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) |
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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 | Grants Secretary authority to determine the appropriate forgiveness timeframe | 20 years |
| 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) |
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| 20 years | |||||||||
Eligibility Exclusions |
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| All federal loan borrowers, including those with Parent loans, are eligible | All federal loan borrowers, including those with Parent loans, are eligible | Unknown |
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| 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 |
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| Replaces interest for all loans with one-time financing fee (regardless of repayment plan) |
| 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 |
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| Not specified in bill |
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Annual Income Recertification (requirements and consequences for missing deadline) |
| Automated via data sharing between ED and IRS |
| Automated via data sharing between ED and IRS | Automated via data sharing between ED and IRS | Borrower must provide verification of income |
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| 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 |