cancel
Showing results for 
Search instead for 
Did you mean: 

Facts on Biden's student loan forgiveness plan?

Highlighted
Established Contributor

Facts on Biden's student loan forgiveness plan?

The 2 Forbes articles that I read seem to contradict each other, though they were written a few wks apart. Any sources pointing to his true intent? I WANT to believe the first article lol. And, when do you think we could see some of these ideas come to life?

 

https://www.forbes.com/sites/adamminsky/2020/10/07/biden-affirms-i-will-eliminate-your-student-debt/...

Under his plan, Biden would forgive all undergraduate federal student loan debt for borrowers with annual incomes under $125,000 who attended public colleges and universities, as well as historically black colleges and universities (HBCUs) and private minority-serving institutions (MSIs).

 

https://www.forbes.com/sites/zackfriedman/2020/10/28/biden-heres-my-plan-for-your-student-loans/?sh=...

There has been some misconception about where Biden stands on cancelling student loan debt. Let’s clear up any misconceptions:

Biden does not support a plan to cancel all your student loan debt.
If Biden is elected president, do not expect your student loans to disappear suddenly or for your student loan debt to be eliminated.
That said, given the Covid-19 pandemic, Biden supports a plan to cancel up to $10,000 in student loan debt for each borrower.

Message 1 of 4
3 REPLIES 3
Highlighted
Established Contributor

Re: Facts on Biden's student loan forgiveness plan?

Just read it on the Biden website yourself instead of what other people are interpreting it as. Here are some bits I pulled out:

 

More than halve payments on undergraduate federal student loans by simplifying and increasing the generosity of today’s income-based repayment program. Under the Biden plan, individuals making $25,000 or less per year will not owe any payments on their undergraduate federal student loans and also won’t accrue any interest on those loans. Everyone else will pay 5% of their discretionary income (income minus taxes and essential spending like housing and food) over $25,000 toward their loans. This plan will save millions of Americans thousands of dollars a year. After 20 years, the remainder of the loans for people who have responsibly made payments through the program will be 100% forgiven. Individuals with new and existing loans will all be automatically enrolled in the income-based repayment program, with the opportunity to opt out if they wish. In addition to relieving some of the burden of student debt, this will enable graduates to pursue careers in public service and other fields without high levels of compensation. Biden will also change the tax code so that debt forgiven through the income-based repayment plan won’t be taxed. Americans shouldn’t have to take out a loan to pay their taxes when they finally are free from their student loans.

 

Make loan forgiveness work for public servants. Public servants do the hard work that is essential to our country’s success – protecting us, teaching our children, keeping our streets clean and our lights on, and so much more. But the program designed to help these individuals serve without having to worry about the burden of their student loans – the Public Service Loan Forgiveness Program – is broken. Biden will create a new, simple program which offers $10,000 of undergraduate or graduate student debt relief for every year of national or community service, up to five years. Individuals working in schools, government, and other non-profit settings will be automatically enrolled in this forgiveness program; up to five years of prior national or community service will also qualify. Additionally, Biden will fix the existing Public Service Loan Forgiveness program by securing passage of the What You Can Do For Your Country Act of 2019. Biden will ensure adjunct professors are eligible for this loan forgiveness, depending on the amount of time devoted to teaching.

 

Make public colleges and universities tuition-free for all families with incomes below $125,000. Biden has long said that when it comes to public education in America, we’re starting too late and ending too soon — and that if we were building the public education system in America today it would extend from pre-k, starting with 3 and 4 year olds through ensuring 16 years of education is affordable. Biden has added to his education beyond high school agenda by adopting Senator Sanders’ proposal to make public colleges and universities tuition-free for all students whose family incomes are below $125,000. This proposal, part of Senator Sanders and Congresswoman Pramila Jayapal’s College for All Act of 2017, will help roughly 8 out of every 10 families.

 

Crack down on private lenders profiteering off of students and allow individuals holding private loans to discharge them in bankruptcy. In 2015, the Obama-Biden Administration called for Congress to pass a law permitting the discharge of private student loans in bankruptcy. As president, Biden will enact this legislation. In addition, the Biden Administration will empower the Consumer Financial Protection Bureau – established during the Obama-Biden Administration – to take action against private lenders who are misleading students about their options and do not provide an affordable payment plan when individuals are experiencing acute periods of financial hardship.
as of 11/20/20
Current Cards:
Message 2 of 4
Highlighted
Established Contributor

Re: Facts on Biden's student loan forgiveness plan?


@ccquest wrote:

Just read it on the Biden website yourself instead of what other people are interpreting it as. Here are some bits I pulled out:

 

More than halve payments on undergraduate federal student loans by simplifying and increasing the generosity of today’s income-based repayment program. Under the Biden plan, individuals making $25,000 or less per year will not owe any payments on their undergraduate federal student loans and also won’t accrue any interest on those loans. Everyone else will pay 5% of their discretionary income (income minus taxes and essential spending like housing and food) over $25,000 toward their loans. This plan will save millions of Americans thousands of dollars a year. After 20 years, the remainder of the loans for people who have responsibly made payments through the program will be 100% forgiven. Individuals with new and existing loans will all be automatically enrolled in the income-based repayment program, with the opportunity to opt out if they wish. In addition to relieving some of the burden of student debt, this will enable graduates to pursue careers in public service and other fields without high levels of compensation. Biden will also change the tax code so that debt forgiven through the income-based repayment plan won’t be taxed. Americans shouldn’t have to take out a loan to pay their taxes when they finally are free from their student loans.

 

Make loan forgiveness work for public servants. Public servants do the hard work that is essential to our country’s success – protecting us, teaching our children, keeping our streets clean and our lights on, and so much more. But the program designed to help these individuals serve without having to worry about the burden of their student loans – the Public Service Loan Forgiveness Program – is broken. Biden will create a new, simple program which offers $10,000 of undergraduate or graduate student debt relief for every year of national or community service, up to five years. Individuals working in schools, government, and other non-profit settings will be automatically enrolled in this forgiveness program; up to five years of prior national or community service will also qualify. Additionally, Biden will fix the existing Public Service Loan Forgiveness program by securing passage of the What You Can Do For Your Country Act of 2019. Biden will ensure adjunct professors are eligible for this loan forgiveness, depending on the amount of time devoted to teaching.

 

Make public colleges and universities tuition-free for all families with incomes below $125,000. Biden has long said that when it comes to public education in America, we’re starting too late and ending too soon — and that if we were building the public education system in America today it would extend from pre-k, starting with 3 and 4 year olds through ensuring 16 years of education is affordable. Biden has added to his education beyond high school agenda by adopting Senator Sanders’ proposal to make public colleges and universities tuition-free for all students whose family incomes are below $125,000. This proposal, part of Senator Sanders and Congresswoman Pramila Jayapal’s College for All Act of 2017, will help roughly 8 out of every 10 families.

 

Crack down on private lenders profiteering off of students and allow individuals holding private loans to discharge them in bankruptcy. In 2015, the Obama-Biden Administration called for Congress to pass a law permitting the discharge of private student loans in bankruptcy. As president, Biden will enact this legislation. In addition, the Biden Administration will empower the Consumer Financial Protection Bureau – established during the Obama-Biden Administration – to take action against private lenders who are misleading students about their options and do not provide an affordable payment plan when individuals are experiencing acute periods of financial hardship.

Didn't even think of that. lol Thanks.

Message 3 of 4
Highlighted
Regular Contributor

Re: Facts on Biden's student loan forgiveness plan?

This is great! Thanks for the info and link. I kept reading until I found information on graduate student debt relief! And adjunct professors. Yes, please!!!!!!


@cr101 wrote:

@ccquest wrote:

Just read it on the Biden website yourself instead of what other people are interpreting it as. Here are some bits I pulled out:

 

More than halve payments on undergraduate federal student loans by simplifying and increasing the generosity of today’s income-based repayment program. Under the Biden plan, individuals making $25,000 or less per year will not owe any payments on their undergraduate federal student loans and also won’t accrue any interest on those loans. Everyone else will pay 5% of their discretionary income (income minus taxes and essential spending like housing and food) over $25,000 toward their loans. This plan will save millions of Americans thousands of dollars a year. After 20 years, the remainder of the loans for people who have responsibly made payments through the program will be 100% forgiven. Individuals with new and existing loans will all be automatically enrolled in the income-based repayment program, with the opportunity to opt out if they wish. In addition to relieving some of the burden of student debt, this will enable graduates to pursue careers in public service and other fields without high levels of compensation. Biden will also change the tax code so that debt forgiven through the income-based repayment plan won’t be taxed. Americans shouldn’t have to take out a loan to pay their taxes when they finally are free from their student loans.

 

Make loan forgiveness work for public servants. Public servants do the hard work that is essential to our country’s success – protecting us, teaching our children, keeping our streets clean and our lights on, and so much more. But the program designed to help these individuals serve without having to worry about the burden of their student loans – the Public Service Loan Forgiveness Program – is broken. Biden will create a new, simple program which offers $10,000 of undergraduate or graduate student debt relief for every year of national or community service, up to five years. Individuals working in schools, government, and other non-profit settings will be automatically enrolled in this forgiveness program; up to five years of prior national or community service will also qualify. Additionally, Biden will fix the existing Public Service Loan Forgiveness program by securing passage of the What You Can Do For Your Country Act of 2019. Biden will ensure adjunct professors are eligible for this loan forgiveness, depending on the amount of time devoted to teaching.

 

Make public colleges and universities tuition-free for all families with incomes below $125,000. Biden has long said that when it comes to public education in America, we’re starting too late and ending too soon — and that if we were building the public education system in America today it would extend from pre-k, starting with 3 and 4 year olds through ensuring 16 years of education is affordable. Biden has added to his education beyond high school agenda by adopting Senator Sanders’ proposal to make public colleges and universities tuition-free for all students whose family incomes are below $125,000. This proposal, part of Senator Sanders and Congresswoman Pramila Jayapal’s College for All Act of 2017, will help roughly 8 out of every 10 families.

 

Crack down on private lenders profiteering off of students and allow individuals holding private loans to discharge them in bankruptcy. In 2015, the Obama-Biden Administration called for Congress to pass a law permitting the discharge of private student loans in bankruptcy. As president, Biden will enact this legislation. In addition, the Biden Administration will empower the Consumer Financial Protection Bureau – established during the Obama-Biden Administration – to take action against private lenders who are misleading students about their options and do not provide an affordable payment plan when individuals are experiencing acute periods of financial hardship.

Didn't even think of that. lol Thanks.


 

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.