Just days after his opponent Bernie Sanders officially dropped out of the 2020 presidential race, former Vice President Joe Biden just made a huge announcement regarding student loans. He recently introduced a new student loan forgiveness plan that is sure to please those who have been hoping for a presidential front-runner to finally one put in place.
As reported by Forbes, Joe Biden is committed to doing whatever it takes to ensure that he is the next POTUS when November rolls around. His latest move to secure his election is the introduction of a brand new student loan forgiveness program that, if executed, could be the saving grace that students have been begging for throughout the last several decades.
Biden’s student loan forgiveness plan is outlined in a pretty straightforward manner, starting with forgiving all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities for borrowers who earn less than $125,000 per year. As for payments, the federal government would make your monthly federal student loan payments until your student loan debt is paid off. Additionally, the student loan forgiveness would also apply to borrowers with federal student loans from private Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs).
Biden says he would pay for student loan forgiveness plan by repealing the high-income “excess business losses” tax cut included in the CARES Act. The new plan builds also adds to his previously outlined $750 billion student loan plan.
If Biden is able to push this through, it will be a total game-changer, as current and former students have consistently stated that student loan debt is a major issue for them and impacts many of their professional and financial decisions.