Cory Turner, NPR:
Sure, it is actually fascinating, Geoff, as a result of if you consider the distinction between the president’s broad debt reduction plan and the income-driven reimbursement plan they simply unveiled, it is the latter that may arguably assist extra debtors wanting ahead into the long run.
This new plan would do a couple of issues. As you talked about earlier than, it could — for debtors who earn lower than $30,000 a 12 months, they’d be allowed to principally make zero month-to-month funds on their loans. Additionally, for debtors who take out comparatively small loans — we’re speaking about $12,000 or much less — they qualify for forgiveness after 10 years, as a substitute of the present 20 years.
Additionally, possibly most significantly, Geoff, is one thing that I heard about for a very long time with previous income-driven reimbursement plans, the place you make small month-to-month funds, however curiosity is exploding. That is not going to occur below this new plan. So there’s lots right here for debtors, particularly lower-income debtors, to love.