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    Subject Term: "Debt repayment"

    1 publication with a total of 1 open recommendation
    Director: Melissa Emrey-Arras
    Phone: (617) 788-0534

    1 open recommendations
    Recommendation: To help ensure that Income-Based Repayment, Pay As You Earn, and Public Service Loan Forgiveness serve their intended beneficiaries to the greatest extent possible, the Secretary of Education should take steps to consistently and regularly notify all borrowers who have entered repayment of income-driven repayment plan options, including Income-Based Repayment and Pay As You Earn.

    Agency: Department of Education
    Status: Open

    Comments: The Department of Education generally concurred with our recommendation, stating that it is committed to ensuring the federal student loan borrowers have the information they need to manage their debt, including details regarding income-driven repayment plans and loan forgiveness programs. However, Education stated that it is not clear that providing information on repayment options to all borrowers is the most efficient or effective way to achieve this goal. The agency indicated that the steps it is taking to raise awareness about income-driven repayment would include streamlined processes for learning about, applying for, and recertifying eligibility for income-driven repayment plans with enhanced communications targeted to borrowers most likely to benefit from these plans. While these are positive steps, because Education does not have income and family size information needed to determine which borrowers could benefit from income-driven repayment, we maintain it is important for Education to notify all borrowers of these options.