Obama Set to Expand Income-Based Repayment Program

President Obama will announce Monday that he plans to expand an income-based repayment program for federal student loan borrowers, The New York Times reported.
The administration plans to broaden eligibility for its Pay As You Earn program – which caps student loan payments at 10 percent of borrowers’ discretionary income and forgives any unpaid debt after 20 years – to include an estimated 5 million additional borrowers who have older loans, according to the Times.
Obama will also formally announce that the Education Department plans to renegotiate the contract it has with federal student loan servicers to include incentives for helping borrowers avoid default. Read more...