18 Mar BPC Action Applauds Repay Act Introduction in Education and Workforce
The following is a statement from Michele Stockwell, Executive Director of BPC Action, on the Repay Act recently reintroduced in the Senate by Sens. Richard Burr (R-NC) and Angus King (I-ME):
“The Repay Act would greatly simplify the federal student loan repayment process. Currently, borrowers have access to eight different plans, each with varying terms and benefits. This array is cumbersome to borrowers. For example, only some plans are eligible for benefits like Public Service Loan Forgiveness, leading to resentment and confusion among disqualified borrowers who believed they were on track to receive forgiveness.
“The bill would eliminate the menu of complicated and duplicative repayment options, leaving new borrowers with two simple options: the standard plan and a single income-driven repayment (IDR) plan, the latter of which ties monthly payments to a borrower’s discretionary income, helping to ensure manageable payments.
“We applaud this bipartisan effort to reform student loan repayment options and urge lawmakers to go further to expand access to affordable loan payments by making IDR the default option for borrowers when they enter repayment. This proposal was endorsed by BPC’s Task Force on Higher Education Financing and Student Outcomes and could be facilitated through enhanced data-sharing between federal agencies. It would further streamline the repayment process and prevent borrowers from entering delinquency and default. BPC Action remains ready to guide policymakers in assisting our nation’s student borrowers.”