Biden's New Student Loan Forgiveness Plan (Story) 

President Biden announced details on his new plan. This is what you need to know about it.

Biden's new student loan forgiveness plan is not actually new.It is a number of revisions to revised pay as you earn (REPAYE).

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The Big Student Loan Plan Change

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What To Do?

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Change #1

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Plan Change #2

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Plan Change #3

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Plan Change #4

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Plan Change #5

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Confused on what you should do? Swipe up to get free help!

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President Biden announced details on his new plan. This is what you need to know about it.

Biden's new student loan forgiveness plan is not actually new.It is a number of revisions to revised pay as you earn (REPAYE).

The Big Student Loan Plan Change

PAYE will no longer be an option. This means if you borrowed between 2007 & 2014, you have a big decision to make. Do you go on PAYE or use new REPAYE?

What To Do?

It depends because everyone's situation is different.However, if you borrowed between 2007 - 2014 you'll have to decide by July.

Change #1

If you owe less than $10k then forgiveness will only be 10 years. For every $1k owed another year will be added with a max of 25 years.

Plan Change #2

Undergrads only pay 5% of income. Grad students will pay a blended rate between 5% and 10%. Effect: Your monthly payment will be lower.

Plan Change #3

The poverty line adjustment increases from 150% to 225%.Effect: Your monthly payment will be lower.

Plan Change #4

REPAYE subsidized interest increases from 50% to 100%.Therefore, your loans balance won't increaseEffect: Lower tax bill in 25 years when your loans are forgiven.

Plan Change #5

If you file your taxes separately when you are married, your monthly payment will now only be based on your income.Effect: Potentially a lower monthly payment.

Confused on what you should do? Swipe up to get free help!

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