The White House is taking steps to reduce student debt payments for millions of Americans. The Education Department has proposed a “student loan safety net” that would prevent borrowers from getting overloaded with debt.
The plan was announced by President Joe Biden in August, but it was overshadowed by his proposal to slash or eliminate student debt for 40 million Americans. The new plan would offer a more generous repayment route for federal loans.
Education experts believe the repayment plan could be a more effective tool to make college more affordable, particularly for those with lower incomes. The plan would allow borrowers to make payments based on their income, and would also forgive any remaining debt after 20 or 25 years of payments.
The White House is currently working with Congress to make the plan a reality. If passed, the plan could provide relief to millions of Americans struggling with student debt. It could also make college more accessible for those who may have been deterred by the cost of tuition.
The Education Department is hopeful that the plan will be approved and implemented soon. It could be a major step forward in helping Americans manage their student debt and make college more affordable.
Key takeaways:
- The White House is taking steps to reduce student debt payments for millions of Americans.
- The plan would allow borrowers to make payments based on their income, and would also forgive any remaining debt after 20 or 25 years of payments.
- The Education Department is hopeful that the plan will be approved and implemented soon, which could provide relief to millions of Americans struggling with student debt.
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