Friday, May 24, 2013

Student Loan Borrowers Leaving Lots of Money on the Table

 

"I'm still trying to get my head around some concepts that I heard today," said Rep. Raúl Grijalva (D-Ariz.), a member of the House Workforce and Education Committee, "that irrespective of the amount of money you borrow or the interest rate, that you'll still end up paying the same amount."
"Wow, somehow that doesn't seem possible," said Republican Rep. John Kline of Minnesota, the committee chairman.
The committee members were responding to testimony given last month by Jason Delisle at a March 13 congressional hearing in which Delisle spoke about the Department of Education's income-based student loan repayment (IBR) program.
But Grijalva and Kline aren't the only ones unaware of the benefits of IBR. As it turns out, they are in the majority, a fact that prompted the White House to issue a 2012 statement concluding that "Too few responsible borrowers are aware of their repayment options."
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