Biden Admin Proposes Student Loan Payment Changes As Debt Plan Stalls In Court

US President Joe Biden speaks about the situation in Poland following a meeting with G7 and European leaders on the sidelines of the G20 Summit in Nusa Dua on the Indonesian resort island of Bali on November 16, 2022. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

At a glance

  • The U.S. Department of Education unveiled a new regulatory proposal Tuesday that makes significant changes to a federal program designed to accommodate the financial situations of student loan borrowers with low incomes.
  • The proposed regulations, which now enter a 30-day period of public comment, modify the rules governing the Federal Student Aid office’s income-driven repayment program. Under the proposal, borrowers with an annual income of less than $30,600 will not have to make any monthly payments.
  • For all other borrowers on an income-driven repayment plan, the new regulations would reduce their monthly payments from 10% of their monthly income above the poverty line to 5%.

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