'Pay as You Earn' to Start Dec. 21
- Despite student debt concern, income-based repayment lags
- President Obama proposes to link student aid to new ratings of colleges
- Researchers debate changes to federal income-based repayment programs
- Education Dept. will email 3.5 million student-loan borrowers about income-based repayment
- Obama expands income-based repayment to older borrowers, pushes Democrats’ student loan refinancing bill
The new "Pay As You Earn" program, which lowers the amount that student loan borrowers pay per month in the income-based repayment program from 15 percent of discretionary income to 10 percent, and forgives loans after 20 years rather than 25, will go into effect on Dec. 21, according to a notice in today's Federal Register. Final rules for the program were issued in November.