This memo urges the U.S. Department of Education (ED) to reconsider its exclusion of periods of time in default from the one-time Income-Driven Repayment (IDR) Account Adjustment, which ED announced as a remedy for borrowers who have been steered into forbearance or otherwise knocked off course from IDR cancellation. While we applaud ED’s clarification in its January 2023 Notice of Proposed Rulemaking (NPRM) that the IBR statute permits borrowers in default to make payments under that plan, the Account Adjustment itself must be expanded to include periods of time in default.
Read the Memo: Defaulted Borrowers Must Be Included in the Income-Driven Repayment Account Adjustment