US Codex
Pub. L.
Notes

Title VIII — Committee on Health, Education, Labor, and Pensions

119th Congress · Approved Jul 4, 2025 · 139 Stat. 72 · Lineage

TITLE VIII Committee on Health, Education, Labor, and Pensions

Subtitle A Exemption of Certain Assets

SEC. 80001. Exemption of Certain Assets.

(a)
Exemption of Certain Assets.— Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2)) is amended—
(1)
by striking “ net value of the” and inserting the following:

“(A) the”

(2)
by striking the period at the end and inserting a semicolon; and
(3)
by adding at the end the following:

“(B) a family farm on which the family resides;

“(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family; or

“(D) a commercial fishing business and related expenses, including fishing vessels and permits owned and controlled by the family.”

(b)
Effective Date and Application.— The amendments made by subsection (a) shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year, as determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

Subtitle B Loan Limits

SEC. 81001. Establishment of Loan Limits for Graduate and Professional Students and Parent Borrowers; Termination of Graduate and Professional Plus Loans.

Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended—
(1)
in paragraph (3)—
(A)
in the paragraph heading, by inserting “ and federal direct plus loans” after “ loans”;
(B)
by striking subparagraph (A) and inserting the following:

“(A) Termination of authority to make interest subsidized loans to graduate and professional students.—Subject to subparagraph (B), and notwithstanding any provision of this part or part B—

“(i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and

“(ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.”

; and

(C)
by adding at the end the following:

“(C) Termination of authority to make federal direct plus loans to graduate and professional students.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.”

; and

(2)
by adding at the end the following:

“(4) Graduate and professional annual and aggregate limits for federal direct unsubsidized stafford loans beginning july 1, 2026.—

“(A) Annual limits beginning july 1, 2026.—Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans—

“(i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and

“(ii) a professional student may borrow in any academic year or its equivalent shall be $50,000.

“(B) Aggregate limits.—Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that—

“(i) a graduate student—

“(I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or

“(II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to—

“(aa) $200,000; minus

“(bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and

“(ii) a professional student—

“(I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or

“(II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to—

“(aa) $200,000; minus

“(bb) the amount such student borrowed for programs of study described in subparagraph (C)(i).

“(C) Definitions.—

“(i) Graduate student.—The term ‘graduate student’ means a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.

“(ii) Professional student.—In this paragraph, the term ‘professional student’ means a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program.

“(5) Parent borrower annual and aggregate limits for federal direct plus loans beginning july 1, 2026.—

“(A) Annual limits.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum annual amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000.

“(B) Aggregate limits.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, for each dependent student, the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.

“(6) Lifetime maximum aggregate amount for all students.—Subject to paragraph (8) and notwithstanding any provision of this part or part B, beginning on July 1, 2026, the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.

“(7) Additional rules regarding annual loan limits.—

“(A) Less than full-time enrollment.—Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph.

“(B) Institutionally determined limits.—Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study.

“(8) Interim exception for certain students.—

“(A) Application of prior limits.—Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026—

“(i) is enrolled in a program of study at an institution of higher education; and

“(ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study.

“(B) Expected time to credential.—For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of—

“(i) three academic years; or

“(ii) the period determined by calculating the difference between—

“(I) the program length for the program of study in which the individual is enrolled; and

“(II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph.

“(C) Definition of program length.—In this paragraph, the term ‘program length’ means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study.”

Subtitle C Loan Repayment

SEC. 82001. Loan Repayment.

(a)
Transition to Income-based Repayment Plans.—
(1)
Selection.— The Secretary of Education shall take such steps as may be necessary to ensure that before July 1, 2028, each borrower who has one or more loans that are in a repayment status in accordance with, or an administrative forbearance associated with, an income contingent repayment plan authorized under section 455(e) of the Higher Education Act of 1965 (referred to in this subsection as “covered income contingent loans”) selects one of the following income-based repayment plans that is otherwise applicable, and for which that borrower is otherwise eligible, for the repayment of the covered income contingent loans of the borrower:
(A)
The Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965.
(B)
The income-based repayment plan under section 493C of the Higher Education Act of 1965.
(C)
Any other repayment plan as authorized under section 455(d)(1) of the Higher Education Act of 1965.
(2)
Commencement of new repayment plan.— Beginning on July 1, 2028, a borrower described in paragraph (1) shall begin repaying the covered income contingent loans of the borrower in accordance with the repayment plan selected under paragraph (1), unless the borrower chooses to begin repaying in accordance with the repayment plan selected under paragraph (1) before such date.
(3)
Failure to select.— In the case of a borrower described in paragraph (1) who fails to select a repayment plan in accordance with such paragraph, the Secretary of Education shall—
(A)
enroll the covered income contingent loans of such borrower in—
(i)
the Repayment Assistance Plan under section 455(q) of the Higher Education Act of 1965 with respect to loans that are eligible for the Repayment Assistance Plan under such subsection; or
(ii)
the income-based repayment plan under section 493C of such Act, with respect to loans that are not eligible for the Repayment Assistance Plan; and
(B)
require the borrower to begin repaying covered income contingent loans according to the plans under subparagraph (A) on July 1, 2028.
(b)
Repayment Plans.— Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended—
(1)
in paragraph (1)—
(A)
in the matter preceding subparagraph (A), by inserting “ before July 1, 2026, who has not received a loan made under this part on or after July 1, 2026,” after “ made under this part”;
(B)
in subparagraph (D)—
(i)
by inserting “ before June 30, 2028,” before “ an income contingent repayment plan”; and
(ii)
by striking “ and” after the semicolon;
(C)
in subparagraph (E)—
(i)
by striking “ that enables borrowers who have a partial financial hardship to make a lower monthly payment”;
(ii)
by striking “ a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 428B made on behalf of a dependent student” and inserting “ an excepted Consolidation Loan (as defined in section 493C(a)(2))”; and
(iii)
by striking the period at the end and inserting “ ; and”; and
(D)
by adding at the end the following:

“(F) beginning on July 1, 2026, the income-based Repayment Assistance Plan under subsection (q), provided that—

“(i) such Plan shall not be available for the repayment of excepted loans (as defined in paragraph (7)(E)); and

“(ii) the borrower is required to pay each outstanding loan of the borrower made under this part under such Repayment Assistance Plan, except that a borrower of an excepted loan (as defined in paragraph (7)(E)) may repay the excepted loan separately from other loans under this part obtained by the borrower.”

(2)
in paragraph (5), by amending subparagraph (B) to read as follows:

“(B) repay the loan pursuant to an income-based repayment plan under subsection (q) or section 493C, as applicable.”

; and

(3)
by adding at the end the following:

“(6) Termination and limitation of repayment authority.—

“(A) Sunset of repayment plans available before july 1, 2026.—Paragraphs (1) through (4) of this subsection shall only apply to loans made under this part before July 1, 2026.

“(B) Prohibitions.—The Secretary may not, for any loan made under this part on or after July 1, 2026—

“(i) authorize a borrower of such a loan to repay such loan pursuant to a repayment plan that is not described in paragraph (7)(A); or

“(ii) carry out or modify a repayment plan that is not described in such paragraph.

“(7) Repayment plans for loans made on or after july 1, 2026.—

“(A) Design and selection.—Beginning on July 1, 2026, the Secretary shall offer a borrower of a loan made under this part on or after such date (including such a borrower who also has a loan made under this part before such date) two plans for repayment of the borrower’s loans under this part, including principal and interest on such loans. The borrower shall be entitled to accelerate, without penalty, repayment on such loans. The borrower may choose—

“(i) a standard repayment plan—

“(I) with a fixed monthly repayment amount paid over a fixed period of time equal to the applicable period determined under subclause (II); and

“(II) with the applicable period of time for repayment determined based on the total outstanding principal of all loans of the borrower made under this part before, on, or after July 1, 2026, at the time the borrower is entering repayment under such plan, as follows—

“(aa) for a borrower with total outstanding principal of less than $25,000, a period of 10 years;

“(bb) for a borrower with total outstanding principal of not less than $25,000 and less than $50,000, a period of 15 years;

“(cc) for a borrower with total outstanding principal of not less than $50,000 and less than $100,000, a period of 20 years; and

“(dd) for a borrower with total outstanding principal of $100,000 or more, a period of 25 years; or

“(ii) the income-based Repayment Assistance Plan under subsection (q).

“(B) Selection by secretary.—If a borrower of a loan made under this part on or after July 1, 2026, does not select a repayment plan described in subparagraph (A), the Secretary shall provide the borrower with the standard repayment plan described in subparagraph (A)(i).

“(C) Selection applies to all outstanding loans.—A borrower is required to pay each outstanding loan of the borrower made under this part under the same selected repayment plan, except that a borrower who selects the Repayment Assistance Plan and also has an excepted loan that is not eligible for repayment under such Repayment Assistance Plan shall repay the excepted loan separately from other loans under this part obtained by the borrower.

“(D) Changes of repayment plan.—A borrower may change the borrower’s selection of—

“(i) the standard repayment plan under subparagraph (A)(i), or the Secretary’s selection of such plan for the borrower under subparagraph (B), as the case may be, to the Repayment Assistance Plan under subparagraph (A)(ii) at any time; and

“(ii) the Repayment Assistance Plan under subparagraph (A)(ii) to the standard repayment plan under subparagraph (A)(i) at any time.

“(E) Repayment for borrowers with excepted loans made on or after july 1, 2026.—

“(i) Standard repayment plan required.—Notwithstanding subparagraphs (A) through (D), beginning on July 1, 2026, the Secretary shall require a borrower who has received an excepted loan made on or after such date (including such a borrower who also has an excepted loan made before such date) to repay each excepted loan, including principal and interest on those excepted loans, under the standard repayment plan under subparagraph (A)(i). The borrower shall be entitled to accelerate, without penalty, repayment on such loans.

“(ii) Excepted loan defined.—For the purposes of this paragraph, the term ‘excepted loan’ means a loan with an outstanding balance that is—

“(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or

“(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on—

“(aa) an excepted PLUS loan, as defined in section 493C(a)(1); or

“(bb) an excepted consolidation loan (as such term is defined in section 493C(a)(2)(A), notwithstanding subparagraph (B) of such section).”

(c)
Elimination of Authority to Provide Income Contingent Repayment Plans.—
(1)
Repeal.— Subsection (e) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)) is repealed.
(2)
Further amendments to eliminate income contingent repayment.—
(A)
Section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended—
(i)
in subsection (b)(1)(D), by striking “ be subject to income contingent repayment in accordance with subsection (m)” and inserting “ be subject to income-based repayment in accordance with subsection (m)”; and
(ii)
in subsection (m)—
(I)
in the subsection heading, by striking “ Income Contingent and”;
(II)
by amending paragraph (1) to read as follows:

“(1) Authority of secretary to require.—The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans pursuant to an income-based repayment plan under section 493C.”

; and

(III)
in the heading of paragraph (2), by striking “ income contingent or”.
(B)
Section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078–3) is amended—
(i)
in subsection (a)(3)(B)(i)(V)(aa), by striking “ for the purposes of obtaining income contingent repayment or income-based repayment” and inserting “ for the purposes of qualifying for an income-based repayment plan under section 455(q) or section 493C, as applicable”;
(ii)
in subsection (b)(5), by striking “ be repaid either pursuant to income contingent repayment under part D of this title, pursuant to income-based repayment under section 493C, or pursuant to any other repayment provision under this section” and inserting “ be repaid pursuant to an income-based repayment plan under section 493C or any other repayment provision under this section”; and
(iii)
in subsection (c)—
(I)
in paragraph (2)(A), by striking “ or by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)” and inserting “ or by the terms of repayment pursuant to an income-based repayment plan under section 493C”; and
(II)
in paragraph (3)(B), by striking “ except as required by the terms of repayment pursuant to income contingent repayment offered by the Secretary under subsection (b)(5)” and inserting “ except as required by the terms of repayment pursuant to an income-based repayment plan under section 493C”.
(C)
Section 485(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1092(d)(1)) is amended by striking “ income-contingent and”.
(D)
Section 494(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098h(a)(2)) is amended—
(i)
in the paragraph heading, by striking “ Income-contingent and income-based” and inserting “ Income-based”; and
(ii)
in subparagraph (A)—
(I)
in the matter preceding clause (i), by striking “ income-contingent or”; and
(II)
in clause (ii)(I), by striking “ section 455(e)(8) or the equivalent procedures established under section 493C(c)(2)(B), as applicable” and inserting “ section 493C(c)(2)”.
(3)
Effective date.— The amendments made by this subsection shall take effect on July 1, 2028.
(d)
Repayment Assistance Plan.— Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection:

“(q) Repayment Assistance Plan.—

“(1) In general.—Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the ‘Repayment Assistance Plan’), that shall have the following terms and conditions:

“(A) The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (4)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month.

“(B) The Secretary shall apply the borrower’s applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan.

“(C) Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred.

“(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of—

“(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or

“(ii) the date on which the borrower has made 360 qualifying monthly payments.

“(E) The Secretary shall cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower—

“(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection;

“(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and

“(iii) who has made 360 qualifying monthly payments on such loan.

“(F) For the purposes of this subsection, the term ‘qualifying monthly payment’ means any of the following:

“(i) An on-time applicable monthly payment under this subsection.

“(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan.

“(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years.

“(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section.

“(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan.

“(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hardship described in subsection (f)(2)(D).

“(vii) A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period of deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection).

“(G) The procedures established by the Secretary under section 493C(c) shall apply for annually determining the borrower’s eligibility for the Repayment Assistance Plan, including verification of a borrower’s annual income and the annual amount due on the total amount of loans eligible to be repaid under this subsection, and such other procedures as are necessary to effectively implement income-based repayment under this subsection. With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2).

“(2) Balance assistance for distressed borrowers.—

“(A) Interest subsidy.—With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.

“(B) Matching principal payment.—With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to—

“(i) the amount that is the lesser of—

“(I) $50; or

“(II) the total amount paid by the borrower for such month pursuant to paragraph (1)(A); minus

“(ii) the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance.

“(3) Additional documents.—A borrower who chooses, or is required, to repay a loan under this subsection, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower’s current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine repayment under this subsection.

“(4) Definitions.—In this subsection:

“(A) Adjusted gross income.—The term ‘adjusted gross income’, when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower’s spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower’s spouse.

“(B) Applicable monthly payment.—

“(i) In general.—Except as provided in clause (ii), (iii), or (vi), the term ‘applicable monthly payment’ means, when used with respect to a borrower, the amount equal to—

“(I) the applicable base payment of the borrower, divided by 12; minus

“(II) $50 for each dependent of the borrower (which, in the case of a married borrower filing a separate Federal income tax return, shall include only each dependent that the borrower claims on that return).

“(ii) Minimum amount.—In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10.

“(iii) Final payment.—In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans.

“(iv) Base payment.—The amount of the applicable base payment for a borrower with an adjusted gross income of—

“(I) not more than $10,000, is $120;

“(II) more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income;

“(III) more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income;

“(IV) more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income;

“(V) more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income;

“(VI) more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income;

“(VII) more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income;

“(VIII) more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income;

“(IX) more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income;

“(X) more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and

“(XI) more than $100,000, is 10 percent of such adjusted gross income.

“(v) Dependent.—For the purposes of this paragraph, the term ‘dependent’ means an individual who is a dependent under section 152 of the Internal Revenue Code of 1986.

“(vi) Special rule.—In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be—

“(I) the sum of the monthly payment amounts the borrower would have paid for each of the borrower’s loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and

“(II) determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.”

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

“(3) Consolidation loans made on or after july 1, 2026.—A Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in clause (i) or (ii) of subsection (d)(7)(A) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.”

(f)
Income-Based Repayment.—
(1)
Amendments.—
(A)
Excepted consolidation loan defined.— Section 493C(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(2)) is amended to read as follows:

“(2) Excepted consolidation loan.—

“(A) In general.—The term ‘excepted consolidation loan’ means—

“(i) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan; or

“(ii) a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 428C, or a Federal Direct Consolidation Loan described in clause (i).

“(B) Exclusion.—The term ‘excepted consolidation loan’ does not include a Federal Direct Consolidation Loan described in subparagraph (A) that, on any date during the period beginning on the date of enactment of this subparagraph and ending on June 30, 2028, was being repaid—

“(i) pursuant to the Income Contingent Repayment (ICR) plan in accordance with section 685.209(b) of title 34, Code of Federal Regulations (as in effect on June 30, 2023); or

“(ii) pursuant to another income driven repayment plan.”

(B)
Termination of partial financial hardship eligibility.— Section 493C(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1098e(a)(3)) is amended to read as follows:

“(3) Applicable amount.—The term ‘applicable amount’ means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—

“(A) the borrower’s, and the borrower’s spouse’s (if applicable), adjusted gross income; exceeds

“(B) 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)).”

(C)
Terms of income-based repayment.— Section 493C(b) of the Higher Education Act of 1965 (20 U.S.C. 1098e(b)) is amended—
(i)
by amending paragraph (1) to read as follows:

“(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), may elect to have the borrower’s aggregate monthly payment for all such loans not exceed the applicable amount divided by 12;”

(ii)
by striking paragraph (6) and inserting the following:

“(6) if the monthly payment amount calculated under this section for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) exceeds the monthly amount calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in this subsection (referred to in this paragraph as the ‘standard monthly repayment amount’), or if the borrower no longer wishes to continue the election under this subsection, then—

“(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall be the standard monthly repayment amount; and

“(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;”

(iii)
in paragraph (7)(B)(iv), by inserting “ (as such section was in effect on the day before the date of the repeal of section 455(e)” after “ section 455(d)(1)(D)”; and
(iv)
in paragraph (8), by inserting “ or the Repayment Assistance Program under section 455(q)” after “ standard repayment plan”.
(D)
Eligibility determinations.— Section 493C(c) of the Higher Education Act of 1965 (20 U.S.C. 1098e(c)) is amended to read as follows:

“(c) Eligibility Determinations; Automatic Recertification.—

“(1) In general.—The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower’s eligibility for income-based repayment, including the verification of a borrower’s annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section. The Secretary shall consider, but is not limited to, the procedures established in accordance with section 455(e)(1) (as in effect on the day before the date of repeal of subsection (e) of section 455) or in connection with income sensitive repayment schedules under section 428(b)(9)(A)(iii) or 428C(b)(1)(E).

“(2) Automatic recertification.—

“(A) In general.—The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 455(q), procedures to—

“(i) 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;

“(ii) 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 section or under section 455(q), as the case may be); and

“(iii) provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower.

“(B) Applicability.—Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 455(q), who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)—

“(i) selects, or is required to repay such loan pursuant to, an income-based repayment plan under this section or under section 455(q); or

“(ii) recertifies income or family size under such plan.”

(E)
Special terms for new borrowers on and after july 1, 2014.— Section 493C(e) of the Higher Education Act of 1965 (20 U.S.C. 1098e(e)) is amended—
(i)
in the subsection heading, by inserting “ and Before July 1, 2026” after “ After July 1, 2014”; and
(ii)
by inserting “ and before July 1, 2026” after “ after July 1, 2014”.
(2)
Effective date and application.— The amendments made by this subsection shall take effect on the date of enactment of this title, and shall apply with respect to any borrower who is in repayment before, on, or after the date of enactment of this title.
(g)
FFEL Adjustment.— Section 428(b)(9)(A)(v) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(9)(A)(v)) is amended by striking “ who has a partial financial hardship”.

SEC. 82002. Deferment; Forbearance.

(a)
Sunset of Economic Hardship and Unemployment Deferments.— Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended—
(1)
by striking the subsection heading and inserting the following: “ Deferment; Forbearance”;
(2)
in paragraph (2)—
(A)
in subparagraph (B), by striking “ not in” and inserting “ subject to paragraph (7), not in”; and
(B)
in subparagraph (D), by striking “ not in” and inserting “ subject to paragraph (7), not in”; and
(3)
by adding at the end the following:

“(7) Sunset of unemployment and economic hardship deferments.—A borrower who receives a loan made under this part on or after July 1, 2027, shall not be eligible to defer such loan under subparagraph (B) or (D) of paragraph (2).”

(b)
Forbearance on Loans Made Under This Part on or After July 1, 2027.— Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following:

“(8) Forbearance on loans made under this part on or after july 1, 2027.—A borrower who receives a loan made under this part on or after July 1, 2027, may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period.”

SEC. 82003. Loan Rehabilitation.

(a)
Updating Loan Rehabilitation Limits.—
(1)
FFEL and direct loans.— Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(5)) is amended by striking “ one time” and inserting “ two times”.
(2)
Perkins loans.— Section 464(h)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(h)(1)(D)) is amended by striking “ once” and inserting “ twice”.
(3)
Effective date.— The amendments made by this subsection shall take effect beginning on July 1, 2027, and shall apply with respect to any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
(b)
Minimum Monthly Payment Amount.— Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(1)(B)) is amended by adding at the end the following: “ With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.”.

SEC. 82004. Public Service Loan Forgiveness.

Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended—
(1)
in clause (iii), by striking “ ; or” and inserting a semicolon;
(2)
in clause (iv), by striking “ ; and” and inserting “ (as in effect on the day before the date of the repeal of subsection (e) of this section); or”; and
(3)
by adding at the end the following new clause:

“(v) on-time payments under the Repayment Assistance Plan under subsection (q); and”

SEC. 82005. Student Loan Servicing.

Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows:

“(1) Additional mandatory funds for servicing.—There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.”

Subtitle D Pell Grants

SEC. 83001. Eligibility.

(a)
Foreign Income and Federal Pell Grant Eligibility.—
(1)
Adjusted gross income defined.— Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows:

“(A) the term ‘adjusted gross income’ means—

“(i) in the case of a dependent student, for the second tax year preceding the academic year—

“(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents; plus

“(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student’s parents; and

“(ii) in the case of an independent student, for the second tax year preceding the academic year—

“(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus

“(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);”

(2)
Sunset.— Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended—
(A)
by striking “ A student” and inserting “ For each academic year beginning before July 1, 2026, a student”; and
(B)
by inserting “ , as in effect for such academic year,” after “ section 479A(b)(1)(B)(v)”.
(3)
Conforming amendments.—
(A)
In general.— Section 479A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087tt(b)(1)(B)) is amended—
(i)
by striking clause (v); and
(ii)
by redesignating clauses (vi) and (vii) as clauses (v) and (vi), respectively.
(B)
Effective date.— The amendment made by subparagraph (A) shall take effect on July 1, 2026.
(b)
Federal Pell Grant Ineligibility Due to a High Student Aid Index.—
(1)
In general.— Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)) is amended by adding at the end the following:

“(F) Ineligibility of students with a high student aid index.—Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.”

(2)
Effective date.— The amendment made by paragraph (1) shall take effect on July 1, 2026.

SEC. 83002. Workforce Pell Grants.

(a)
In General.— Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end the following:

“(k) Workforce Pell Grant Program.—

“(1) In general.—For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as ‘Workforce Pell Grants’) to eligible students under paragraph (2) in accordance with this subsection.

“(2) Eligible students.—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 under section 481(b)(3) (hereinafter referred to as an ‘eligible workforce program’); and

“(B) may not—

“(i) be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or

“(ii) have attained such a credential.

“(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 this section, except that—

“(A) each use of the term ‘eligible program’ (except in subsection (b)(9)(A)) shall be substituted by ‘eligible workforce program under section 481(b)(3)’;

“(B) the provisions of subsection (d)(2) shall not be applicable to eligible workforce programs; and

“(C) a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce 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 in an amount that is prorated based on the length of the program.

“(4) Prevention of double benefits.—No eligible student described in paragraph (2) may concurrently receive a grant under both this subsection and—

“(A) subsection (b); or

“(B) subsection (c).

“(5) Duration limit.—Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student’s duration limit under subsection (d)(5).”

(b)
Program Eligibility for Workforce Pell Grants.— Section 481(b) of the Higher Education Act of 1965 (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) A program is an eligible program for purposes of the Workforce Pell Grant program under section 401(k) only if—

“(i) it is a program of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours, offered by an eligible institution during a minimum of 8 weeks, but less than 15 weeks;

“(ii) it is not offered as a correspondence course, as defined in 600.2 of title 34, Code of Federal Regulations (as in effect on July 1, 2021);

“(iii) the Governor of a State, after consultation with the State board, determines that the program—

“(I) provides an education aligned with the requirements of high-skill, high-wage (as identified by the State pursuant to section 122 of the Carl D. Perkins Career and Technical Education Act (20 U.S.C. 2342)), or in-demand industry sectors or occupations;

“(II) meets the hiring requirements of potential employers in the sectors or occupations described in subclause (I);

“(III) either—

“(aa) leads to a recognized postsecondary credential that is stackable and portable across more than one employer; or

“(bb) with respect to students enrolled in the program—

“(AA) prepares such students for employment in an occupation for which there is only one recognized postsecondary credential; and

“(BB) provides such students with such a credential upon completion of such program; and

“(IV) prepares students to pursue 1 or more certificate or degree programs at 1 or more institutions of higher education (which may include the eligible institution providing the program), including by ensuring—

“(aa) that a student, upon completion of the program and enrollment in such a related certificate or degree program, will receive academic credit for the Workforce Pell program that will be accepted toward meeting such certificate or degree program requirements; and

“(bb) the acceptability of such credit toward meeting such certificate or degree program requirements; and

“(iv) after the Governor of such State makes the determination that the program meets the requirements under clause (iii), the Secretary determines that—

“(I) the program has been offered by the eligible institution for not less than 1 year prior to the date on which the Secretary makes a determination under this clause;

“(II) for each award year, the program has a verified completion rate of at least 70 percent, within 150 percent of the normal time for completion;

“(III) for each award year, the program has a verified job placement rate of at least 70 percent, measured 180 days after completion; and

“(IV) for each award year, the total amount of the published tuition and fees of the program for such year is an amount that does not exceed the value-added earnings of students who received Federal financial aid under this title and who completed the program 3 years prior to the award year, as such earnings are determined by calculating the difference between—

“(aa) the median earnings of such students, as adjusted by the State and metropolitan area regional price parities of the Bureau of Economic Analysis based on the location of such program; and

“(bb) 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) for such year.

“(B) In this paragraph:

“(i) The term ‘eligible institution’ means an eligible institution for purposes of section 401.

“(ii) The term ‘Governor’ means the chief executive of a State.

“(iii) The terms ‘in-demand industry sector or occupation’, ‘recognized postsecondary credential’, and ‘State board’ have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act.”

(c)
Effective Date; Applicability.— The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each succeeding award year.

SEC. 83003. Pell Shortfall.

Section 401(b)(7)(A)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iii)) is amended by striking “ $2,170,000,000” and inserting “ $12,670,000,000”.

SEC. 83004. Federal Pell Grant Exclusion Relating to Other Grant Aid.

Section 401(d) of the Higher Education Act of 1965 (20 U.S.C. 1070a(d)) is amended by adding at the end the following:

“(6) Exclusion.—Beginning on July 1, 2026, and notwithstanding this subsection or subsection (b), a student shall not be eligible for a Federal Pell Grant under subsection (b) during any period for which the student receives grant aid from non-Federal sources, including States, institutions of higher education, or private sources, in an amount that equals or exceeds the student’s cost of attendance for such period.”

Subtitle E Accountability

SEC. 84001. Ineligibility Based on Low Earning Outcomes.

Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d) is amended—
(1)
in subsection (a)—
(A)
in paragraph (5), by striking “ and” after the semicolon;
(B)
by redesignating paragraph (6) as paragraph (7); and
(C)
by inserting after paragraph (5) the following:

“(6) provide assurances that, beginning July 1, 2026, the institution will comply with all requirements of subsection (c); and”

(2)
in subsection (b)(2), by striking “ and (6)” and inserting “ (6), and (7)”;
(3)
by redesignating subsection (c) as subsection (d); and
(4)
by inserting after subsection (b) the following:

“(c) Ineligibility for Certain Programs Based on Low Earning Outcomes.—

“(1) In general.—Notwithstanding section 481(b), an institution of higher education subject to this subsection shall not use funds under this part for student enrollment in an educational program offered by the institution that is described in paragraph (2).

“(2) Low-earning outcome programs described.—An educational program at an institution is described in this paragraph if the program awards an undergraduate degree, graduate or professional degree, or graduate certificate, for which the median earnings (as determined by the Secretary) of the programmatic cohort of students who received funds under this title for enrollment in such program, who completed such program during the academic year that is 4 years before the year of the determination, who are not enrolled in any institution of higher education, and who are working, are, for not less than 2 of the 3 years immediately preceding the date of the determination, less than the median earnings of a working adult described in paragraph (3) for the corresponding year.

“(3) Calculation of median earnings.—

“(A) Working adult.—For purposes of applying paragraph (2) to an educational program at an institution, a working adult described in this paragraph is a working adult who, for the corresponding year—

“(i) is aged 25 to 34;

“(ii) is not enrolled in an institution of higher education; and

“(iii)

(I) in the case of a determination made for an educational program that awards a baccalaureate or lesser degree, has only a high school diploma or its recognized equivalent; or

“(II) in the case of a determination made for a graduate or professional program, has only a baccalaureate degree.

“(B) Source of data.—For purposes of applying paragraph (2) to an educational program at an institution, the median earnings of a working adult, as described in subparagraph (A), shall be based on data from the Bureau of the Census—

“(i) with respect to an educational program that awards a baccalaureate or lesser degree—

“(I) for the State in which the institution is located; or

“(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States; and

“(ii) with respect to an educational program that is a graduate or professional program—

“(I) for the lowest median earnings of—

“(aa) a working adult in the State in which the institution is located;

“(bb) a working adult in the same field of study (as determined by the Secretary, such as by using the 2-digit CIP code) in the State in which the institution is located; and

“(cc) a working adult in the same field of study (as so determined) in the entire United States; or

“(II) if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the lower median earnings of—

“(aa) a working adult in the entire United States; or

“(bb) a working adult in the same field of study (as so determined) in the entire United States.

“(4) Small programmatic cohorts.—For any year for which the programmatic cohort described in paragraph (2) for an educational program of an institution is fewer than 30 individuals, the Secretary shall—

“(A) first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; and

“(B) second, in cases in which the cohort (including the individuals added under subparagraph (A)) is still fewer than 30 individuals, aggregate additional cohort years of programmatic data for educational programs of equivalent length in order to achieve a cohort of at least 30 individuals.

“(5) Appeals process.—An educational program shall not lose eligibility under this subsection unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination under paragraph (2), through a process established by the Secretary. During such appeal, the Secretary may permit the educational program to continue to participate in the program under this part.

“(6) Notice to students.—

“(A) In general.—If an educational program of an institution of higher education subject to this subsection does not meet the cohort median earning requirements, as described in paragraph (2), for one year during the applicable covered period but has not yet failed to meet such requirements for 2 years during such covered period, the institution shall promptly inform each student enrolled in the educational program of the eligible program’s low cohort median earnings and that the educational program is at risk of losing its eligibility for funds under this part.

“(B) Covered period.—In this paragraph, the term ‘covered period’ means the period of the 3 years immediately preceding the date of a determination made under paragraph (2).

“(7) Regaining programmatic eligibility.—The Secretary shall establish a process by which an institution of higher education that has an educational program that has lost eligibility under this subsection may, after a period of not less than 2 years of such program’s ineligibility, apply to regain such eligibility, subject to the requirements established by the Secretary that further the purpose of this subsection.”

Subtitle F Regulatory Relief

SEC. 85001. Delay of Rule Relating to Borrower Defense to Repayment.

(a)
Delay.— Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of subpart D of part 685 of title 34, Code of Federal Regulations (relating to borrower defense to repayment), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled “Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program” (87 Fed. Reg. 65904) shall not be in effect.
(b)
Effect.— Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, any regulations relating to borrower defense to repayment that took effect on July 1, 2020, are restored and revived as such regulations were in effect on such date.

SEC. 85002. Delay of Rule Relating to Closed School Discharges.

(a)
Delay.— Beginning on the date of enactment of this section, for loans that first originate before July 1, 2035, the provisions of sections 674.33(g), 682.402(d), and 685.214 of title 34, Code of Federal Regulations (relating to closed school discharges), as added or amended by the final regulations published by the Department of Education on November 1, 2022, and titled “Institutional Eligibility Under the Higher Education Act of 1965, as Amended; Student Assistance General Provisions; Federal Perkins Loan Program; Federal Family Education Loan Program; and William D. Ford Federal Direct Loan Program” (87 Fed. Reg. 65904), shall not be in effect.
(b)
Effect.— Beginning on the date of enactment of this section, with respect to loans that first originate before July 1, 2035, the portions of the Code of Federal Regulations described in subsection (a) and amended by the final regulations described in subsection (a) shall be in effect as if the amendments made by such final regulations had not been made.

Subtitle G Garden of Heroes

SEC. 86001. Garden of Heroes.

In addition to amounts otherwise available, there are appropriated to the National Endowment for the Humanities for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available through fiscal year 2028, $40,000,000 for the procurement of statues as described in Executive Order 13934 (85 Fed. Reg. 41165; relating to building and rebuilding monuments to American heroes), Executive Order 13978 (86 Fed. Reg. 6809; relating to building the National Garden of American Heroes), and Executive Order 14189 (90 Fed. Reg. 8849; relating to celebrating America’s birthday).

Subtitle H Office of Refugee Resettlement

SEC. 87001. Potential Sponsor Vetting for Unaccompanied Alien Children Appropriation.

(a)
Appropriation.— In addition to amounts otherwise available, there is appropriated to the Office of Refugee Resettlement for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $300,000,000, to remain available until September 30, 2028, for the purposes described in subsection (b).
(b)
Use of Funds.— The funds made available under subsection (a) may only be used for the Office of Refugee Resettlement to support costs associated with—
(1)
background checks on potential sponsors, which shall include—
(A)
the name of the potential sponsor and of all adult residents of the potential sponsor’s household;
(B)
the social security number or tax payer identification number of the potential sponsor and of all adult residents of the potential sponsor’s household;
(C)
the date of birth of the potential sponsor and of all adult residents of the potential sponsor’s household;
(D)
the validated location of the residence at which the unaccompanied alien child will be placed;
(E)
an in-person or virtual interview with, and suitability study concerning, the potential sponsor and all adult residents of the potential sponsor’s household;
(F)
contact information for the potential sponsor and for all adult residents of the potential sponsor’s household; and
(G)
the results of all background and criminal records checks for the potential sponsor and for all adult residents of the potential sponsor’s household, which shall include, at a minimum, an investigation of the public records sex offender registry, a public records background check, and a national criminal history check based on fingerprints;
(2)
home studies of potential sponsors of unaccompanied alien children;
(3)
determining whether an unaccompanied alien child poses a danger to self or others by conducting an examination of the unaccompanied alien child for gang-related tattoos and other gang-related markings and covering such tattoos or markings while the child is in the care of the Office of Refugee Resettlement;
(4)
data systems improvement and sharing that supports the health, safety, and well being of unaccompanied alien children by determining the appropriateness of potential sponsors of unaccompanied alien children and of adults residing in the household of the potential sponsor and by assisting with the identification and investigation of child labor exploitation and child trafficking; and
(5)
coordinating and communicating with State child welfare agencies regarding the placement of unaccompanied alien children in such States by the Office of Refugee Resettlement.
(c)
Definitions.— In this section:
(1)
Potential sponsor.— The term “potential sponsor” means an individual or entity who applies for the custody of an unaccompanied alien child.
(2)
Unaccompanied alien child.— The term “unaccompanied alien child” has the meaning given such term in section 462(g) of the Homeland Security Act of 2002 (6 U.S.C. 279(g)).