# Understanding the SIMPLE Act: What It Does for Student Loan Borrowers

The SIMPLE Act is designed to help federal student loan borrowers who are falling behind on their payments by automatically connecting them with more affordable repayment options. Right now, when borrowers miss payments, they often don't know what options exist to make their loans manageable again. This bill changes that by requiring the government to reach out to struggling borrowers, share information about income-based repayment plans (where your monthly payment is based on what you actually earn), and in some cases, automatically enroll them in a better plan if they don't respond.

Here's how it works in practice: If you're at least 31 days behind on a federal student loan, the Department of Education will contact you with details about repayment plans that could lower your monthly payment. The government will use your tax return information (with your permission) to calculate what you'd pay under different plans and show you the options. If you're 80 days behind and haven't chosen a new plan, the government will automatically switch you to the income-driven repayment plan that results in the lowest monthly payment for you. You can always change this selection yourself, and you can opt out of having the government access your tax information if you prefer to provide income details manually instead.

The bill also helps borrowers who are rehabilitating defaulted loans—essentially working their way back to good standing. Once they've made several payments toward rehabilitation, the government will notify them about income-based repayment options and eventually place them on the plan with the lowest payment if they haven't selected one themselves. Throughout this process, borrowers maintain control and can always choose a different repayment plan or opt out of the automatic procedures. The goal is straightforward: prevent people from staying stuck in default or delinquency by making it easier to find and access payment plans they can actually afford.

SIMPLE Act

Bonamici, Suzanne

Streamlining Income-driven, Manageable Payments on Loans for Education Act or the SIMPLE Act This bill directs the Department of Education to establish certain notification and automatic enrollment procedures for borrowers who are delinquent on federal student loans or who are rehabilitating defaulted student loans, including to automatically enroll these borrowers in income-driven repayment plans.