The report’s authors argue that the Biden administration’s proposal will transform the income-driven repayment program from “a safety net that supports borrowers with low incomes into a substantial subsidy for most undergraduate students who take on debt.” In turn, most undergraduate borrowers wouldn’t be expected to fully repay their loans.
The U.S. Department of Education unveiled the plan in January. Along with slashing the share of discretionary income borrowers owe each month, the new rules would also broaden the number of borrowers who meet an income exemption, allowing low-income borrowers not to pay anything.
