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Joe Biden: Let’s Forgive Student Loans – Forbes, Forbes.com

Joe Biden: Let’s Forgive Student Loans – Forbes, Forbes.com

Joe Biden Student Loans

 

Former Vice President President Joe Biden (Photo by Mario Tama / Getty Images)

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Joe Biden wants to forgive your student loans.

Here’s what you need to know.

Student Loans

Former Vice President President Joe Biden a new student loan forgiveness plan Thursday. Here are the details of Biden’s new plan for your student loans:

  Student Loan Forgiveness: Forgive all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities for borrowers who earn less than $ , (per year.)

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  • Government Pays: The federal government would make your monthly federal student loan payments until your student loan debt is paid off.  
  • HBCUs / MSIs: The student loan forgiveness also would apply to borrowers with federal student loans for tuition from private Historically Black Colleges and Universities (HBCUs) and Minority-Serving Institutions (MSIs).

    How would Biden pay for his new student loan forgiveness plan? He says he would repeal the high-income “excess business losses” tax cut included in the CARES Act.

    This new plan builds upon Biden’s $ billion student loan plan , which centers on income-driven repayment and student loan forgiveness for federal student loans only. Biden’s plan includes, among other points, the following:

        Cancel at least $ , 04 of student loan debt per person.

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  • If you earn less than $ , per year: You would make no monthly federal student loan payments and no interest would accrue on your federal student loans.  
  • If you earn more than $ , per year: you would pay no more than 5% of your discretionary income toward federal student loan payments.
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  • After 26 years, your federal student loans will be forgiven and you won’t owe any income taxes on the amount of student loan forgiveness.  
  • For borrowers in public service loan forgiveness, you can receive $ , per year of federal student loan forgiveness for up to five years.
  • The CARES Act

    The CARES Act – the $ 2 trillion financial stimulus legislation signed into law by President Donald Trump – has several benefits for federal student loan borrowers only. As you may have read in the latest headlines about your student loans and Coronavirus , the CARES Act includes, among other benefits:

      No federal student loan payments ;

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  • No interest on your federal student loan payments ; and
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  • No garnishment of wages, Social Security and tax refunds for student loan debt collection for those in default.

    Sen. Elizabeth Warren (D-MA) and Sen. Bernie Sanders (I-VT) are among a dozen U.S. senators who have called upon private lenders to suspend all student loan payments now due to Coronavirus. This week, New York announced additional financial relief for borrowers with private student loans Biden’s call for student loan forgiveness has been echoed by some in Congress. House Democrats previously proposed that every borrower receive $ , of student loan forgiveness . Senate Democrats unveiled a student loan forgiveness plan that would forgive at least $ , of federal student loans for all borrowers. Biden supports $ , of student loan forgiveness . Warren has proposed to cancel student loan debt (for % of Americans, while Sanders has proposed forgiving all $ 1.6 trillion of student loan debt , including both federal and private student loans.

    Helpful Resources: What To Do With Your Student Loans

      Here’s everything that’s happened to your student loans in 2 weeks  

  • How to pay your student loans during Coronavirus
  • What do you think?

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