ED Announces Proposed Changes to Income-Driven Repayment
Published January 23, 2023
Higher Education OME Advocate
- On January 10, 2023, ED announced proposed updates to Income-Driven Repayment (IDR) plans for undergraduate student loans.
- Under the proposed regulations, required payments for borrowers using a Revised Pay As You Earn plan for their undergraduate loans would be reduced to five percent, from the current 10 percent, of discretionary income.
- Graduate school loans would be unaffected by these changes, and IDR plans for graduate loans will remain at 10 percent of discretionary income. For borrowers with both undergraduate and graduate school loans, the required IDR payments will be a weighted average of their undergraduate and graduate loans.
- Comments on the proposed regulation are due by February 10, 2023. For more information, see ED’s IDR Fact Sheet.