turning now to politics,
the biden administration is making a splash with a new plan to reform student loans
lisa. Benetton is live in Washington D. C.
And she is digging into this plan for us Alisa. What are we learning about this plan?
Well, if you have student loans, you'll want to listen to this.
Today,
the biden administration released a detailed plan that
will make it easier for student loan bars to
get rid of their debt using income driven repayment
plans and could cut some payments in half.
So here's what you I want to know.
The administration would amend an existing plan that caps
bars bills at a percentage of their discretionary income.
The new plan would reduce the monthly bills for certain federal student loan bars
in order to prevent unpaid interest accumulation.
Specifically,
it would lower payments for qualifying bars to
5% of their discretionary income from 10%.
The Education Department says that under the proposed plan,
a typical graduate from a four-year public university could save $2,000 a year.
And a borrower who earns less than 30,500 per year would not
be required to make monthly payments on their loans at all.
And the administration plans to finalize this rule later this year.
Now the proposal is of course part of a broader effort by the administration that
we've seen to fix the student loan repayment
system and make higher education more affordable.
But they've run into a few roadblocks. We've covered a lot on cheddar news.
Remember the Supreme Court is planning just next month
to take up a challenge to Biden's debt relief program
just currently on hold after being blocked by lower courts.
Thank you so much lisa Benetton live from D. C.