To amend section 435(o) of the Higher Education Act of 1965 regarding the definition of economic hardship.

Amends the Higher Education Act of 1965 with respect to the meaning of economic hardship under the Federal Family Education Loan or Perkins Loan and related loan insurance programs.

Considers borrowers under such programs to be suffering economic hardship if they are working full-time, have a federal educational debt burden equal to at least 20% of their adjusted gross income, and the difference between their adjusted gross income minus such debt burden is less than 220% of the greater of: (1) the annual earnings of an minimum wage earner; or (2) 150% of the poverty line applicable to their family size.