Big deal: zero $ payment but balance doesn’t grow for current & future borrowers; cut in half loan payments
RAMAMURTI: by the way, one concern that people have had about the income-based repayment program in the past is that if you were making these smaller payments, your balance would keep growing over time. One of the reforms we’re putting in place is making sure that that balance doesn’t grow over time, even as you are making potentially a zero-dollar payment each month. It is a big deal for both current borrowers and for all the future borrowers who are out there. Now, I want to be clear: That’s not a substitute for debt relief, but it is a huge benefit for borrowers that is going to be available coming this summer. And we encourage people to sign up for it.

Sec CARDONA: I want to make it very clear to the folks who are paying attention to this that maybe don’t know the details of it: The income-driven repayment plan that we talked about today, SAVE — we’re calling it “SAVE” — will cut in half loan payments for undergraduate students. So think about the students that said, “I can’t go to college because I can’t afford the 600-, 700-dollar…” — those are going to be cut in half.

Q: bailout leads to runaway education cost, relief not for future students, Dems dishonest?
On 6/30/2023, a reporter asked, “The Democrats like to distinguish themselves as being different than Republicans in terms of this specific law, for example. But really, neither side is doing anything about the runaway cost of higher education. Nobody is really doing anything. I mean, this relief doesn’t do anything for future students. So, is either party really any different? Are you — are Democrats not just, essentially, as dishonest in their approach as they accuse the other side of being in terms of the impact that they would have on students going forward? Neither — both — both parties are really beholden to the Wall Street beneficiaries of these runaway interest rates and these runaway debts. What are Democrats willing to do about the runaway cost of education?

MR. RAMAMURTI: Sure.
Reporter: That really is at the heart of the matter.

MR. RAMAMURTI: No, I think it’s a real problem. That’s one of the reasons why when the President announced his plan last August, when he announced his debt relief plan, there was another key provision in there, which was a set of policy ideas about holding colleges accountable for raising prices.

Q: blame bailout or blame universities for high cost? rule is working? A: rule is still in progress
Reporter: I wanted to get at that affordability issue. So does the President then blame universities for that affordability issue? And do you really think that that rule is working, that you talked about?

MR. RAMAMURTI: Well, the rule is still in progress. It’s going to be proposed and then ultimately put in place. But I think when it is in place, it’s definitely going to go after the — the worst performers in this space, the colleges and universities that are charging the most and delivering the worst results.

Q: WH felt confident but also preparing contingency, how surprised? A: continue to fight
Reporter: And for months, the White House had said they felt confident about the law being on their side. But then also, of course, you guys were preparing different scenarios, as we’ve now learned. So what were you bracing for today? How surprised were you both about this outcome? Or is this really what you expected, given some of the work that was put into the contingency?

Sec CARDONA: … I want to remind folks is we got a decision from SCOTUS. I thought — I think it’s the wrong decision. Forty-three million people were waiting for some relief … We recognize that this decision today, we had to read it very carefully to make sure we know which path we’re going to go forward. But the bottom line is: The President is going to continue to fight; we’re going to continue to fight.

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Big deal: zero $ payment but balance doesn’t grow; cut in half loan payments; runaway education cost