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Business and Policy Areas
Business and Policy Areas
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Expanded Income-Based Repayment Program Debuts Next Month

November 16, 2015

All federal Direct Loan borrowers will have access to Revised Pay as You Earn (REPAYE) in December, thanks to final regulations the Department of Education released last month. The program expands upon Pay As You Earn (PAYE) and will cap borrowers' payments at 10 percent of their monthly income. Borrowers will be eligible for loan forgiveness after 20 years for only undergraduate debt only, or 25 years if they took out any loans for graduate school. The rules make only minor changes from provisions established in the July Notice of Proposed Rulemaking.

ED's final regulations also included a separate provision to give institutions more chances to challenge or appeal their Participation Rate Index (PRI). Additional information is forthcoming, since ED notes the new rules will require use of a Data Challenges and Appeals Solutions system it's hoping will be available sometime in 2017.

Contact

Bryan Dickson
Senior Policy Analyst
202.861.2505
E-mail

Anne Gross
Vice President, Regulatory Affairs
202.861.2544
E-mail