Biden pushes new income-driven repayment plan as student loan bills loom for tens of millions
www.politico.com
The effort to boost enrollment in the income-driven repayment program comes as student loan payments resume for the first time since March 2020.

President Joe Biden on Tuesday launched a promotional blitz for his new program that helps student loan borrowers repay their debt, just weeks before millions of Americans are set to receive a loan bill for the first time since the beginning of the pandemic.

The Biden administration is mobilizing to convince borrowers across the country to sign up for the new income-driven repayment program — dubbed the “SAVE plan” — which caps interest accrual and lowers the monthly payment amount for many borrowers.

“It’s the most affordable student loan plan ever,” Biden said in a video released by the White House on Tuesday, describing the program as a major reform to a student loan system “that hurt borrowers for much too long.”

“If you’re eligible for the SAVE Plan, sign up now so you can lower your monthly payments in advance of payments resuming this fall,” Biden said.

  • LordR@kbin.social
    11·
    1 year ago

    unpopular opinion: if you take out a loan, you should have to repay it in full - alternately, dont buy what you cant afford to.

    • tallwookie@lemmy.worldEnglish
      1·
      1 year ago

      and again, students are an economic sink until they’re able to contribute to the economy. conversely, a business will always contribute to the economy - even a failing business pays their employees (or doesnt and the DoL sues them, then pays the employees).

      PPP loans were a stopgap measure to ensure that the economy didnt collapse when old people were dying in droves. literally all it was. PPP loans were forgiven because the national economy requires that businesses move money around - the “spice must flow”, if you will - and rightly so, because a business is useful, whereas students really arent.

      • LordR@kbin.social
        1·
        1 year ago

        You do realise that most people that have student loans controbute to the economy already because they work after studying for a short time?

        Those people can often barely afford to live because the companies that got PPP loans do not pay them a living wage. Those people can’t afford buying things which in fact is the only the only way that an economy works.
        Without consumption the economy crashes.

        Additionally the PPP loans didn’t have any oversight. Many business owners used them to buy a new car, a Yacht or other luxuries.
        Do you think it is fair to forgive loans for the rich but not the poor?