Democratic presidential candidate and former U.S. Vice President Joe Biden photo credit: Getty Images
(Photo by Tom Brenner/Getty Images)
Even Joe Biden had student loan debt.
Here’s what he wants to do about your student loans.
Student Loans
In a speech at Keene State University in New Hampshire, Joe Biden, the former vice president and 2020 presidential candidate, shared some thoughts to tackle student loan debt. Here are some highlights:
Lower monthly payments
If you’re enrolled in an income-driven repayment plan, Biden wants to lower the amount you pay for your student loans each month. Under current income-driven repayment plans, you could pay 10-20% of your discretionary income each month. Biden wants to lower that amount to 5% of your discretionary income.
Know This: Income-driven repayment plans may offer a lower monthly payment, but your student loans are still accumulating interest. If your goal is to cut your interest rate and save money on interest, student loan refinancing allows you to receive a lower interest rate on your student loans.
No student loan interest or payments
If you earn $30,000 or less each year, Biden said you should have not have to repay student loans or have interest accumulate on your student loans.
Know This: Watch out for student loan interest. Here are some ways to save money on interest and pay off student loans faster.
Public Service Loan Forgiveness
Biden supports public service loan forgiveness, a federal program that President George W. Bush initiated in 2007. President Trump proposed to eliminate the Public Service Loan Forgiveness program, which would impact borrowers who borrow a new student loan after July 1, 2020. In its place, Trump proposed a single income-driven student loan repayment plan, which would provide student loan forgiveness after 15 years for undergraduate student loans and 25 years for graduate student loans.
Know This: The public service loan forgiveness program forgives federal student loans only. If you have private student loans, you need a game plan for student loan repayment or student loan refinancing.
Free Community College
Biden wants to make community college free, a position that many of the 2020 Democratic presidential candidates support.
Student Loan Forgiveness
Biden, who said at one point he had more than $280,000 of student loan debt after putting three kids through college and graduate school, did not mention a plan to cancel all student loan debt. Sen. Bernie Sanders (I-VT), also a 2020 presidential candidate, has proposed to cancel all $1.6 trillion of student loan debt for the nation’s 45 million borrowers. Sen. Elizabeth Warren (D-MA), another 2020 presidential candidate, introduced legislation in June to cancel student loan debt for more than 95% of borrowers, and would entirely cancel student loan debt for more than 75% of Americans with student loan debt.
Free College
While Biden did not mention free college, both Warren and Sanders support some form of “free college.” For example, Warren has proposed eliminating tuition and fees at all public two-year and four-year public colleges. Sanders also believes that public four-year and community college should be free.
