Education Department to Launch Two New Federal Student Loan Repayment Plans on July 1
By
Adam S. Minsky
A baker's-dozen of insight crammed into one ring.
Summary
The Education Department is launching two new tiered repayment plans for federal student loans on July 1. One is a new Standard plan that bases monthly payments solely on loan balance, interest rate, and repayment term without considering income. The other is a new income-driven repayment plan that will operate very differently. These plans represent significant changes to the federal student loan repayment system.
Key quotes
· 3 pulledThe new programs, which are expected to debut on July 1, will be much different from any other current student loan repayment plan in several key ways
One of the plans is a new Standard plan option, which bases a borrower's monthly payment solely on their loan balance, interest rate, and repayment term
The other plan is a new income-driven repayment plan that will operate very differently
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