Former Vice President Joe Biden and Senator Bernie Sanders recently introduced the College Promise Act, which would provide students with loan forgiveness if they attend a four-year institution in good standing. The College Promise Act is one of several pieces of legislation currently being considered by Congress that would improve the United States’ education system. Though it has yet to receive a full endorsement from President Donald Trump, the College Promise Act has the support of many notable figures within the United States’ education system. The College Promise Act would provide much-needed relief to students who are struggling with student loan debt. It would also encourage more students to pursue higher education, as they would no longer have to worry about their debt burden impacting their future. If you’re interested in more information about the College Promise Act or any other legislation being considered by Congress, be sure to check out our website for more information.
What is Biden’s Student Loan Forgiveness Plan?
Joe Biden’s Student Loan Forgiveness Plan
How Does Biden’s Plan Work?
Biden’s Student Loan Forgiveness Plan
Joe Biden released a plan Wednesday that would forgive up to 95% of the debt for students who took out loans to attend college. The plan, which is estimated to cost $150 billion over 10 years, would also create jobs in fields related to higher education.
Since his election as Vice President in 2008, Biden has been vocal about the need to improve access to higher education. He has also pledged to work on increasing Pell Grant funding, reforming student loan programs, and creating a bachelor’s degree pathway for those without one.
Who is Eligible for Biden’s Student Loan Forgiveness Plan?
Under the Obama-Biden plan, students who are currently employed or in school and have made 120 consecutive monthly payments on their student loans would be eligible for forgiveness. The first 10 years of payments would count, as would any partial payments. This plan is available to borrowers who have federal loans, private loans from banks or institutions that are regulated by the Federal Deposit Insurance Corporation (FDIC), or Department of Education loans. The government will cover the remaining balance after borrowers exhaust all other options, such as salary and loan consolidation.
When Does Biden’s Plan Start?
The Biden plan would start for new borrowers within three years of being sworn into office. For existing borrowers, the plan would begin within two years of a law being passed to make it happen. The plan includes refinancing student loans at lower interest rates, caping out total debt at $125,000 and offering income-based repayment plans.
What Happens to My Student Loans After I Apply?
If you are eligible for student loan forgiveness through theObama administration’s Executive Compensation Forgiveness Program, you’ll need to submit a completed application and supporting documentation before your loan is consideredfor forgiveness.
Your loans will be reviewed and, if eligible, your debt may be forgiven after you have made required payments on your loans for 10 years and met other requirements.The Obama Administration has released new guidelines that make it easier for borrowers to understand their eligibility for forgiveness as well as the steps they need to take to be considered.
You can find out more about the program and apply online at StudentLoanForgiveness.gov or by calling 1-800-343-FEDS (1-800-342-3269).
Vice President Joe Biden and Senator Elizabeth Warren are currently leading the charge for student loan forgiveness in the United States. The two politicians have been advocating for this policy change for years, and it looks like their efforts might finally be paying off. Earlier this year, President Barack Obama announced that he was going to make student loan forgiveness a priority for his final year in office. This move is likely to encourage more students to pursue higher education, as they know that there is a good chance they will be able to get their loans forgiven if they complete a qualifying program of study.