According to the Biden administration, it is a “student loan safety net.” Opponents accuse it of being a backdoor attempt to make college free.
It may also be the next battleground in the judicial debate over student loan relief.
Beginning this summer, millions of Americans with student loans will be able to register in a new repayment plan with some of the most favourable terms in history. Borrowers will not accrue interest as long as they make regular payments. Millions of people will have their monthly payments cut to zero.
And any residual debt will be cancelled in as little as ten years.