Department of Education to propose lower payments for millions of student loan borrowers

(CNN NEWSOURCE) — The Department of Education is proposing lower student loan payments for millions of people.

It’s part of the Biden administration’s plan to change the existing income-driven repayment program.

The proposed rule could reduce payments to forty cents per $1, saving borrowers some $1,000 per year.

It would also pause payments for anyone making less than $30,600 a year.

In addition, there would no longer be a charge for unpaid monthly interest and smaller loans would be forgiven after 10 years of payment.

The Biden administration is now seeking feedback from the public.

A final rule could be released later this year.