"On Monday, President Donald Trump's Department of Education is beginning negotiations with stakeholders on the president's plans to change student-loan repayment options and place new caps on borrowing. The changes stem from Trump's "big beautiful" spending law. They're required to undergo the negotiated rulemaking process - which includes stakeholder feedback and periods of public comment - before moving forward with final implementation."
"A key topic at the negotiation sessions is Trump's plan to eliminate existing income-driven repayment plans and replace them with two new plans to be implemented next summer. The first plan is a standard repayment. According to the department's proposed text, this plan would set a borrower's monthly payment based on the amount of their direct federal loans and the interest rates."
Negotiated rulemaking has started to implement new student-loan repayment changes and borrowing caps under the recent spending law. The Department of Education will seek stakeholder feedback and public comment as part of the process. The agenda focuses on new loan limits, restructuring of income-driven repayment plans, and reforms to deferment and forbearance. Two replacement repayment options are proposed: a standard repayment based on loan balances and interest, and a Repayment Assistance Plan with 1%–10% of discretionary income payments, a $10 minimum, unpaid-interest waivers, and 30-year forgiveness. The administration aims to implement many changes by July 2026.
Read at Business Insider
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