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Cake day: June 20th, 2023

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  • Conservatives are to blame for student loan forgiveness not being enacted. By the way, his backup plan is a huge step, despite conservatives attempts to make students suffer. You will still being paying very little in loan repayments, and in some cases absolutely nothing (depending on income). I don’t know how this is being so over-looked, but it’s still a huge win.

    (From the official whitehouse website)

    Borrowers will only pay a maximum of 5% of discretionary income monthly.

    Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment under this plan.

    Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with original loan balances of $12,000 or less. The Department estimates that this reform will allow nearly all community college borrowers to be debt-free within 10 years.

    Not charge borrowers with unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.