Staff Reports
Senate Majority Leader Chuck Schumer (D-NY) has thrown his support behind the Biden administration’s new income-driven student loan repayment plan, and he wants everyone to know it. In a statement, Schumer praised President Biden for taking action to alleviate the “crushing debt” that many borrowers face. He specifically highlighted the relief that will be given to low-income students, who will see their burdens cut in half, and to most other students, who will never have to pay more than 5% of their income. Schumer believes that this plan will bring relief to borrowers across the nation.
While Schumer is singing the administration’s praises, it’s worth noting that the plan does come with some legal concerns. As the fight to cancel student debt continues, there will surely be legal challenges to this plan. However, Schumer is confident that the Biden administration has done its due diligence in crossing all the legal “t’s” and dotting all the legal “i’s”.
In addition to Schumer’s support, the administration has also launched a new website that allows borrowers to apply for the modified income-driven repayment program. This program, known as the Saving on a Valuable Education (SAVE) plan, will lower monthly payments for qualified borrowers and shorten the time required for loan forgiveness. As repayment resumes in October, borrowers can visit the Federal Student Aid website to complete a quick application process.
Overall, it seems that the Biden administration is making strides in addressing the issue of student loan debt. However, it remains to be seen if these efforts will truly have a lasting impact. Only time will tell if President Biden’s plan is truly a step in the right direction or just another empty promise.
