On January 27, APA Services submitted comments (PDF, 271KB)opens in new window to the Department of Education on proposed changes to its Income-Driven Repayment (IDR) systemopens in new window, as part of APA Services’ continued advocacy related to student debt relief. The association affirmed its support for the Department’s efforts to reform and simplify its student loan portfolio, including for many of the changes in the proposed rule, which are largely consistent with previous requests made by the association. These changes include allowing graduate loan borrowers to apply for the revised IDR plan; protecting more discretionary income from repayment and shortening the period to loan cancellation in certain cases; and waiving unpaid monthly interest.
However, APA Services expressed concerns about the continuing disparity in the treatment of undergraduate and graduate loans. The arbitrary distinction perpetuates misconceptions surrounding the earning potential of different levels of education and increases inequities among borrowers. The association’s comments urge the department to make two additional revisions as it finalizes the rule:
- to set the discretionary income threshold for determining monthly payments at 5% for all loans; and
- to set a maximum of a 20-year repayment schedule until debt forgiveness.
APA Services also issued a call to action to its graduate student and early career psychologist members, encouraging them to submit a message to the Department of Education to address the student loan debt carried by their field. APA members submitted 614 messages describing personal stories about student debt and dispelling the misconception that all graduate debt holders will be “high income earners.”
The association’s comments were also discussed in an article in Inside Higher Ed: “Income-Driven Repayment Overhaul ‘a Step Forwardopens in new window.’”
For more information, contact Kenneth Polishchuk and Raegina Likewise.