Federal student loan borrowers would pay their loans based on their income upon leaving school, and the plan would act as a form of insurance against tough economic times.
As defaults and delinquencies among federal student loan borrowers are increasing, a consortium of higher education advocacy and research organizations is calling on Congress to reform the overly complex loan repayment process.
Today, roughly two-thirds of graduating college seniors leave college with debt. In 2011, one in 10 borrowers defaulted in the first two years after entering repayment for their loans, according to a report from the consortium. That rate is nearly double what it had been five years earlier. More...

By Susan Meisenhelder. The notion of free public higher education might elicit scoffs upon initial suggestion, but given the soaring student loan debts, the idea is one that begs further investigation. Student loan debt hit the $1 trillion mark last year, helping it retain its place as the fastest growing consumer debt, and what's more, about 11.5 percent of student loan balances are more than 90 days delinquent or in default, according to a recent report by the Federal Reserve Bank of New York. More...

By Janet Lorin. For parents looking to pay for college, one of the best deals comes with a 1.2 percent, no-fee loan. The hitch: Your kid has to get into Princeton University.
Princeton, which accepts only 7.3 percent of applicants, is alone in the eight-member Ivy League in offering financing to parents. Its loans are cheaper than those offered by the federal government, and families with annual incomes of up to $500,000 may qualify. More...