• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Bautis Financial

Bautis Financial

Secure your Castle, Achieve your Dreams.

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Biden Administration Proposes New Student Loan Repayment Plan

January 11, 2023 by Bautis Financial
New Student Loan Repayment Plan

In an effort to prevent federal loans to students from ballooning, the Biden administration has proposed a new student debt revamp, which could halve the amount of discretionary income borrowers must pay on their debt each month.

While the Biden administration’s student loan debt relief plan is held up in court, the Education Department is moving ahead with another student debt revamp to lesson the burden for borrowers.

Under the proposal, the administration of President Joe Biden would overhaul one of the existing income-driven repayment plans, known as Revised Pay As You Earn or REPAYE, which caps borrowers’ bills at a percentage of their discretionary income.

The new REPAYE plan would aim to reduce monthly obligations by as much as a half, according to a fact sheet from the Education Department. It says that a typical graduate from a four-year public university could save around $2,000 annually under the new plan.

Currently, the most affordable income-driven repayment plan requires borrowers to pay 10% of their discretionary income each month to their student debt. This change would lower that ceiling to 5%.

According to Mark Kantrowitz for CNBC, a higher education expert, the plan should officially be available July 1, 2024, but some parts may be implemented sooner.

As for the broader student loan cancellation plan, the Supreme Court is expected to hear the case next month.

Related: What We Know About The Student Loan Debt Relief Plan

Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:

Bautis Financial’s Amazon Alexa Daily Flash News Briefing
Category: Finance NewsTag: Biden Administration, Student Loan Debt, Student Loans
Previous Post: « How to Create A Financially Organized Life How to Create A Financially Organized Life
Next Post: CPI Report Shows Inflation Slowed for Sixth Straight Month in December December 2022 CPI Report »

Subscribe to Our Insights

Sign up to receive valuable financial insight and updates straight to your inbox each week.

Social

Follow along on social media

Contact

Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
Get directions
862-205-5800
Contact

Navigation

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Copyright © 2023 · Bautis Financial · All Rights Reserved · Powered by Mai Theme

Return to top