(NBC News) A new Wall Street Journal report finds that many Americans who owe tens of thousands in student loan debt simply aren’t paying.
The report finds that as of January 1st, 43 percent of those with student loans aren’t making payments.
The Obama administration has introduced what it calls the “Revised Pay As You Earn Plan”, or REPAY, which caps monthly payments at 10-percent of the borrowers’ income and even forgives remaining debt after payments are made for 20 years, but the agencies that collect and apply payments have been overwhelmed by the volume of applications, leading to backlogs, delays and confusion.
“It really is absolutely about servicer accountability, making sure that borrowers know their options and that the servicer is helping to guide borrowers into the right repayment plan that is good for them and their situation,” says Jennifer Wang of the Institute for College Access and Success.
Read more: http://on.wsj.com/1qB7P17
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