This part lets a defaulted student loan be rehabilitated twice rather than once. It also sets a floor of $10 a month on those payments. Both changes start July 1, 2027.
“Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by striking "one time" and inserting "two times".”
The section strikes one time and inserts two times in section 428F(a)(5) of the Higher Education Act of 1965, and strikes once and inserts twice in section 464(h)(1)(D). The changes take effect on July 1, 2027 and apply to any loan made, insured or guaranteed under title IV of that Act.
What the document actually says
“Section 428F(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1078-6(a)(5)) is amended by striking "one time" and inserting "two times".”
That sentence, in plain words
The words one time are taken out of a loan law. The words two times are put in.
What this is about
The same change is made for a second kind of loan. Rehabilitating brings a loan out of default. It may now be done twice.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of EducationHow: statuteSec. 82003 in the PDF
What the document says
“With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.”
The section adds a sentence to section 428F(a)(1)(B) of the Higher Education Act of 1965 setting a floor of $10 on the total monthly payment for a borrower with one or more covered loans made on or after July 1, 2027.
What the document actually says
“With respect to a borrower who has 1 or more loans made under part D on or after July 1, 2027 that are described in subparagraph (A), the total monthly payment of the borrower for all such loans shall not be less than $10.”
That sentence, in plain words
The total monthly payment may not fall below $10. That covers all such loans together.
What this is about
It reaches loans made from July 1, 2027. The payment is part of getting out of default. The floor is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
