A $750 billion higher education plan, being proposed by Joe Biden, is meant to make community and technical college “free” and federal college loan programs more generous.
The essence of Biden’s plan for higher education is essentially for the state and the federal government to make a bond – 75 percent of tuition costs for community colleges would be covered by the federal government, while the remaining 25 would be covered by the states, a concept similar to the Medicaid insurance program for the poor and disabled.
While Biden’s plan is quite the leap, 2020 rivals Bernie Sanders and Elizabeth Warren have taken a more “all-in” approach and offered plans exceeding $1 trillion, seeing a similar gap between Biden’s, Warren’s and Sanders’ plans on health care.
Each candidates’ approach towards handling debt is different with Biden focusing more on cutting income percentage caps in half, delaying payments for anyone making less than $25,000 and no additional interest from the borrower – forgiving any debts left after 20 years of payment and allowing borrowers to get out of debt as part of personal bankruptcy.
Sanders’ and Warren’s approaches are much more dreamlike, with Sanders proposing that all student loan debt should be eliminated, and Warren calling for relief based on income – canceling, for example, $50,000 in debt for anyone with a household income under $100,000 and proportional relief for those who make up to $250,000 annually.
The amassed and evergrowing $1.5 trillion-plus student debt, held by almost 50 million Americans is the focus point of the Democrats’ efforts in coming up and proposing their higher education plans, however they all share one thing – the proposals include tax increases to pay for the spending on said education plans.
While all Democratic candidates’ plans seek to make student debt lighter, it’s uncertain whether taxpayers would be too happy about the idea of more taxes, considering the current financial stability and the possibility of it getting slightly disrupted if such a plan is indeed accepted and acted upon.