Biden announces new efforts to provide student debt relief after court loss

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Biden announces new efforts to provide student debt relief after court loss
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President Biden's new steps to help borrowers repay student loans include a year-long onramp repayment program, and allowing borrowers to pay a lower percentage of their discretionary income for eligible loans.

Biden outlined new repayment options that would be available to millions of borrowers, as well as his administration's plan to provide broader relief.

The Department of Education will not refer borrowers who have missed payments to credit agencies during this period, Biden said. Biden also announced changes to caps on the percentage of discretionary income paid toward student debt. Going forward, no borrower will need to pay more than 5% of their discretionary income on undergraduate loans, down from the previous cap of 10% each month.

During his remarks, Biden called the Supreme Court’s student loan decision a"mistake" and"wrong." He also criticized Republicans, saying they could not"bear the thought" of providing relief for working and middle-class Americans.

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