HR 4652 114th Congress House Education Disability and paralysis Government lending and loan guarantees Higher education Income tax exclusion Interest, dividends, interest rates Student aid and college costs Wages and earnings

CLEAR Act

Introduced: February 29, 2016 See on congress.gov

Everywhere this bill has been 3 steps

Introduced

In committee

Reported out

Passed House

Passed Senate

To President

Became law

Sep 19, 2016

Referred to the Subcommittee on Higher Education and Workforce Training.

Feb 29, 2016

Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Feb 29, 2016

Introduced in House

Plain-English summary Congressional Research Service

Clarity in Lending for Education and Repayment Act or the CLEAR Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to revise federal student loan repayment plan options for new borrowers of Direct Loan (DL) program loans issued on or after July 1, 2016.

Specifically, the bill terminates several existing repayment plan options, including the graduated, extended, income-contingent, and income-based repayment plans. It retains the existing standard repayment plan and establishes a new revised pay-as-you-earn repayment plan that, among other things, caps monthly payments at 10% of discretionary income and sets a 20-year maximum repayment period.

A new borrower of a DL program subsidized Stafford, unsubsidized Stafford, PLUS, or consolidation loan issued on or after July 1, 2016, must enroll in the standard or revised pay-as you earn repayment plan.

The Department of Education must consult with students, family members, institutions of higher education, and other experts to improve the required disclosures with respect to federal Direct Loans.

Finally, the bill amends the Internal Revenue Code to exclude from an individual's gross income the amount of federal student loans discharged due to the death or disability of the student.

What's happening now September 19, 2016

Referred to the Subcommittee on Higher Education and Workforce Training.

Committees of jurisdiction 3