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Full-Text Articles in Education Economics
Income-Driven Repayment And The Public Financing Of Higher Education, John R. Brooks
Income-Driven Repayment And The Public Financing Of Higher Education, John R. Brooks
Georgetown Law Faculty Publications and Other Works
This article provides the first comprehensive analysis in the legal literature of the federal government’s new income-driven student loan repayment programs, known as Income-Based Repayment and Pay As You Earn. In a set of gradual and little-noticed statutory and regulatory moves, the federal government, through these programs, has dramatically reshaped higher education finance in ways that schools, students, and even the government itself are only beginning to understand.
Under IBR and PAYE, a student borrower pays no more than 10% of her discretionary income in loan service payments, and after a maximum of 20 years, the remaining debt is forgiven—for …