Higher Ed Watch

A Blog from New America's Higher Education Initiative

< Back to the Education Policy Program

How Income-Based Repayment Can Cap, Reduce, or Eliminate Interest Rates on Student Loans

Published:  April 18, 2013

The president’s fiscal year 2014 budget request includes a proposal for setting interest rates on newly issued federal student loans. The fact that the president excluded a cap in his proposal (as did the New America Foundation) has rankled student aid advocates. We’ve argued that the new income-based repayment (IBR) program that became available last year for students who began borrowing after October 1, 2007 ensures that a borrower’s monthly loan payments are capped – which therefore makes it a more generous benefit than an interest rate cap.

Read the rest of this post on Ed Money Watch.

 

Join the Conversation

Please log in below through Disqus, Twitter or Facebook to participate in the conversation. Your email address, which is required for a Disqus account, will not be publicly displayed. If you sign in with Twitter or Facebook, you have the option of publishing your comments in those streams as well.