Income-Contingent Repayment Plan Options

Document 2025-00724 is a Final Rule published by the Department of Education in the Federal Register on January 15, 2025, with an effective date of July 1, 2026. The Department of Education (Department) adopts as final, without changes, the interim final rule published in the Federal Register on November 15, 2024. This final rule amends the regulations governing income-contingent repayment plans available to Federal student loan borrowers to satisfy the Department's statutory obligation under the Higher Education Act of 1965, as amended, (HEA) to offer borrowers access to an income-contingent repayment plan. The scope of this rule is narrow. It revises the last date for most borrowers to enroll in the Income-Contingent Repayment or Pay As You Earn plans from July 1, 2024, to July 1, 2027. Changing the eligibility restrictions that went into effect on July 1, 2024, to July 1, 2027, allows the Department to meet its statutory obligations while it undertakes the necessary administrative changes to make its repayment plans compliant with the terms of an injunction pending appeal from the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit). View the original at https://www.federalregister.gov/documents/2025/01/15/2025-00724/income-contingent-repayment-plan-options.

No. Document 2025-00724 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.