it will reduce levels for income driven repayment plan from 10% to 5%. the president touting that in his remarks yesterday. it will also have the department of education create a temporary 12-month on ramp repayment program when the debt payments restart. both of these will take months, not days. the problem that the administration faces, what the white house was trying to relay is that they had discussions about this. there was always talks about what could happen if it did get struck down. putting all of that into place now takes time. that is something that the president and the white house is getting questions on and will have to work through moving forward with the administration and particularly the education department. now, when asked whether the president gave false hope to millions of people who were hoping for student debt relief, here s what he had to say. i didn t give any false hope.
and the white house which had been touting student debt relief. the white house has laid out what they call a plan b. this is something that white house officials have been preparing behind the scenes in the event that the supreme court struck their original plan. it includes a couple things, starting with reducing levels for income-driven repayment plan from 10% to 5%. it also has the department of education creating a temporary 12-month on ramp repayment program when debt payments restart. these are a couple things that are in the works. they re going to take months to get done. of course, there were millions who were hoping that their student debt would be forgiven up to $20,000 in the immediate term. but the administration is trying to give reassurances and the president himself saying that
you were also a transfer at a university here in new york. i want you to listen to the current education secretary, on network yesterday. we are working to get that found. i want to know what you think our other options for the administration going forward, to perhaps pursue loan forgiveness, but more broadly, look at reducing the cost of going to college in the first race. look, i am very worried about the 26 million folks who are learning this morning that they are not going to be able to get help. about one third of the borrowers nationally have debt and no degree. the first thing we need to do is help those folks get back to school. we would like to see those folks come back to school to complete their degree. that will allow them to defer their debt payments, which start a backup this fall.
for a $3 billion financial lifeline. it extends a loan programme that expired today and fears were growing that it could default on its debts. inflation in pakistan has hit almost 38%. its currency has lost half its value against the us dollar this year, and it faces massive debt payments in the coming months. sumedha dasgupta is senior analyst at the economist intelligence unit in new delhi. thank you so much forjoining us. what does this green light from the imf mean for the country? thank you so much for having me here. so after a nail biting finish, basically this has been more than expected, a windfall in pakistan from the imf. so this basically means that its immediate financing troubles at this point in time is over. it was expecting about $2.5
on the margin, the group of student debt policies we have had in place since 2020 and then add on top of that this announced student debt forgiveness plan back in, i guess it was august of 2022, have probably been somewhat inflationary. you know, on the margin. maybe not a big impact but a little bit. once these payments resume, again, they were set to resume no matter what starting in the fall, and they will also resume for the people who thaought tha their balances had been wiped out. that will probably be modestly disinflationary. that is, it will draw some money out of people s alternative spending opportunities, right? maybe they re going to have to spend more money on their debt payments, student loan payments, that they would have otherwise spent on a house or a car or a vacation or other forms of consumption. one thing that i am worried about is that you might see a wave of defaults, both because,