Income-based repayment plan

(a) Clarification of IBR Section 455(d)(1)(E) of such Act (20 U.S.C. 1087e(d)(1)(E)) is amended by striking, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or 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. (b) IBR Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e) is amended— (1) by amending subsection (a) to read as follows: (a) Definition In this section, the term partial financial hardship, when used with respect to a borrower, means that for such borrower— (1) the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D 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 (2) 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)).; (2) in subsection (b)— (A) in paragraph (1), by striking (other than an excepted PLUS loan or excepted consolidation loan); (B) in paragraph (6)(A), by striking (other than an excepted PLUS loan or excepted consolidation loan); and (C) in paragraph (7), by striking (other than a loan under section 428B or a Federal Direct PLUS Loan); and (3) in subsection (c)— (A) in paragraph (1), by striking (other than an excepted PLUS loan or excepted consolidation loan),; and (B) in paragraph (2)(B), by striking (other than an excepted PLUS loan or excepted consolidation loan).