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Simplification of the Borrowing and Repayment Process
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Simplify the Borrowing and Repayment Process 

+ “Borrower Advocacy” is an important concept among EFC member organizations. In an effort to improve borrower experience and outcomes, EFC members counsel borrowers throughout all stages of the education financing process — from when they first begin researching loan options until they successfully make their last payment. To improve outcomes and the borrower experience, Congress should consider simplifying the borrowing process and streamlining the repayment process, as too many options invite borrower confusion.

+ EFC also recommends that ED and the Treasury Department (Treasury) allow student loan borrowers to give ED advance permission to automatically access their tax information for the limited purpose of determining eligibility and/or monthly payment amounts for all IDR plans (often referred to as “multi-year consent”), rather than requiring borrowers to proactively submit updated income information every year. Implementing multi-year consent for IDR plans would help ensure that struggling borrowers are able to keep their monthly loan payments manageable and avoid delinquency and default. It would also significantly reduce the administrative burden on borrowers and servicers. ED has expressed consistent support for this change, and we urge Treasury to work with ED to establish multi-year consent as soon as possible.

+ To improve outcomes and the borrower experience, Congress should consider simplifying the borrowing process and streamlining the repayment process, as too many options invite borrower confusion. EFC supports S.85, the Repay Act of 2015, introduced by Senators Angus King (I-ME) and Richard Burr (R-NC). Additionally, EFC strongly supports offering federal student loan borrowers the option to automatically re-certify their eligibility for IDR plans.