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Department proposes removing 'partial financial hardship' from IDR eligibility but preserves payment cap tied to 10‑year standard plan
Summary
Department staff proposed striking the 'partial financial hardship' (PFH) gate from income-driven repayment rules and instead using an 'applicable amount' (15% of adjusted gross income over 150% of poverty) and a payment cap tied to a 10-year repayment term; negotiators raised concerns that the cap continues to operate like PFH.
The Department presented draft changes to income-driven repayment provisions (682215 and 685209) that remove repeated references to the statutory concept of "partial financial hardship" (PFH). In its place, the draft introduces an "applicable amount" defined as 15% of the amount by which a borrower's…
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