PHENOM Joins National Partners in Letter to Education Secretary Arne Duncan on Proposed REPAYE Plan

This morning a coalition of 23 state and national organizations sent a letter to Secretary of Education Arne Duncan with comments on the proposed REPAYE program.

“The proposed regulations include a new income-driven repayment plan, called Revised Pay As You Earn (REPAYE), which improves upon existing plans in a number of key ways. REPAYE would let all federal Direct student loan borrowers cap their monthly payments at 10% of their discretionary income, regardless of when they borrowed or their debt-to-income ratio. This will better help struggling borrowers stay on top of their payments and avoid default, give all borrowers the ability to have their loan payments fluctuate with their income should they want to do so, and greatly simplify the plan. The proposed rules also include a number of changes that make the plan fairer and better target its benefits, such as preventing ballooning loan balances by limiting interest accrual for borrowers with low income relative to their debt and removing the “standard payment cap” so higher income borrowers pay the same share of their income as lower income borrowers.”

To see the full letter click here: Coalition comments on NPRM FINAL 08-10-15

PHENOM is a proud partner of the Higher Ed Not Debt Campaign.