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The American Underground @lemmy.world

Income Based Repayment Plans Lose Federal Support

Looks like the Administration has ended support for IBR Plans.

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans. As a result, the IDR and online loan consolidation applications are temporarily unavailable.

https://studentaid.gov/idr/

For those unfamiliar with Income Based Repayment plans, these programs provided lower payments based on the person's income, it was like a max percentage. If that percentage didn't cover the base interest on the loans you had, this program would cover that difference.

In 2023 the U.S. had 1.6 Trillion in Student Loans. In my opinion, this is either going to stagnate the already sluggish market, putting further strain on borrowers, or, optimistically, this will encourage job creation, entrepreneurship, and the extra will be split between investment into America and paying down our debt ratio.

I haven't seen much coverage on this - have you read about this and what are your thoughts?

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