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Joe Biden’s Student Debt Cancellation Plan

The cumulative federal debt for student loans has exceeded $ 1

.54 trillion, according to the latest data from the Department of Education. That is more than double the balance sheet in 2010. Even when adjusting for inflation, it is a 72% increase in the cumulative student loan balance.

Over the past many years, the rising student loan balance has stirred a conversation about affordable college rates, but that conversation has mostly focused on removing tuition for students in the future. During the Democratic presidential election in 2020, the conversation was expanded to include ideas for canceling or forgiving all or part of the student loan debt.

Senators Elizabeth Warren and Bernie Sanders introduced broad student debt cancellation plans in their respective campaigns that thrilled many students. Warren called for the elimination of up to $ 50,000 in student debt based on a student borrower’s income, and Sanders called for a one-time cancellation of all federal student debt. (His plan did not concern debt that would be incurred afterwards for the cost of living or graduate school.)

Following her resignation from the presidential race, Senator Warren led many Democrats to demand a minimum of $ 10,000 in student loan cancellations as part of a coronavirus aid and stimulus package. Although not originally on board with broad student debt forgiveness, former Vice President Joe Biden has now backed Senator Warren’s $ 10,000 debt request plan since becoming the Democratic candidate. He is encouraged to provide this cancellation to any borrower virus borrower.

In that direction, Biden has called for the cancellation of the debt that student borrowers undertook to pay for student education at a public college or university. Borrowers must earn less than $ 125,000 to be eligible. While it would probably be difficult to implement, it would eliminate a significant amount of student debt.

Of the two plans, Biden has more often focused on the cancellation of $ 10,000. Given its universality and simplicity of implementation, the plans are perhaps more likely to go through – not to mention the significantly cheaper price.

Biden has also called for setting up the public service forgiveness program, a call he made early in the primary. He said he would adopt a plan from Senators Kirsten Gillibrand and Tim Kaine for existing borrowers and revise the plan going forward, as borrowers should have less debt from his free college proposal.

Related measurements:

How merit colleges might fare under Joe Biden and Kamala Harris

Joe Biden and Kamala Harris’ plan for student debt

The benefits of free college

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