(a) The Secretary may provide an alternative repayment plan to a borrower who has not received a Direct Loan on or after July 1, 2026, and who demonstrates to the Secretary's satisfaction that the terms and conditions of the repayment plans specified in §§ 685.208 and 685.209 are not adequate to accommodate the borrower's exceptional circumstances.
(b) The Secretary may require a borrower to provide evidence of the borrower's exceptional circumstances before permitting the borrower to repay a loan under an alternative repayment plan.
(c) If the Secretary agrees to permit a borrower to repay a loan under an alternative repayment plan, the Secretary notifies the borrower in writing of the terms of the plan. After the borrower receives notification of the terms of the plan, the borrower may accept the plan or choose another repayment plan.
(d) A borrower must repay a loan under an alternative repayment plan within 30 years of the date the loan entered repayment, not including periods of deferment and forbearance.
(e) The repayment plan under this section shall only apply to Direct Loans made before July 1, 2026.
[88 FR 43905, July 10, 2023, as amended at 91 FR 23900, May 1, 2026]
Notes of Decisions
Roth v. Educ. Credit Mgmt. Corp. (In Re Roth), 490 B.R. 908 (9th Cir. BAP 2013).
· cites it 4× “5 34 C.F.R. § 685.221 . The plan 21 22 5 The IBRP should be distinguished from the “Income Contingent 23 Repayment Program” (“ICRP”), 34 C.”
In re Metz, 589 B.R. 750 (Bankr. D. Kan. 2018).
· cites it 5× “7, 8, and 9 are copies of 34 C.F.R. § 685.221 (2011) (Income-based Repayment Plan), 34 C.”
Olsen v. Nelnet, Inc., 392 F. Supp. 3d 1006 (D. Neb. 2019).
· cites it 2× “The purpose for this program is to give a borrower experiencing a partial financial hardship the opportunity to pay a portion of their student loan debt, and with successful participation in a plan, qualify for loan forgiveness.”
Gesualdi v. Educ. Credit Mgmt. Corp. (In re Gesualdi), 505 B.R. 330 (Bankr. S.D. Florida 2013).
· cites it 2× “215 (b)(4) and (5), and 34 C.F.R. § 685.221 (b)(3) and (4). Based upon the Plaintiffs and his wife’s 2012 jointly filed tax return, the Plaintiffs estimated IBR payment would be $154.”
Price v. DeVos (In re Price), 573 B.R. 579 (Bankr. E.D. Pa. 2017).
“at 11:10; 34 C.F.R. § 685.221 (b)(1)). 45. Under the REPAYE plan, a borrower must pay ten percent (10%) of their monthly discretionary income for twenty-five (25) years.”
Conner v. U.S. Dep't of Educ. & Educ. Credit Mgmt. Corp. (In re Conner), 526 B.R. 218 (Bankr. E.D. Mich. 2015).
“See, 34 C.F.R. § 685.221 . As a prerequisite for the Department of Education to consider a student loan debtor’s Appliea *222 tion for Income-Based Repayment Plan, the student loan debtor must agree to consolidate his/her loans by completing a Federal Direct Consolidation Loan…”
Parola v. Citibank (South Dakota) N.A., 894 F. Supp. 2d 188 (D. Conn. 2012).
“In June of 2009, Parola contacted Citibank to apply for Income Based Repayment (“IBR”) which is a repayment program for federal student loans as described in 34 C.F.R. § 685.221 . Id. at ¶ 5 . Citibank suggested that she wait to apply for IBR because “a number of her loans were…”
Educ. Credit Mgmt. Corp. v. Krieger, 482 B.R. 238 (Bankr. C.D. Ill. 2012).
· cites it 2× “13 34 C.F.R. § 685.221 (f). IBR undoubtedly offers something to an unemployed debtor: credit towards complete loan forgiveness.”
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