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

submitted 2 years ago by Pips@lemmy.film to c/usa@lemmy.ml

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[–] OptimisticPrime@lemmy.fmhy.ml 1 points 2 years ago (9 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?

[–] ThisIsNotHim@sopuli.xyz -1 points 2 years ago

If you read the article, yes.

Debt forgiveness occurs after 10 years in an income-driven repayment plan (down from 20-25 years). Payments in these plans is now capped at 5% of discretionary income (down from 10%). Unspecified improvements to tracking progress towards loan forgiveness (historically this has been done by the company servicing the loan, and they are beyond awful at it, so this might just be not relying on them for this decision anymore).

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