Joe Biden detailed a $750 billion plan for higher education that would make free community college a main goal
in 2015, the free community college initiative is framed as a federal-state partnership, with the federal government covering 75 percent of the cost and states contributing what’s remaining.
Nontraditional students, Dreamers and part-time students would be eligible to partake in free community college, along with recent high school graduates. The Biden campaign classified the initiative as a “first-dollar program,” which means students would be able to use Pell Grants, state aid and other aid to help them cover expenses beyond tuition and fees.Under a simplified income-based repayment program proposed by Biden, those who are making $25,000 or less per year would not owe any payments on their undergraduate federal student loans and would not accrue any interest on those loans.
After 20 years, the remainder of the loans for people who have made payments through the program would be forgiven. Biden would also change the tax code so that debt forgiven through the income-based repayment plan would not be taxed. Those with new or existing loans would be automatically enrolled in the income-based repayment program, unless they opt out.
Biden’s plan says the Public Service Loan Forgiveness Program, which is intended to forgive the remaining balance on loans after 10 years of qualifying payments under a qualifying repayment plan, “is broken.” Under his plan, those working in schools, government and other nonprofits would be automatically enrolled in the forgiveness program, which would offer $10,000 of undergraduate or graduate student debt relief for every year of national or community service, up to five years.
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