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What is the new Biden student debt repayment strategy? Here’s what we do know.

Education Department releases details of proposed income-driven repayment plan. Borrowers could pay less toward their debt and shorten the path to forgiveness. Plan would affect current and future loans. Critics say it will incentivize students to borrow more with the promise of an easier path to loan forgiveness. Income-driven repayment plans would extend repayment periods from 10 years to as many as 25 years.

The plan would cap payments for undergraduate loans to 5 percent of a person’s discretionary income instead of 10 percent. It’s unclear whether the Education Department can afford to implement the ambitious plan.