New rules from President Obama’s 2016 Budget Proposal would simplify the available income-based repayment options. According to a recent article from US News and World Report, these new rules are proposed for pay-as-you-earn, public service loan forgiveness.
According to the 2016 budget, the president wants to “reform and streamline income-driven repayment to ensure that program benefits are targeted to the neediest borrowers and to safeguard the program for the future.” Under his proposal, a modified Pay As You Earn plan would be the only income-driven repayment plan for borrowers who originate their first loan on or after July 1, 2016.
Other new rules have been proposed, as wall. All of these changes would only apply to future borrowers.
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