New initiatives would cut debt and make college free for many students
Education has become a major issue in the 2020 presidential election, driven in part by the growing burden of student loan debt. About 42 million Americans currently owe money on student loans, according to the Brookings Institution, which estimates the total debt load at about $1.5 trillion. That makes it second only to mortgage debt, Brookings says, and larger than credit card debt.1 This article looks at Democratic presidential candidate Joe Biden’s higher-ed proposals, which his official campaign website calls “The Biden Plan for Education Beyond High School.”2
KEY TAKEAWAYS
- Joe Biden’s higher education proposals would make public colleges and universities tuition free for families with incomes under $125,000.
- Community college and workforce training programs would also be free for many students.
- Students with federal undergraduate loans would not have to pay more than 5% of their discretionary income over $25,000. After 20 years of payments, the balance would be forgiven.
Biden’s Student Debt Proposals
The Biden website lists 10 major initiatives to address the cost of higher education and the availability of financial aid to help pay for it.
1. “Make public colleges and universities tuition-free for all families with incomes below $125,000.” Biden credits this proposal to Sen. Bernie Sanders, who, with Rep. Pramila Jayapal, introduced the College for All Act in 2017. 3 Biden’s plan would also make up to two years of community college tuition free, apparently regardless of income.