The Income Based Repayment (IBR) program already has some issues and the changes going into effect next week exacerbate one of the main problems – ill-targeted loan forgiveness. A clever calculation by Jason Delisle and Alex Holt asks how much of Senator Marco Rubio’s student loans would have been forgiven if the new IBR policies were in place back when Rubio went to school.
In spite of his salary, which at its high point nearly hits $400,000 a year, he would be eligible to receive more than $80,000 in loan forgiveness…
So far, the Obama administration hasn’t said a word about the serious flaws of New IBR, and hasn’t stated whether it has any intention of addressing them.
I suppose the policymakers pushing IBR are counting on history being as generous in forgiving mistakes as New IBR is in forgiving loans.
Photo Credit: EducationGrant.com