Why Obama’s Favorite Student Debt “Relief” Program Will Cost Taxpayers $100 Billion
A few months back, we called the government’s Income Based Repayment plans, or IBR, “the student loan bubble’s dirty little secret.” As the name implies, the idea with IBR is that monthly student debt service payments are based on the borrower’s disposable income. The less money one makes, the less one has to pay. Each monthly installment under the program counts as a “qualifying payment”, and after 300 of these, the balance of the loan (assuming...
