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Department says auto-enrollment into IDR after rehabilitation is not feasible in regulatory text; will address steps in preamble and operations
Summary
Negotiators debated whether borrowers who complete loan rehabilitation can be automatically enrolled in income-driven repayment (IDR). Department staff said automatic enrollment requires borrower consent and tax documentation and therefore will describe steps in the NPRM preamble and agency operations rather than mandate automatic enrollment in the regulatory text.
Negotiators pressed whether borrowers who successfully complete loan rehabilitation could be automatically placed into an income-driven repayment (IDR) plan. Alex Holt and others urged action to move rehabilitated borrowers into IDR to preserve benefits.
Department staff responded that automatic enrollment would require borrower…
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