Biden Admin Unveils Plan To Slash Student Loan Monthly Payments

[mystery-ak]

Biden Admin Unveils Plan To Slash Student Loan Monthly Payments


Alexa Schwerha
Contributor
January 10, 2023 9:27 AM ET
Font Size:

The United States Department of Education (DOE) proposed a regulation Tuesday morning to revise student loan repayment plans to reflect borrowers’ income.

The plan intends to reduce student loan repayments for the middle and lower class by amending the Revised Pay As You Earn (REPAYE) plan, which “is a repayment plan with monthly payments that are generally equal to 10% of your discretionary income, divided by 12,” according to its website. The proposal would permit individual borrowers who earn less than $30,600 per year and any borrower in a family of four who makes less than $62,400 to choose a $0 monthly plan, Tuesday’s announcement read.

The proposal would cut in half the monthly payments for undergraduate borrowers who would not qualify for the $0 monthly plan and would stop borrowers’ balances from increasing due to unpaid interest.

“Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before,” U.S. Secretary of Education Miguel Cardona said in the announcement. “We cannot return to the same broken system we had before the pandemic, when a million borrowers defaulted on their loans a year and snowballing interest left millions owing more than they initially borrowed. These proposed regulations will cut monthly payments for undergraduate borrowers in half and create faster pathways to forgiveness, so borrowers can better manage repayment, avoid delinquency and default, and focus on building brighter futures for themselves and their families.”

more
https://dailycaller.com/2023/01/10/education-department-income-driven-student-loan-repayment-biden/

[Hoodat]

Try getting Congress to approve that.

[mystery-ak]

Feds propose ‘student loan safety net’ alongside forgiveness
By COLLIN BINKLEY

WASHINGTON (AP) — The White House is moving forward with a proposal that would lower student debt payments for millions of Americans now and in the future, offering a new route to repay federal loans under far more generous terms.

President Joe Biden announced the repayment plan in August, but it was overshadowed by his sweeping plan to slash or eliminate student debt for 40 million Americans. Despite the low profile of the payment plan, however, some education experts see it as a more powerful tool to make college affordable, especially for those with lower incomes.

Education Department officials on Tuesday called the new plan a “student loan safety net” that will prevent borrowers from getting overloaded with debt.

“Student debt has become a dream killer,” Education Secretary Miguel Cardona said. “This is a promise to the American people that, at long last, we will fix a broken system and make student loans affordable.”

Biden, a Democrat, is moving forward with the repayment plan even as his one-time debt cancellation faces an uncertain fate before the Supreme Court. The White House has asked the court to uphold the plan and reject two legal challenges from conservative opponents. The Biden administration submitted its brief last week, with oral arguments slated for Feb. 28.

more
https://apnews.com/article/biden-politics-united-states-government-miguel-cardona-business-73dcbf54ddb3b53c9c3c5468cfdec3b9?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_07