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How Student Loans Are Changing, Regardless of the Supreme Court Ruling | WSJ
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How Student Loans Are Changing, Regardless of the Supreme Court Ruling | WSJ
The Supreme Court has struck down Biden’s forgiveness plan - but that’s only a part of Biden’s student loan plan. Another important part is set to take effect in July: an overhaul of income-driven repayment plans. Under the current system, borrowers who go into an income-based repayment plan regularly end up owing more money a decade later than they originally took out. Biden’s policy changes how interest is calculated in those plans and turns many undergraduate loans into, essentially, college grants. Thousands of borrowers will end up with a monthly payment of $0. WSJ explains the big changes coming to repayments this summer—regardless of how the Supreme Court rules. Illustration: Madeline Marshall 0:00 What has the Biden Administration done for student loan forgiveness? 1:16 How the typical student loan works 2:10 What are Income-Driven Repayment Plans and how do they work? 3:22 The shortcomings of IDR loans 4:28 How President Biden’s new loan plan could help fix past issues WSJ Explains News moves fast, and there's not always time to untangle the complex forces driving the day's biggest stories. WSJ Explains breaks down big market moves, business and economic trends, and scientific developments to help you stay ahead of the curve. #StudentLoans #Debt #WSJ
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