The Biden administration has released proposed regulations governing a new federal student loan repayment for borrowers that will be based on their income. The plan will lower payments for millions, according to Education Department, and will speed up student loan forgiveness for many, as well. The plan is being released just as the administration ramps up the IDR Account Adjustment — a separate initiative that will bring millions of additional borrowers closer to student loan forgiveness under income-driven repayment (IDR) plans.
“Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before,” said U.S. Secretary of Education Miguel Cardona in a statement on Tuesday. “These proposed regulations will cut monthly payments for undergraduate borrowers in half and create faster pathways to forgiveness, so borrowers can better manage repayment, avoid delinquency and default, and focus on building brighter futures for themselves and their families.”
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