A new income-driven repayment optionThe Biden administration is working to roll out a new, more affordable repayment plan for student loan borrowers. Instead of paying 10% of their discretionary income a month, under the new program — the Revised Pay as You Earn Repayment Plan — borrowers would be required to pay 5% of their discretionary income toward their undergraduate student loans. Previously, a borrower who made $40,000 a year would have a monthly student loan payment of around $151. Similarly, someone who earned $90,000 a year could see their monthly payments shrink to $238 from $568, Kantrowitz said. The payment plan should become available by July 2024, he said, although, "it is possible that the changes could be implemented earlier, as the U.S. Department of Education has the flexibility to implement regulatory changes sooner in certain circumstances."

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Persons: Douglas Rissing, Biden, Kantrowitz, they'd Organizations: Istock, Getty, U.S . Department of Education, Pennsylvania Higher Education Assistance Agency, Granite State Locations: Pennsylvania, Granite