What Does President Biden’s New Student Loan Repayment Plan Involve?

Contact Your Elected Officials
The Epoch Times Header

College graduates hope that a new student loan repayment plan recently proposed by President Joe Biden will be passed. The plan, proposed on Jan. 10, 2023, will bring considerable relief for many graduates by reducing their payments and possibly offering some form of debt forgiveness after so many years of payments.

The new proposal was created by the Department of Education and is an overhaul of another existing proposal—the Revised Pay As You Earn Repayment Plan, or REPAYE. The original plan was created in 2016. Currently, four other similar proposals have already been made.

The Reason Behind the New Repayment Plan

The Department of Education claims it is “the most affordable income-driven repayment (IDR) plan that has ever been made available to student loan borrowers.” One reason for the changes, the department says, is that even before the pandemic, more than one million borrowers a year were defaulting on their education loans, which left many owing more than their initial loan because of accumulated interest.

Many Payments to Be Reduced to Half—or Less

The feature of the new proposed plan that graduates will enjoy is that it will—if passed—cut their payments in half. Right now, they are paying 10 percent of their discretionary income. The new plan only requires student loan payments of 5 percent per month.

New payments are also going to be determined by income levels. Borrowers at the lowest income levels will see the biggest cut—up to 83 percent less. Those at much higher income levels can expect no more than a 5 percent reduction. Post college graduates will likely have their payments remain at 10 percent.

The average minority graduate, whether Hispanic, black, American Indian, or Alaska Native, will have their federal student loan payments reduced by half. If their income is in the range of the bottom 30 percent, they also will see payments drop about 83 percent.

By Mike Valles

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

America is facing what could be described as “disorganized troubles,” born of a feeling of powerlessness.

The US is seeing a pattern of consistent, politically motivated lone-wolf attacks, evident in events like the murder of Charlie Kirk on a campus in Utah.

A Bullet Is No Argument

Charlie Kirk’s sharp intellect and joyful debate style dismantled challengers’ arguments, making him a target for those opposed to truth and goodness.

Private Citizens Work to Solve the Kirk Assassination

Americans unite after the assassination of Charlie Kirk, scouring online videos for anomalies surrounding the shocking event.

24 Years Later and NEW 9/11 Information is Still Coming Out

New info from journalist Catherine Herridge reveals the 9/11 plot traces back to 1998, following the first failed terrorist mission in 1993.

The Reported Russian Drone Incursions Into Poland Might Have Been Due To NATO Jamming

Poland says it shot down Russian drones entering its airspace amid NATO drills, sparking debate over provocation, botched recon, or NATO jamming.

FBI Releases Images of ‘Person of Interest’ in Charlie Kirk Assassination

Conservative influencer Charlie Kirk was shot during an event in Utah on Sept. 10, and he has died.

Chris Pratt, Jason Aldean Among Celebrities Paying Tribute to Charlie Kirk

Actor Chris Pratt and singer Jason Aldean join many celebrities posting online tributes mourning the death of Turning Point USA founder Charlie Kirk.

Police Respond to Bomb Threat at DNC Headquarters

Law enforcement officers rushed to the DNC headquarters after learning of a potential bomb threat, a U.S. Capitol Police spokesperson said in an email.

Conservative Influencers Mourn the Loss of Charlie Kirk

One day after the assassination of conservative influencer Charlie Kirk, tributes and condolences are pouring in from his colleagues on social media.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.

Trump Runs out of Patience With China, Sharpens His Words

President Donald Trump’s recent remarks targeting China and its allies mark a noticeable shift in tone.

Trump Signs Order Renaming Department of Defense as Department of War

President Donald Trump on Sept. 5 signed an executive order renaming the Department of Defense as the Department of War.

Trump Signs Executive Order Targeting Countries That Unlawfully Detain Americans

President Trump signed an EO on targeting the unlawful detention of American citizens around the world and to facilitate the release of hostages.
spot_img

Related Articles

Popular Categories

MAGA Business Central