Income-driven Repayment Proposal Promising

The US Department of Education has announced its proposal for a new income-driven repayment program for student loans. It includes promising reforms that would help numerous borrowers. The proposal would lift the qualifying discretionary income cap, reduce monthly payments, and decrease time to forgiveness for those with undergraduate loans, providing much-needed relief. There is still work to do to ease the burden for all borrowers, including many graduate student and Parent PLUS loan borrowers. 

The Department of Education is seeking comment on this program, along with a proposal to publish a list of postsecondary programs that are of low financial value. The public is encouraged to submit its comments to regulations.gov within thirty days.

For more information, see: https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation