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Biden administration forgives $39 billion in student debt for more than 800,000 borrowers (www.cnbc.com)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 30 points 1 year ago (18 children)

It is great but as long as new debt will be immediately acrued by current students this is just a temporary fix. Or is there anything planned how to deal with that?

[–] Electricdoggo 31 points 1 year ago* (last edited 1 year ago)

It’s a new payment plan, so applies to new student debt as well.

If I’m reading the StudentAid.gov correctly, the SAVE plan has the following:

Increase in income exemption to 225% of poverty line (~$66k/yr for family of 4, ~$32k for single filer, no dependents)
Undergraduate Loans now are 5% of AGI above exemption limit
No interest accrued if you make your monthly payment
After 10 yrs of payment, if principle loan was $12k or less, loan is forgiven. Payment period increases by 1 yr for every $1k over that amount (e.g. for $20k loan, forgiveness after 18 yrs)

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