Overview
- A Dec. 15 court filing shows 327,955 requests to enter income-driven repayment were rejected in August, with 802,730 applications awaiting decisions as of Nov. 30.
- The department said many denials resulted from an "unforeseen ambiguity" when borrowers requested the "lowest monthly payment" and two plans produced identical bills.
- Only 170 IDR cancellations and 280 Public Service Loan Forgiveness discharges were processed in November, according to the filing.
- The disclosures come from status reports the agency must submit under a settlement with the American Federation of Teachers.
- The department confirmed it will begin garnishing wages of borrowers in default in early January.