Adam Looney of the Brookings Institution has a long, must-read piece about the changes to “income-driven repayment.” This is an existing program that allows undergrad borrowers to pay 10 percent of their discretionary income for 20 years and have any remaining balance forgiven. Biden plans to drop the payments to 5 percent — and exclude income up to 225 percent of the poverty line, instead of 150 percent, as not “discretionary.” Roughly $33,000 in earnings won’t even count for purposes of calculating each borrower’s 5 percent payment.
Continue reading the entire piece here at National Review Online
______________________
Robert VerBruggen is a fellow at the Manhattan Institute. Follow him on Twitter here.
This piece originally appeared in National Review