Bonamici Reintroduces Bill to Prevent Student Loan Borrower Default
By Maria Carrasco, NASFAA Staff Reporter
Rep. Suzanne Bonamici (D-Ore.) has reintroduced legislation to prevent borrowers from defaulting on their student loans by allowing the Department of Education (ED) to notify at-risk borrowers and automatically enroll them in income-driven repayment (IDR) plans.
The bill, dubbed the Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act, would amend the Higher Education Act (HEA) and add a provision that would allow ED to notify borrowers – who are at least 31 days delinquent on a federal student loan – with a brief description of the repayment plans the borrower is eligible for, and provide instructions on how to select a repayment plan. Additionally, ED would notify the borrower of their monthly payment under each IDR plan.
The notification would also let the borrower know that if they become delinquent for 75 days on a federal student loan, and have not selected a new repayment plan, or are not already enrolled in an IDR plan, then ED would automatically enroll the borrower in an IDR plan that has “the most favorable terms” for the borrower with the lowest monthly payment for each federal student loan.
The SIMPLE Act would also allow ED to access existing taxpayer information through the IRS, enabling automatic enrollment in an IDR plan and removing the enrollment barrier for borrowers.
The bill was previously reintroduced in 2024 and first introduced in 2016. This year’s version remains largely unchanged from the 2024 version, but includes small updates to reflect changes to the One Big Beautiful Bill Act (OBBBA), such as the inclusion of the Repayment Assistance Plan (RAP) as an eligible repayment plan.
If enacted, the automatic enrollment provision would take effect on July 1, 2028, and apply to the 2028–29 award year and each subsequent award year.
“Bureaucratic hurdles should not keep student loan borrowers from more affordable repayment plans,” Bonamici said in a statement. “The SIMPLE Act is commonsense legislation to use existing taxpayer information to automatically place people in plans that better meet their financial needs and provide protection from harmful default."
NASFAA supports the SIMPLE Act, with Karen McCarthy, NASFAA’s vice president of public policy and federal relations, saying that the financial aid community stands in support of this bill.
“Problems arise for many student loan borrowers not due to an inability or unwillingness to pay, but rather due to needless complexity within the system,” said Karen McCarthy, NASFAA’s vice president of public policy and federal relations. “Many are simply unaware of generous income-driven repayment plans that can lower their monthly payments. The SIMPLE Act would expand access to affordable income-driven repayment options by automatically enrolling struggling borrowers in those plans before they experience the punitive consequences of default.”
Publication Date: 9/4/2026
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