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Negotiators press department on rehabilitation reforms and stopping collections; department resists immediate halt

U.S. Department of Education negotiators and stakeholder representatives (rulemaking session) · December 5, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Stakeholders proposed easing loan rehabilitation (lower payments, automatic IDR enrollment, stopping collections during rehab); department counsel and staff said rehabilitation is a process with statutory/fund constraints and indicated they were not prepared to stop collections but were open to continued discussion and drafting changes.

Negotiators spent a sustained portion of the session on proposed changes to loan rehabilitation (drafts cited as 682405 and 67439), including how many times a borrower may rehabilitate a loan, minimum payment rules, and whether collections should pause while a borrower is actively rehabilitating.

Tamara Hoffman presented stakeholder proposals to reduce rehabilitation payment amounts, enable immediate enrollment into income-driven or IBR plans after rehabilitation to prevent rapid…

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