Boston Student Loan Lawyer

Law Office of Adam S. Minsky

  • Home
  • Services
  • About
  • Publications & Press
  • Testimonials
  • Speaking & Trainings
  • Contact
  • Blog

BREAKING: Major Changes Proposed for IBR and Loan Forgiveness

November 29, 2017 | Adam S. Minsky, Esq. Articles Current Events Income-Based Repayment Income-Driven Repayment Loan Forgiveness Pay-As-You-Earn Policy & Reform

Share the post "BREAKING: Major Changes Proposed for IBR and Loan Forgiveness"

  • Facebook
  • Twitter

News outlets are reporting that the House GOP has drafted legislation that could reshape the entire federal student loan system.

The bill is called the “Promoting Real Opportunity, Success and Prosperity Through Education Reform Act,” or the “PROSPER Act.” The full text of the proposed bill has not yet been released, but an outline of the proposal was released to the media. Here’s what we know (and what we don’t know):

  • The bill would eliminate the Public Service Loan Forgiveness program. However, the media reports that current borrowers in repayment would effectively be grandfathered in (note that this has been updated from the original post). 
  • The bill would make substantial rollbacks to income-driven repayment programs like Income-Based Repayment (IBR), Pay as You Earn (PAYE), and Revised Pay As You Earn (REPAYE) – however, current borrowers would be grandfathered in to the current programs (note that this has been updated from the original post). 
  • The bill would reduce the amount of federal student loans that can be disbursed to students and parents. What are those caps, and how would that impact current or soon-to-be students and their families? No details yet.
  • The Gainful Employment Rule – which requires that schools have a certain percentage of students who graduate with a decent job in order to maintain access to federal aid funds – would be repealed.

As you can see, there’s a lot to be concerned about, but also a lot that we still don’t know. This bill is also nowhere near passage – it’s in the very early stages of the legislative process. Changes will likely be made to the bill (which could be good or bad). The bill will then have to be voted out of Committee, sent to the full House for a vote, and then to the Senate for a vote. The Senate may also come up with its own version of the bill, which could be much different from the House’s version. Modifications can be made at many points along the way.

So what’s the bottom line? There are a ton of unknowns, and this is nowhere near a done deal yet. But it’s time to be vigilant. Stay tuned.

Sources: The Chronicle of Higher Education, The Wall Street Journal. 

Note: This is a developing story. Check back for updates or subsequent articles that may have additional information.

Share the post "BREAKING: Major Changes Proposed for IBR and Loan Forgiveness"

  • Facebook
  • Twitter

Articles Current Events Income-Based Repayment Income-Driven Repayment Loan Forgiveness Pay-As-You-Earn Policy & Reform

About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.

Books by Adam S. Minsky

The Student Loan Handbook for Law Students and Attorneys

The Student Loan Handbook for Law Students and Attorneys

Student Loan Debt 101

Student Loan Debt 101: The Definitive Guide to Understanding and Managing Your Student Loans

Student Loans for Parents and Cosigners

The Student Loan Guide for Parents and Cosigners

617-936-2788
asminsky@minsky-law.com
By Appointment Only 265 Franklin Street, Suite 1702
Boston, MA 02110

Copyright © 2023 Adam S. Minsky · DISCLAIMER: This website may be considered advertising under Massachusetts Supreme Judicial Court Rules. The content of this website is for informational purposes and should not be considered legal advice. This web page does not establish an attorney-client relationship. Terms of Use

Copyright © 2023 · MinskyLaw on Genesis Framework · WordPress · Log in