Eliminate loan “rehabilitation”, the long and onerous procedure that defaulted borrowers must presently undertake prior to engaging in REPAYE. Just place them in REPAYE straight away.
Enable the IRS to offer earnings information straight towards the Department of Education for purposes of implementing REPAYE. Or, even better, allow for loan payment through the withholding system utilized to get payroll and taxes, amending Form W-4 to inquire of about figuratively speaking, and permitting self-employed people to upgrade re payments predicated on their quarterly profits. It is maybe perhaps not a panacea, nonetheless it will make life easier and simpler for borrowers.
Clean the credit reporting up of defaulted or delinquent borrowers signed up for REPAYE. Particularly when loan re re payments could be made through payroll withholding, borrowers really should not be involuntarily defaulting or delinquent due to difficulty or unemployment. Eliminating the training of reporting these durations as defaults or delinquency would eliminate a vital barrier borrowers face if they look for usage of credit as time goes by.
Then, end the Treasury Offset Program—the system that confiscates defaulted borrowers’ tax refunds—and stop wage and Social protection garnishment for education loan borrowers signed up for REPAYE. The current program effectively cancels the largest social insurance program for working, low-income families, plunging them into deep poverty because the Treasury offsets refunds of the Earned Income Tax Credit or Child Tax Credit. […]