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Negotiators press department on WRAP payment application and principal‑matching rules
Summary
Negotiators questioned how extra borrower payments are applied under WRAP and flagged ambiguity in a principal‑matching example; the department said payment application remains interest first and agreed to take a statutory language readback on principal matching.
Negotiators raised detailed questions about how payments will be applied under the Secretary’s repayment assistance program (WRAP) and about a principal‑matching rule that the department presented.
A negotiator asked whether an overpayment (paying a $30 payment when the scheduled amount is $20) reduces forgiven interest under WRAP or is treated as a prepayment. Eric Hardy said payment‑application rules have not changed: ‘‘The first amount of any payment made is…
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