Biden Proposal Would Increase Time in Repayment for Some Borrowers

Years until forgiveness for a borrower with a starting income of $45,000

A line chart showing the Biden proposal would increase time to repay for some borrowers.

Notes: PAYE = Pay As You Earn income-driven repayment plan; REPAYE = Revised Pay As You Earn income-driven repayment plan. Estimate uses the 2022 federal poverty level for a single person and a 4.45 percent interest rate, assumes income growth of 4 percent, inflation rate of 3 percent, and discount rate of 4 percent.

Chart: Urban Institute Source: Urban Institute analysis of Biden income-driven repayment plan for a single borrower.