Among the most promising requests by the administration — requests, because they would need congressional approval — are the ones that would streamline both the application and repayment for federal student loans. There would be one income-driven repayment plan for each level of higher education: Undergraduates would pay 12.5% of their discretionary income for 15 years; anything unpaid at that point would be forgiven. That’s a reasonable pace, and allows them to finish five years earlier than current plans do. But graduate students would pay for 30 years at the same rate, five years longer than they currently do. Borrowers would also receive more financial aid counseling at the front end, so that they understand the terms of their loans — and also the chances that they won’t be able to pay them back, enabling them to make more informed financial decisions.

Source: Los Angeles Times March 20, 2019 10:07 UTC