FOR IMMEDIATE RELEASE:

September 17, 2015

Contact: Sarah Schultz, sarah.schultz@younginvincibles.org, 202.734.6510

Young Invincibles Endorses GAO Report Recommendations to Boost Income-Based Repayment Plan Enrollment and Awareness

[WASHINGTON]–Today, the U.S. Government Accountability Office released a report on income-based student loan repayment plans. The report finds that the vast majority of borrowers seeking the additional flexibility these programs provide are low-income (earning less than $20,000 annually). The report also finds that borrowers enrolled in these plans have much lower default rates. Young Invincibles’ Policy Director Jennifer Wang released the following statement in response to the report:

“Young Invincibles endorses the GAO’s recommendations to the Department of Education to increase awareness of and enrollment in income-based repayment plans. Young adults, who often have the lowest earning power and need flexibility in repayment, stand to gain from greater awareness and usability of income-driven plans. The report confirms that borrowers in income-driven plans are mostly low-income. It also confirms that borrowers in income-driven plans have lower default rates. This shows that income-based repayment is a vital consumer protection that provides student loan borrowers with the flexibility they need when paying back their loans. The report also shows a very clear need for more outreach to borrowers and better student loan servicing. Young Invincibles agrees, and believes that income-based repayment plans are essential to preventing unnecessary delinquency and loan defaults that can haunt borrowers over the course of their lifetimes.”

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