President Joe Biden’s plan for eliminating all student loans. Yet, considering that Biden’s forgiveness scheme has been rejected by the Supreme Court, the repayment of a substitute is gaining the most attention.
President Joe Biden’s plan for eliminating all student loans. (Photo: WABE)
Biden Proposed Debt Cancellation
Notwithstanding the decision that was rendered, Biden has proposed an alternate method to debt cancellation and turned the focus to a less commonly recognized program.
In a published article in The Advocate, effective this coming summer, millions of Americans with student loans will be able to participate in a new repayment plan with some of the most favorable conditions in history. Lenders will not accrue interest as long as they make monthly payments. Millions of people will have their monthly payments dropped to zero. And any residual debt will be eliminated in as little as ten years.
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Finalizing the Plan
The Congressional Budget Office had originally anticipated that the scheme would run up against $230 billion throughout the course of the next ten years, and this would be substantially greater now that the forgiveness plan has been rejected. According to University of Pennsylvania experts, the cost might reach $361 billion.
As a result, the Biden Administration is going to wrap up this plan of action this month.
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