Students who take out less than $12,000 or less would have all of their debt canceled after 10 years under the new plan.
The Education Department announced Monday a proposal to cut undergraduate student loan repayments in half and stop unpaid interest from being charged.
While the Biden administration’s student loan forgiveness plan is stalling in court, the department is moving forward with restructuring loan repayments in line with the president’s executive order.
Right now, borrowers earning less than $20,400 annually do not have to make student loan payments and monthly payments are limited to 10% of a borrower’s discretionary income, according to the Associated Press.
The new plan would not require payments from borrowers making less than $30,600 a year and the monthly payments will be capped at 10% of a borrower’s income.
“Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before,” Education Secretary Miguel Cardona said. “We cannot return to the same broken system we had before the pandemic, when a million borrowers defaulted on their loans a year and snowballing interest left millions owing more than they initially borrowed.”
What gets me is, these universities have been overcharging for decades. Then the government feels the need to step in and use tax money to help these students. Why not regulate these universities. You regulate everything else? No, because Academia gets away with murder
I will say that years ago when I took out my loans to pay for college, my father had a sit down with me to explain my obligations. He flat out told me to not take the loans if I didn’t intent to get a job that would pay them off.
Fast forward to today, when I overheard a coworker remark that his loans should be forgiven or at the least halved. You should have seen his face when I simply said, “You took out the loan, and it’s your responsibility to pay it back. Its your responsibility, not mine.”
…it was real quiet after that….