Menendez Statement on Biden Administration’s New Proposed Income-Driven Repayment Rule

JERSEY CITY, N.J. – U.S. Senator Bob Menendez (D-N.J.) issued the following statement in response to the U.S. Department of Education’s announcement on a new proposed Income-Driven Repayment rule that will significantly lower monthly student loan payments once they resume later this year:

“Last year, after President Biden’s historic announcement to cancel student debt for millions of federal borrowers, I urged the Administration to delay restarting student loan payments until it developed and implemented a unified plan for improving federal student loan programs – including addressing longstanding issues with Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF). This is especially important as the Administration works to enact its historic loan forgiveness efforts that would help millions of Americans – despite callous Republican opposition.

“I am pleased that the Administration has already followed my recommendation to make significant improvements to the PSLF program based on legislation I introduced last year. I am thrilled that today’s new proposed IDR rule would reduce borrower’s monthly repayment amounts from 10% to 5% of their income. This proposal will also provide borrowers with a meaningful way to pay down their loans, by preventing their accounts from accruing unpaid interest, and will allow borrowers with less than $12,000 of remaining debt to receive loan forgiveness after 10 years of payments.

“These decisive actions will help transform the lives of millions of Americans by lowering student loan payments for borrowers and will make it easier for them to finally purchase their first home, open a small business, retire, or even start a family, which many of them may have postponed because of their student debt.”