Grad Students Will Receive Billions in Debt Forgiveness
Believe you know by now that Americans have a lot of student. Loan debt and many people are paying down. That debt was something called an income based repayment plan. That's where your payments are based on. Yes your income and you pay a percentage of that income every month and then if after twenty to twenty five years you haven't paid off those loans. The government will toss what remains of your Iou into the trash. But so how much is that? GonNa cost the government as taxpayers. The Congressional Budget Office put out a report answering that very question yesterday. And the number is around two hundred and seven billion dollars over the next decade. Wow marketplace's justin who reports it might sound like the government's issuing a get out of jail free card for all student borrowers but Justin Drager at the National Association of Student. Financial aid administrators says graduate students stand to benefit the most. There are less subsidies grants available for graduate students and there are more high cost programmes for graduate students the CBO report says Grad students on income based repayment plans. To two thousand dollars on average. Five Times what an undergraduate on the same plan over the last decade the percentage of Grad students participating in the program has grown six-fold drager says while the program was meant to be a safety net for students. The more students are needing the safety net than I. It should be a warning signal that we have a distress in the student. Loan market part of the issue. Is that a lot of graduate programs. Don't lead to higher. Earning jobs says Antoinette floor is at the Center for American progress you have people like social workers and teachers who may already have undergraduate debt and they are going into a field where the earnings are relatively low borrowers on income based repayment plans. Typically pay off their loans using ten to fifteen percent of their discretionary income each month. That's often barely enough to make a dent in what they owe says. Jason Delile the American Enterprise Institute. The payments are very low relative to what people are borrowing and relative to the term before they would have the debt forgiven the C. B. O. Estimates that by the end of the decade eighty-one percent of the government's two hundred billion in student loan. Forgiveness will go to graduate students.