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"For those employees, greater repayment flexibility will be provided on an individual basis".
But a simpler rule could better assure borrowers' ability to repay and simultaneously create greater repayment flexibility.
This framework demonstrates that non-monetary costs of applying for income-based repayment assistance are critical to understanding why resources other than earnings lead to greater repayment.
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Due to the nature of student loans, many of them come with great repayment benefits.
"We've had a remarkably low delinquency rate compared to industry standards," says Lee. "We kind of expected this," he adds, noting that in other areas, like microfinance, where this model has been tried, lenders are seeing great repayment rates on what would have otherwise been considered risky loans.
Capital repayment mortgages provide greater certainty and security for the borrower and the lender.
It could also offer "capital repayment holidays on existing loans" for six month, for firms in the greatest difficulties.
But Lamidey's argument is that 94% of CFA customers report satisfaction, a verdict resting on greater transparency, prompt repayment rates and only – on average – two rollovers per loan; ie the loan rolled over for another month.
Analysts said her comments indicated that she was ruling out a plan that simply cut the total amount of debt but that she could be more open to possible concessions such as greater flexibility in repayment or lower interest rates.
The risk is great that the repayment is yet another step back to a status quo that served the bankers so well and everyone else so poorly.
It fulfills a promise — made in a chipper, animated advertisement posted to Mr. Obama's YouTube channel in 2011 — that graduates would not have to make student loan repayments greater than 10percentt of their income.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com