ICR represents a safety net for all students against crippling levels of debt while ensuring responsibility on the part of the student. ICR terms should be adjusted to dramatically lower both the size of the payment and the period of repayment before forgiveness. Two-way consolidation Allow consolidation from the Direct Loan program into the guaranteed program. Each program offers different services and options to students, and students should have the choice of consolidating in either program. Additionally, the Committee should take action to ensure that the students retain the rights to switch programs with a minimum of effort.
Consumer choice is essential to empowering the force of the marketplace.
Loan limits There should be no change to aggregate or annual loan limits with the exception of those loans to medical students previously eligible for the HEAL loan program. Any increase in loan limits will only further exacerbate the imbalance between grants and loans. Anything that can be done to decrease needless paperwork and simplify the application process will both benefit students and tax payers. Tax liability on loan forgiveness Students who receive loan forgiveness after 25 years of payment in the ICR program should not be taxed on the amount of loans forgiven. Taxing the amount forgiven as income negates the purpose of the loan forgiveness provision and places impossible burdens on individuals who can least afford additional liabilities.