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Upcoming Changes for Income-Driven Repayment Plans
Significant alterations are on the horizon for student loan borrowers who are currently engaged in income-driven repayment (IDR) plans.
On Monday, the Department of Education announced plans to simplify the IDR plan application process. This newly designed method aims to ease the financial burden on borrowers, as it eliminates the need for existing participants to recertify their income annually.
This announcement follows closely on the heels of the department reopening applications for IDR plans, which had been temporarily suspended. The hiatus was prompted by a court ruling regarding the Saving for a Valuable Education plan, which raised concerns about the implementation of various other IDR plans.
The suspension of applications had left many borrowers without access to more manageable repayment options, resulting in some individuals being unable to recertify their existing IDR plans.
A press release from the Department of Education indicated that more comprehensive information regarding the revamped IDR process is expected to be shared next week.
Source
www.investopedia.com