"The federal plan would forgive up to $20,000 in student loans for Pell Grant recipients and $10,000 for other borrowers earning less than $125,000 a year.
About 92% of California borrowers will be eligible for the new loan forgiveness, according to Charlie Eaton, a UC Merced associate professor of sociology and student loan expert. Under the plan, the federal government will forgive up to $10,000 for those who earn less than $125,000 annually and up to $20,000 for those who received a Pell Grant for low-income students. The Department of Education is proposing a rule to reduce the required minimum payment for undergraduate loans from 10% of disposable income to 5% for those in a particular repayment plan based on income. Under the proposal the borrower’s unpaid monthly interest would be covered."
Read more about the benfiits of the plan in the San Diego Tribune article here.
