Federal Loan Program Losing Money Due to Income-Based Repayment, Report Finds

A new report by the U.S. Department of Education's Office of Inspector General finds that the rising cost of the federal student loan program is due, in large part, to the growing number of borrowers enrolling in income-based repayment programs.

As reported in The Chronicle of Higher Education, the office's analysis found that the portion of direct loans being repaid through income-driven repayment plans has increased 625 percent between 2011 and 2015 fiscal years. 

The department, the Chronicle reported, has 30 days to develop a corrective plan. The Office of the Inspector General stated: "It is imperative that the department publish additional information on both historical and future estimated costs and the associated assumptions, methodologies, and limitations of the information."

 

Related Links:

Office of the Inspector General Report

https://www2.ed.gov/about/offices/list/oig/auditreports/fy2018/a09q0003.pdf

The Chronicle of Higher Education 

https://www.chronicle.com/article/Federal-Student-Loan-Program/242426