Page:United States Statutes at Large Volume 121.djvu/813

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[121 STAT. 792]
[121 STAT. 792]
PUBLIC LAW 110-000—MMMM. DD, 2007

121 STAT. 792

PUBLIC LAW 110–84—SEPT. 27, 2007

‘‘and for the 180-day period following the demobilization date for the service described in clause (i) or (ii); or’’. (c) PERKINS LOANS.—Section 464(c)(2)(A)(iii) (20 U.S.C. 1087dd(c)(2)(A)(iii)) is amended— (1) in the matter preceding subclause (I), by striking ‘‘not in excess of 3 years’’; (2) in subclause (II), by striking the semicolon and inserting a comma; and (3) by adding at the end the following: ‘‘and for the 180-day period following the demobilization date for the service described in subclause (I) or (II);’’. (d) APPLICABILITY.—Section 8007(f) of the Higher Education Reconciliation Act of 2005 (20 U.S.C. 1078 note) is amended by striking ‘‘loans for which’’ and all that follows through the period at the end and inserting ‘‘all loans under title IV of the Higher Education Act of 1965.’’. SEC. 203. INCOME-BASED REPAYMENT.

(a) AMENDMENT.—Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding at the end the following: 20 USC 1098e.

‘‘SEC. 493C. INCOME-BASED REPAYMENT.

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‘‘(a) DEFINITIONS.—In this section: ‘‘(1) EXCEPTED PLUS LOAN.—The term ‘excepted PLUS loan’ means a loan under section 428B, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student. ‘‘(2) EXCEPTED CONSOLIDATION LOAN.—The term ‘excepted consolidation loan’ means a consolidation loan under section 428C, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan. ‘‘(3) PARTIAL FINANCIAL HARDSHIP.—The term ‘partial financial hardship’, when used with respect to a borrower, means that for such borrower— ‘‘(A) 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) to a borrower as calculated under the standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A), based on a 10-year repayment period; exceeds ‘‘(B) 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which— ‘‘(i) the borrower’s, and the borrower’s spouse’s (if applicable), adjusted gross income; exceeds ‘‘(ii) 150 percent of the poverty line applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)). ‘‘(b) INCOME-BASED REPAYMENT PROGRAM AUTHORIZED.—Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which— ‘‘(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) who has a partial financial hardship (whether or not the borrower’s loan has been submitted to a guaranty agency for default aversion or is already in default) may elect, during any period the borrower has the

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