Student borrowers with federal direct loans who want to enroll in the government's income-based repayment program will be able to apply directly through the Education Department rather than through loan servicers, the Obama administration announced Wednesday. The department will allow borrowers to import Internal Revenue Service income data directly to their application. It will require servicers to inform borrowers about income-based repayment before they begin repaying their loans. The program caps payments at 15 percent (soon to be 10 percent) of a borrower's monthly discretionary income.
The department has struggled with servicing problems  in the past year, including glitches with enrolling borrowers in income-based repayment. Administration officials said the streamlined application process should be in place by September.