Biden reaffirms plan to cancel student debt and reduce racial inequalities
Former Vice President Joe Biden, the alleged Democratic presidential candidate, has reaffirmed his plan to cancel student debt to stimulate the economy and reduce racial disparities in higher education.
Biden previously posted his student loan plan in April. His proposal would write off all federal undergraduate student loan debt for borrowers who attended public colleges and universities, as well as historically black colleges and universities (HBCU) and private institutions serving minorities (MSI). Borrowers who earn less than $ 125,000 per year would be eligible for their student loan waiver.
Biden’s plan too provides a debt-free community college and free college at public colleges and universities for all families earning less than $ 125,000 per year. And it would crack down on predatory for-profit colleges, allowing borrowers to get loan forgiveness if they are defrauded by these schools, which disproportionate go after students of color.
Biden reaffirmed its support for a student loan forgiveness and debt-free college at an appearance on The daily show earlier this month. “Well, you know, things start to change, and people are realizing, and I’ve changed. I have. I think there needs to be more debt forgiveness for college loans, I think , more opportunities to go to college for free. For free, “Biden said in the interview with host Trevor Noah.
Black and Latinx students are generally underserved by public colleges and universities, and HBCUs are historically underfunded. Meanwhile, disparities in student debt and academic performance disproportionate impact on black and Latin students. Graduating students of color with more student loan debt on average than their white peers, owe more on their student loans even after years of repayment, and are more likely to fail on their student loans.
Many student loan experts and consumer advocates agree that student loan cancellation is a mechanism to reduce racial disparities in higher education. Senator Elizabeth Warren, who was competing with Biden for the Democratic presidential nomination, Noted that black students are more likely to take on debt to attend college. Additionally, due to factors such as employment discrimination and disparities in wealth accumulation, they typically owe more than they originally borrowed, even after many years of repayment. Warren’s own student loan cancellation plan was in the same way to remedy these inequalities.
In addition to the targeted student debt cancellation he proposed, Biden also supports $ 10,000 in Federal Student Loan General Remission in response to the Coronavirus crisis, as proposed by Senate Democrats. Biden has expressed support for Senator Warren’s proposal to amend the bankruptcy code, also, which would make it easier to settle student debts in the event of bankruptcy. Biden was one of the architects of the bankruptcy code changes that restricted student debt releases in the first place, so this is a significant historic change for him.
The cancellation of student debt remains a long plan in the Senate under Republican control. But with growing public support and the possibility of a Democratic Senate takeover after the November election, the cancellation of student loans is is no longer a far-fetched idea.