A Biden plan reduces millions of people’s student loan payments to zero. Will it lead to the next court case?
On October 21, 2022, in Dover, Delaware, President Joe Biden speaks about reducing student loan payments. Millions of Americans with student loans payment will have the opportunity to apply this summer for a new repayment plan that features some of the most forgiving conditions ever. As long as borrowers pay their debts on time, interest won’t accumulate. Payments to millions of people will be zero dollars. The student loan payments on undergraduate loans will also be halved starting in 2024.
The Biden administration refers to it as a “student loan safety net,” while detractors refer to it as a sneaky ploy to subsidize higher education. And it might serve as the site of the upcoming court case about student loan payment relief.
Millions of Americans with student loans payments will have access to a new repayment option
Beginning this summer, a new repayment program with some of the most generous conditions ever will be available to millions of Americans with student loan payments. As long as borrowers make regular student loan payments, interest won’t accumulate. Monthly payments will be halved for millions of people. And any outstanding debt will be forgiven in as little as 10 years.
The SAVE Plan was introduced last year, but President Joe Biden’s idea for a widespread student loan payment cancellation has largely eclipsed it. But now that Biden’s forgiveness scheme has been rejected by the Supreme Court, the payback alternative is taking the lead.