Former Vice President Joe Biden, who is now the alleged Democratic presidential candidate, has Just come out with a proposal to forgive and wipe out the student loan debt for millions of student loan borrowers. Here are the details.
- Biden’s proposal would cancel all student loan debt for all borrowers who have attended public colleges and universities, as well as historically black colleges and universities (HBCUs) and private minority serving institutions (MSIs).
- Borrowers who earn less than $ 125,000 a year are eligible for student loan waiver.
- Biden also supports $ 10,000 in general federal student loan issuance in response to the Corona crisis. Senate Democrats had proposed this ideabut the Senate Republicans rejected it in the. away final version of the CARES law.
In addition, Biden has expressed support for Senator Warren’s proposal to amend the bankruptcy law allow Student Loans Debt is easier to pay off in bankruptcy. Currently, student loan debt is treated differently from other forms of consumer debt in the event of bankruptcy; Borrowers must demonstrate they meet a tough hardship standard that requires adversarial proceedings in bankruptcy court. The process can be time consuming and prohibitive for many troubled student loan borrowers, and the standard is difficult (if not impossible) to meet.
This suggestion goes much further than Biden’s previous plans to fight student debt. Some policy analysts see Biden’s student loan proposal as one Opening offer to attract Elizabeth Warren and Bernie Sanders supporters and to consolidate the democratic base in preparation for the parliamentary elections.