Phasing out loan forgiveness

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1) in section 455— (A) in subsection (d)(1), in the matter preceding subparagraph (A), by inserting (except a Federal Direct simplification loan) after borrower of a loan made under this part; (B) in subsection (e), by adding at the end the following: (9) Federal Direct simplification loans Income contingent repayment shall not be available for a Federal Direct simplification loan.; and (C) in subsection (m), by adding at the end the following: (5) Elimination of loan forgiveness (A) In General Notwithstanding any other provision of this Act and subject to subparagraph (B), with respect to any loan made on or after July 1, 2026, the Secretary may not cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection. (B) Loans for continuing program of study In the case of a borrower whose first loan for a program of study is made prior to July 1, 2026, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this subsection for— (i) loans made during the time it takes to complete that program of study; or (ii) loans made before July 1, 2030; whichever occurs earlier.; and (2) in section 493C, by adding at the end the following: (f) Elimination of loan forgiveness (1) In General Notwithstanding any other provision of this Act and subject to paragraph (2), with respect to any loan made on or after July 1, 2026, the Secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this section. (2) Loans for continuing program of study In the case of a borrower whose first loan for a program of study is made prior to July 1, 2026, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this section for— (A) loans made during the time it takes to complete that program of study; or (B) loans made before July 1, 2030; whichever occurs earlier..