Joe Biden says it’s time to clear $ 10,000 of student loan debt for every American.
Here’s what you need to know.
In the wake of the Coronavirus epidemic, the former vice president and presidential candidate of 2020 wants to help Americans manage their money, especially student loans. Biden tweeted Sunday, “In addition, we should forgive a minimum of $ 10,000 / person of federal student loans, as proposed by Senator Warren and colleagues. Young people and other student debt holders have borne the brunt of the latest crisis. It shouldn’t happen again. ” Biden refers to an economic aid plan proposed by Senators Chuck Schumer (D-NY), Patty Murray (D-WA), Sherrod Brown (D-OH) and Elizabeth Warren (D-MA) who would have:
- forgive $ 10,000 of federal student loan debt for each borrower.
- suspend student loan payments during the current coronavirus crisis; is
- Suspend the attachment of wages, tax refunds and social security benefits to pay off student loans
- Suspend all interest capitalization on student loans
- Expand the president’s student loan interest waiver plan to FFEL loans, which are not federal student loans issued by the federal government
The plan, which requires congressional approval, would authorize the United States Department of Education, led by Secretary Betsy DeVos, to make monthly student loan payments on behalf of borrowers and forgive a minimum of $ 10,000 in student loans. for all borrowers. The plan comes against the background of borrowers seek how to pay off student loans faster and get answers to student loan questions up student loan repayment, student loan refinancing and forgiveness.
President Trump’s student loan plan
President Donald Trump has implemented several student loan aid plans following the Coronavirus epidemic. Trump has announced that it is waive interest on federal student loans. He also announced that you have an option for stop paying federal student loans for 60 days. can obtain a federal tolerance on student loans by contacting the student loan service. Alternatively, you can continue making federal student loan payments if you wish. Trump, however, does not support total student loan forgiveness. Last month, Trump called for an end to the public service loan forgiveness program in his annual budget. This does not mean that Trump does not support student loan forgiveness. Rather, Trump prefers to simplified income-based repayment plan which would offer forgiveness of student loan to borrowers. DeVos explained why he believes it is a good idea to do this forgiveness of the public service end student loan.
Forgiveness for student loan
Biden’s request for $ 10,000 student loan forgiveness is different from Warren’s original student loan forgiveness plan, what it would be cancel the student loan debt for more than 95% of the borrowers, and would completely cancel the student loan debt for more than 75% of Americans with student loan debt. Senator Bernie Sanders (I-VT) has he proposed to forgive all the $ 1.6 trillion student loan debt, including federal and private student loans. Biden has its own $ 750 billion student loan plan, focused on income-based reimbursement. Biden, Sanders and Warren all support the public service loan forgiveness program.