With Student loan debt becoming an increasingly pressing issue, what can the Biden-Harris administration do to resolve the situation? According to their latest announcement on the subject, it would seem that they’ve made some headway in coming up with a long-term plan to help students manage their loans without hurting them financially in the process. However, there are still several steps before any concrete action can be taken – here’s what you need to know about their proposed solution and where it stands now.
The current State of Affairs
Since the early 2000s, tuition rates have risen by 250%. With student loan debt now totaling $1.5 trillion and more than 44 million people in debt, the Biden-Harris administration has been working to develop a plan to address the escalating problem. In his first State of the Union address, President Harris said that in 2020, one in six Americans with a student loan will be at least 90 days late on payments.
He also noted that a family who earns $100,000 a year may owe as much as $20,000 for their child’s college education. It is clear that this issue requires immediate attention and cannot wait any longer. This decision is one that is currently on hold, pending further discussion and debate.
Biden-Harris Plan – Second Paragraph: To address these issues, a plan proposed by President Harris would include tuition-free college for all. However, students will have to complete 15 hours per week of community service in their selected field and pass a certification test before graduation in order to receive any funding. While critics have called it unfair to require recipients to perform labor without pay in order to reap benefits from federal grants, Harris argues that community service is vital for developing our workforce and creating a better future for all Americans.
Why they chose this topic?
With the 2020 presidential election looming, it’s important for Americans to understand the reality of student loan. As a record number of students graduate from college, student loan debt is at an all-time high. That’s why it was so important that Vice President Joe Biden and Senator Kamala Harris weigh in on this topic during their recent campaign stop at Howard University. They both spoke candidly about the impacts that student loan have had on their lives and outlined some proposals for how to tackle this issue if they are elected next year.
For example, Kamala Harris mentioned her own student loan debt during her speech at Howard. She revealed that after graduating from law school with $150,000 in debt, she waited tables and cleaned houses in order to make ends meet. Now she has a book coming out next year and is one of three Democratic candidates hoping to take on President Donald Trump for reelection.
Meanwhile, Vice President Joe Biden spoke about how his decision to go to college was influenced by his parent’s decision not to pay for their kids’ higher education. He made it clear that he’s still paying for some of those student loan decades later! That experience has motivated him to do what he can during his time in office.
What are the next steps?
Student loan debt is a reality for many Americans, and it’s one that has been looming in the back of many people’s minds. With the 2020 presidential election just around the corner, student loans are going to be at the forefront. President Trump is campaigning on his America First agenda and plans to cut $1 trillion from federal education spending.
This could lead to higher interest rates on student loans and decreased availability for loans. Vice President Joe Biden has also proposed a plan that would work with colleges and universities in order to make college more affordable for students by giving them grants instead of loans. Under this plan, students would still have access to private loans if they wanted or needed them.
In the end, the reality is this. Our student loan debt crisis will be resolved in part by a more robust economy and a bipartisan fix to our nation’s broken healthcare system. But we must also take action now to tackle the problem head-on and make it easier for students to repay their loans on time, without crushing them with interest rates.
President Trump and Republicans in Congress need to work with Democrats in Congress on a bipartisan solution, such as Senator Warren’s bill that would allow students who attended public colleges to refinance their loans at today’s lower rates.