; and (3) such other procedures as are necessary to effectively implement the simplified income-driven repayment plan under this section. (d) Special rule for married borrowers filing separately In the case of a married borrower who files a separate Federal income tax return, the Secretary shall calculate the borrower’s income-driven calculation on the basis of the borrower’s total amount due on covered Federal Direct Loans and the married couple’s combined adjusted gross income. In the case of a married couple in which both individuals repay their loans under this section, the Secretary shall calculate each borrower’s income-driven calculation on the basis of each borrower’s total amount due on covered Federal Direct Loans and the married couple’s combined adjusted gross income divided by 2. (e) Annual income verification (1) In general A borrower who elects to participate in the simplified income-driven repayment plan under this section shall submit to the Secretary, on an annual basis, verification of the borrower’s annual adjusted gross income. (2) Consequence of failure to submit With respect to a borrower who fails to submit to the Secretary verification of the borrower’s annual adjusted gross income as required under paragraph (1), any monthly payments made during the period the borrower is in violation of the requirement of paragraph (1) shall not be considered eligible payments toward the forgiveness of outstanding loan principal and interest under subparagraphs (G) and (H) of subsection (b)(1). . 3. Streamlining repayment plans for new borrowers Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— (1) by striking subsection (d) and inserting the following: (d) Repayment plans (1) Design and selection for borrowers before July 1, 2017 With respect to a borrower of a loan made under this part before July 1, 2017, and consistent with criteria established by the Secretary, the Secretary shall offer such borrower a variety of plans for repayment of such loan, including principal