The Department of Education has finalized a rule about income-contingent repayment plans for federal student loans. This rule allows new enrollments in the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans until July 1, 2027. The extension is to ensure the Department complies with legal requirements while making changes to the existing repayment plans. These actions are meant to help borrowers continue their loan payments and stay on track for forgiveness, especially while a court case delays the new SAVE plan.
Simple Explanation
The Department of Education has decided to give people more time, until July 1, 2027, to join special plans that help them pay back their student loans based on how much money they make, so they can keep making payments without trouble while other plans are being sorted out.