Welcome to part 2 of our coverage on each candidate's student loan policy. Last week, we explored President Trump's plans for student loans. This week, we'll take a look at his main opponent, former Vice President Biden. While this may not be the factor that decides which candidate you vote for, it's important to know what may happen with any student debt you have. So, let's take a look at what former Vice President Biden's plans for student loans.
Vice President Biden's Plan for Student Loans
Making College Cheaper
Probably the biggest proposal to come out of the Biden camp is free college for families making under $125,000. Under this plan, public universities would be free for four years for these families. It would also be free for two years for those who attend historically black colleges and universities and free for two years for community colleges. This would only cover tuition costs at public universities, so you would still be responsible for housing and other expenses. It also does not cover private universities.
Biden's Plans for Cancelling Student Debt
Biden has come out to support cancelling $10,000 of student debt for each borrower in response to COVID-19. He has also suggested cancelling debt for those who attend public universities, HBCUs, and minority serving institutions. This would cancel all the debt for those making under $125,000 and phase out for those making more than $125,000. Similar to his free college plan, student debt cancellation wouldn't apply to those who attended private universities.
Income Driven Repayment
Like President Trump, former Vice President Biden has proposed some changes to income-driven repayment plans as well. He would make graduate student loans ineligible for income driven repayment plans and automatically enroll undergraduates into an income driven repayment plan. He would also lower the payments to be 5% of income instead of anywhere from 10-20%. Biden would also change the amount of income to defer payments to $25,000, instead of basing it on poverty levels for individuals. This would mean that anyone making less than $25,000 a year would automatically have $0 payments. He has also proposed making any forgiveness under these plans tax-exempt, instead of being taxed as income as it currently is.
Biden's Student Loan Forgiveness Plans
Joe Biden also wants to change the current public student loan forgiveness program. He has proposed forgiving half the balance after five years of work in eligible sectors and removing the full balance after ten years. The former Vice President has also suggested forgiving $10,000 a year for up to five years for those working in eligible jobs. It's also important to note that the $50,000 in forgiveness over five years would not replace the current loan forgiveness program, but be added on to it.
Biden has plenty of proposals regarding student loans and while it may not be the biggest issue, student debt is still a large issue. Whether this influences your decision or not, remember to go out and make your voice heard this election season.
