On the recordApril 29, 1998
the purpose of this second amendment is to build on that base by specifying two things. One is that I believe that loans under the FFEL program should also have the income-contingent loan feature without consolidation, as this bill would now call for. And second, I believe in a different structure of income-sensitive repayment. I think there should be a specific gradation where the student's income is then tied to a percentage repayment. My proposal calls for students making a taxable income of $20,000 or less to pay 3 percent of their income as their repayment. Students making $40,000 or less and down to $20,000, to pay 5 percent, and have similar gradations beyond that. I believe that when this issue is fully scored by the Congressional Budget Office, it will show a very, very nominal cost, and yet have a great benefit for students as it will permit them to repay their loans in rising payments as their incomes rise.
Source
govinfo.gov
