Around 44 million Americans with school loan debts will be affected in this huge shift in the student loan policy this coming 2020.
College student loan debts
The upcoming presidential election is a prime mover in the revamping of student loan policies. Presidential campaigns and recent legislations are seen to be inclined to the reconstruction of existing loan policies, interest rates, financing, and repayment schemes.
There is a strong possibility of lowering – or total removal of loan balances.
With the upcoming election on hand, politicians are becoming more sensitive to major concerns of the country, and undeniably, student debt is one of them. On average, a college graduate leaves the school carrying a $30,000 loan on his shoulder, a high increase from $10,000 in the 1990s.
Several platforms are expected to pop out during the campaign period. As an added advice, go for those with credibility, what’s the use of platform promises if they wouldn’t push for it when elected into office.
Here are some proposals of aspiring candidates this coming US election:
- Elizabeth Warren – students with a family annual income of less than $100,000 can get $50,000 off of their debt. Family annual income between $100,000 to $250,000 will get a maximum of $50,000 discount with a $1 deduction for every $3 above $100,000. Those who earn $250,000 and above annually are excluded in the loan discount privilege.
- Kamala Harris – students with a family annual income of less than $100,000 will be debt-free from the student loan.
- Bernie Sanders – to wipe out the existing $1.6 trillion student debt. Every borrower will become debt-free.
- Wayne Johnson – the first Republican to support student loan subsidy. $50,000 subsidy for all borrowers, it will take a huge chunk of the budget at $925 billion approximately.
The hype regarding the loan policy reconstruction is highly anticipated, considering that it has been more than a decade since the last reclassification of the Higher Education Act (HEA). The HEA controls and manages the scope of federal student aid services.
Whatever the election brings, there is a guaranteed assurance that education loan projects will go through significant changes after the election.
