Biden Puts Forward New Student Loan Payment Proposal

New plan could reduce payments for future borrowers by 40 percent, or as much as 83 percent for low-income borrowers

  • 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.