Hi Heather (and other folks on the forum),

I am trying to help get the word out to California legal aid folks about the REPAYE plan and the opportunity to comment, and I wanted to make sure I was reading this correctly, as it’s SUPER-CONFUSING! It seems that the new REPAYE plan payments would still count for the 120 payments for public service loan forgiveness, but not if people don’t verify their income and are put on the “alternative” repayment plan.

§ 685.209(c)(4)(vii)(G) would provide
that any payments made under the
alternative repayment plan described in
proposed § 685.209(c)(4)(vi) would not
count as qualifying payments for
purposes of the Public Service Loan
Forgiveness Program under § 685.219.

Is that right? So this is a good change for legal aid attorneys? And confirming that there is still no cap in the current proposal?

Dept of Ed just published proposed rule on REPAYE a few days ago - you may want to check it out. And doesn’t look like a PSLF cap would apply.

http://educatedrisk.org/news/ed-publishes-proposed-rules-new-repaye-program-expansion-paye-all-borrowers-new-terms

http://www.holdfasttodreams.org/draft-rules-for-the-new-repayment-plan-repaye-effect-on-pslf/

Thanks! That second post is exactly what I wanted as confirmation of my guess. I read the summary of REPAYE proposed rule when it came out, but since I don’t use PAYE or any other IDP plan, I was paranoid I was missing something. Just want to get accurate information out to other nonprofit attorneys.