Phase out existing IDR plans; replace with stricter poverty-line 10% plan
Mandate directs the Secretary to make new loans ineligible for current IDR plans and implement a new plan with poverty-line exemption and 10% of income above it, preferably with no forgiveness (or 25-year forgiveness if statute requires), rejecting Biden’s more generous IDR proposal.
Mandate
Mandate Ch. 11 (Education) — Income-Driven Repayment: Secretary should phase out all existing IDR plans by making new loans (including consolidation) ineligible and implement new IDR with income exemption equal to poverty line and payments of 10% of income above exemption; if legislation possible, no loan forgiveness; else forgive remaining balance after 25 years; critiques Biden proposal as converting loans into delayed grants.
Undo plan
1) Maintain affordable IDR options that prevent default for low earners.
2) Simplify IDR menu without imposing unaffordable fixed burdens.
3) Keep targeted forgiveness only where Congress authorizes (e.g., fraud, closed school).
4) Improve income verification to reduce underpayment fraud.
5) Verify: delinquency/default rates and repayment progress.