Joe Biden revealed his plans to forgive student loans at a Florida town on Monday night (Oct. 5).
During the forum, a young man asked him about his plans to represent Generation Z if elected, and he replied with some details of his intentions for college graduates.
The Democratic presidential candidate, who noted he has grandchildren in college and high school, committed to eliminating student loans for those whose families make under $120,000.
Gen Z, he claimed, “has really been put behind the 8 ball.”
“You get all these degrees, you end up with all this debt, and you’re in a position where you can’t get a job because no one is hiring or they’re hiring at very low wages, and so what we have to do is make sure you get the opportunity,” he explained, adding, “That’s why I’m going to eliminate a lot of your student debt...if you come from a family less than $125,000, and you went to a public university.”
“I’m going to make sure that everybody in this generation gets $10,000 knocked off of their student debt as we try to get out of this god-awful pandemic...,” he continued. “We’re gonna make sure we recognize you, we advance you...You’re the best educated, you’re the most open, you’re the least prejudiced generation in American history. The future is yours, and I’m counting on it.”
“The Biden Plan for Education Beyond High School,” which is laid out on his website, mentioned the plan would actually forgive debt for borrowers with an income under $125,000 and would be applied to those who attended public colleges and universities, HBCUs and private minority-serving institutions (MSIs) for undergraduate school.
It also introduces a new income-driven repayment plan for borrowers.
Per the site, “Individuals making $25,000 or less per year will not owe any payments,” and unlike the current plan, will not accrue any interest on those loans. Those who make over $25,000 will pay 5% of their income toward their student loans. The plan would also factor in expenses which are currently not considered. After 20 years of payment, the remaining balance would be forgiven.