The Department of Education released a new student loan payment proposal on Tuesday that would decrease or pause the payments for American borrowers.
Under the proposed regulations, borrowers making less than $30,600 — or families of four who make less than $62,400 annually — would be allowed to effectively pause their payments.
For undergraduate loans held by borrowers that make more than the aforementioned amounts, monthly payments would be cut in half.
The new income-driven repayment plan would save nearly $2,000 for a typical graduate of a four-year public university compared to the current income-driven repayment plan.
