Many eligible borrowers do not participate in the Department of
Education's (Education) Income-Based Repayment and Pay As You Earn
repayment plans for Direct Loans, and Education has not provided
information about the plans to all borrowers in repayment. These
plans provide eligible borrowers with lower payments based on
income and set timelines for forgiveness of any remaining loan
balances. As of September 2014, outstanding federal student loan
debt exceeded $1 trillion, and about 14 percent of borrowers had
defaulted on their loans within 3 years of entering repayment,
according to Education data. This book discusses how participation
in Income-Based Repayment and Pay As You Earn compares to
eligibility, and to what extent Education has taken steps to
increase awareness of these plans; and what is known about Public
Service Loan Forgiveness certification and eligibility, and to what
extent Education has taken steps to increase awareness of this
program.
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