What loan repayment budget estimates mean to borrowers

Submitted by Stefanie Botelho. Last week's higher education headlines were packed with stories about a federal report on the projected cost of forgiveness under income-driven repayment plans. Currently, certain income-driven repayment plans require payment on federal student loans for 20 to 25 years – 10 years if the borrower works in public service – and then the federal government forgives any remaining balance, although the forgiven amount is taxed as income. More...