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