period on such loan; or
                            ``(II) in the case of a Federal Direct 
                        Consolidation Loan, who has been in repayment 
                        on such loan for not less than the repayment 
                        period under the repayment schedule established 
                        for such loan under section 428C(c)(2) on the 
                        date on which such loan was made; and
                            ``(ii) whose first monthly payment on such 
                        loan pursuant to paragraph (7) that is not less 
                        than the full amount due on such loan for such 
                        month, after the date of enactment of the REAL 
                        Reforms Act, is insufficient to cover the 
                        interest that has accrued on such loan for such 
                        month, and results in higher balance of 
                        principal and interest on such loan.
                    ``(B) Amount of interest cancellation.--The 
                Secretary shall cancel the obligation to repay the 
                balance of interest due on such loan as of the time of 
                the payment described in subparagraph (A)(ii) on such 
                loan.''.
    (b) Income-Based Repayment.--
            (1) Excessive interest cap.--Section 493C(b)(7)(B) (20 
        U.S.C. 1098e(b)(7)(B)) is amended--
                    (A) by redesignating clauses (i) through (v) as 
                subclauses (I) through (V), respectively, and moving 
                the margins accordingly;
                    (B) by striking the following:
                    ``(B) for a period''; and inserting the following:
                    ``(B)(i) for a period'';
                    (C) by inserting ``or'' at the end of clause 
                (i)(V), as so redesignated; and
                    (D) by adding at the end the following:
                            ``(ii) in the absence of this clause, would 
                        not yet be eligible for loan cancellation or 
                        repayment under this paragraph, and has repaid, 
                        pursuant to clause (i)--
                                    ``(I)(aa) subject to item (bb), an 
                                amount on such loans that is equal to 
                                the total amount of principal and 
                                interest that the borrower would have 
                                repaid under a standard repayment plan 
                                under section 428(b)(9)(A)(i) or 
                                section 455(d)(1)(A), based on a 10-
                                year repayment period, when the 
                                borrower entered repayment on such 
                                loans; or
                                    ``(bb) in the case of a Federal 
                                Direct Consolidation Loan or a loan 
                                made under section 428C, an amount on 
                                such loan that is equal to the total 
                                amount of principal and interest that 
                                the borrower would have repaid under 
                                the repayment schedule established for 
                                such loan under section 428C(c)(2) on 
                                the date on which such loan was made; 
                                and
                                    ``(II) an amount equal to the 
                                amount of any unpaid interest that has 
                                accrued, but was not included in the 
                                calculation of the total amount 
                                principal and interest that would have 
                                been repaid under the standard 
                                repayment plan or schedule described in 
                                subclause (I)--
                                            ``(aa) during any deferment 
                                        period described in section 
                                        427(a)(2)(C)(i) or 
                                        428(b)(1)(M)(i), or clause (i) 
                                        or (ii) of section 
                                        455(f)(2)(A); and
                                            ``(bb) during any 
                                        forbearance period while 
                                        serving in a medical or dental 
                                        internship or residency program 
                                        as described in section 
                                        428(c)(3)(A)(i)(I);''.
            (2) Clarification of repayment of part b loans.--Section 
        493C(b) (20 U.S.C. 1098e(b)) is further amended--
                    (A) by striking ``and'' at end of paragraph (8);
                    (B) by striking the period at the end of paragraph 
                (9); and
                    (C) by adding the end the following:
            ``(10) in repaying under clause (ii) of paragraph (7)(B) 
        the outstanding balance of principal and interest due on a loan 
        made under part B to a borrower who meets the requirements of 
        such clause (ii), or in repaying under subsection (g) the 
        balance of interest due on a loan made under part B to a 
        borrower who meets the requirements of such subsection (g), the 
        Secretary shall--
                    ``(A) enter into an agreement with the holder of 
                such loan (or, if the holder acts as an eligible lender 
                trustee for the beneficial owner of the loan, the 
                beneficial owner of the loan) for the purpose of 
                assuming the repayment obligations of the borrower in 
                accordance with subparagraph (B), except that the 
                Secretary shall not assign to the United States the 
                right to such loan;
                    ``(B)(i) in the case of a repayment under paragraph 
                (7)(B)(ii), assume the obligation of the borrower to 
                repay the holder of such loan (or, if the holder acts 
                as an eligible lender trustee for the beneficial owner 
                of the loan, the beneficial owner of the loan) the 
                total amount of principal and interest remaining to be 
                repaid on such loan (after taking into account the 
                amounts repaid by the borrower under paragraph 
                (7)(B)(ii) and the Secretary under subsection (g), if 
                applicable) according to the terms and conditions, 
                including the repayment schedule, that were in effect 
                with respect to such loan on the day before the 
                Secretary assumes such obligation; or
                    ``(ii) in the case of a repayment under subsection 
                (g), assume the obligation of the borrower to repay the 
                holder of such loan (or, if the holder acts as an 
                eligible lender trustee for the beneficial owner of the 
                loan, the beneficial owner of the loan) the balance of 
                interest due on such loan as of the time of the payment 
                described in subsection (g)(1)(B) on such loan 
                according to the terms and conditions, including the 
                repayment schedule, that were in effect with respect to 
                such loan on the day before the Secretary assumes such 
                obligation; and
                    ``(C) ensure that the holder of such loan (or, if 
                the holder acts as an eligible lender trustee for the 
                beneficial owner of the loan, the beneficial owner of 
                the loan) shall, upon entering into an agreement 
                described in subparagraph (A) with respect to a loan of 
                a borrower, reports to consumer reporting agencies 
                that--
                            ``(i) in the case of a repayment under 
                        paragraph (7)(B)(ii), the borrower's liability 
                        on such loan has been discharged; and
                            ``(ii) in the case of a repayment under 
                        subsection (g), the borrower's liability has 
                        been discharged with respect to the balance of 
                        the interest due on such loan as of the time of 
                        the payment described in subsection (g)(1)(B) 
                        on such loan.''.
            (3) Rules of construction.--Section 493C (20 U.S.C. 1098e) 
        is amended by adding at the end the following:
    ``(f) Rules of Construction.--Nothing in subsection (b)(10) shall 
be construed to authorize the Secretary to--
            ``(1) revoke the rights to a special allowance under 
        section 438 of the holder (or, if the holder acts as an 
        eligible lender trustee for the beneficial owner of the loan, 
        the beneficial owner of the loan) of the loans being repaid by 
        the Secretary under subsection (b)(10);
            ``(2) prepay such loan ahead of repayment schedule with 
        respect to such loans described in subparagraph (B) of 
        subsection (b)(10); or
            ``(3) use any authority or take any actions beyond what is 
        authorized explicitly in subsection (b)(10).''.
            (4) Excessive interest cap for distressed borrowers.--
        Section 493C (20 U.S.C. 1098e) is further amended by adding at 
        the end the following:
    ``(g) Excessive Interest Cap for Distressed Borrowers.--
            ``(1) In general.--The Secretary shall repay or cancel the 
        balance of interest due (in accordance with paragraph (2)) on 
        any loan made under part B or D (other than an excepted PLUS or 
        excepted consolidation loan) to a borrower--
                    ``(A)(i) who has been in repayment for not less 
                than a 10-year period on such loan; or
                    ``(ii) in the case of a Federal Direct 
                Consolidation Loan or a consolidation loan under 
                section 428C, who has been in repayment on such loan 
                for not less than the repayment period under the 
                repayment schedule established for such loan under 
                section 428C(c)(2) on the date on which such loan was 
                made; and
                    ``(B) whose first monthly payment on such loan 
                pursuant to subsection (b)(7) that is not less than the 
                full amount due on such loan for such month, after the 
                date of enactment of the REAL Reforms Act, is 
                insufficient to cover the interest that has accrued on 
                such loan for such month, and results in higher balance 
                of principal and interest on such loan.
            ``(2) Amount of interest repayment or cancellation.--The 
        Secretary shall repay or cancel the obligation to repay the 
        balance of interest due on such loan as of the time of the 
        payment described in paragraph (1)(B) on such loan.''.

              PART B--LOAN REHABILITATION AND LOAN LIMITS

SEC. 211. LOAN REHABILITATION.

    (a) In General.--Section 428F(a)(5) (20 U.S.C. 1078-6) is amended 
by striking ``one time'' and inserting ``two times''.
    (b) Application of Amendment.--The amendment made by this section 
shall apply to any borrower of a loan made, insured, or guaranteed 
under title IV of the Higher Education Act of 1965 before, on, or after 
the date of enactment of this Act.

SEC. 212. LOAN LIMITS.

    (a) Graduate and Professional Students.--
            (1) Aggregate and annual limits.--Section 455(a) (20 U.S.C. 
        1087e(a)) is amended--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A)(ii), by inserting 
                        before the period at the end the following: ``, 
                        except that for any period of instruction 
                        beginning on or after July 1, 2023, and subject 
                        to subparagraph (D), such maximum annual amount 
                        may not exceed $25,000''; and
                            (ii) by adding at the end the following:
                    ``(C) Aggregate limits.--Subject to subparagraph 
                (D), for any period of instruction beginning on or 
                after July 1, 2023, the maximum aggregate amount of 
                loans under this part that a graduate or professional 
                student may borrow for enrollment in a program of 
                graduate or professional education shall be $100,000.
                    ``(D) Exception for certain students.--The annual 
                and aggregate limits described in subparagraphs (A)(ii) 
                and (C) for any period of instruction beginning on or 
                after July 1, 2023, shall not apply to any student 
                enrolled in a program of study as of June 30, 2023, or 
                any loans made under this part to (or on behalf of) 
                such student, during the period required for the 
                completion of such program.''.
            (2) Termination of authority to make federal direct plus 
        loans to graduate and professional students.--Section 455(a) 
        (20 U.S.C. 1087e(a)) is further amended by adding at the end 
        the following:
            ``(4) Termination of authority to make federal direct plus 
        loans to graduate and professional students.--
                    ``(A) In general.--Notwithstanding any provision of 
                this part or part B, and except as otherwise provided 
                in subparagraph (B), for any period of instruction 
                beginning on or after July 1, 2023, a graduate or 
                professional student shall not be eligible to receive a 
                Federal Direct PLUS Loan under this part for enrollment 
                in a program of graduate or professional education.
                    ``(B) Exception for certain students.--This 
                paragraph shall not apply to any student enrolled in a 
                program of study at an eligible institution as of June 
                30, 2023, or any loans made under this part to (or on 
                behalf of) such student, during the period required for 
                the completion of such program.''.
    (b) Institutionally Determined Limits.--Section 455(a) (20 U.S.C. 
1087e(a)) is further amended by adding at the end the following:
            ``(5) Institutionally determined limits.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, an eligible institution 
                (at the discretion of a financial aid administrator at 
                the institution) may prorate or limit the amount of a 
                loan any student (other than a student described in 
                subparagraph (D)) who is enrolled in a program of study 
                for a period of instruction beginning on or after July 
                1, 2023, at that institution, may borrow under this 
                part for an academic year--
                            ``(i) if the institution can reasonably 
                        demonstrate that student debt levels are or 
                        would be excessive for such program, based on--
                                    ``(I) the most recently available 
                                data from the Bureau of Labor 
                                Statistics for the average starting 
                                salary in the region in which the 
                                institution is located for typical 
                                occupations pursued by graduates of 
                                such program; or
                                    ``(II) the most recently available 
                                data from the College Scorecard (or 
                                successor website) on--
                                            ``(aa) the median earnings 
                                        of students who complete such 
                                        program; and
                                            ``(bb) the median debt 
                                        owed, and the repayment rate, 
                                        on loans made under this part, 
                                        of such students;
                            ``(ii) in a case in which the student is 
                        enrolled on a less than full-time basis or the 
                        student is enrolled for less than the period of 
                        enrollment to which the annual loan limit 
                        applies under this subsection, based on the 
                        student's enrollment status;
                            ``(iii) based on the credential level (such 
                        as a degree, certificate, or other recognized 
                        educational credential) that the student would 
                        attain upon completion of such program; or
                            ``(iv) based on the year of the program for 
                        which the student is seeking such loan.
                    ``(B) Application to all students.--Any proration 
                or limiting of loan amounts under subparagraph (A) 
                shall be applied in the same manner to all students 
                enrolled in the institution or program of study.
                    ``(C) Increases for individual students.--Upon the 
                request of a student whose loan amount for an academic 
                year has been prorated or limited under subparagraph 
                (A), an eligible institution (at the discretion of the 
                financial aid administrator at the institution) may 
                increase such loan amount to an amount not exceeding 
                the annual loan amount applicable to such student under 
                this paragraph for such academic year if such student 
                demonstrates special circumstances or exceptional need.
                    ``(D) Exception for certain students.--This 
                paragraph shall not apply to any student enrolled in a 
                program of study at an eligible institution as of June 
                30, 2023, or any loans made under this part to (or on 
                behalf of) such student, during the period required for 
                the completion of such program.''.

PART C--REPAYMENT TERMS AND CONDITIONS FOR LOANS MADE ON OR AFTER JULY 
                                1, 2023

SEC. 221. REPAYMENT TERMS FOR FEDERAL DIRECT CONSOLIDATION LOANS.

    Section 428C(c) (20 U.S.C. 1078-3(c)) is amended--
            (1) in paragraph (2)(A), in the first sentence of 
        subparagraph (A), by inserting ``, including income-based 
        repayment schedules under section 460A, in the case of Federal 
        Direct Consolidation Loans made on or after July 1, 2023'' 
        after ``income-based repayment schedules''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by inserting ``or an 
                income-based repayment schedule under section 460A'' 
                after ``section 493C''; and
                    (B) in subparagraph (C), by inserting ``or an 
                income-based repayment schedule under section 460A'' 
                after ``section 493C''.

SEC. 222. REPAYMENT INCENTIVES.

    (a) Amendment.--Section 455(b)(9)(C) (20 U.S.C. 1087e(b)(9)(C)) is 
amended by inserting ``(which in the case of a loan for which the first 
disbursement of principal is made on or after July 1, 2023, may not 
exceed than 0.25 percentage points)'' after ``interest rate 
reduction''.
    (b) Application of Amendment.--The amendment made by this section 
shall not apply to any borrower who is a student enrolled in a program 
of study at an institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) as of June 
30, 2023, or any loans made under part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) to (or on behalf of) 
such student, during the period required for the completion of such 
program.

SEC. 223. REPAYMENT PLANS.

    Section 455(d) (20 U.S.C. 1087e(d)) is amended by adding at the end 
the following:
            ``(6) Repayment plans for loans made on or after july 1, 
        2023.--
                    ``(A) Design and selection.--Notwithstanding 
                paragraph (1) and except as provided in subparagraph 
                (E), the Secretary shall offer a borrower of a loan 
                made under this part on or after July 1, 2023, two 
                plans for repayment of such loan, including principal 
                and interest on the loan. The borrower shall be 
                entitled to accelerate, without penalty, repayment on 
                such loans. The borrower may choose--
                            ``(i) a standard repayment plan with a 
                        fixed monthly repayment amount paid over a 
                        fixed period of time, not to exceed 10 years; 
                        or
                            ``(ii) an income-based repayment plan under 
                        section 460A.
                    ``(B) Selection by secretary.--If such borrower 
                does not select a repayment plan described in 
                subparagraph (A), the Secretary shall provide the 
                borrower with the repayment plan described in 
                subparagraph (A)(i).
                    ``(C) Changes in selection.--
                            ``(i) In general.--Subject to clause (ii), 
                        a borrower may change the borrower's selection 
                        of a repayment plan under subparagraph (A), or 
                        the Secretary's selection of a plan for the 
                        borrower under subparagraph (B), as the case 
                        may be, under such terms and conditions as may 
                        be established by the Secretary, except that 
                        the Secretary may not establish any terms or 
                        conditions with respect to whether a borrower 
                        may change the borrower's repayment plan. 
                        Nothing in this subsection shall prohibit the 
                        Secretary from encouraging struggling borrowers 
                        from enrolling in the income-based repayment 
                        plan under section 460A.
                            ``(ii) Same repayment plan required.--All 
                        loans made under this part on or after July 1, 
                        2023, to a borrower shall be repaid under the 
                        same repayment plan under subparagraph (A), 
                        except that the borrower may repay an excepted 
                        PLUS loan or an excepted consolidation loan (as 
                        such terms are defined in section 493C(a)) 
                        separately from other loans made under this 
                        part to the borrower.
                    ``(D) Repayment after default.--The Secretary may 
                require a borrower who has defaulted on a loan made 
                under this part on or after July 1, 2023, to--
                            ``(i) pay all reasonable collection costs 
                        associated with such loan; and
                            ``(ii) repay the loan pursuant to the 
                        income-based repayment plan under section 460A.
                    ``(E) Exception for certain borrowers.--This 
                paragraph shall not apply to any borrower who is 
                student who is enrolled in a program of study at an 
                institution of higher education as of June 30, 2023, or 
                any loans made to (or on behalf of) such borrower, 
                during the period required for the completion of such 
                program.
                    ``(F) Rule of construction.--Nothing in this 
                paragraph shall be construed to authorize, with respect 
                to a borrower of loans made under this part on or after 
                July 1, 2023--
                            ``(i) eligibility for a repayment plan that 
                        is not described in clause (i) or (ii) of 
                        subparagraph (A); or
                            ``(ii) the Secretary to--
                                    ``(I) carry out a repayment plan 
                                that is not described in such clause 
                                (i) or (ii); or
                                    ``(II) modify a repayment plan that 
                                is described in such clause (i) or 
                                (ii).''.

SEC. 224. PUBLIC SERVICE LOAN FORGIVENESS.

    (a) Amendment.--Section 455(m)(3)(A) (20 U.S.C. 1087e(m)(3)(A)) is 
amended by inserting before the period at the end the following: ``that 
was made before July 1, 2023''.
    (b) Application of Amendment.--The amendment made by this section 
shall not apply to any borrower who is a student enrolled in a program 
of study at an institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) as of June 
30, 2023, or any loans made under part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) to (or on behalf of) 
such student, during the period required for the completion of such 
program.

SEC. 225. INCOME-BASED REPAYMENT PLAN.

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

``SEC. 460A. INCOME-BASED REPAYMENT PROGRAM.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary shall carry out a program under which--
            ``(1) a borrower (other than a borrower described in 
        section 455(d)(6)(E)) of a loan made under this part on or 
        after July 1, 2023, may elect to have the borrower's aggregate 
        monthly payment for all such loans (other than an excepted PLUS 
        Loan or excepted Consolidation Loan) made to the borrower--
                    ``(A) not to exceed the result obtained by dividing 
                by 12, 15 percent of the result obtained by 
                calculating, on at least an annual basis, the amount by 
                which--
                            ``(i) the adjusted gross income of the 
                        borrower or, if the borrower is married and 
                        files a Federal income tax return jointly with 
                        or separately from the borrower's spouse, the 
                        adjusted gross income of the borrower and the 
                        borrower's spouse; 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
                    ``(B) not to be less than $25;
            ``(2) the Secretary shall apply the borrower's monthly 
        payment under this section first toward interest due on such a 
        loan, next toward any fees due on the loan, and then toward the 
        principal of the loan;
            ``(3) any principal due and not paid under paragraph (2) 
        shall be deferred;
            ``(4) the amount of time the borrower makes monthly 
        payments under paragraph (1) may exceed 10 years;
            ``(5) the Secretary shall cancel any outstanding balance 
        due on all loans made on or after July 1, 2023, under this part 
        (other than an excepted PLUS Loan or an excepted Consolidation 
        Loan) to the borrower--
                    ``(A) who, at any time, elected to participate in 
                income-based repayment under paragraph (1);
                    ``(B) whose final monthly payment for such loans 
                prior to the loan cancellation under this paragraph was 
                made under such income-based repayment; and
                    ``(C) who has repaid, pursuant to income-based 
                repayment under paragraph (1), a standard repayment 
                plan under section 455(d)(6)(A)(i), or a combination, 
                or in the case of consolidation loans, a repayment 
                schedule described in clause (i)(II)--
                            ``(i)(I) except as otherwise provided in 
                        subclause (II), an amount on such loans that is 
                        equal to the total amount of principal and 
                        interest that the borrower would have repaid 
                        under a standard repayment plan under section 
                        455(d)(6)(A)(i), based on a 10-year repayment 
                        period, when the borrower entered repayment on 
                        such loans; or
                            ``(II) in the case of a Federal Direct 
                        Consolidation Loan, an amount on such loan that 
                        is equal to the total amount of principal and 
                        interest that the borrower would have repaid 
                        under the repayment schedule established for 
                        such loan under section 428C(c)(2) on the date 
                        on which such loan was made; and
                            ``(ii) an amount equal to the amount of any 
                        unpaid interest that has accrued, but was not 
                        included in the calculation of the total amount 
                        principal and interest that would have been 
                        repaid under the standard repayment plan or 
                        schedule described in clause (i), during any 
                        period of deferment under subparagraph (A), 
                        (B), or (F) of section 460B(b)(1); and
            ``(6) a borrower who is repaying a loan made under this 
        part pursuant to income-based repayment under paragraph (1) may 
        elect, at any time, to terminate repayment pursuant to such 
        income-based repayment and repay such loan under the standard 
        repayment plan.
    ``(b) Eligibility Determinations.--The Secretary shall establish 
and implement with respect to any borrower who chooses to repay a loan 
made under this part pursuant to income-based repayment under this 
section procedures to--
            ``(1) use return information disclosed under section 
        6103(l)(13) of the Internal Revenue Code of 1986, pursuant to 
        approval provided under section 494, to determine the repayment 
        obligation of the borrower without further action by the 
        borrower;
            ``(2) allow the borrower (or the spouse of the borrower), 
        at any time, to opt out of disclosure under such section 
        6103(l)(13) and instead provide such information as the 
        Secretary may require to determine the repayment obligation of 
        the borrower (or withdraw from the repayment plan under this 
        subsection); and
            ``(3) provide the borrower with an opportunity to update 
        the return information so disclosed before the determination of 
        the repayment obligation of the borrower.
    ``(c) Notification to Borrowers.--The Secretary shall establish 
procedures under which a borrower of a loan made under this part who 
chooses to repay such loan pursuant to income-based repayment under 
this section is notified of the terms and conditions of such plan, 
including notification that if a borrower considers that special 
circumstances, such as a loss of employment by the borrower or the 
borrower's spouse, warrant an adjustment in the borrower's loan 
repayment as determined using the borrower's Federal tax return 
information, or the alternative documentation described in subsection 
(b)(2), the borrower may contact the Secretary, who shall determine 
whether such adjustment is appropriate, in accordance with criteria 
established by the Secretary.
    ``(d) Reduced Payment Periods.--
            ``(1) In general.--The Secretary shall authorize borrowers 
        meeting the criteria under paragraph (2) to make monthly 
        payments of $5 for a period not in excess of 3 years, except 
        that--
                    ``(A) for purposes of paragraph (2)(A), the 
                Secretary may authorize reduced payments in 6-month 
                increments, beginning on the date the borrower provides 
                to the Secretary the evidence described in paragraph 
                (2)(A)(i); and
                    ``(B) for purposes of paragraph (2)(B), the 
                Secretary may authorize reduced payments in 3-month 
                increments, beginning on the date the borrower provides 
                to the Secretary the evidence described in paragraph 
                (2)(B)(i).
            ``(2) Eligibility determinations.--The Secretary shall 
        authorize borrowers to make reduced payments under this 
        subsection in the following circumstances:
                    ``(A) In a case of borrower who is seeking and 
                unable to find full-time employment, as demonstrated by 
                providing to the Secretary--
                            ``(i) evidence of the borrower's 
                        eligibility for unemployment benefits to the 
                        Secretary; or
                            ``(ii) the borrower recertifies the reason 
                        for the $5 monthly payment under this 
                        subparagraph.
                    ``(B) The Secretary determines that, due to high 
                medical expenses, the $25 monthly payment the borrower 
                would otherwise make would be an extreme economic 
                hardship to the borrower, if--
                            ``(i) the borrower documents the reason why 
                        the $25 minimum payment is an extreme economic 
                        hardship; and
                            ``(ii) the borrower recertifies the reason 
                        for the $5 minimum payment on a three-month 
                        basis.
            ``(3) Definition.--For purpose of this subsection, the term 
        `full-time employment' means employment that will provide not 
        less than 30 hours of work a week and is expected to continue 
        for a period of not less than 3 months.
    ``(e) Definitions.--In this section:
            ``(1) Adjusted gross income.--The term `adjusted gross 
        income' has the meaning given the term in section 62 of the 
        Internal Revenue Code of 1986.
            ``(2) Excepted consolidation loan.--The term `excepted 
        Consolidation Loan' means a Federal Direct Consolidation Loan, 
        if the proceeds of such loan were used to the discharge the 
        liability on--
                    ``(A) an excepted PLUS loan; or
                    ``(B) a Federal Direct Consolidation loan, if the 
                proceeds of such loan were used to discharge the 
                liability on an excepted PLUS loan.
            ``(3) Excepted plus loan.--The term `excepted PLUS Loan' 
        has the meaning given the term in section 493C.''.
    (b) Procedure and Requirements for Requesting Tax Return 
Information From the IRS.--Section 494(a) (20 U.S.C. 1098h(a)) is 
amended by adding at the end the following:
            ``(4) Income-based repayment for loans made on or after 
        july 1, 2023.--
                    ``(A) New applicants.--In the case of any written 
                or electronic application by an individual for an 
                income-based repayment plan under section 460A for a 
                loan made under part D on after July 1, 2023, the 
                Secretary, with respect to such individual and any 
                spouse of such individual, shall--
                            ``(i) provide to such individuals the 
                        notification described in paragraph (1)(A)(i); 
                        and
                            ``(ii) require, as a condition of 
                        eligibility for such repayment plan, that such 
                        individuals--
                                    ``(I) affirmatively approve the 
                                disclosures described in subclauses (I) 
                                and (II) of paragraph (1)(A)(i), to the 
                                extent applicable, and agree that such 
                                approval shall serve as an ongoing 
                                approval of such disclosures until the 
                                date on which the individual elects to 
                                opt out of such disclosures under 
                                section 465(b)(2); or
                                    ``(II) provide such information as 
                                the Secretary may require to confirm 
                                the eligibility of such individual for 
                                such repayment plan.
                    ``(B) Recertifications.--With respect to the first 
                written or electronic recertification (after the date 
                of the enactment of the REAL Reforms Act) of an 
                individual's income or family size for purposes of an 
                income-based repayment plan under section 460A (entered 
                into before the date of the enactment of the REAL 
                Reforms Act) for a loan under part D, the Secretary, 
                with respect to such individual and any spouse of such 
                individual, shall meet the requirements of clauses (i) 
                and (ii) of subparagraph (A) with respect to such 
                recertification.''.

SEC. 226. DEFERMENT ON LOANS MADE ON OR AFTER JULY 1, 2023.

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

``SEC. 460B. DEFERMENT ON LOANS MADE ON OR AFTER JULY 1, 2023.

    ``(a) Effect on Principal and Interest.--
            ``(1) In general.--A borrower (other than a borrower 
        described in section 455(d)(6)(E)) of a loan made under this 
        part on or after July 1, 2023--
                    ``(A) who meets the requirements described in 
                subsection (b) shall be eligible for a deferment on 
                such loan during which installments of principal need 
                not be paid and, as specified in paragraph (2), 
                interest shall not accrue, or shall accrue and be paid 
                by the borrower; and
                    ``(B) may not be eligible for a deferment or 
                forbearance under section 455(f) or any other provision 
                of this Act (other than forbearance under section 
                455(l), forbearance under section 685.205(a) of title 
                34, Code of Federal Regulations (or successor 
                regulations), or deferment under section 493D).
            ``(2)  Effect on interest.--
                    ``(A) No accrual of interest on subsidized loans.--
                With respect to a deferment period described in 
                subparagraphs (A) through (D) of subsection (b)(1), 
                interest--
                            ``(i) shall not accrue, in the case of a--
                                    ``(I) Federal Direct Stafford Loan; 
                                or
                                    ``(II) a Federal Direct 
                                Consolidation Loan that consolidated 
                                only Federal Direct Stafford Loans, or 
                                a combination of such loans and Federal 
                                Stafford Loans for which the student 
                                borrower received an interest subsidy 
                                under section 428; or
                            ``(ii) shall accrue or be paid by the 
                        borrower, in the case of a Federal Direct PLUS 
                        Loan, a Federal Direct Unsubsidized Stafford 
                        Loan, or a Federal Direct Consolidation Loan 
                        not described in clause (i)(II).
                    ``(B) Interest accrual on all loans.--With respect 
                to a deferment period described in subparagraph (E) or 
                (F) of subsection (b)(1), or paragraph (2), (3)(A), or 
                (4), interest shall accrue or be paid by the borrower, 
                in the case of any loan made under this part.
                    ``(C) No accrual of interest on any loan.--With 
                respect to a deferment period described in paragraph 
                (3)(B) or paragraph (5), interest shall not accrue, in 
                the case of any loan made under this part.
    ``(b) Eligibility.--Any borrower described in subsection (a) shall 
be eligible for a deferment on a loan made under this part on or after 
July 1, 2023--
            ``(1) during any period during which the borrower--
                    ``(A) is carrying at least one-half the normal 
                full-time work load for the course of study that the 
                borrower is pursuing, as determined by the eligible 
                institution the borrower is attending;
                    ``(B) is pursuing a course of study pursuant to--
                            ``(i) an eligible graduate fellowship 
                        program in accordance with subsection (g); or
                            ``(ii) an eligible rehabilitation training 
                        program for individuals with disabilities in 
                        accordance with subsection (i);
                    ``(C) is serving on active duty during a war or 
                other military operation or national emergency, and for 
                the 180-day period following the demobilization date 
                for such service;
                    ``(D) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency, and for the 180-day period following the 
                demobilization date for such service;
                    ``(E) is a member of the National Guard who is not 
                eligible for a post-active duty deferment under section 
                493D and is engaged in active State duty for a period 
                of more than 30 consecutive days beginning--
                            ``(i) the day after 6 months after the date 
                        the student ceases to carry at least one-half 
                        the normal full-time academic workload (as 
                        determined by the institution); or
                            ``(ii) the day after the borrower ceases 
                        enrollment on at least a half-time basis, for a 
                        loan in repayment; or
                    ``(F) is serving in a medical or dental internship 
                or residency program, the successful completion of 
                which is required to begin professional practice or 
                service, or is serving in a medical or dental 
                internship or residency program leading to a degree or 
                certificate awarded by an institution of higher 
                education, a hospital, or a health care facility that 
                offers postgraduate training;
            ``(2) during a period sufficient to enable the borrower to 
        resume honoring the agreement to repay the outstanding balance 
        of principal and interest on the loan after default, if--
                    ``(A) the borrower signs a new agreement to repay 
                such outstanding balance;
                    ``(B) the deferment period is limited to 120 days; 
                and
                    ``(C) such deferment is not granted for consecutive 
                periods;
            ``(3) during a period of administrative deferment--
                    ``(A) described in paragraphs (1) through (4) of 
                subsection (j); or
                    ``(B) described in subsection (j)(5);
            ``(4) in the case of a borrower of an excepted PLUS Loan or 
        an excepted Consolidation Loan, during a period described in 
        subsection (k); or
            ``(5) during a period in which such borrower is receiving 
        treatment for cancer (in this paragraph referred to as the 
        `treatment period'), and the 6-month period after such 
        treatment period (in this paragraph referred to as the `post-
        treatment period'), except that, notwithstanding subsection 
        (a), interest shall not accrue during any such treatment period 
        or post-treatment period.
    ``(c) Length of Deferment.--A deferment granted by the Secretary--
            ``(1) under subparagraph (F) of subsection (b)(1) shall be 
        renewable at 12 month intervals; and
            ``(2) under subparagraph (F) of subsection (b)(1) shall 
        equal the length of time remaining in the borrower's medical or 
        dental internship or residency program.
    ``(d) Request and Documentation.--The Secretary shall determine the 
eligibility of a borrower for a deferment under paragraph (1), (2), or 
(4) of subsection (b), based on--
            ``(1) the receipt of a request for a deferment from the 
        borrower, and documentation of the borrower's eligibility for 
        the deferment;
            ``(2) receipt of a completed loan application that 
        documents the borrower's eligibility for a deferment;
            ``(3) receipt of a student status information documenting 
        that the borrower is enrolled on at least a half-time basis; or
            ``(4) the Secretary's confirmation of the borrower's half-
        time enrollment status, if the confirmation is requested by the 
        institution of higher education.
    ``(e) Notification.--The Secretary shall--
            ``(1) notify a borrower of a loan made under this part--
                    ``(A) the granting of a deferment under this 
                subsection on such loan; and
                    ``(B) the option of the borrower to continue making 
                payments on the outstanding balance of principal and 
                interest on such loan in accordance with subsection 
                (f);
            ``(2) at the time the Secretary grants a deferment to a 
        borrower of a loan made under this part, and not less 
        frequently than once every 180 days during the period of such 
        deferment, provide information to the borrower to assist the 
        borrower in understanding--
                    ``(A) the effect of granting a deferment on the 
                total amount to be paid under the income-based 
                repayment plan under 460A;
                    ``(B) interest shall not accrue, or shall accrue or 
                be paid by the borrower, as specified in subsection 
                (a)(2);
                    ``(C) the amount of unpaid principal and the amount 
                of interest that has accrued since the last statement 
                of such amounts provided to the borrower; and
                    ``(D) the borrower's option to discontinue the 
                deferment at any time.
    ``(f) Payments by Borrowers Authorized.--A borrower may make 
payments on the outstanding balance of principal and interest on a loan 
made under this part during any period of deferment granted under this 
subsection.
    ``(g) Graduate Fellowship Deferment.--
            ``(1) In general.--A borrower of a loan under this part is 
        eligible for a deferment under subsection (b)(1)(B)(i) during 
        any period for which an authorized official of the borrower's 
        graduate fellowship program certifies that the borrower meets 
        the requirements of paragraph (2) and is pursuing a course of 
        study pursuant to an eligible graduate fellowship program.
            ``(2) Borrower requirements.--A borrower meets the 
        requirements of this subparagraph if the borrower--
                    ``(A) holds at least a baccalaureate degree 
                conferred by an institution of higher education;
                    ``(B) has been accepted or recommended by an 
                institution of higher education for acceptance on a 
                full-time basis into an eligible graduate fellowship 
                program; and
                    ``(C) is not serving in a medical internship or 
                residency program, except for a residency program in 
                dentistry.
    ``(h) Treatment of Study Outside the United States.--
            ``(1) In general.--The Secretary shall treat, in the same 
        manner as required under section 428(b)(4), any course of study 
        at a foreign university that is accepted for the completion of 
        a recognized international fellowship program by the 
        administrator of such a program as an eligible graduate 
        fellowship program.
            ``(2) Requests for deferment.--Requests for deferment of 
        repayment of loans under this subsection by students engaged in 
        graduate or postgraduate fellowship-supported study (such as 
        pursuant to a Fulbright grant) outside the United States shall 
        be approved until completion of the period of the fellowship, 
        in the same manner as required under section 428(b)(4).
    ``(i) Rehabilitation Training Program Deferment.--A borrower of a 
loan under this part is eligible for a deferment under subsection 
(b)(1)(B)(ii) during any period for which an authorized official of the 
borrower's rehabilitation training program certifies that the borrower 
is pursuing an eligible rehabilitation training program for individuals 
with disabilities.
    ``(j) Administrative Deferments.--The Secretary may grant a 
deferment to a borrower without requiring a request and documentation 
from the borrower under subsection (d) for--
            ``(1) a period during which the borrower was delinquent at 
        the time a deferment is granted, including a period for which 
        scheduled payments of principal and interest were overdue at 
        the time such deferment is granted;
            ``(2) a period during which the borrower was granted a 
        deferment under this subsection but for which the Secretary 
        determines the borrower should not have qualified;
            ``(3) a period necessary for the Secretary to determine the 
        borrower's eligibility for the cancellation of the obligation 
        of the borrower to repay the loan under section 437;
            ``(4) a period during which the Secretary has authorized 
        deferment due to a national military mobilization or other 
        local or national emergency; or
            ``(5) a period not to exceed 60 days, during which interest 
        shall accrue but not be capitalized, if the Secretary 
        reasonably determines that a suspension of collection activity 
        is warranted to enable the Secretary to process supporting 
        documentation relating to a borrower's request--
                    ``(A) for a deferment under this subsection;
                    ``(B) for a change in repayment plan under section 
                455(d)(6); or
                    ``(C) to consolidate loans under this part.
    ``(k) Deferments for Excepted PLUS Loans or Excepted Consolidation 
Loans.--
            ``(1) In general.--A qualified borrower shall be eligible 
        for deferments under paragraphs (3) through (5).
            ``(2) Qualified borrower defined.--In this subsection, the 
        term `qualified borrower' means a borrower of an excepted PLUS 
        Loan or an excepted consolidation loan.
            ``(3) Economic hardship deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods, not to exceed 
                3 years in total, during which the qualified borrower 
                experiences an economic hardship described in 
                subparagraph (B).
                    ``(B) Economic hardship.--An economic hardship 
                described in this clause is a period during which the 
                qualified borrower--
                            ``(i) is receiving payment under a means-
                        tested benefit program;
                            ``(ii) is employed full-time and the 
                        monthly gross income of the qualified borrower 
                        does not exceed the greater of--
                                    ``(I) the minimum wage rate 
                                described in section 6 of the Fair 
                                Labor Standards Act of 1938 (29 U.S.C. 
                                206); or
                                    ``(II) an amount equal to 150 
                                percent of the poverty line; or
                            ``(iii) demonstrates that the sum of the 
                        qualified borrower's monthly payments on the 
                        qualified borrower's excepted PLUS Loan or an 
                        excepted consolidation loan is not less than 20 
                        percent of the qualified borrower's monthly 
                        gross income.
                    ``(C) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall submit to the Secretary--
                            ``(i) for the first period of deferment 
                        under this subparagraph, evidence showing the 
                        monthly gross income of the qualified borrower; 
                        and
                            ``(ii) for a subsequent period of deferment 
                        that begins less than one year after the end of 
                        a period of deferment granted under this 
                        subparagraph--
                                    ``(I) evidence showing the monthly 
                                gross income of the qualified borrower; 
                                or
                                    ``(II) the qualified borrower's 
                                most recently filed Federal income tax 
                                return, if such a return was filed in 
                                either of the two tax years preceding 
                                the year in which the qualified 
                                borrower requests the subsequent period 
                                of deferment.
            ``(4) Unemployment deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment for periods during which the 
                qualified borrower is seeking, and is unable to find, 
                full-time employment.
                    ``(B) Eligibility.--To be eligible to receive an 
                deferment under this subparagraph, a qualified borrower 
                shall submit to the Secretary--
                            ``(i) evidence of the qualified borrower's 
                        eligibility for unemployment benefits; or
                            ``(ii) for requests submitted after the 
                        initial request, written confirmation, or an 
                        equivalent as approved by the Secretary, that 
                        the qualified borrower has made at least six 
                        diligent attempts during the preceding six-
                        month period to secure full-time employment.
                    ``(C) Terms of deferment.--The following terms 
                shall apply to a deferment under this subparagraph:
                            ``(i) Initial period.--The first deferment 
                        granted to a qualified borrower under this 
                        subparagraph may be for a period of 
                        unemployment beginning not more than 6 months 
                        before the date on which the Secretary receives 
                        the qualified borrower's request for deferment 
                        and may be granted for a period of up to 6 
                        months after that date.
                            ``(ii) Renewals.--Deferments under this 
                        subparagraph shall be renewable at 6-month 
                        intervals beginning after the expiration of the 
                        first period of deferment under clause (i). To 
                        be eligible to renew a deferment under this 
                        subparagraph, a qualified borrower shall submit 
                        to the Secretary the information described in 
                        subparagraph (B)(i).
                            ``(iii) Aggregate limit.--The period of all 
                        deferments granted to a borrower under this 
                        subparagraph may not exceed 3 years in 
                        aggregate.
            ``(5) Health deferment.--
                    ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods in which the 
                qualified borrower is unable to make scheduled loan 
                payments due to high medical expenses, as determined by 
                the Secretary.
                    ``(B) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall--
                            ``(i) submit to the Secretary documentation 
                        demonstrating that making scheduled loan 
                        payments would be an extreme economic hardship 
                        to the borrower due to high medical expenses, 
                        as determined by the Secretary; and
                            ``(ii) resubmit such documentation to the 
                        Secretary not less frequently than once every 3 
                        months.
    ``(l) Prohibitions.--
            ``(1) Prohibition on fees.--No administrative fee or other 
        fee may be charged to the borrower in connection with the 
        granting of a deferment under this subsection.
            ``(2) Prohibition on adverse credit reporting.--No adverse 
        information relating to a borrower may be reported to a 
        consumer reporting agency solely because of the granting of a 
        deferment under this subsection.
            ``(3) Limitation on authority.--The Secretary shall not, 
        through regulation or otherwise, authorize additional deferment 
        options or periods of deferment other than the deferment 
        options and periods of deferment authorized under this 
        subsection.
    ``(m) Definitions.--In this section:
            ``(1) Eligible graduate fellowship program.--The term 
        `eligible graduate fellowship program', when used with respect 
        to a course of study pursued by the borrower of a loan under 
        this part, means a fellowship program that--
                    ``(A) provides sufficient financial support to 
                graduate fellows to allow for full-time study for at 
                least six months;
                    ``(B) requires a written statement from each 
                applicant explaining the applicant's objectives before 
                the award of that financial support;
                    ``(C) requires a graduate fellow to submit periodic 
                reports, projects, or evidence of the fellow's 
                progress; and
                    ``(D) in the case of a course of study at an 
                institution of higher education outside the United 
                States described in section 102, accepts the course of 
                study for completion of the fellowship program.
            ``(2) Eligible rehabilitation training program for 
        individuals with disabilities.--The term `eligible 
        rehabilitation training program for individuals with 
        disabilities', when used with respect a course of study pursued 
        by the borrower of a loan under this part, means a program 
        that--
                    ``(A) is necessary to assist an individual with a 
                disability in preparing for, securing, retaining, or 
                regaining employment;
                    ``(B) is licensed, approved, certified, or 
                otherwise recognized as providing rehabilitation 
                training to disabled individuals by--
                            ``(i) a State agency with responsibility 
                        for vocational rehabilitation programs, drug 
                        abuse treatment programs, mental health 
                        services programs, or alcohol abuse treatment 
                        programs; or
                            ``(ii) the Secretary of Veterans Affairs; 
                        and
                    ``(C) provides or will provide the borrower with 
                rehabilitation services under a written plan that--
                            ``(i) is individualized to meet the 
                        borrower's needs;
                            ``(ii) specifies the date on which the 
                        services to the borrower are expected to end; 
                        and
                            ``(iii) requires a commitment of time and 
                        effort from the borrower that prevents the 
                        borrower from being employed at least 30 hours 
                        per week, either because of the number of hours 
                        that must be devoted to rehabilitation or 
                        because of the nature of the rehabilitation.
            ``(3) Excepted plus loan; excepted consolidation loan.--The 
        terms `excepted PLUS loan' and `excepted consolidation loan' 
        have the meanings given such terms in section 460A.
            ``(4) Family size.--The term `family size' means the number 
        that is determined by counting--
                    ``(A) the borrower;
                    ``(B) the borrower's spouse;
                    ``(C) the borrower's children, including unborn 
                children who are expected to be born during the period 
                covered by the deferment, if the children receive more 
                than half their support from the borrower; and
                    ``(D) another individual if, at the time the 
                borrower requests a deferment under this section, the 
                individual--
                            ``(i) lives with the borrower;
                            ``(ii) receives more than half of the 
                        individual's support (which may include money, 
                        gifts, loans, housing, food, clothes, car, 
                        medical and dental care, and payment of college 
                        costs) from the borrower; and
                            ``(iii) is expected to receive such support 
                        from the borrower during the relevant period of 
                        deferment.
            ``(5) Full-time.--The term `full-time', when used with 
        respect to employment, means employment for not less than 30 
        hours per week that is expected to continue for not less than 
        three months.
            ``(6) Means-tested benefit program.--The term `means-tested 
        benefit program' means--
                    ``(A) a State public assistance program under which 
                eligibility for the program's benefits, or the amount 
                of such benefits, are determined on the basis of income 
                or resources of the individual or family seeking the 
                benefit; or
                    ``(B) a mandatory spending program of the Federal 
                Government, other than a program under this title, 
                under which eligibility for the program's benefits, or 
                the amount of such benefits, are determined on the 
                basis of income or resources of the individual or 
                family seeking the benefit, and may include such 
                programs as--
                            ``(i) the supplemental security income 
                        program under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                            ``(ii) the supplemental nutrition 
                        assistance program under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.);
                            ``(iii) the program of block grants for 
                        States for temporary assistance for needy 
                        families established under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.);
                            ``(iv) the special supplemental nutrition 
                        program for women, infants, and children 
                        established by section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786); and
                            ``(v) other programs identified by the 
                        Secretary.
            ``(7) Monthly gross income.--The term `monthly gross 
        income', when used with respect to a borrower, means--
                    ``(A) the gross amount of income received by the 
                borrower from employment and other sources for the most 
                recent month; or
                    ``(B) one-twelfth of the borrower's adjusted gross 
                income, as recorded on the borrower's most recently 
                filed Federal income tax return.
            ``(8) Rule of construction.--Nothing in this section shall 
        be construed to impact a borrower's eligibility to receive the 
        benefit of section 455(o).''.
    (b) Conforming Amendment.--Section 493D(a) (20 U.S.C. 1098f(a)) is 
amended by inserting ``, or section 460B'' after ``464(c)(2)(A)(iii)''.

             PART D--ELIMINATION OF INTEREST CAPITALIZATION

SEC. 231. ELIMINATION OF INTEREST CAPITALIZATION.

    (a) Federal PLUS Loans.--Section 428B(d)(2) (20 U.S.C. 1078-
2(d)(2)) is amended to read as follows:
            ``(2) No capitalization of interest.--Interest on loans 
        made under this section for which payments of principal are 
        deferred pursuant to paragraph (1) shall be paid monthly or 
        quarterly, if agreed upon by the borrower and the lender.''.
    (b) Federal Consolidation Loans Deferrals.--Section 
428C(b)(4)(C)(ii)(III) (20 U.S.C. 1078-3(b)(4)(C)(III)) is amended by 
striking ``or capitalized,''.
    (c) Loan Limits for Unsubsidized Stafford Loans.--Section 
428H(d)(5) (20 U.S.C. 1078-8(d)(5)) is amended by inserting ``before 
the date of enactment of the REAL Reforms Act'' after ``Interest 
capitalized''.
    (d) Unsubsidized Stafford Loans for Middle Income Borrowers.--
Section 428H(e)(2) (20 U.S.C. 1078-8(e)(2)) is amended--
            (1) in subparagraph (A), in the matter before clause (i), 
        by striking ``, if agreed upon by the borrower and the lender'' 
        and all that follows through clause (ii)(IV) and inserting ``be 
        paid monthly or quarterly, if agreed upon by the borrower and 
        the lender.'';
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (e) Income Contingent Repayment.--Section 455(e)(5) (20 U.S.C. 
1087e(e)(5)) is amended by striking the last sentence and inserting 
``No interest may be capitalized on such loan on or after the date of 
the enactment of the REAL Reforms Act, and the Secretary shall 
promulgate regulations with respect to the treatment of accrued 
interest that is not capitalized''.
    (f) Effect of Deferment on Principal and Interest.--Section 
455(f)(1)(B) (20 U.S.C. 1087e(f)(1)(B)) is amended by striking 
``capitalized or''.
    (g) Income-Based Repayment Program.--Section 493C(b)(3)(B) (20 
U.S.C. 1098e(b)(3)(B)) is amended by inserting ``shall accrue but not'' 
before ``be capitalized''.

                    TITLE III--WORKFORCE PELL GRANTS

SEC. 301. DATA COLLECTION AND DISSEMINATION RELATED TO WORKFORCE PELL.

    Section 131 (20 U.S.C. 1015) is amended by adding at the end the 
following:
    ``(i) Data Collection and Dissemination Related to Workforce 
Pell.--
            ``(1) Appeal of earnings information.--The Secretary may 
        establish an appeals process to permit eligible programs for 
        purposes of the Workforce Pell Grants program under section 
        401(k) to submit alternate earnings data to comply with section 
        481(b)(3)(F), provided that such data are statistically 
        rigorous, accurate, comparable, and representative of students 
        who receive a Workforce Pell Grant and complete the eligible 
        program.
            ``(2) Dissemination of information.--The Secretary shall 
        collect, verify, and make publicly available the information 
        required under subparagraph (E) of subsection (b)(3) of section 
        481 on the College Scorecard or any similar successor website.
            ``(3) Exceptions.--Notwithstanding any other provision of 
        this subsection, if disclosure of any data under paragraph (2) 
        is prohibited under State or Federal privacy laws or 
        regulations, the Secretary shall take such steps as the 
        Secretary determines necessary to make publicly available such 
        data in accordance with such laws and regulations.''.

SEC. 302. PROGRAM ELIGIBILITY FOR WORKFORCE PELL GRANTS.

    Section 481(b) (20 U.S.C. 1088(b)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) A program is an eligible program for purposes of the 
        Workforce Pell Grants program under section 401(k) only if--
                    ``(A) it is at least 150 clock hours of 
                instruction, but not more than 600 clock hours of 
                instruction, or an equivalent number of credit hours, 
                offered during a minimum of 8 weeks, but not more than 
                15 weeks;
                    ``(B) it is determined by an accrediting agency or 
                association recognized by the Secretary pursuant to 
                section 496(a) to--
                            ``(i) provide an education aligned with the 
                        requirements of in-demand industry sectors or 
                        occupations, as defined in section 3 of the 
                        Workforce Innovation and Opportunity Act;
                            ``(ii) meet the hiring requirements of 
                        potential employers in the sectors or 
                        occupations described in clause (i);
                            ``(iii) have been offered by an institution 
                        for not less than 1 year prior to a 
                        determination by such agency or association 
                        under this subparagraph;
                            ``(iv) have a completion rate (based on the 
                        methodology of such agency or association) of 
                        at least 70 percent; and
                            ``(v) have a job placement rate (based on 
                        the methodology of such agency or association) 
                        of at least 70 percent; and
                    ``(C) the increase in median earnings of students 
                who receive Federal financial aid under this title and 
                who complete the program is an amount that is equal to 
                or greater than the published tuition and fees of such 
                program, as determined by calculating the difference 
                between--
                            ``(i) the median earnings of such students 
                        at the time of initial enrollment in the 
                        program; and
                            ``(ii) the median earnings of such students 
                        two years after completing such program.''.

SEC. 303. WORKFORCE PELL GRANTS.

    (a) Award Year 2023-2024.--Section 401 (20 U.S.C. 1070a) is amended 
by adding at the end the following:
    ``(k) Workforce Pell Grants Program.--
            ``(1) In general.--For the award year beginning on July 1, 
        2023, the Secretary shall award grants (referred to as a 
        `Workforce Pell Grants') to eligible students under paragraph 
        (2) in accordance with this subsection.
            ``(2) Eligible students.--For award year 2023-2024, to be 
        eligible to receive a Workforce Pell Grant under this 
        subsection for any period of enrollment, a student shall meet 
        the eligibility requirements for a Federal Pell Grant under 
        this section, except that the student--
                    ``(A) shall be enrolled, or accepted for 
                enrollment, in an eligible program described in section 
                481(b)(3); and
                    ``(B) may not have received a postbaccalaureate 
                degree.
            ``(3) Terms and conditions of awards.--The Secretary shall 
        award Workforce Pell Grants under this subsection in the same 
        manner and with the same terms and conditions as the Secretary 
        awards Federal Pell Grants under subsection (b), except that a 
        student who is eligible for a grant equal to less than the 
        amount of the minimum Federal Pell Grant because the eligible 
        workforce development program in which the student is enrolled 
        or accepted for enrollment is less than an academic year (in 
        hours of instruction or weeks of duration) may still be 
        eligible for a Workforce Pell Grant.
            ``(4) Prevention of double benefits.--No eligible student 
        described in paragraph (2) may, for the same period of 
        enrollment, receive both a grant under this subsection and a 
        Federal Pell Grant under subsection (b).''.
    (b) Subsequent Award Years.--
            (1) In general.--Section 401 (20 U.S.C. 1070a), as amended 
        by section 703 of the FAFSA Simplification Act (title VII of 
        division FF of Public Law 116-260), is amended by adding at the 
        end the following:
    ``(k) Workforce Pell Grants Program.--
            ``(1) In general.--For the award year beginning on July 1, 
        2024, and each subsequent award year, the Secretary shall award 
        grants (referred to as a `Workforce Pell Grants') to eligible 
        students under paragraph (2) in accordance with this 
        subsection.
            ``(2) Eligible students.--For award year 2024-2025 and each 
        succeeding award year, to be eligible to receive a Workforce 
        Pell Grant under this subsection for any period of enrollment, 
        a student shall meet the eligibility requirements for a Federal 
        Pell Grant under this section, except that the student--
                    ``(A) shall be enrolled, or accepted for 
                enrollment, in an eligible program described in section 
                481(b)(3); and
                    ``(B) may not have received a postbaccalaureate 
                degree.
            ``(3) Terms and conditions of awards.--The Secretary shall 
        award Workforce Pell Grants under this subsection in the same 
        manner and with the same terms and conditions as the Secretary 
        awards Federal Pell Grants under subsection (b), except that a 
        student who is eligible for a grant equal to less than the 
        amount of the minimum Federal Pell Grant because the eligible 
        workforce development program in which the student is enrolled 
        or accepted for enrollment is less than an academic year (in 
        hours of instruction or weeks of duration) may still be 
        eligible for a Workforce Pell Grant.
            ``(4) Prevention of double benefits.--No eligible student 
        described in paragraph (2) may, for the same period of 
        enrollment, receive both a grant under this subsection and a 
        Federal Pell Grant under subsection (b).''.
            (2) Effective date.--The amendment 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.

SEC. 304. ACCREDITING AGENCY DETERMINATION OF ELIGIBILITY REQUIREMENTS 
              FOR THE WORKFORCE PELL GRANTS PROGRAM.

    (a) In General.--Section 496(a)(4) (20 U.S.C. 1099b(a)(4)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B)(ii), by inserting ``and'' at the 
        end; and
            (3) by adding at the end the following:
            ``(C) if such agency or association has or seeks to include 
        within its scope of recognition the evaluation of the quality 
        of institutions offering an eligible program for purposes of 
        the Workforce Pell Grants program (in accordance with section 
        481(b)(3)), such agency or association shall, in addition to 
        meeting the other requirements of this subpart, demonstrate to 
        the Secretary that, with respect to such eligible programs--
                    ``(i) the agency's or association's standards 
                include a process for determining if the institution 
                has the capability to effectively offer such an 
                eligible program; and
                    ``(ii) the agency or association requires a 
                demonstration that the program--
                            ``(I) satisfies the requirements of 
                        subparagraph (B) of section 481(b)(3); and
                            ``(II) provides academic content, an amount 
                        of instructional time, and competencies to 
                        satisfy any applicable educational requirement 
                        so that a student who completes the program and 
                        seeks employment is qualified to practice or 
                        find employment in the sectors or occupations 
                        that the program prepares students to enter.''.
    (b) Additional NACIQI Review Meetings.--For the purpose of 
preparing for the implementation of the Workforce Pell Grant program 
under section 401(k) of the Higher Education Act of 1965 (as added by 
section 304), in addition to the meetings required under section 
114(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1011c(d)(1)), 
the National Advisory Committee on Institutional Quality and Integrity 
(as established by such section 114) shall, through 2025, hold meetings 
to evaluate the additions to the scope of recognition of accrediting 
agencies and associations with respect to an eligible program for 
purposes of the Workforce Pell Grants program (in accordance with 
section 481(b)(3) of the Higher Education Act of 1965, as added by 
section 302).
                                 <all>
Responsible Education Assistance through Loan Reforms Act
To streamline and improve the Federal student loan program to protect borrowers and taxpayers, prohibit the Secretary of Education from exercising regulatory overreach and abusing its authorities granted by Congress, and extend Federal Pell Grant eligibility to certain short-term workforce development programs.
Responsible Education Assistance through Loan Reforms Act
Rep. Foxx, Virginia