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   The White House is facing backlash about its decision to reactivate   
   interest for student loans as part of its “on-ramp” repayment program,   
   which progressives and advocates argue isn’t enough to help struggling   
   borrowers.   
      
   The program aims to help those who can’t repay their loans when payments   
   resume this fall by removing the threat of default or harm to credit   
   ratings for 12 months if bills aren’t paid. It’s one of the only routes   
   the Biden administration argues it could have taken since ending the   
   payment pause that ultimately became part of the debt limit deal President   
   Biden struck with Speaker Kevin McCarthy (R-Calif.).   
      
   The so-called “Plan B” for providing student loan relief was laid out late   
   last week hours after the Supreme Court struck down a program the White   
   House attempted to implement that would have forgiven up to $20,000 in   
   student loans dependent upon earnings. The alternative route aims to help   
   borrowers make their journey to repayments easier.   
      
   But the president’s plan has failed to satisfy stakeholders and some   
   Democratic lawmakers who are panning a plan that would turn interest on   
   for certain student loans for the first time since March 2020.   
      
   “There is already so much confusion,” Natalia Abrams at Student Debt   
   Crisis Center (SDCC) said.   
      
   Borrowers are set to start repaying their student loans in October after   
   interest begins accruing again in September. The president said that the   
   on-ramp program would at least help alleviate some pressure on borrowers   
   by not having their debt sent to collectors or credit scores impacted from   
   October 2023 to September 2024.   
      
   The White House believes it has come up with the best option they could   
   give borrowers, considering the debt agreement, which was signed into law   
   in June.   
      
   “The law requires us to end the payment pause this summer. We believe in   
   the rule of law, and plan to follow it,” a White House official told The   
   Hill.   
      
   The official added that the on-ramp program aims “to protect the most   
   vulnerable borrowers” and is “the most generous income-driven repayment   
   plan ever.”   
      
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   But the White House explanation has not been enough for advocates and even   
   some Democrats.   
      
   “People should not be incurring interest during this 12-month on-ramp   
   period. So, I highly urge the administration to consider suspending those   
   interest payments,” Rep. Alexandria Ocasio-Cortez (D-N.Y.) said.   
      
   Some note that ending the pause and restarting interest is part of the   
   deal negotiated with McCarthy.   
      
   “The student loan pause suspended both monthly payments and interest for   
   many borrowers since March of 2020. The debt ceiling deal negotiated by   
   the White House spells an end to the pause,” said Debra Dixon, who served   
   as chief of staff at the Office of Planning, Evaluation and Policy   
   Development at the Education Department under former President Obama.   
      
   She said the latest program softens the impact for borrowers who haven’t   
   made a payment or accrued interest in the past three years, noting that   
   was the best option the administration had after its first attempt was   
   struck down.   
      
   “This softens the monthly payment part of the pause. If interest were also   
   to be suspended during the grace period, then both elements of the pause   
   would be back in place as if an end had never been negotiated. Softening   
   the adjustment for borrowers as payments resume is the best the   
   administration could do,” said Dixon, a principal at Ferox Strategies.   
      
   White House officials Friday made sure to stress that the on-ramp action   
   is not an additional pause extension, as the Biden administration had been   
   criticized by Republicans for continuing to extend the repayment pause   
   until he struck the deal limit deal this spring.   
      
   But, Republicans are still criticizing the administration, despite the   
   fact that interest is starting back up.   
      
   Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.)   
      
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