'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
- Education Dept. will email 3.5 million student-loan borrowers about income-based repayment
- New report calls for income-based repayment system that operates like payroll taxes
- Report from college access groups on changing financial aid
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.