Student Loan Forgiveness: Will You Qualify for $0 Payments Under Bidens New Plan?

With the legality of President Bidens broader federal student loan forgiveness program in question, the U.S. Department of Education (ED) has proposed revisions to income-driven repayment (IDR) plans that could result in considerable cuts to loan payments. In fact, some borrowers will have $0 monthly payments.

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The ED-proposed regulations will amend the Revised Pay As You Earn Repayment (REPAYE) plan and phase out the three other existing IDR plans available to lower-income debtors Pay As You Earn Repayment (PAYE), Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) plans.

Borrowers participating in existing IBR, ICR and PAYE plans will follow the new plan when enacted into law, but will need to enroll through their student loan provider or through the Federal Student Aid site. The new proposed regulations do not include changes to accommodate those holding Parent PLUS loans, which are not repayable on an IDR plan.