Income-Based Repayment of Student Loans: If Only Borrowers Knew
"For a few years now, the government has allowed borrowers whose federal student-loan debt is heavy relative to their income and family size to choose income-based repayment," the Chronicle of Higher Education reports. "In that program, they can make smaller monthly payments, and, if they meet certain conditions, the government even forgives their balances, eventually. ...Despite its advantages, the program is no silver bullet for borrowers. For one thing, making smaller payments over a longer period means paying more in interest. And income-based repayment is only for federal loans, while many borrowers who struggle the most have private debt, too. Still, experts all seem to think it's a good idea, maybe even a game-changer. 'Why does anybody default in the day and age of income-based repayment?' asks Justin Draeger, president of the National Association of Student Financial Aid Administrators."
A paid subscription may be required.
NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.