• OptimisticPrime@lemmy.fmhy.ml
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    1 year ago

    It is great but as long as new debt will be immediately acrued by current students this is just a temporary fix. Or is there anything planned how to deal with that?

    • Electricdoggo@lemmy.world
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      1 year ago

      It’s a new payment plan, so applies to new student debt as well.

      If I’m reading the StudentAid.gov correctly, the SAVE plan has the following:

      • Increase in income exemption to 225% of poverty line (~$66k/yr for family of 4, ~$32k for single filer, no dependents)
      • Undergraduate Loans now are 5% of AGI above exemption limit
      • No interest accrued if you make your monthly payment
      • After 10 yrs of payment, if principle loan was $12k or less, loan is forgiven. Payment period increases by 1 yr for every $1k over that amount (e.g. for $20k loan, forgiveness after 18 yrs)
    • mke_geek@lemm.ee
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      1 year ago

      This action makes a good headline for re-election purposes.

      • Kata1yst@kbin.social
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        1 year ago

        Oh yes, let’s never do anything good, because there might be something else even more impossible that would be better.

        • gravitas_deficiency@sh.itjust.works
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          1 year ago

          The point being made is that it’s infuriating to watch “good” politicians half-ass policies that, if more thoroughly implemented, would be life-changingly positive for an enormous swath of our citizenry.

          • Ensign_Crab@lemmy.world
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            1 year ago

            Biden is doing what he can with what he has. He could have just said “welp, we tried” when the Supreme Court struck down his last attempt. Hell, it’s what I expected him to do because he’s a Democrat.

            He’s trying again. We need more of that.

      • Julian@lemm.ee
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        1 year ago

        A president doing something that’s popular in order to get elected? Preposterous!

    • ThisIsNotHim@sopuli.xyz
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      1 year ago

      If you read the article, yes.

      Debt forgiveness occurs after 10 years in an income-driven repayment plan (down from 20-25 years). Payments in these plans is now capped at 5% of discretionary income (down from 10%). Unspecified improvements to tracking progress towards loan forgiveness (historically this has been done by the company servicing the loan, and they are beyond awful at it, so this might just be not relying on them for this decision anymore).

    • ski11erboi@lemmy.one
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      1 year ago

      If you guys would take the time to read the article you would see that this is not the same debt forgiveness plan as before. The plan cancels the debt remaining for students who have been making payments for 20 years. It’s not a one time action but will be available to anyone in the future under the same circumstances.

    • Fredselfish @lemmy.ml
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      1 year ago

      Guess it’s fuck me then. Biden not getting my vote fuck him. This probably get blocked too and he knows it. Cancel it all our fuck off.