Reading Eagle: U.S. Rep. Costello aims to ease student loan burden
As published in the Reading Eagle
U.S. Rep. Ryan Costello wants to make things a little easier for young people saddled with loan debt.
The Chester County Republican, who represents part of Berks County, is calling on the Department of Education and the Department of Treasury to create a multiyear consent option for borrowers in income-driven repayment plans to simplify the process and cut costs.
Costello paired up with Oregon Democrat Suzanne Bonamici to pen a letter asking for the policy to be changed. The effort has won the support of 30 of their colleagues, representing both sides of the aisle.
Currently, borrowers in income-driven repayment plans must submit annual income information in order to continue to make affordable payments. But, according to sample data provided by the Department of Education, more than 55 percent of borrowers end up missing the deadline to recertify their income.
When borrowers miss the certification deadline, Costello said, monthly payments can increase by hundreds or thousands of dollars.
Costello said someone should not be financially penalized for missing the recertification deadline. Sudden increases in payments can trigger a series of negative consequences for borrowers who already are struggling to pay down their student loan debt.