The plan would cut monthly college undergraduate loan payments from 10 per cent to 5 per cent of a borrower’s discretionary income, which would save the typical borrower around $1,000 a year, according to the White House.
Other benefits of the plan include a pause on payments by borrowers making less than $32,000 per year until their income exceeded that amount. It would also provide debt forgiveness for some smaller loans in as few as 10 years, compared to the 20- or 25-year timeline under earlier rules.
The administration estimated that the plan would cost taxpayers around $156 billion over 10 years, but Republican state attorneys general argue that its actual cost totaled around $475 billion. Some parts took effect in February while…
