This repayment plan will only encourage universities to raise tuition in the near future which will harm incoming college students the most.
Currently, income-driven repayment plan (IDR) borrowers pay about 10% of their discretionary income over about 20 years, and whatever’s left—including all accrued interest—is forgiven.
But the new rules dramatically change the calculus:
- Payments are generally cut in half from 10% to 5% of income
- The payment period before forgiveness is cut in half from 20 years to 10 years
- The income under which payments are reduced to $0 is raised from 150% to 225% of the poverty line
- All payments, including “payments” of $0, trigger cancellation of that month’s interest.
Essentially, this repayment scheme would cost the taxpayer well over $100 billion and it is completely unfair to those who repaid their loans, who worked their way through college to avoid debt, who did not go to college because of the cost, or who joined the military for tuition assistance.
This bailout of big education must not go unchallenged. Until February 10th, YOU have the ability to STOP BIDEN’S BAILOUT by submitting a public comment opposing this gross overreach of power.
Your comments can be used by courts as justification for striking down the rule if it goes into effect, and if there is enough public pressure, it can be withdrawn before it even gets implemented.
DON’T WAIT! Submit a comment NOW and share the link with your friends.