Federal Student Loan Repayment Options : Income Based

Again, given our current environment of 'no one has to take responsibility for anything', it's always someone else's responsibility to pay the bills and do the work so others don't have to. Little wonder unemployment is more then 93 million and the food stamp program is out of control.

Loan forgiveness programs? Something is very wrong here. College students are suppose to be smarter then average but still going to debt beyond their abilities for repayment?

I wonder how many college graduates are unemployed and on the food stamp program. At the same time how many have jobs and are capable of paying on their educational loans but many have decided having to pay off their loans will interfere with their social life and so go into default.

And as the progressive socialist have stated, don't worry about the little things like taking responsibility for your own actions, there will always be others that will, reliving you of the stressful parts of life that interfere with seeking the fun things. All that's required is you vote like you are told.

Federal Student Loans and Income-Based Repayment Plans
Source:  "Federal Student Loans: Education Could Do More to Help Ensure Borrowers Are Aware of Repayment and Forgiveness Options," Government Accountability Office, September 17, 2015.

September 29, 2015

In 2014, the total federal student loan debt in the United States was $1 trillion. Although the Department of Education offers income-based repayment plans and pay-as-you-earn options, only 13 percent of the total 51 percent of eligible borrowers participated in either program.

• 14 percent of borrowers defaulted on their loans within 3 years of entering repayment.
• Starting in 2017, the plan is to forgive all Direct Loan balances for any borrower who worked in public service for at least 10 years.
• Potentially 4 million borrowers could qualify for the Public Service Loan Forgiveness program.

While income-based repayment plans are not the best option for all borrowers, information on the various repayment options should be readily available. The Department of Education should continue to notify qualified borrowers about their repayment options. By explaining benefits from plans, borrowers could lower their payments and hopefully reduce the number of default student loans.