According to the latest figures from the Department of Education, the cumulative federal student loan debt is more than $ 1.54 trillion. This was twice the balance in 2010. Even when adjusting for inflation, it is a 72% increase in the cumulative student loan balance.
Over the past several years, the rising student loan balance has given rise to a conversation about college affordability, but that conversation has mostly focused on eliminating tuition to keep students moving forward. During the 2020 Democratic presidential primary, negotiations expanded to include ideas to cancel or waive all or a portion of student loan debt.
Senators Elizabeth Warren and Bernie Sanders, in their respective campaigns, introduced plans to repeal extensive student loans, which excited many student borrowers. Warren called for the elimination of up to $ 50,000 in student loans based on a student borrower and Sanders’ income and a one-time cancellation of all federal student loans. (His plan did not address the debt that would later be incurred for living costs or graduate school.)
After being out of the presidential race, Senator Warren called for a minimum of $ 10,000 in cancellation of student loans as part of a coronovirus relief and incentive package. Although initially not on board with a comprehensive student loan waiver, former Vice President Joe Biden has supported Senator Warren’s $ 10,000 debt cancellation plan since becoming the Democratic nominee. He said that every borrower is asked to cancel for coronovirus relief.
In that vein, Biden has called for the cancellation of loan student borrowers paid for undergraduate tuition at a public college or university. Borrowers must earn less than $ 125,000 to qualify. While it would be difficult to implement, it would eliminate a significant amount of student loans.
Of both plans, Biden insisted more often on canceling $ 10,000. Given its universality and simplicity for implementation, it may be more likely to pass plans – not to mention its fairly cheap price tag.
Biden has also called for fixing the Public Service Debt Waiver Program, a call he made in the primary. He said he would adopt a plan for current borrowers from Senators Kirsten Gillibrand and Tim Kaine and move the plan forward because borrowers should be less in debt than their free college offer.
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