Bipartisan support championed by U.S. Rep. Ryan Costello (R-PA) led to administrative steps to streamline and improve income-driven student loan repayment plans.
The Department of Education and the Department of Treasury announced on Thursday that the income of borrowers enrolled in income-driven repayment plans would automatically be confirmed to help keep their payments affordable.
Costello and U.S. Rep. Suzanne Bonamici (D-OR) previously asked secretaries of both departments to take that step in an effort to make student loan repayment easier and more manageable.
“We commend the departments of education and treasury for announcing action to help struggling student loan borrowers make affordable payments and avoid default,” Costello and Bonamici said in a joint statement. “In 2015, we asked the departments to establish a system that uses tax information to automatically certify borrowers’ incomes and calculate their income-driven loan payments. We are pleased that the departments have taken the first step toward developing such a system.”
Costello and Bonamici also previously introduced the Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act. The measure would provide more information to at-risk borrowers about repayment plan options and would automatically turn to income-driven repayment plans ahead of a default.
“Millions of borrowers rely on income-driven repayment plans to manage their student loans,” the lawmakers said. “Unfortunately, the enrollment and income certification processes for these plans are unnecessarily complicated and prevent too many borrowers who are at risk of default from accessing the affordable payments they are entitled to under the law.”
“We look forward to working with our colleagues in Congress and the incoming administration to implement the automatic income certification system and further simplify participation in income-driven repayment plans.”