This is honestly bigger than the $10-$20k for me (as someone who has much more debt than that).
Capping payments at 5% for IDR, and not allowing interest to accrue while making those payments is the real game changer and what they should be highlighting
Obviously the topline $10k-$20k forgiveness is going to get the headlines, but this income-based repayment plan rule will have a big impact for low and middle-income borrowers (especially straight out of college)
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To be clear, we should be cancelling all debt and it should never be this expensive to get an education. But this is not an insignificant thing and will be a game changer for many low-income borrowers.
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@yo_era_mark
@MilesPerHoward
Thank you. I thought so. I’m 71 and was a Pell Grant recipient in 1973. At that time my dad thought income based repayment was a good idea. Finally it’s here.
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@yo_era_mark
I wish this extended beyond undergraduate loans to graduate as well… this helps, but nowhere near enough and I am by far not the only one. It’s all a drop in the bucket.
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