The Saving on a Valuable Education plan is President Joe Biden and Secretary of Education Miguel Cardona's reply to the Supreme Court, who ruled the administration's original sweeping forgiveness program was unconstitutional.
The "Original" student loan program from the sixties repaid loans plus interest in a straightforward installment-style plan.
The federal government's interjection into debt financing came with the Income-Contingent Repayment plan, passed in the 1993 Student Loan Reform Act signed by then-president Bill Clinton.
Monthly payments were calculated on what a student could pay, not what was owed, resetting Income-Contingent Repayment plan payments from 20 percent of income to 10 percent or 15 percent of discretionary income depending on the date the borrower first started borrowing student loans.
Income-dependent payback plans describe the four remaining options for paying student loans.
Based on a five-year-old study, just under half of all student debt is estimated to be on income-dependent plans.
The SAVE plan fits the long-term goal of increased federal control of public higher education.
https://mises.org/mises-wire/bidens-student-loan-gift-save-simply-wealth-transfer
No comments:
Post a Comment