Your Monthly Student Loan Payments Could Be Slashed in Half

The Department of Education proposes a student loan income-driven repayment plan.

photo illustration of grad cap and money
(Image credit: Getty Images)

Last year, the Biden administration announced a student loan forgiveness plan that would forgive $10,000 in student loans for borrowers making less than $125,000 a year. Borrowers who received the Pell Grant are eligible for up to $20,000 in loans forgiven. Applications went live in October, but have since been blocked by lawsuits challenging the constitutionality of the plan — a hearing for this will be held on February 28. 

However, despite the legal setbacks to Biden’s loan forgiveness plan, there are other ways the administration plans to help borrowers, one of which is a new income-driven repayment plan. The Department of Education’s new repayment plan was officially proposed earlier this year and is aimed to help borrowers pay off their student loans when payments resume later this year. 

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.