Biden administration rewrites student loan safety net as debt cancellation falters in court
Restoring AmericaJan 10, 2023
The US Dept. of Education on Tuesday formally proposed a new repayment plan. The Biden admin. characterized the plan as a "student loan safety net" that will lessen the likelihood of borrowers getting overwhelmed by debt.
This proposal includes a change that would raise the threshold for being required to make payments, with single borrowers making less than $30.6K per year being able to put off repayments — an increase from the current threshold of $24K.
With his broader student-loan forgiveness plan having been ruled illegal in the lower courts, coupled with not standing much of a chance before the conservative-majority Supreme Court, Biden is trying another way to let liberal borrowers off the hook at taxpayer expense. Every Biden plan seems intent on bankrupting the country rather than tackling the root problems of tuition costs and the student-loan system.
Biden is trying to fulfill his promise to make the student-loan system more manageable and unburden those buried in student debt. This is the most consequential move he’s made yet, as this plan will become a permanent fixture to help current and future borrowers — from all walks of life and of all political persuasions — to cut their monthly federal payments by half or more.