Why Borrowers Aren’t Taking Advantage of IBR

Inside Higher Ed has an article about why so many government student loan borrowers who could benefit from the income-based repayment (IBR) program don’t apply for it — the two main reasons being that many people don’t know that the program exists, or if they do, they find the process of applying for the program too complex. Under the IBR program, borrowers pay 15 percent of their monthly discretionary income, and their loans are forgiven after 25 years. Private loans aren’t currently available for IBR, which is a shame since so many people (including me!) take out private loans to finance their education. (Thanks to Libby for sending us this story.)

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