New Proposal Could Benefit Student Loan Borrowers

The proposal would also focus on assisting low and middle-income borrowers. The plan reportedly would create a "true student loan safety net."

The Biden Administration have presented a new proposal that would benefit student loan borrowers.

The new proposal would lower federal student loan payments for some Americans as well as pause payments completely for anyone making less than $30,600 a year.

By making changes to the existing income-driven loan repayment plans, the administration is hoping to change college financing and reduce future borrowers total payments by $0.40 per dollar.

The proposal would also focus on assisting low and middle-income borrowers. The plan reportedly would create a “true student loan safety net.”

The Department of Education said this would be a significant step in the Biden Administration’s efforts to make higher education more affordable.

The administration is expecting feedback with a 30-day public comment period. A final decision will be released later this year, but an official date has not yet been decided.