Abstract
This Comment suggests incentivizing accelerated repayment as a practical solution to provide relief to stakeholders in the federal student loan program. By using its existing legal authority, the Department of Education can permit borrowers to satisfy their loan obligations through partial overpayments. This strategy allows borrowers to play a more active role in expediting their loan repayment, benefiting both the borrowers and the Department.
I. Introduction
II. Postsecondary Education and Federal Student Loans ... A. Student Loans & the Federal Government: World War II through 2005 … B. Expanded Student Loan Repayment Options from 2005 to Today
III. Federal Student Loans as a Debt Instrument ... A. The Government-as-Insurer Model (FFELP) ... B. The Government-as-Bank Model (FDLP) ... C. Burdens on Federal Loan Servicing Partners
IV. The Obstacle Becomes the Way: Incentivizing Accelerated Repayment ... A. Existing Bifurcated Decision-Making Disincentivizes Overpayments ... B. Existing Legal Authority ... C. Using Existing Legal Authority to Incentivize Overpayment ... D. The Department Has Existing Tools and Can Evaluate Compromise Without Requiring Default or Bankruptcy ... E. Considering Time-Value of Money & Incentivizing Overpayment Will Benefit All ...
V. Biden v. Nebraska and Other Issues
VI. Conclusion
Recommended Citation
Steve Lydick,
Incentivizing Accelerated Federal Student Loan Repayment, a Small Change,
103 Neb. L. Rev. 507
(2024)
Available at: https://digitalcommons.unl.edu/nlr/vol103/iss3/5
