Income is recertified automatically from tax data unless the borrower opts out
What the document says“The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower's eligibility for income-based repayment, including the verification of a borrower's annual income”
The section rewrites section 493C(c) of the Higher Education Act of 1965 requiring the Secretary to set yearly eligibility procedures and, for anyone on an income-based plan under that section or under section 455(q), to use tax return information disclosed under section 6103(l)(13) of the Internal Revenue Code of 1986 to set the repayment obligation without further action by the borrower. The borrower or spouse may opt out at any time and supply the information instead or leave the plan, and must be able to update the disclosed information first. The changes take effect on enactment and reach any borrower in repayment.
What the document actually says“The Secretary shall establish procedures for annually determining, in accordance with paragraph (2), the borrower's eligibility for income-based repayment, including the verification of a borrower's annual income”
The Secretary must set up a yearly check. It asks if the borrower still fits the plan. It looks at what they earn.
Tax data is used to do it. The borrower need do nothing. They may opt out and send the figures in.
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