Student-loan borrowers filing their taxes through TurboTax this year will be encouraged to enroll in an income-based repayment plan, the Departments of Education and of the Treasury are expected to announce on Friday.
As part of the White House's efforts to raise awareness about income-based plans, the Obama administration has reached an agreement with lntuit Inc. to include a banner on its TurboTax tax-preparation website inviting users to learn more about their repayment options.
When borrowers click on the banner, they will be directed to the Education Department's repayment estimator, where they can receive estimates of their monthly payments under various income-based repayment plans, and apply for a plan.
Last year more than 18 million Americans used TurboTax online to prepare their taxes. Friday's announcement comes roughly two months after the Education Department announced that it would e-mail 3.5 million students to remind them that they might be eligible for income-based repayment.