Page 38

PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 349 exceptional circumstances. In designing such alternative repay- ment plans, the Secretary shall ensure that such plans do not exceed the cost to the Federal Government, as determined on the basis of the present value of future payments by such borrowers, of loans made using the plans available under para- graph (1). "(5) REPAYMENT AFTER DEFAULT.—The Secretary may require any borrower who has defaulted on a lo£ui made under this part to— "(A) pay all reasonable collection costs associated with such loan; and "(B) repay the loan pursuant to an income contingent repajnnent plan. **(e) INCOME CONTINGENT REPAYMENT.— **(1) INFORMATION AND PROCEDURES.—The Secretary may obtain such information as is reasonably necessary regarding the income of a borrower (and the borrower's spouse, u applicable) of a loan made under this part that is, or may be, repaid pursuant to income contingent repayment, for the purpose of determining the annual repajrment obligation of the borrower. Returns and return information (as defined in section 6103 of the Internal Revenue Code of 1986) may be obtained under the preceding sentence only to the extent authorized by section 6103(1X13) of such Code. The Secretary shall establish procedures for determining the borrower's repay- ment obligation on that loan for such year, and such other procedures as are necessary to implement effectively income contingent repayment. "(2) REPAYMENT BASED ON ADJUSTED GROSS INCOME.—A repa3mtient schedule for a loan made under this part and repaid pursuant to income contingent repayment shall be based on the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the borrower or, if the borrower is married and files a Federal income tax return jointly with the borrower's spouse, on the adjusted gross income of the borrower and the borrower's spouse. "(3) ADDITIONAL DOCUMENTS.—^A borrower who chooses, or is required, to repay a loan made under this part pursuant to income contingent repayment, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appro- priate repayment schedule. **(4) REPAYMENT SCHEDULES.—Income contingent repay- Regulations. ment schedules shall be established by regulations promulgated by the Secretary and shall require payments that vary in relation to the appropriate portion oi tne annual income of the borrower (and the borrower's spouse, if applicable) as deter- mined by the Secretary. •*(5) CALCULATION OF BALANCE DUE.—The balance due on a loan made under this part that is repaid pursuant to income contingent repayment shall equal the unpaid principal amount of the loan, any accrued interest, and any fees, such as late charges, assessed on such loan. The Secretary may promulgate regulations limiting the amount of interest that may be capital- ized on such loan, and the timing of any such capitalization.