; and (ii) except as provided in clause (i), with respect to loans made to an eligible borrower under this part or part B, which are held by the same holder and which have the same applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest principal balance among such loans. (B) Eligible borrower (i) In general For purposes of this paragraph, the term eligible borrower means a borrower with no outstanding balance of fees, including collection costs and authorized late charges, due on any loan made under this part or part B. (ii) Prepayment amounts A prepayment amount (as described in subparagraph (A)) made by a borrower who is not an eligible borrower to a holder shall be applied first toward the borrower’s outstanding balance of fees, including collection costs and authorized late charges, due on any loan made under this part or part B held by such holder. . (d) Application The amendments made by subsection (c)(5) shall— (1) take effect as soon as the Secretary of Education determines practicable after the Secretary finalizes the procedures under section 4114, but not later than 2 years after the date of enactment of this Act; and (2) apply to all borrowers of covered loans (as defined in section 455(d)(10) of the Higher Education Act of 1965, as added by subsection (c)(5)). (e) Automatic recertification of income for income-Driven repayment plans Section 455(e) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(e) ) is amended— (1) in paragraph (3)— (A) by striking does not reasonably reflect the borrower’s current income and inserting whose income has decreased relative to the adjusted gross income available to the Secretary