The White House is moving forward with a proposal that would lower student debt payments for millions of Americans now and in the future.
It's offering a new route to repay federal loans under far more generous terms. President Joe Biden announced the plan in August, but it was overshadowed by his sweeping plan to slash or eliminate student debt for 40 million Americans.
The Department of Education estimated that under the new plan, the lowest-income borrowers would see their payments fall by about $0.83 per dollar they owe. The highest-income borrowers would see payments per dollar fall by about $0.05.
Education Department officials on Tuesday called the new plan a "student loan safety net" that'll prevent borrowers from getting overloaded with debt.
The "safety net" will require smaller minimum payments from borrowers, which includes $0 in payments from low-income Americans.
Debts could also be forgiven sooner, between 10 and 20 years after they were taken out, and interest accrual will be held at bay by forgiving unpaid interest so long as borrowers make their payments on time.
The Democratic president is moving forward with the repayment plan even as his one-time debt cancellation faces an uncertain fate before the Supreme Court.
