The US Education Dept. is moving to make things easier for low income people with loans to make payments….
The President IS doubling down on offering help to student loan debt relief which affects MILLIONS of Americans and hundreds of BILLIONS of dollars and effects the American Economy…
Biden IS being fought by Republican states , which do NOT want ANY relief given to people with the debt…
Any relief offered ?
They want a tax piece out of…..
The Biden administration on Tuesday released a detailed plan that will make it easier for student-loan holders to wipe out their debts using income-driven repayment plans.
The proposed rule from the Education Department is a key step in overhauling the $1.6 trillion federal loan program that has left millions with ballooning debts. The administration first announced the change in August when it unveiled its plan to cancel up to $20,000 in student debt for qualifying borrowers. The Supreme Court plans next month to take up a challenge to that broader debt-forgiveness, which is frozen after being blocked by lower courts.
Income-driven repayment plans were designed to help lower earners borrow for college, but few have been able to use them effectively because of technical problems and onerous amounts of income-verification paperwork. If enacted, the proposed changes would provide qualifying borrowers with significantly more-generous options that could leave them debt-free sooner, while paying off only a fraction of their total loan balances.
To prevent student-debt balances from ballooning in the future, the administration plans to halve, to 5% from 10%, the amount of discretionary income borrowers must pay each month on their undergraduate loans if they are enrolled in an income-driven repayment plan. Borrowers with incomes below 225% of the federal poverty line wouldn’t have to make monthly payments on their loans. The administration estimated that that level corresponds to an individual income of less than roughly $30,600 annually or any borrower in a family of four who makes less than about $62,400 a year….
…
“We are, for the first time, creating a student-loan safety net in this country,” said Education Department Undersecretary James Kvaal.
The proposed rule now must go through a 30-day public-comment period, after which the department can release a final rule.
Borrowers and members of both parties in Congress have criticized the existing income-driven repayment program as broken…