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

Education Must Verify Borrowers’ Information for Income-Driven Repayment PlansFederal Student Education Loans:

Federal Figuratively Speaking:

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

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

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

To relieve the responsibility of federal student education loans, borrowers can put on for Income-Driven Repayment plans. The plans utilize borrowers’ taxable earnings and household size to find out a payment rate that is affordable. Monthly obligations is often as low as $0 but still count toward prospective loan forgiveness following the payment duration.

Our suggestions are for the Department of Education to complete more to confirm borrowers’ earnings and household size as a result of possible mistake or fraudulence:

A lot more than 76,000 borrowers making no monthly obligations may have had enough earnings to cover one thing

A lot more than 35,000 borrowers had authorized plans with atypical household sizes of 9 or higher

Just How family members size impacts re re payment quantities in a few Income-Driven Repayment plans for the debtor with $40,000 in taxable income

Graphic showing that the borrower that is single re re 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:

  • Features Web Web Page:
    • (PDF, 1 web page)
  • Complete 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 Just What GAO Found

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

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