FAIR Act

The FAIR Act (HR 4144) establishes a new income-driven repayment assistance plan that would limit borrowers' monthly payments to 10% of their adjusted gross income, with full loan forgiveness after 20 years of payments. It requires the Department of Education to provide borrowers with multiple notifications about repayment options, including the new income-driven plan, and creates new deferment options for borrowers facing economic hardship, medical issues, or military service. The bill modifies loan rehabilitation processes to allow borrowers to rehabilitate loans two times instead of one time and limits the Secretary's authority to issue regulations that could increase subsidy costs. This legislation directly affects borrowers of federal student loans made under Title IV of the Higher Education Act of 1965.