South Cook News

Student loan debt relief is a controversial topic, but Rep. Kelly Burke shared information in a Facebook post about the loan repayment process in a July 27 Facebook post. She presented information from the University of Illinois, focused on student debt repayment.

"Student loan repayments will begin again on October 1st."

"The University of Illinois has prepared some great information on what's in store, how to navigate the repayment process, and other loan-related topics."

Kelly M. Burke was first elected to the Illinois House in 2011. A Democrat, their legislative experience includes serving on the Ethics & Elections Committee and Appropriations-Higher Education. Burke is a state representative who resides in Evergreen Park, according to the Illinois House.

The link that Burke shared in her Facebook post includes a list of short webinars that “focus on different activities related to the management of federal student loans. The provided dates include August 18, September 15, October 20, November 17, December 15, January 19, February 16, and March 15. Each webinar is 10-20 minutes and starts at 12 p.m. Central Time. Individuals can sign up for these webinars at this website.

The Biden-Harris Administration has started a new student debt relief plan to update income-driven repayment plans. According to the Federal Student Aid Office of the Department of Education, an “income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size.” 

The Federal Student Aid website notes that there are four income-driven repayment plans: 

•Saving on a Valuable Education Plan, which is generally 10% of your discretionary income

•Pay-as-You-Earn Repayment Plan, which is generally 10% of your discretionary income, but never more than the 10-year standard repayment plan amount.

•Income-Based Repayment Plan, which is generally 10% of your discretionary income if you’re a new borrower on or after July 1, 2014, but never more than the 10-year standard repayment plan amount.

•Income-Contingent Repayment Plan, which is the lesser of 20% of your discretionary income, or what you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted for your income.

The Biden-Harris Administration has tried multiple times to reform the student debt industry with new regulations and relief for those who carry loans that are burdensome. The administration’s second attempt, this one to offer options for students who were defrauded by their college or those whose schools closed, is in trouble. The Washington Post reported on Aug. 7 that there’s been a legal decision on that option.

“On Monday, the U.S. Court of Appeals for the 5th Circuit issued an injunction to prevent the government from implementing regulations that took effect last month while it considers a lawsuit brought by Career Colleges and Schools of Texas, which represents 70 for-profit colleges. The court will hear the case on Nov. 6.” The colleges that sued were unhappy with the $35 billion plan.