- Financial Survival Network
- Posts
- Biden Admin’s New Student Loan Plan Will Involve Zero-Dollar Payments for Millions, No Penalties for a Year
Biden Admin’s New Student Loan Plan Will Involve Zero-Dollar Payments for Millions, No Penalties for a Year
by Reagan Reese DailyCaller.com
The Biden administration is planning to use a generous income-driven repayment plan as its main method of easing student loan debt following the Supreme Court’s Friday ruling that blocked the administration’s plan to grant student loan forgiveness to nearly 40 million Americans.
The Supreme Court ruled 6-3 that the Biden administration cannot use executive power in order to cancel up to $10,000 in student loan debt for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients. To circumvent the Supreme Court’s ruling, the Department of Education (DOE) plans to use the Higher Education Act as well as expand income-driven repayment plans, which would cut payments for those making $32,800 or less annually to $0, according to a Saturday press release.