Gov't launches new website for student loan borrowers
WASHINGTON (AP) -- The Department of Education has launched a new website to help people with student loans find a repayment option that best suits their needs.
The move is part of an effort the Obama administration is undertaking to enroll an additional 2 million people into repayment programs such as the Pay As You Earn program, which caps monthly student loan payments at 10 percent of income.
Federal student loan debt exceeds $1.3 trillion, and about one in seven borrowers default on their loans within three years of beginning to repay them.
The Government Accountability Office found last year that many eligible borrowers don't participate in the income-based repayment programs, in part, because the department doesn't consistently notify them of their options.