U.S. Dept. of Education proposes lower student loan payments

The Department of Education is proposing lower student loan payments for millions of people.

COLUMBIA, S.C. (WOLO)— 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 40 cents per dollar, savings 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. 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.