[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-325907-105":3,"detail-sidebar-cat-0-en-105":79,"doc-detail-325907-en":129},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":72,"head_meta":74,"extra_data":76,"updated_unix":78},105,"en","ed-believes-income-contingent-loans-are-the-wave-of-future-cont","ED BELIEVES INCOME CONTINGENT LOANS ARE THE WAVE OF FUTURE - Cont.","","A policy update describes the U.S. Education Department’s intent to expand income contingent loans, building on a $5 million pilot and a broader plan for administering revolving funds within the NDSL framework. Officials outline a five-year demonstration allowing up to 10 institutions to receive $500,000 each, with income-sensitive repayment schedules and defined interest and hardship provisions. The document also weighs administrative complexity for colleges and discusses expected benefits versus the Guaranteed Student Loan program, citing long-term student earnings and federal budget impacts.",{"@graph":14,"@context":71},[15,34,54],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/ed-believes-income-contingent-loans-are-the-wave-of-future-cont/325907/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":48,"encodingFormat":47,"isAccessibleForFree":49,"interactionStatistic":50},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/ed-believes-income-contingent-loans-are-the-wave-of-future-cont/325907.png","ImageObject",300,407,{"name":42,"@type":43},"Eden","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-21",true,{"@type":51,"interactionType":52,"userInteractionCount":4},"InteractionCounter",{"@type":53},"ViewAction",{"@type":55,"mainEntity":56},"FAQPage",[57,63,67],{"name":58,"@type":59,"acceptedAnswer":60},"What is the Education Department planning to do with income contingent loans?","Question",{"text":61,"@type":62},"It is preparing to expand the Income Contingent Loan program after an initial pilot, including seeking Congressional authorization to let participating institutions administer their NDSL revolving funds in terms similar to the pilot.","Answer",{"name":64,"@type":59,"acceptedAnswer":65},"How will students’ repayments work under the income-sensitive plan?",{"text":66,"@type":62},"Students will set an acceptable payment schedule with their institution after leaving school. Payments can be spread out indefinitely, loans carry an interest rate 3% above the 91-day Treasury Bill, and hardship deferments are available with no minimum payment while annual payments cannot exceed 15% of income.",{"name":68,"@type":59,"acceptedAnswer":69},"Why might colleges find the ICL program difficult to administer?",{"text":70,"@type":62},"Income records must be checked each year to recalculate payments, which can be a burden for institutions. Some observers express doubts about administrative capacity and whether sufficient proof of effectiveness will be available before expansion.","https://schema.org",{"og:url":32,"og:type":73,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":75,"canonical":32},"index,follow",{"doc_id":77,"site_id":7},325907,1789971699,{"code":4,"msg":80,"data":81},"success",[82,86,90,94,99,104,109,113,118,121,125],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":83,"show_sort_weight":84,"slug":85},"Story & 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FUTURE\n\nAlthough the first income contingent loan will not be awarded until the fall of1987,the Education Department already is hoping to expand the $5 million pilotprogram。  \nEducation Secretary William Bennett,in a speech earlier this week,said hewill ask Congress to allow institutions involved in the National Direct StudentLoan(NDSL)program to administer their NDSL revolving funds in\"terms similar\"to the income contingent pilot program.Bennett said that about $900 millionis involved in the NDSL revolving fund.  \n\"I am making this request in the interest of helping to ease the current loanburden on government and students,\"Bennett said in a speech at Catholic Uni-versity in Washington,D.C.\"And I am asking to do it as a contribution toshaping the student loan programs of the future.\"  \nExpansion Proposal Likely      In addition,Assistant Secretary C.RonaldKimberling,in an intervlew yesterday,said it is no secret that ED is likelyto propose an expansion of the Income Contingent Loan(ICL)program in itsfiscal 1988 budget proposal.ED first proposed the ICL program in its fiscal1987 budget as a replacement for the NDSL program.  \nBruce Carnes,ED's deputy undersecretary for planning,budget and evaluation,c-lled the ICL program \"the most significant new development at the federallevel in student aid,probably since the federal government got into studentaid.\"He added,\"It is,we believe,the wave of the future.\".  \nED has begun distributing a\"Dear Colleague\"letter,explaining the ICL programand requesting applications.The five-year pilot project,as authorized in theHigher Education Amendments of 1986,P.L。99-498,wi1i allow up to 10 insti-tutions to receive $500,000 each to award student loans that may be paid backon an income-sensitive basis(HED,Nov.20)。  \nStudents will work out an acceptable payment schedule with their institutiononce they leave school.The income-based payments may be spread out indefi-nitely,and each loan will carry an interest rate 3 percent above the 91-dayTreasury Bil1.There is no minimum payment,yearly payments may never exceed15 percent of an individual's income and hardship deferments will be available。  \nEligible institutions must participate in current campus-based student aid pro-grams,according to Kimberling.The best candidates for the program will bethose with a proven track record on the NDSL program,Kimberling added,notingthat colleges with low default rates and good audit records are preferable.  \n(more)  \n# ED BELIEVES INCOME CONTINGENT LOANS ARE THE WAVE OF FUTURE(Cont.)\n\nED will issue its proposed selection criteria in January,according to Bennett.The application procedures themselves will be outlined in a Federal Registernotice.  \n\"Institutions wishing to apply for participation need only submit a one-pageapplication form obtainable from the Department and a letter outlining certainspecifics of the institution's plans for the demonstration project,\"accordingto the Dear Colleague letter.ED plans to select ICL institutions in April anddistribute funds to those colleges in July.  \nED expects a significant amount of interest in the ICL program from the highereducation community.Indeed,Dallas Martin,executive director of the NationalAssociation of Student Financial Aid Administrators,said a number of schoolshave contacted him for information about the program.  \nComplex ProgramHowever,Martin added,not all colleges will have themanpower and administrative sophistication to run a program as complex as theICL。Income records must be checked each year to reformulate an individual'spayment and that may be a burden for many institutions,he said.  \n\"For some institutions,it is a good plan,but I don't think it is viable foral1,\"Martin said.  \nMartin added that he has \"big doubts\"that ED will be able to convince Congressto expand the program before it has begun.Members of Congress will probablyexpect some proo","cbCaifV1V5RhJdwc","https://ap.wps.com/l/cbCaifV1V5RhJdwc","pdf",1250355,"English","# ED BELIEVES INCOME CONTINGENT LOANS ARE THE WAVE OF FUTURE\n## Expansion Proposal Likely\n## Complex Program\n## Still Room For GSL\n# IRS OFFICIAL WARNS COLLEGES TO PREPARE FOR HEARINGS ON NONPROFIT BUSINESSES","[{\"question\":\"What is the Education Department planning to do with income contingent loans?\",\"answer\":\"It is preparing to expand the Income Contingent Loan program after an initial pilot, including seeking Congressional authorization to let participating institutions administer their NDSL revolving funds in terms similar to the pilot.\"},{\"question\":\"How will students’ repayments work under the income-sensitive plan?\",\"answer\":\"Students will set an acceptable payment schedule with their institution after leaving school. Payments can be spread out indefinitely, loans carry an interest rate 3% above the 91-day Treasury Bill, and hardship deferments are available with no minimum payment while annual payments cannot exceed 15% of income.\"},{\"question\":\"Why might colleges find the ICL program difficult to administer?\",\"answer\":\"Income records must be checked each year to recalculate payments, which can be a burden for institutions. Some observers express doubts about administrative capacity and whether sufficient proof of effectiveness will be available before expansion.\"}]","ED BELIEVES INCOME CONTINGENT LOANS ARE THE WAVE OF FUTURE - Cont. | PDF",13]