02.10.23

Ranking Member Scott Applauds Administration’s Progress to Reduce Student Loan Debt by Fixing Income-Driven Repayment

"By creating quicker pathways to forgiveness and lowering the monthly payments of most borrowers, the proposed rule would make student loan repayment more affordable and manageable for borrowers.”

WASHINGTON – Today, Ranking Member Bobby Scott (VA-03) applauded Secretary of Education Miguel Cardona for the Department’s proposed rule to reform the Income-Driven Repayment (IDR) system. 

The proposed reforms make the IDR program more generous for low-income borrowers, automatically enrolls delinquent borrowers in the IDR program, sunsets old IDR plans, and eliminates monthly accrual of interest to borrowers.

“I am encouraged by the Department’s proposed rule, which makes significant changes that greatly benefit current and future borrowers,” Scott wrote. “The Department’s efforts to streamline the IDR program by making it easier for borrowers to enroll in the REPAYE plan, phasing out older IDR plans, and simplifying the recertification process are smart reforms to the program.  By creating quicker pathways to forgiveness and lowering the monthly payments of most borrowers, the proposed rule would make student loan repayment more affordable and manageable for borrowers.” 

The proposed rule comes after Ranking Member Scott and Senator Patty Murry (D-WA) wrote to the Secretary urging him to adopt meaningful and lasting reforms to the federal IDR system. 

In the letter, Ranking Member Scott encouraged the Department to go further to ensure borrowers with the most need can easily access the benefits of these changes. Specifically, he encouraged the Department to:

  • Use a higher threshold for protected income in the final rule; 
  • Decrease the time of repayment from 25 years to 20 years for graduate loans; and 
  • Fully-implement the FUTURE Act to ensure the Department has access to borrowers’ federal income data, which allows the Department to automatically enroll eligible borrowers into the IDR program. 

For the full text of the letter, click here.

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