What’s the Price? ‘Pay As You Earn’ and Income-Based Repayment
Who will benefit more from the federal government’s new “Pay As You Earn” income-based repayment program for student loans: Recent graduates struggling to find jobs in a tough economy? Or high-paid professionals such as lawyers and business executives, who might be able to wipe away tens of thousands of dollars of student loan debt? Why are the income-based repayment options so underused when as many as one out of five borrowers has fallen behind on payments?
We investigated these questions and more with Lauren Asher, president of The Institute for College Access and Success, and Jason DeLisle, director of the Federal Education Budget Project at the New America Foundation.