President Joe Biden’s plan to forgive up to $20,000 of student debt for millions of Americans is mired in legal challenges.
But his administration on Jan. 10 formally proposed a separate plan that would have lower monthly loan payments, make loan forgiveness easier and ensure unpaid interest will not be added to a borrower’s loan balance.
U.S. Education Department officials called the new plan a “student loan safety net.”
But critics called the proposal a too-costly handout, given a price tag the Biden administration estimated at nearly $138 billion over a decade.
