POLITICS: President Biden’s new student loan relief plan aims to provide significant debt relief to millions of Americans.
By Michelle Crawford-Sapenter
The debt cancellation plan proposes to cancel up to $20,000 of student debt for borrowers whose balances have grown due to unpaid interest after entering repayment.
A new Income Driven Repayment plan (IDR) plan, known as the SAVE plan, has been introduced. The new IDR plan caps monthly payments for undergraduate loans at 5% of discretionary income, ensures balances do not grow due to unpaid interest, and cancels debt for low-balance borrowers faster1.
In regard to the Public Service Loan Forgiveness plan, the administration has made fixes to the PSLF program, resulting in $69.2 billion in relief for 946,000 borrowers.
Biden’s plan includes the largest increase to Pell Grants in a decade, helping low-income students afford college.
Regarding the opt-out opportunity, the specific deadline for opting out of the relief plan has not been explicitly mentioned in the latest updates.
It’s important to stay informed through official channels like the Department of Education’s website for any announcements or deadlines.
Biden’s new student loan relief plans is meant to provide better options for student borrowers.
Comments