Enroll All Student-Loan Borrowers In Income-Based Repayment, Report Says
"The federal government should automatically enroll all borrowers in an income-based repayment plan and deduct their payments through employer withholdings, according to a new report by a consortium of five student-aid advocacy and research groups," The Chronicle of Higher Education reports.
"The report, produced for the second round of the Bill & Melinda Gates Foundation’s 'Reimagining Aid Design and Delivery' project, is the latest to argue for 'universal IBR' as an alternative to the current menu of nine repayment options. Half of the 16 grantees in the first round of the Gates project suggested some variation on the idea.
The new report, by the advocacy group Young Invincibles and four other organizations, fleshes out those first-round proposals, offering details on how such a program could be structured and administered.
While the groups differ on some of the details, they agree that the system should be simple and fiscally sustainable, while minimizing incentives for students to overborrow or colleges to overcharge. ...
The report [was] released on Thursday at a forum sponsored by the five grantees that produced it: Young Invincibles, the National Association of Student Financial Aid Administrators, the Institute for Higher Education Policy, the Committee for Economic Development, and HCM Strategists."
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