For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income.This income-driven repayment plan will cut borrowers' monthly payments in half, help the typical borrower save more than $1,000 per year on payments, allow many borrowers to make $0 monthly payments, and ensure borrowers don't see their balances grow from unpaid interest. The Biden-Harris Administration today also finalized the most affordable repayment plan ever created, called the Saving on a Valuable Education (SAVE) plan. The Department will complete this rulemaking as quickly as possible. Following the public hearing, the Department will finalize the issues to be addressed through rulemaking and begin the negotiated rulemaking sessions this fall. The notice announces a virtual public hearing on July 18th and solicits written comments from stakeholders on topics to consider. The Department issued a notice, which is the first step in the process of issuing new regulations under this so-called "negotiated rulemaking" process. Today, the Department initiated rulemaking aimed at opening an alternative path to debt relief for as many borrowers as possible, using the Secretary of Education's authority under the Higher Education Act. COVID-19 exacerbated that challenge – risking tens of millions of borrowers' financial security and futures because of the economic harms brought on by a once-in-a-century pandemic. For too many Americans, a ticket to the middle-class remains out of reach because of unmanageable student loan debt. The President remains committed to providing relief to low- and middle-income borrowers. Approved more than $66 billion in loan cancellation for 2.2 million borrowers across the country, including public service workers and those who have been defrauded by their colleges.ĭebt Relief for As Many Borrowers as Possible, as Fast as Possible.Fixed broken student loan programs such as Public Service Loan Forgiveness, so borrowers actually get the relief they deserve.Secured the largest increases to Pell Grants in a decade.It also builds on the unprecedented steps President Biden and his Administration have taken to make college more affordable for working and middle-class families and make federal student loans more manageable. These actions reflect the President's belief that an education beyond high school should be a ticket to the middle class. In addition, to protect the most vulnerable borrowers from the worst consequences of missed payments following the payment restart, the Department is instituting a 12-month "on-ramp" to repayment, running from Octoto September 30, 2024, so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies. This plan helps the typical borrower save more than $1,000 a year. The Department of Education (Department) finalized the most affordable repayment plan ever created, ensuring that borrowers will be able to take advantage of this plan this summer-before loan payments are due.The Secretary of Education initiated a rulemaking process aimed at opening an alternative path to debt relief for as many working and middle-class borrowers as possible, using the Secretary's authority under the Higher Education Act.In light of the Supreme Court's ruling this morning, President Biden and his Administration have already taken two steps this afternoon aimed at providing debt relief for as many borrowers as possible, as fast as possible, and supporting student loan borrowers: President Biden will not let Republican elected officials succeed in denying hardworking Americans the relief they need. No President has fought harder for student debt relief than President Biden, and he's not done yet.
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