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White House proposes new rules to stop student loan payments for those with low incomes

Posted at 5:36 AM, Jan 10, 2023
and last updated 2023-01-10 07:48:06-05

NASHVILLE, Tenn. (WTVF) — Relief for student loans could be coming sooner than expected. The White House is proposing new payment rules to help people with low incomes.

The rules would apply for those making under $30,500 and stop student loan payments for the group. Plans would also reduce income-driven repayment plans by lowering how much must be paid each month and would stop charging borrowers for unpaid interest. After a 30-day period, the rules would be finalized.

This comes as President Joe Biden's debt relief program is still blocked by the federal courts. The Supreme Court is set to hear the case in February, with a decision expected in June.

Twenty-six million people have asked to enroll in that program which forgives up to $20,000 in federal student debt, but it's all on hold until the Supreme Court reaches a decision. Payments are on pause until the issue is resolved or until June 30.