So how about "Income Contingent Plans"? It is my understanding that Congress has directed the Education Dept. to provide an income contingent repayment plan for those in default on their loans. This would stretch repayment over 25 years, or until age 65, forgiving any unpaid balance after the 25 or upon reaching 65.
Does anyone here have more info on this?
Is the Department required to offer an ICP?
Is there a particular office at Ed for ICP?
What is the statutory and/or CFR citation for ICP?
Are collection agencies required to accept such a Plan?
Is the forgiveness date 25 years or age 65?
For purposes of calculating the Adjusted Gross Income (AGI) under ICP, what deductions are allowed? [obviously, taxes & FICA]
---- 401k/IRA deductions
---- health insurance premiums?
---- disability ins premiums?
Does the ICP change in the event of substantial income change?
--- If income dips, will the repayment be recalulated?
--- If income increases, will the repayment be recalulated?
Anyone with info/experience in this regard, even the debt collectors lurking
around if they know
I am not providing the name of the state since this is federal policy and state laws would not be determinative