In addition to raising the debt ceiling through March 2024, House Republicans also published a 320-page proposal for expenditure cutbacks to go along with their measure.
Also, the student loan programs run by President Joe Biden are not exempt.
Republicans Aim to End Student Debt Payment Pause
According to the bill language, Republicans want the Education Department to halt implementing Biden’s plan to cancel up to $20,000 in federal student loans, prohibit its new income-driven repayment plan, and ban it from making any additional debt relief program adjustments without legislative permission. Republicans want to immediately resume student debt payments.
These suggestions are hardly shocking. Many Republican senators have criticized the president’s debt relief measures since Biden assumed office, claiming they are an abuse of power and expensive for taxpayers.
Two challenges with conservative backing halted the president’s expansive debt relief plan’s implementation after it was unveiled at the end of August.
Oral arguments on the cases were held by the Supreme Court in February.
While everything is still up in the air, it is crucial for People with student debt to have a strategy in place for when and if these payments start up again.
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Secure 2.0 Act’s Overlooked Provision
They are lucky since the Secure 2.0 Act, which went into effect at the end of 2022, now permits companies to match 401(k) contributions on employees’ eligible student loan repayments.
Although this provision has not garnered as much notice or fanfare as full forgiveness, it may be able to assist millions of workers in paying off their student debt commitments without giving up on their plans to save for retirement.
This provision of the law, according to a Senate summary, is meant to help workers who might be unable to effectively save for retirement due to mounting student debt.
In other words, if a worker must choose between paying off a student loan and making a contribution to their 401(k), they may be missing out on matching funds from their employers, which amounts to free money.
By allowing eligible employees another way to access the employer’s contribution, this law will aid in redressing the situation.
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