; and (ii) for 20 years— (I) made monthly payments pursuant to subparagraph (A); or (II) was in deferment due to an economic hardship described in section 435(o). (H) The Secretary shall cancel the outstanding balance of principal and interest due for a new borrower whose balance of principal of covered Federal Direct Loans exceeded $57,500 on the date the borrower’s repayment period began, or whose balance of principal of covered Federal Direct Loans exceeded the maximum aggregate amount of loans an independent undergraduate student could borrow, pursuant to section 428H(d)(4)(B), on the date the borrower’s final covered Federal Direct Loan was disbursed, whichever amount is greater, if the borrower— (i) at any time, elected to participate under subparagraph (A); and (ii) for 25 years— (I) made monthly payments pursuant to subparagraph (A); or (II) was in deferment due to an economic hardship described in section 435(o). (I) A borrower may elect to discontinue repayment pursuant to this subsection, at any time, and enter into repayment pursuant to section 455(d)(2)(A). (2) Monthly payments Only monthly payments made pursuant to paragraph (1)(A) shall be considered eligible payments toward the forgiveness of outstanding loan principal and interest under subparagraphs (G) and (H) of paragraph (1). (c) Eligibility determinations The Secretary shall annually determine a borrower’s eligibility for the simplified income-driven repayment plan under this section through— (1) verification of a borrower’s annual adjusted gross income; (2) the annual amount due on the total amount of covered Federal Direct Loans