In January 2023, the U.S. Department of Education announced proposed regulations that would amend the terms of the Revised Pay As You Earn (REPAYE) plan and phase out the Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans.
The proposed regulations are open for public comment through Friday, February 10th. According to the Department of Education press release, “the Department expects to finalize the rules later this year and aims to start implementing some provisions later this year, subject to any changes made based on public comments.”
According to the proposed regulations:
- Borrowers already in PAYE can remain in PAYE.
- Borrowers who leave PAYE after the phase out would be unable to re enter PAYE.
- The terms of REPAYE would be amended in ways that could lower monthly payments for borrowers in the REPAYE program.
Here is an in-depth analysis from the VIN Foundation of the proposed regulations along with VIN’s comments to the Department of Education.
We won’t know for sure how any of this affects a veterinarian’s student loan strategy until the final rules are released.
In the meantime, what you really need to know is that you’re not in this alone.
Sabadoodle offers a student loan analysis service that helps veterinary teams navigate the ever changing student loan repayment landscape.
Our goal is to focus on your unique profile and work the current rules to your advantage. By doing so, you will be able to make informed decisions, reduce stress and redirect attention to more meaningful areas of your life!
Now is a great time to take a fresh look at where things stand!