Biden-Harris Administration Gives Update on Looming Decision on Student Loan Debt
Yesterday, the Biden-Harris administration gave an update on the state of student loans in the United States. Vice President Joe Biden stated that Today’s college graduates are tomorrow’s leaders and entrepreneurs, and today’s federal student loan debt crisis leaves many future leaders and entrepreneurs unable to pursue the opportunities available to them. We are listening to what you have to say about this issue, and we will make sure that your voice is heard by those who make decisions that affect your lives whether it be Congress or our office.
President Harris and VP Biden talk about their vision for America
It’s been said that America is the land of opportunity. But for many, the American dream has become a nightmare. Our economy is booming, but it’s not delivering for everyone. Economic inequality and wage stagnation are threatening our democracy–and with it, the promise of upward mobility that was once central to our national identity.
We’re one of just three advanced nations in the world without paid family leave; one in five children live in poverty, and we have the highest incarceration rate in the world. The backbone of America–our diverse communities–is under attack by President Trump’s hateful rhetoric and divisive policies.
Americans will never have to deal with the stress of paying off student loans
For many Americans, the burden of paying off student loan debt is a struggle. But for students who have attended college in this era of skyrocketing tuition costs and a difficult economy, the weight of the loans can be a financial and emotional strain. The Biden-Harris administration wants to make sure that never happens again.
The Biden-Harris administration has proposed a plan to create a federal loan forgiveness program that would completely forgive student loans after 10 years if borrowers are working in public service careers like teaching or policing. If they’re not working in public service careers, they would be eligible for forgiveness after 15 years. This proposal is just one part of their larger plan to tackle the student debt crisis head-on by making college more affordable and providing assistance with repayment plans.
Relieving Americans of their student loan debt is a top priority
Earlier today, the Biden-Harris administration announced that they will be unveiling a plan to help relieve Americans of their student loan debt in the coming weeks. With over $1.4 trillion in outstanding student loan debt, this issue is a top priority for many Americans and we’re so glad to see some tangible steps being taken toward relief.
The plan will include refinancing current loans at lower interest rates, allowing more people to qualify for income-based repayment plans, and canceling the remaining balance after twenty years of work. This is an important step forward but we need to make sure it’s done right and that it doesn’t create another bubble like the 2008 housing crisis did. We’ll keep you updated as new information becomes available!
The new legislation will be released in February 2020
In the last month, we have taken a comprehensive look at all of the options for existing and future student loan debt. We have discussed our findings with stakeholders across the country to find out what works and what does not. From these conversations, we are going to introduce new legislation in February 2020 that will address this issue head-on.
To ensure that students don’t suffer in the meantime, we want to implement some changes now so they can continue their education without worrying about their loans. These changes include extending deferment periods and lowering interest rates while also looking at ways of reducing monthly payments by adjusting income-based repayment plans and other strategies that are available right now.
Student loans hurt Americans’ credit scores
Student loan debt is a financial burden that has many Americans in a difficult situation. The average borrower owes $37,000 in student loans, an amount that can make it difficult to buy a home or start a family. In addition to the emotional toll student loans take on borrowers, they also have the potential to impact their credit scores in an adverse way.
Credit scores are determined by various factors and one of those factors is credit utilization, which measures how much of the available credit someone uses at any given time. If someone’s credit utilization is above 30%, this can lead to significant drops in their credit score and higher interest rates down the line.
President Harris and VP Biden encourage people to share their stories
The Biden-Harris administration has been hard at work over the last few months to address the issue of student loan debt, and we want to make sure that you know how to share your story.
Contact your representatives if you want them to do more to help you with your own student loans
It’s that time again, folks. Congress is back in session and President Trump has a list of proposals for them to consider, including one that would eliminate the Public Service Loan Forgiveness program. This program was established to help encourage graduates from low-income backgrounds (and other graduates) to make a career in public service. It does this by forgiving their student loans after 10 years of on-time payments–so long as the graduate is still employed in a qualifying public service position.
Ending economic stagnation, including relieving Americans from their crippling debts is the top priority for the Harris-Biden administration.
The Biden-Harris administration has taken a key step in addressing the student loan debt crisis. With the help of Senator Elizabeth Warren, the Harris-Biden administration introduced a bill that would allow students to attend public colleges and universities without paying tuition or other fees while they are in school and also forgive their student loans after 15 years. This would be a huge relief to many Americans who are in distress over mounting debt.
What’s next? The Biden-Harris administration will continue to work with Congress to pass legislation that can make college accessible for everyone, relieve Americans from their crippling debts, and provide economic stability for the future.