; and (ii) issue regulations establishing penalties for default on such monthly payments. (H) Calculating loan forgiveness The Secretary shall determine appropriate loan forgiveness options for students who select the repayment plan under this section. (I) Financial hardships (i) In general The Secretary shall establish a process for providing an adjustment in both the monthly payment and annual repayment amount obligations on a loan for a borrower experiencing extreme unforeseen financial circumstances unrelated to a change in annual income. (ii) Repayment status A borrower who receives an adjustment under clause (i) for a loan shall be deemed in repayment status with respect to such loan. (2) Monthly payments process (A) In general The Secretary shall establish a process under which a borrower, or one making payments on behalf of a borrower under paragraph (1)(D), shall make monthly payments towards the borrower’s annual repayment amount. (B) Information required The procedure for initiating the monthly payments process under subparagraph (A) shall include an income estimate based on the income verification provided by the Secretary of the Treasury under subsection (b). (C) Automatic continuation The monthly payments process shall continue until the borrower’s loans made under this part after the date of enactment of the Leveraging Opportunities for Americans Now Act of 2023 are repaid. (D) Updating payment amounts (i) Secretary The Secretary shall automatically recalculate a borrower’s monthly payment amount— (I) at the beginning of a new taxable year using the most recent income estimate provided under subsection (b)(1) by the Secretary of the Treasury