Amends section 455(m) of the Higher Education Act (public service loan forgiveness) by revising paragraph (1) to specify 96 qualifying monthly payments and public service employment requirements, redesignating existing paragraphs, inserting a new paragraph (2) that defines qualifying monthly payments (including qualifying repayment plans, permissible deferments/forbearances, buyback process, and hold-harmless against retroactive determinations), updating loan cancellation and reconsideration procedures, adding definitions (including 'covered loan' and 'noncovered loan'), creating an online portal and database of public service jobs, clarifying treatment of consolidated/refinanced loans, and adding provisions on treatment of independent contractors and full-time definitions .

Amends section 493C(c)(2)(B) to replace the phrase 'any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan)' with 'any covered loan (as defined in section 455(d)(8))', thereby extending the referenced income-based repayment provisions to covered loans as newly defined .

Amends section 494(a) to substitute 'a covered loan (as defined in section 455(d)(8))' for prior references to 'a loan under part D' in certain notification/approval provisions, and adds a new paragraph (4) establishing notification and approval procedures for borrowers delinquent on loans and for borrowers applying for loan rehabilitation, including requirements to provide IRS return information approvals or alternative information and opt-out opportunities .

Amends Part G of title IV (20 U.S.C. 1088 et seq.) by adding a new section 494C requiring the Secretary, guaranty agency, or other loan holder, upon full repayment of a defaulted loan, to request consumer reporting agencies to remove any adverse information relating to that loan from the borrower’s credit history; also adds related removal-on-consolidation provisions .

Makes conforming changes to provisions governing teacher loan forgiveness by adjusting subparagraph structure in related statutory provisions (e.g., changes to 428J(g)(2) and 460(g)(2) textual subparagraphs described in the Act) as part of broader loan forgiveness/teacher provisions .

Revises provision to prohibit capitalization of interest on Federal PLUS loans whose principal payments are deferred; interest shall be paid by the borrower and shall not be capitalized.

Strikes specified text from the referenced subparagraph in relation to Federal consolidation loans deferrals.

Modifies duties upon assignment for the Default reduction program: requires guaranty agency to add specified amount to principal and interest at assignment, requires the Secretary to pay guaranty agency for deposit into the agency’s Operating Fund, prohibits capitalization of interest for loans assigned on or after the date of enactment of the LOAN Act, and limits accrual to a percentage of loan equal to original principal divided by total assigned loan amount.

Inserts text after the specified citation related to Unsubsidized Stafford loan limits.

Alters Unsubsidized Stafford loans for middle income borrowers: changes header wording, requires borrower to pay interest and prohibits capitalization, strikes subparagraph (B), and redesignates (C) as (B).