As July 1 (the first day the Income-Based Repayment option becomes available for borrowers) draws closer, coverage of IBR and Public Service Loan Forgiveness is ramping up.
The Institute’s acting president Lauren Asher was featured in a recent USA Today article focused on IBR. An excerpt:
Starting July 1, borrowers will have a new option: a repayment program that caps monthly payments based on income. It targets borrowers who would have a hard time paying basic living expenses if they had to make standard monthly payments on their loans, says Lauren Asher, acting president for the Project on Student Debt. Under the income-based repayment program, such borrowers will never have to spend more than 15% of their discretionary income — an amount based on federal poverty guidelines — on student loan payments. Most who qualify for the program won’t spend more than 10% of their income on student loans. Those whose income falls below 150% of the poverty level (see box) won’t be required to make any payments, Asher says.
- “Crushed by Student Loans? Help’s Coming,”Terry Savage, TheStreet.com, 5/18/09
- “A Final Lesson: Repay Student Debt Quickly,” Michelle Singletary, The Washington Post, 5/17/09
- “Income-Based Repayment: The Timing Could Not Be Better,” Tim Ranzetta, Student Lending Analytics, 5/18/09