In a The Washington Post op-ed, Fordham Law Professor John Brooks and Georgetown University Law Center Professor Brian Galle suggest that the solution to the Biden administration’s battle for student loan forgiveness lies in revamping existing income-driven repayment plans and automatically enrolling borrowers to remove the administrative roadblocks that keep many from accessing them.
Of the 32 million federal borrowers currently in repayment or default, only about one-third — 9 million borrowers — are enrolled in repayment plans that adjust for income such as SAVE. The barrier to entry, once more, is the hassle. Because payments can change each year, the Education Department requires borrowers to first prove their eligibility, then provide loan servicers with annual information about their earnings and their family size. It’s a process similar to applying for financial aid or doing your taxes, which people must do again and again.
Experts and advocates argue that the complexity and administrative burdens keep many borrowers from taking advantage of the program. While the SAVE program automatically enrolls borrowers who are in default or long delinquency, it does so only if borrowers have agreed to share their tax returns with the Education Department before going into default.
