Released: January 10, 2023

Biden’s new student loan repayment plan

Source: Danielle Douglas-Gabriel, Washington Post (Paid Registration)

Federal student loan borrowers could pay less money toward their debt and shorten the path to forgiveness under the terms of the Biden administration’s revamped income-driven repayment plan.

Those who borrowed $12,000 or less for undergrad or graduate school would receive loan forgiveness after making 10 years worth of payments, instead of 20 or 25 years. The plan would also cap payments for undergraduate loans to 5 percent of a person’s discretionary income instead of 10 percent.  The new proposal would also stop the accumulation of unpaid interest.

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