Why Biden's plan to make monthly student-loan payments cheaper could end up sticking borrowers with the same repayment struggles they've had for decades

Quick Summary:

Biden introduced a new plan to lower student-loan borrowers' monthly payments, but one expert worries it "doubles down on a failed system".

And in April 2022, an NPR investigation revealed a host of issues with IDR plans over the past decade after only 32 borrowers were found to have qualified for full loan forgiveness.

"The Biden plan will transform IDR from a safety net that supports borrowers with low incomes into a substantial subsidy for most undergraduate students who take on debt," the analysis said.

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Article Details

Category: EconomyBusiness

Markets: United States

Topics: Student Debt Economy Politics Miguel Cardona Policy Incomes Student Loans Student loan forgiveness Education Department Biden

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2023-02-04 @ 12:40:00 (1 months ago)

News Timezone: GMT -5:00

News Source URL: businessinsider.com

Language: English

Article Length: 1105 words

Reading Time: 7 minutes read

Sentences: 61 lines

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Copyright Owner: © Business Insider

News ID: 5154078

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