Page 272

139 STAT. 342 PUBLIC LAW 119–21—JULY 4, 2025 interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan. ‘‘(C) Any principal due and not paid under subpara- graph (B) or paragraph (2)(B) shall be deferred. ‘‘(D) A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of— ‘‘(i) the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repay- ment Assistance Plan is $0; or ‘‘(ii) the date on which the borrower has made 360 qualifying monthly payments. ‘‘(E) The Secretary shall cancel any outstanding bal- ance of principal and interest due on a loan made under this part to a borrower— ‘‘(i) who, for any period of time, participated in the Repayment Assistance Plan under this subsection; ‘‘(ii) whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and ‘‘(iii) who has made 360 qualifying monthly pay- ments on such loan. ‘‘(F) For the purposes of this subsection, the term ‘quali- fying monthly payment’ means any of the following: ‘‘(i) An on-time applicable monthly payment under this subsection. ‘‘(ii) An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan. ‘‘(iii) A monthly payment under any repayment plan (excluding the Repayment Assistance Plan under this subsection) of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years. ‘‘(iv) A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section. ‘‘(v) A monthly payment made before July 1, 2028, under an income contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan. ‘‘(vi) A month when the borrower did not make a payment because the borrower was in deferment under subsection (f)(2)(B) or due to an economic hard- ship described in subsection (f)(2)(D). Definition. Time period. Cancellation. Applicability. Time period. Deferment.