The Biden administration is pushing forward with another approach to tackling the student debt crisis while its main initiative, a plan to forgive up to $20,000 in student loans per borrower, remains stuck in legal limbo.
Even if the debt-forgiveness effort is struck down by the courts, the Department of Education’s Plan B could help millions of borrowers by overhauling income-driven repayment plans. It also addresses some of the worst pitfalls of student debt, such as “negative amortization,” or when a person’s loan balance keeps growing despite their consistently making payments.
