Education Must Verify Borrowers’ Information for Income-Driven Repayment Plans

Education Must Verify Borrowers’ Information for Income-Driven Repayment PlansFederal Figuratively Speaking:

Federal Student Education Loans:

GAO-19-347: Posted: Jun 25, 2019. Publicly Released: Jul 25, 2019.

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Seto J. Bagdoyan
(202) 512-6722
bagdoyans@gao.gov

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

To help relieve the duty of federal figuratively speaking, borrowers can put on for Income-Driven Repayment plans. The plans utilize borrowers’ taxable income and family size to find out a reasonable repayment price. Monthly premiums is as low as $0 and still count toward prospective loan forgiveness following the payment period.

Our tips are when it comes to Department of Education to accomplish more to confirm borrowers’ family and income size due to possible mistake or fraudulence:

A lot more than 76,000 borrowers making no payments that are monthly have had enough earnings to cover one thing

More than 35,000 borrowers had authorized plans with atypical household sizes of 9 or even more

Just How household size impacts re payment quantities in a few Income-Driven Repayment plans for a debtor with $40,000 in taxable earnings

Graphic showing that a solitary debtor’s re payment could be $182 but decreases to $74 with a family group of 3 and $0 with a family group of 5

Extra Materials:

  • Shows Web Web Page:
    • (PDF, 1 web web page)
  • Comprehensive Report:
    • View Report (PDF, 47 pages)
  • Available Variation:
    • (PDF, 50 pages)

Seto J. Bagdoyan
(202) 512-6722
bagdoyans@gao.gov

Workplace of Public Affairs
(202) 512-4800
youngc1@gao.gov

Exactly Exactly What GAO Found

GAO identified indicators of prospective fraudulence or mistake in income and household size information for borrowers with authorized Repayment that is income-Driven( plans. […]