December 3, 2019

IDR Test

	Department of Education's REPAYE plan		TICAS Proposal		Rubio LOAN Act S. 1292 (116th)		Merkley Affordable Loans for Any Student Act S. 1002 (116th)		President's FY20 Budget Proposal		Foxx PROSPER Act H.R. 4508 (115th)		Zeldin (formerly Polis-Hanna) ExCEL Act H.R. 2580 (115th)		King-Burr Repay Act S. 1176 (115th)		Warner-Rubio Dynamic Repayment Act S. 799 (115th)		House Education & Labor Committee Democrats College Affordability Act H.R. 4674 (116th)
IDR Mandatory or Optional?	N/A		Optional (automatically enrolls distressed borrowers)		IDR is default (borrower can opt out)		Optional (automatically enrolls distressed borrowers)		Optional (automatically enrolls distressed borrowers)		Optional		IDR is default (borrower can opt out)		Optional		IDR is default (borrower can opt out)		Optional (automatically enrolls distressed borrowers)
Income/Debt Requirement for Entry	No		No		No		No		Unknown		No		No		No		No		No
Monthly Payment as a Share of Income	10% of discretionary income		10% of discretionary income		10% of income above a flat $10k exemption (indexed to inflation)		10% of discretionary income		12.5% of discretionary income		15% of discretionary income; minimum $25 monthly payment		15% of discretionary income (including non-wage income above $3k)		10% of discretionary income less than $25k plus 15% of discretionary income of at least $25k ("bend point" indexed to inflation)		10% of income (including non-wage income above $3k) above a flat $10k exemption (indexed to inflation)		10% of discretionary income
Repayment Period (after which remaining balance is forgiven)	20 years for borrowers with undergraduate debt only 25 years for borrowers with any graduate debt		20 years		Grants Secretary authority to determine the appropriate forgiveness timeframe		20 years		15 years for borrowers with undergraduate debt only 30 years for borrowers with any graduate debt		Borrower in repayment for as long as it takes to repay the principal and interest that would be paid under a 10-year standard plan		Full life of loan (no debt forgiveness)		20 years if total balance at start of repayment is equal to or less than $57.5k (current max undergraduate aggregate borrowing amount) 25 years if total balance at start of repayment exceeds $57.5k		20 years if total balance at start of repayment is less than the max undergraduate aggregate borrowing amount 30 years if total balance at start of repayment is greater than or equal to undergraduate aggregate max		20 years
Eligibility Exclusions	Open to all Direct Loan borrowers (FFEL and Perkins borrowers may consolidate to DL to participate) Parent loans are not eligible		All federal loan borrowers are eligible Parent loans are not eligible		All federal loan borrowers, including those with Parent loans, are eligible		All federal loan borrowers, including those with Parent loans, are eligible		Unknown		Only ONE loans qualify for plan; pre-existing federal loans must be consolidated into a ONE loan to participate Parent loans are not eligible		Only IDEA loans qualify for plan; pre-existing federal loans must be consolidated into an IDEA loan to participate in IDEA repayment Parent loans not eligible		Only new borrowers Parent loans are not eligible		Only IDEA loans qualify for plan; pre-existing federal loans must be consolidated into an IDEA loan to participate in IDEA repayment Parent loans not eligible		All federal loan borrowers, including those with Parent loans, are eligible
Interest Capitalization While Enrolled in IDR	Interest can capitalize after borrowers exit a deferment or forbearance		No interest capitalization while enrolled in IDR		No interest capitalization (replaces interest for all loans with one-time financing fee)		No interest capitalization while enrolled in IDR		Unknown		Interest capitalization if borrower exits plan or chooses to have payments recalculated to equivalent of 10-year standard payment		No interest capitalization during grace and repayment periods		Interest capitalizes when payment exceeds fixed 10-year payment amount		No interest capitalization during grace and repayment periods		No interest capitalization while enrolled in IDR
Treatment of Interest Accrual While Enrolled in IDR	Subsidized loans: Unpaid accrued interest is 100% covered for up to the first 3 years, then 50% covered afterward Unsubsidized loans: Unpaid accrued interest is 50% covered during all periods		Subsidized loans: Unpaid accrued interest is 100% covered for up to the first 3 years, then 50% covered afterward Unsubsidized loans: Unpaid accrued interest is 50% covered during all periods		Replaces interest for all loans with one-time financing fee (regardless of repayment plan)		Subsidized loans: Unpaid accrued interest is 100% covered for up to the first 3 years, then 50% covered afterward Unsubsidized loans: Unpaid accrued interest is 50% covered during all periods		Unknown		Caps interest payments so that borrowers would be required to repay the equivalent of the principal and interest amount they would have paid under a standard 10-year plan (in addition to interest accrued during any deferments)		Total interest accrued never exceeds 50% of the total amount of the loan		Unpaid accrued interest is 100% covered for all DL for up to the first 3 years		None		Unpaid accrued interest for subsidized loans is 100% covered for up to the first 3 years
Targeting	Removes standard payment cap Addresses married filing separately		Removes standard payment cap Addresses married filing separately Phases out income exclusion for AGIs above $100k		Not specified in bill		Removes standard payment cap Addresses married filing separately Expands income exclusion threshold to 250% of FPL, and phases out exclusion for AGIs above $120k		Removes standard payment cap Addresses married filing separately		Removes standard payment cap Addresses married filing separately		Removes standard payment cap Addresses married filing separately		Removes standard payment cap Addresses married filing separately		Removes standard payment cap Does not address married filing separately		Removes standard payment cap Addresses married filing separately Expands income exclusion threshold to 200% of FPL and phases out exclusion for AGIs above $80k for single borrowers and $160k for married borrowers
Annual Income Recertification (requirements and consequences for missing deadline)	Borrower must provide verification of income If borrower misses annual deadline, borrower moved to alternative repayment plan with remaining debt reamortized, and interest capitalizes. Borrower must recertify to re-enter REPAYE and may be required to make catch-up payments in REPAYE.		Automated via data sharing between ED and IRS		Automated via data sharing between ED and IRS Failure to file required tax return may lead to loans being put into default		Automated via data sharing between ED and IRS		Automated via data sharing between ED and IRS		Borrower must provide verification of income		Accomplished via paycheck withholding, which borrowers can opt out of, and establishes annual under- or over-payment reconciliation process leveraging data sharing between ED and IRS Failure to file required tax return may lead to loans being put into default		Borrower must provide verification of income If borrower fails to submit verification, payments do not count toward forgiveness in IDR or PSLF		Accomplished via paycheck withholding, which borrowers can opt out of, and establishes annual under- or over-payment reconciliation process leveraging data sharing between ED and IRS Failure to file required tax return may lead to loans being put into default		Automated via data sharing between ED and IRS
Debt Forgiven in IDR Plan Treated as Taxable Income?	Yes		No		Yes		Yes^^		Unknown		Yes		N/A (no debt forgiveness)		Yes		No		No