Obama Student Debt Program Helps High-Income Borrowers more than Others
An analysis of the program by the New America Foundation found that students who borrowed heavily, such as those attending law or medical school, would benefit the most.
Meanwhile, someone who attended college and now makes only $25,000 might have their student loan monthly bill reduced by only $5-$20 a month.
“I would even argue that if you’ve got one graduate degree and you borrowed a lot to pay for it, your second graduate degree will be free,” study coauthor Jason Delisle told Raw Story. “It gets rid of any incentive for law schools to bring down their cost.”
Under legislation adopted in 2010, loan repayments are supposed to be capped at 10% of a borrower’s income, and they can get out of paying off the remainder of their loans after 20 years.
To Learn More:
Report: Obama Student Debt-Relief Payment Plan ‘Windfall’ To Wealthy Borrowers (by Kay Steiger, Raw Story)
Safety Net or Windfall?: Examining Changes to Income-Based Repayment for Federal Student Loans (by Jason Delisle and Alex Holt, New America Foundation) (pdf)
Education Dept. Spends more than a Billion Dollars a Year Tracking Down Student Debtors (by Noel Brinkerhoff and David Wallechinsky, AllGov)
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