Biden's Changes To Student Loans Means The Vast Majority Of Borrowers Will Never Repay Their Debt

 Not surprisingly, their analysis finds that the generous changes to repayment rules will result in the program shifting from its intended purpose, to provide a safety net to borrowers who struggle to repay their debt, to a giveaway program for most students who borrow.

Specifically, their analysis indicates that less than one-quarter of borrowers would ever repay their debts in full under the proposed regulations.

This new report comes on the heels of a similar analysis from another left-leaning think tank, the Brookings Institution, which showed how severely the proposed changes will affect the share of borrowed dollars that ever get repaid to the taxpayers who financed these loans in the first place.

The proposed changes impact a program generally known as Income-Driven Repayment, a system for loan repayment that allows borrowers to make reduced payments when their income is low and ultimately have their loans forgiven if they remain outstanding for more than 20 years.

In these repayment plans, borrowers make payments that are determined as a set share of their "Disposable income" and borrowers with exceptionally low income are off the hook from making payments altogether.

Second, they half the term over which borrowers are required to make payments before becoming eligible to have their balances forgiven Third, they increase the threshold of earnings below which borrowers aren't expected to make any payments at all.

Any one of these changes would have a significant impact on the share of borrowed student loan dollars that ever get repaid to taxpayers.

https://www.washingtonexaminer.com/restoring-america/fairness-justice/bidens-changes-to-student-loans-means-the-vast-majority-of-borrowers-will-never-repay-their-debt