A recently released report from the New America Foundation, a nonpartisan public policy institute
"Safety Net or Windfall?" conjectures on the unintended consequences of proposed changes to IBR, and gives some counterproposals. First, the unintended consequences:
It is likely that the changes to IBR will make graduate and professional students less sensitive to tuition costs.
We also expect that the changes will encourage schools, particularly graduate and professional schools, to market IBR’s benefits to prospective, current, and graduating students as a means of financing higher tuition and fees instead of attempting to make the schools more affordable.
The counterproposals are a mixed bag for veterinary graduates:
-new, more lenient repayment terms only available to lower income (<3x poverty level), lower balance (<$40,000) grads
-married borrowers must base payment on household income, not individual income (eliminates the Mrs. degree)
-eliminate taxation on balance forgiven
-make the new terms available to all borrowers, not just borrowers after a certain date