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CFPB: Highest-Risk Borrowers Not Enrolled in Income-Driven Repayment

May 17, 2017
 
 

A new report from the Consumer Financial Protection Bureau finds that more than 90 percent of defaulted student loan borrowers aren't enrolled in income-driven repayment plans within nine months of rehabilitating their debt. And half of those high-risk borrowers end up defaulting again within three years if not enrolled in income-driven repayment, the report finds.

The CFPB says administrative, policy and procedural obstacles prevent those borrowers from enrolling in more affordable repayment plans. And it says policy makers should re-examine the process for borrowers to transition from default to income-driven repayment as part of the reauthorization of the Higher Education Act.

 
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