Cory Turner, NPR:
Yes, it’s really interesting, Geoff, because if you think about the difference between the president’s broad debt relief plan and the income-driven repayment plan they just unveiled, it’s the latter that will arguably help more borrowers looking forward into the future.
This new plan would do a few things. As you mentioned before, it would — for borrowers who earn less than $30,000 a year, they’d be allowed to basically make zero monthly payments on their loans. Also, for borrowers who take out relatively small loans — we’re talking about $12,000 or less — they qualify for forgiveness after 10 years, instead of the current 20 years.
Also, maybe most importantly, Geoff, is something that I heard about for a long time with old income-driven repayment plans, where you’re making small monthly payments, but interest is exploding. That’s not going to happen under this new plan. So there’s a lot here for borrowers, especially lower-income borrowers, to like.
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