Exclusive: How the most affordable student loan program failed low-income borrowers

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Income-driven repayment plans were intended to help low-income student loan borrowers, and eventually cancel their debt. New documents paint a breathtaking picture of the program's failure.

A federal program intended to help low-income student loan borrowers, and eventually offer them debt cancellation, has failed to live up to its promise, an NPR investigation has found.

In all, these records paint a breathtaking picture of IDR's failure, and cast a shadow over the federal student loan program. While the Biden administration did not make these problems, it must now address themIn response to NPR's request for comment, an Education Department spokesperson said on Friday,"Borrowers place their trust in us to make sure these plans work the way they were intended to, and we intend to honor that trust.

"It is not on borrowers to be keeping two decades' worth of records of how their student loan payments were made and whether each payment counted towards cancellation," says Abby Shafroth, an attorney at the National Consumer Law Center , a nonprofit that has previouslyThe review's executive summary makes clear the department had long harbored worries about its servicers breaking the promise of IDR, noting"concern regarding the accuracy of the payment counters with our...

"We knew there was a problem," says Rep. Bobby Scott, the top Democrat on the House education committee."This is worse than we expected."

 

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Happy to see the current administration is not only addressing these issues, but have also worked hard over the past year to expand and improve other existing programs that have now eliminated over $20 billion in student debt.

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Exclusive: How the most affordable student loan program failed low-income borrowersEXCLUSIVE: Income-driven repayment (IDR) plans were intended to help low-income student loan borrowers, and eventually offer them debt cancellation. Documents obtained by our reporters show these plans are failing the borrowers.
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