TICAS Proposal to Create One Improved Income-Driven Repayment Plan
Proposal to replace the four existing income-driven plans with one new and improved repayment plan that includes two adjustments to better target benefits to borrowers who need help the most, while capping payments at 10% of a borrower’s income and providing forgiveness after 20 years. Specifically, we propose phasing out the income exclusion for borrowers with high incomes and eliminating the standard-payment cap on monthly payment amounts. Three borrower examples illustrate how the proposed adjustments could affect different types of students.
