Haha! So this is what happens when you rejoin society after living under a big rock for years.

I had no idea about this proposal until I stumbled upon it in a random article. Regardless, I am still keeping an eye on your blog. (Lesson learned).

My hope is that this goes through as it will help those who had not had a chance to consolidate and/or did not have enough time on the books for the PSLF.

Hi Nicole,

This new repayment plan was announced the same day Biden announced the one-time forgiveness program. It would join several other IDR plans that all offer forgiveness.

Right now, the new IDR plan is still going through the rulemaking process, so we don’t yet know how the final terms will shake out.

“New Income-Driven Repayment Plan

The Department is also proposing a rule, which has not been published, to create a new income-driven repayment (IDR) plan….

******The proposed rule would also forgive loan balances after 10 years of payments, instead of the current 20 years under many IDR plans, for borrowers with original loan balances of $12,000 or less. ***** Additionally, the proposed rule would eliminate interest capitalization on borrowers’ loans so that the balance would not grow as long as they are making their required monthly payments, even if the required monthly payment is $0. According to the Department, the plan would also “simplify borrowers’ choices among loan repayment plans.” The proposed regulations will be published in the Federal Register, and the public will be invited to comment on the draft rule for 30 days.”