SIMPLE Act

The SIMPLE Act requires the Department of Education to automatically enroll borrowers who are at least 75 days delinquent on federal student loans into the income-driven repayment plan that offers them the lowest monthly payment. To facilitate this, the bill authorizes the use of IRS tax return data to determine a borrower's income and family size without requiring additional action from the borrower, provided they have approved such disclosure or are applying for loan rehabilitation. The legislation also establishes specific notification procedures at 31 days of delinquency and mandates that borrowers rehabilitating defaulted loans be placed in the most favorable repayment plan after making their ninth required payment. These automatic enrollment provisions take effect on July 1, 2028, while changes allowing borrowers to switch between repayment plans become effective immediately upon enactment.