Monthly student-loan payments might soon be a lot cheaper for borrowers — but it could be a double-edged sword.
Rather than creating an entirely new plan, Biden's proposal would amend the existing Revised Pay As You Earn plan, which was created in 2016 to make payments more affordable for borrowers.
"The administration's Income-Driven Repayment rule is nothing more than a backdoor attempt to provide free college by executive fiat," Foxx said in a statement."Transferring $230 billion from borrowers who willingly took out debt to taxpayers who did not is fiscally irresponsible and morally reprehensible. Make no mistake, I soundly reject this illegal abuse of power."
Students who would already take out federal loans would borrow even more because the IDR reforms would make payments less expensive