Streamlining Student Loan Repayment and Limiting New Debt Forgiveness Programs
This Act simplifies federal student loan repayment options, limiting choices primarily to a Standard Plan or a new Income-Driven Repayment Assistance Plan (IDRAP). Crucially, debt cancellation under the new IDRAP is tied to repaying an amount equivalent to what would be paid under a 10-year Standard Plan. The legislation also restricts the Department of Education from issuing regulations that are economically significant and result in an increase in subsidy costs, and explicitly blocks a specific 2023 proposed rule.
Key points
Repayment options are simplified to two main plans: Standard or the new Income-Driven Repayment Assistance Plan (IDRAP).
Loan forgiveness under IDRAP is based on repaying a total amount equivalent to a 10-year standard plan.
Distressed borrowers may receive assistance with interest and principal reduction under the new IDRAP.
The Department of Education is prohibited from issuing new regulations that are economically significant and increase subsidy costs.
Borrowers can rehabilitate defaulted loans twice, instead of just once.
Expired
Citizen Poll