A new report (pdf) released by the Foundation for Government Accountability (FGA) on June 27 outlines President Joe Biden’s proposed changes to the income-driven repayment program (IDR) and its potential cost to taxpayers.
The study comes as the Supreme Court is expected to rule June 29 on wider issues related to student loan forgiveness.
The FGA’s research highlights key findings regarding the proposed rule changes to IDR, stating that the updated regulations would allow some individuals earning more than double the federal poverty level to avoid making any loan payments.
This change could come at an estimated cost of over $471 billion over a 10-year period. The report also warns that the changes to the rule fail to address the issue of rising tuition costs and would leave borrowers with unrealistic expectations about managing their debt….