2UrbanGirls
  • Home
  • Local
    • Compton
    • Education
    • Inglewood
    • Sports
  • Entertainment
  • Crime and Public Safety
  • Opinion
  • About
    • Advertise
    • Mediakit
  • Shop
    • Cart

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot
February 8, 2023

South LA shooting leaves two wounded

February 8, 2023

Compton College President/CEO Keith Curry named one of 10 Top Black Higher Ed CEOs to Watch in 2023

February 8, 2023

Miami Black College Expo™ Celebrates Black History Month and Education

Facebook Twitter Instagram
Trending
  • South LA shooting leaves two wounded
  • Compton College President/CEO Keith Curry named one of 10 Top Black Higher Ed CEOs to Watch in 2023
  • Miami Black College Expo™ Celebrates Black History Month and Education
  • Pedestrian hit, killed on Orange County freeway
  • Chicago bus crashes into building
  • Hit-and-run crash leaves man, dogs trapped in vehicle
  • Shooting leaves one injured in Pico Rivera
  • LA area shooting leaves one injured
Facebook Twitter LinkedIn Pinterest RSS
2UrbanGirls
  • Home
  • Local
    1. Compton
    2. Education
    3. Inglewood
    4. Sports
    5. View All

    Compton College President/CEO Keith Curry named one of 10 Top Black Higher Ed CEOs to Watch in 2023

    February 8, 2023

    Sheriff deputies shoot suspects in Compton

    January 31, 2023

    Compton bridge eroding to dangerous conditions

    January 30, 2023

    Compton Community College Introduces New Student Trustee

    January 28, 2023

    Miami Black College Expo™ Celebrates Black History Month and Education

    February 8, 2023

    LA area schools take top honors at Academic Decathlon

    February 5, 2023

    Home Depot quadruples commitment to HBCU’s through campus enhancement, development programs

    February 4, 2023

    Lawsuit dismissed against LAUSD over student’s suicide

    January 28, 2023

    Inglewood’s homeless problem will explode when tenant protections expire in 2024

    February 7, 2023

    Long-time neighbors face each other in Inglewood runoff election

    February 6, 2023

    Inglewood spending $50,000 on outside media services, radio ads

    February 5, 2023

    Inglewood receives grant funds for homeless coordinator program

    February 4, 2023

    Fox Corporation, Fox Sports announce Super Bowl LVII Community Initiatives

    February 8, 2023

    Lebron James Sets NBA Scoring Record

    February 8, 2023

    Lebron James Sets NBA Scoring Record

    February 7, 2023

    Apple Music launches Rihanna’s Road to Halftime ahead of Super Bowl LVII

    February 7, 2023

    Hit-and-run crash leaves man, dogs trapped in vehicle

    February 8, 2023

    Mega Millions jackpot grows to $50 million

    February 8, 2023

    Skid Row Housing Trust facing uncertain future

    February 8, 2023

    Winning Powerball ticket sold in Washington

    February 7, 2023
  • Entertainment
  • Crime and Public Safety
  • Opinion
  • About
    • Advertise
    • Mediakit
  • Shop
    • Cart
2UrbanGirls
You are at:Home»National»Proposed regulations would significantly reduce accumulated interest on student loans
Brian A Jackson / Shutterstock

Proposed regulations would significantly reduce accumulated interest on student loans

0
By admin on January 19, 2023 National

WASHINGTON, D.C. – The U.S. Department of Education (Department) proposed regulations to reduce the cost of federal student loan payments, especially for low and middle-income borrowers. The regulations fulfill the commitment President Biden laid out in August when he announced his Administration’s plan to provide student debt relief for approximately 40 million borrowers and make the student loan system more manageable for student borrowers. The proposed regulations would create the most affordable income-driven repayment (IDR) plan that has ever been made available to student loan borrowers, simplify the program, and eliminate common pitfalls that have historically delayed borrowers’ progress toward forgiveness.

“Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before,” said U.S. Secretary of Education Miguel Cardona. “We cannot return to the same broken system we had before the pandemic when a million borrowers defaulted on their loans a year and snowballing interest left millions owing more than they initially borrowed. These proposed regulations will cut monthly payments for undergraduate borrowers in half and create faster pathways to forgiveness, so borrowers can better manage repayment, avoid delinquency and default, and focus on building brighter futures for themselves and their families.”

The proposed regulations would amend the terms of the Revised Pay As You Earn (REPAYE) plan to offer $0 monthly payments for any individual borrower who makes less than roughly $30,600 annually and any borrower in a family of four who makes less than about $62,400. The regulations would also cut in half monthly payments on undergraduate loans for borrowers who do not otherwise have a $0 payment in this plan. The proposed regulations would also ensure that borrowers stop seeing their balances grow due to the accumulation of unpaid interest after making their monthly payments.

While these regulations would provide critical relief to student borrowers, the Biden-Harris Administration is also committed to ensuring postsecondary institutions and programs are held accountable if they leave borrowers with unaffordable debts. The Department is currently working on a proposed gainful employment regulation that would cut off federal financial aid to career training programs that fail to provide sufficient financial value and require warnings for borrowers who attend any program that leaves graduates with excessive debts. The same regulatory package will also include proposals to strengthen the conditions that can be placed on institutions that fail to meet the requirements of the Higher Education Act or exhibit signs of risk.

The Department is also taking steps today to carry out President Biden’s announcement from August that the Department would publish a list of the programs at all types of colleges and universities that provide the least financial value to students. To advance this effort, the Department is publishing a request for information to seek formal public feedback on the best way to identify the programs that provide the least financial value for students. This public comment process will ensure the Department is carefully considering a range of perspectives and considerations as it constructs the list. Once the list is published, institutions with programs on this list will be asked to submit improvement plans to the Department to improve their financial value.

Estimated effects of the proposed IDR Plan

The proposed regulatory changes would substantially reduce monthly debt burdens and lifetime payments, especially for low and middle-income borrowers, community college students, and borrowers who work in public service. Overall, the Department estimates that the plan would have the following effects compared to the existing REPAYE plan:

  • Future cohorts of borrowers would see their total payments per dollar borrowed decrease by 40%. Borrowers with the lowest projected lifetime earnings would see payments that are 83% less, while those in the top would only see a 5% reduction.
  • A typical graduate of a four-year public university would save nearly $2,000 a year relative to the current REPAYE plan.
  • A first-year teacher with a bachelor’s degree would save more than $17,000 in total payments while pursuing Public Service Loan Forgiveness—a two-thirds reduction in what they would pay in total under REPAYE. 
  • 85% of community college borrowers would be debt-free within 10 years
  • On average, Black, Hispanic, American Indian and Alaska Native borrowers would see their lifetime payments per dollar borrowed cut in half.

Building on an Unparalleled Record of Debt Relief

The draft regulations build upon the work the Biden-Harris Administration has already done to improve the student loan program, make colleges more affordable, approve $48 billion in targeted relief to nearly 2 million student loan borrowers, and fight to provide up to $20,000 in one-time debt relief to over 40 million eligible borrowers, including 26 million who have already applied. These regulations also propose to build on the Administration’s commitment to ensuring IDR plans deliver relief to eligible borrowers. This includes ongoing steps to provide accurate counts of progress toward forgiveness for borrowers through a one-time account adjustment.

The proposed regulations and request for information will be published in the Federal Register tomorrow. The public may comment on both documents through the Regulations.gov website for 30 days. The Department expects to finalize the rules later this year and aims to start implementing some provisions later this year, subject to any changes made based on public comments.

View an unofficial copy of proposed IDR regulation here and a fact sheet with further information here. View an unofficial copy of the RFI here, and a fact sheet with further information here.

Related

loan repayment reduced interest reduced payments student loans
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
admin

Related Posts

Chicago bus crashes into building

Law enforcement community, local leaders react to Tyre Nichols footage

White House Takes Big Step to Accelerate Lead Water Pipe Replacements

Leave a Reply Cancel reply

Most Read
Antelope Valley
January 16, 20230

Man, woman found dead in grocery store parking lot

PALMDALE, Calif. – The bodies of a man and woman were found in the parking…

January 15, 2023

Friends ID woman who died giving birth at Inglewood hospital

January 10, 2023

Family ID hiker who fell to her death on Mt.Baldy

January 28, 2023

Bicyclist killed in Orange County

Elections
February 6, 2023

Long-time neighbors face each other in Inglewood runoff election

February 4, 2023

Referendum challenging setbacks for new oil wells qualifies for ballot

February 3, 2023

Letter to the Editor: Congressional hopeful took campaign donations from disgraced attorney

February 2, 2023

LA Mayor Karen Bass backs Mike Feuer for Congress

Entertainment
February 7, 2023

Hollywood Bowl unveils summer season

February 7, 2023

Apple Music launches Rihanna’s Road to Halftime ahead of Super Bowl LVII

February 5, 2023

`Knock at the Cabin’ Opens with $14.2M

February 3, 2023

Activision to pay $35 million to settle SEC claims

Business
February 7, 2023

3 Ways To Improve Your Office Environment

February 2, 2023

Wells Fargo Announces $50 Million Grant to NAACP

January 30, 2023

What To Know Before Purchasing a Warehouse

January 27, 2023

Neurodivergence and Accessibility in the Workplace

Transportation
January 31, 2023

Man stabbed to death at Metro train station

January 31, 2023

Inglewood awarded $407M of state surplus funds towards people mover project

January 29, 2023

Inglewood Transit Connector and the soul of our City

January 28, 2023

Inglewood to schedule Public Hearing on Relocation Plan for Inglewood Transit Connector project

Sports
February 8, 2023

Fox Corporation, Fox Sports announce Super Bowl LVII Community Initiatives

February 8, 2023

Lebron James Sets NBA Scoring Record

February 7, 2023

Lebron James Sets NBA Scoring Record

February 7, 2023

Apple Music launches Rihanna’s Road to Halftime ahead of Super Bowl LVII

Real Estate
February 4, 2023

RFP released for L.A. County’s General Hospital redevelopment

February 3, 2023

LA councilwoman suggests spending $39 million on undeveloped land in Bel-Air

February 3, 2023

LA Council approves one-month grace period for tenants behind on rent

January 20, 2023

Inglewood family continues their march through the City

Legal
February 7, 2023

Black tenant seeks to intervene in ongoing discrimination case

February 2, 2023

Juice bar chain pays $175,000 to settle federal discrimination claims

February 1, 2023

Grand Jury indicts disbarred attorney Tom Girardi for embezzling $15M from clients

January 26, 2023

Judge dismisses lawsuit over truck traffic

Newsletter

Recent Posts
  • South LA shooting leaves two wounded
  • Compton College President/CEO Keith Curry named one of 10 Top Black Higher Ed CEOs to Watch in 2023
  • Miami Black College Expo™ Celebrates Black History Month and Education
  • Pedestrian hit, killed on Orange County freeway
  • Chicago bus crashes into building
Recent Comments
  • Anonymous on County Supervisors advance tougher gun regulations
  • Anonymous on Police release video of fatal shooting of double amputee
  • Mandy on County Supervisors advance tougher gun regulations
Copyright © 2011-2022 2UrbanGirls.
  • Cookie Policy
  • DMCA
  • Privacy Policy

Type above and press Enter to search. Press Esc to cancel.