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Borrowers, legal‑aid groups warn proposed repayment and loan‑cap changes could harm millions
Summary
Borrower advocates and legal aid groups at the Department of Education hearing urged preserving automatic IDR protections, rehabilitation pathways, and deferments, and warned that phasing out existing income‑driven plans and Graduate PLUS loans could raise defaults and limit access to graduate education.
Advocates and individual borrowers used the Department of Education’s negotiated‑rulemaking hearing to press for protections as the department implements statutory changes to repayment plans and loan limits.
Multiple witnesses asked the department to preserve elements of the 2023 SAVE rule and other income‑driven repayment (IDR) features. Jennifer Zhang of the Student Borrower Protection Center urged maintaining existing income‑contingent repayment plans through July 1, 2028, restoring automatic enrollment and credit for pre‑consolidation payments, and ensuring defaulted…
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