Consolidated student debt federal debt exceeds $ 1.54 trillion, according to the latest data from the Department of Education. That is more than double what the balance was in 2010. Despite the adjustment for inflation, it is a 72% increase in the aggregate student loan balance.
Over the past several years, rising student loan balances have sparked a conversation about college affordability, but that conversation has mostly focused on eliminating tuition fees for students. learning going forward. During the main democratic presidency of 2020, the conversation expanded to include ideas to cancel or forgive all or part of the student loan debt.
Senators Elizabeth Warren and Bernie Sanders have unveiled extensive student debt cancellation plans in their respective campaigns that are appealing to many student borrowers. Warren called for the cancellation of up to $ 50,000 in student debt based on the income of a borrowing student and Sanders called for a one-time cancellation of all federal student debt. (His plan does not address the debt that can be paid later for living or graduate school expenses.)
After his resignation from the presidential race, Senator Warren led many Democrats to call for a minimum of $ 10,000 on student debt cancellation as part of a coronavirus relief and stimulus package. While initially not riding on the widespread student debt pardon, former Vice President Joe Biden is now supported by Senator Warren’s $ 10,000 debt cancellation plan since becoming a Democratic nominee. He called for that cancellation to be given to each borrower for coronavirus relief.
At that point, Biden called for the cancellation of student loans owed to pay for undergraduate tuition at a public college or university. Borrowers must earn less than $ 125,000 to qualify. While that may be difficult to implement, it will eliminate a significant amount of student debt.
In both plans, Biden emphasized the cancellation of $ 10,000 more often. Due to its generality and simplicity for implementation, plans may be more likely to pass – not to mention this significantly cheaper price.
Biden also called for the adjustment of the Public Service Loan Forgiveness program, a call he made earlier in primary. He said he would use a plan from Senators Kirsten Gillibrand and Tim Kaine for existing borrowers and overhaul the plan to be promoted because borrowers should have less debt from his free college proposal.
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