Income-based repayment

In this section: The term “excepted PLUS loan” means a loan under section 1078–2 of this title, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student. The term “excepted consolidation loan” means— 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 July 4, 2025, and ending on June 30, 2028, was being repaid— The term “applicable amount” means 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which— Notwithstanding any other provision of this chapter, the Secretary shall carry out a program under which— any interest due and not paid under paragraph (2)— be capitalized— in the case of a subsidized loan, subject to subparagraph (A), at the time the borrower— in the case of an unsubsidized loan, at the time the borrower— 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 1078(b)(9)(A)(i) of this title or 1087e(d)(1)(A) of this title, 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— the Secretary shall repay or cancel any outstanding balance of principal and interest due on all loans made under part B or D (other than a loan under section 1078–2 of this title or a Federal Direct PLUS Loan) to a borrower who— for a period of time prescribed by the Secretary, not to exceed 25 years, meets 1 or more of the following requirements— 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 1087e(e)(1) of this title (as in effect on the day before the date of repeal of subsection (e) of section 1087e of this title) or in connection with income sensitive repayment schedules under section 1078(b)(9)(A)(iii) of this title or 1078–3(b)(1)(E) of this title. The Secretary shall establish and implement, with respect to any borrower enrolled in an income-based repayment program under this section or under section 1087e(q) of this title, procedures to— Subparagraph (A) shall apply to each borrower of a loan eligible to be repaid under this section or under section 1087e(q) of this title, who, on or after the date on which the Secretary establishes procedures under such subparagraph (A)— In the case of a married borrower who files a separate Federal income tax return, the Secretary shall calculate the amount of the borrower’s income-based repayment under this section solely on the basis of the borrower’s student loan debt and adjusted gross income. With respect to any loan made to a new borrower on or after July 1, 2014 and before July 1, 2026—