Departments of Treasury and Education Move to Simplify Income Driven Repayment Plans

Much of the regulatory focus for student lending has been directed toward Income Driven Repayment (IDR) plans in recent months. The first student loan related move in 2017 by the Departments of Education and Treasury is no exception. On Tuesday, the Departments announced a joint effort to simplify borrower participation in IDR plans. Currently, borrowers must submit income information every year to continue in their IDR plan. If a borrower fails to timely submit the information, the borrower’s payments are reset to the standard 10-year repayment plan amount, which can be significantly higher.