Meanwhile, there are about 8 million Americans currently in default on their federal student loans, according to the Department of Education. They can refinance with a private lender — but only if they qualify, usually by showing high income and good credit. Clinton’s plan would likely allow them to refinance with the federal government.
It could make loan payments more manageable, but the effect is small, wrote Susan Dynarski, a professor of economics, public policy and education at the University of Michigan.
Cutting the interest rate by about 2% on a $20,000 loan for example, only reduces the monthly payment by $20 if the borrower is paying it off in 10 years, according to her paper.
The U.S. does offer income-based repayment plans for those who apply, but it’s not available to everyone. Payments are set at 10% of disposable income from the previous year, which could hurt those borrowers who don’t have steady pay. It also requires the borrower to opt-in by reapplying annually, or every time their income changes, in order to adjust the loan payment. 2. Ask the college for more money weiterlesen

