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Student loan proposal could lower payments, forgive interest

President of The Institute of Student Loan Advisors, Betsy Mayotte, says there are multiple income-driven repayment plans.

The proposal revises one of the plans, she says, to hopefully simplify things and lower monthly payments.

“It actually potentially reduces even further payments for people that stand to benefit from these income-driven plans. The existing plans already discount a percentage of the borrower’s income that it takes into account. This one almost doubles the amount that it’s discounting that income. So borrowers could see a really significant reduction in their payment as a result of this draft plan,” she said.