I think these programs are ok, but they need to be
by Tex Francisco (2024-02-22 13:46:23)

In reply to: I’m a huge fan of income-based repayment and forgiveness.  posted by kormal

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simplified and improved in a few ways. I'll start by saying I only have very tangential exposure to these programs through friends of my wife, so it's probable that I don't know or understand all the implementation details. My understanding though is that while you're in repayment, your balance may actually increase (negative amortization), which can have major ramifications if someone is looking to switch jobs, get married and file taxes jointly, etc. before the loan is forgiven. IMO, while on an IBR plan, the principal balance of the loan should decrease according to the normal amortization schedule. That way, if someone has a life event where they no longer qualify for IBR, then they would just transition off IBR with their loan in the same place it would have been had they never done IBR in the first place. Student loans shouldn't be a reason for someone to not get married or not take a higher paying job.

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