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Show Ford propose Pay, earn pt NEW YORK The Foundation todaV pubfe' major findings and I mendations of its task fow "pay-as-you-earn"(PAY0c;, of helping students fa'-education. fa'-education. The report sugr. colleges and universities adoption of modified PAYtv loan plans tied to the f Guaranteed Student Loan k as a means of expanding fc-financial fc-financial aid available n students. The principal features -report's recommended pt a fixed schedule of rep following graduation thai, increase in accord with s pected growth of the gt income. a guarantee by thett'-university thett'-university to absorb any fc insufficient repayment by r. whose incomes fail to uncord un-cord with the plan's m The modified PAYE plr-principal plr-principal recommendatm: report, which was prep: Bruce Johnstone andSfc' Dresch. Johnsotne, wtio t' became executive assisiir:: president of the Uniierj Pennsylvania, and Dun economist with the : Bureau of Economic Ps, were retained bv the ftps' 1971 to explore the usefe acceptability to students : PAYE principle. Their rep:' titled "New Patterns for 1 Income Contingent Loans published early next i; Columbia University Pis' report's principal firifcj recommendations were p:; ed early next year by University Press. The separatley by the Fount Mr. Johnstone and M' describe PAYE as a reliK concept in lending, vr referred to as t; ponement, deferred" contingent lending, or te you-go concept. "0'-, tional loan, which obfp borrower to a fixed & payments, an income c loan obligates the W some percent of f; income, with upper k. note. In other words, a redistributes re-distributes payments ofi: of time (10 years or accord with ability to P The modified of plan the authors reco' from the convent concept in that ij; . distribute payment accord with inco . according to a ft, schedule rising w growth in future e ventiona! PAYt P also guarantees not exceed so maximum per " Graduates whose , ij increase in accord , would be able to ; portion on an anJ, repayment pe;sJ standing debt. be forgiven and 3W college. J |
