Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Department details changes to deferments, forbearance and rehabilitation in proposed rules
Summary
Proposed text would remove unemployment and economic-hardship deferments for loans disbursed on or after July 1, 2027; limit forbearance for new loans to nine months in any 24-month window; and allow up to two rehabilitations with a minimum rehab payment of $10.
The U.S. Department of Education told negotiators on Sept. 30 that the proposed regulatory revisions follow statutory directives to narrow some borrower protections for loans made after specified effective dates.
Tammy, a Department presenter, said the statute bars unemployment and economic-hardship deferments for direct loans disbursed on or after July 1, 2027: "Loans dispersed on or after 07/01/2027, the borrower may not receive an unemployment deferment." She clarified that loans dispersed before that date retain current deferment eligibility.
On forbearance, the Department proposed a new limit for loans disbursed on or…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
