Bernie Sanders Student Loan Forgiveness
The most generous student loan forgiveness plan proposed to date has been introduced by Senator Bernie Sanders in his 2020 presidential bid. The plan would forgive every dollar of college debt for all Americans, including both current and future borrowers.
How Student Loan Forgiveness Works
Student loan forgiveness is a special provision of the U.S. tax code that allows you to cancel your student loans if you work for a certain number of years in a public service or non-profit job. If you qualify, you can apply for an income-driven repayment plan—which means that your monthly payments are based on how much money you make—or even get rid of almost all of your debt!
How the Bernie Sanders Student Loan Forgiveness Plan Works
The Sanders Student Loan Forgiveness Plan will:
- Eliminate the $1.6 trillion in student debt currently held by an estimated 45 million Americans.
- Universal free college tuition, with no debt from high interest rates or fees.
- Expand work-study programs so that every qualified student can get a job to help pay for their education, and expand Pell grants so that more students can afford to attend college without going into debt.
The Cost of the Bernie Sanders Student Loan Forgiveness Plan
While the Bernie Sanders student loan forgiveness plan would help millions of Americans, it would also cost a lot of money. How much? According to The Washington Post, it would cost $1.6 trillion dollars over 10 years.
That sounds like a lot of money—and it is! But don’t worry too much just yet; this price tag comes with an explanation and justification that makes sense: While the cost of this program may be high upfront, over time its benefits will save taxpayers billions in interest payments on future loans and make college more affordable for millions of students across the country.
The Bernie Sanders student loan forgiveness plan proposes to eliminate $1.6 trillion in student debt.
The Bernie Sanders student loan forgiveness plan proposes to eliminate $1.6 trillion in student debt for all current and future borrowers.
The plan also proposes to forgive all existing and future graduate school loans, which would save borrowers an additional $300 billion over 10 years, according to the campaign.
This means that if you currently have student debt, this plan would eliminate your outstanding balance at no cost to you and without any further action on your part (provided you stay current on payments). If you take out new loans after this program has been implemented, they will be subject to income-based repayment (IBR) or another form of income-continguation based repayment like Pay As You Earn (PAYE).
If you’re looking for a way to pay off your student loan debt, the Bernie Sanders Student Loan Forgiveness Plan may be the solution for you. This plan proposes to eliminate $1.6 trillion in student debt. The cost of this program will be covered by raising taxes on wealthy Americans and corporations who currently don’t pay their fair share in taxes