What Biden or Trump Could Do for Your Student Loans
In The News Piece in NerdWallet
Sept. 11, 2020
Clare McCann was quoted in NerdWallet about how income-driven student loan repayment plans are dependent on the outcome of the 2020 presidential election.
Currently, 32% of borrowers in repayment are enrolled in income-driven plans, according to the most recent data available from the Office of Federal Student Aid. The most frequently used plan — Revised Pay As You Earn, or REPAYE — caps payments at 10% of a borrower’s discretionary income and extends the term to 20 or 25 years. Any balance remaining at that time is forgiven and treated as taxable income.
“I think we will see a lot of efforts to try to move people toward a single program,” says Clare McCann, deputy director for federal higher education policy at New America, a public policy think tank. “The disagreement will be what is the one IDR plan to rule them all?”
Read the full article here.