"The Government Accountability Office in a report released Thursday recommended that the Department of Education do more to verify the income and family size of borrowers applying for income-driven repayment plans," according to Inside Higher Ed.

"IDR plans allow borrowers who can’t manage loan repayment under a standard 10-year plan to make monthly payments equal to 10 percent of their income. The remaining loan balance for those borrowers is forgiven after 25 years.

...

The bill was introduced by Senator Lamar Alexander and Senator Patty Murray, the top Republican and Democrat, respectively, on the Senate education committee. Justin Draeger, the president of the National Association of Student Financial Aid Administrators, released a statement urging lawmakers -- particularly the House -- to pass the legislation as a stand-alone bill.

Draeger also said attempts to safeguard against potential fraud should be balanced against the potential of creating bureaucratic barriers for borrowers who need access to tools like income-driven repayment."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 7/26/2019