The United States is facing more than $1 trillion in student loan debt. Many of the 2020 primary presidential candidates are incorporating a solution to that debt into their campaigns. 

A majority of the 19 Democratic primary candidates proposed a wide range of policies to counter the growing cost of attending college in the U.S., including debt forgiveness, free or reduced college tuition and expanded assistant programs. 

Each of the top 5 polling primary candidates have proposed cancelling student debt and making college tuition free for at least part of the population. As of Sept. 17, the five leading Democrats according to Real Clear Politics data were: former Vice President Joe Biden, Sen. Elizabeth Warren, Sen. Bernie Sanders, Mayor Pete Buttigieg of South Bend, Indiana, and Sen. Kamala Harris.

An estimated 45 million borrowers face debt from student loans, totaling $1.5 trillion of U.S. debt. At Syracuse University, students who borrow loans can expect to graduate with around $27,000 in debt, according to an estimate from the U.S. Department of Education’s College Scorecard.

SU implemented a $3,300 undergraduate tuition premium last fall, as part of Invest Syracuse, a $100 million fundraising plan. Nationwide, the average tuition and fees at private universities have risen 154% from 2000 to 2020. The average cost at public universities has jumped 181%, according to U.S. News and World Report. 

President Donald Trump has proposed placing limits on Parent and Grad PLUS loans and reducing the amount of money parents can borrow for their children. He’s also proposed eliminating the Public Service Loan Forgiveness program — which allows a specified amount loan forgiveness for government and nonprofit workers. 

In April, Trump directed the Department of Education to find ways to eliminate student debt for veterans with disabilities, The New York Times reported.

The most expansive plan to counter student debt concerns is the College for All Act, a bill to cancel all 45 million borrowers that Sanders proposed in June with Reps. Ilhan Omar (D-Minn.), and Pramila Jayapal, (D-Wash.), The New York Times reported. The plan has no eligibility criteria. It would also get rid of fees and tuition at both four-year and community colleges. 

Eva Suppa | Digital Design Editor

To provide more support to students, the bill would cap interest rates on student loans, push more funding toward minority institutions and colleges and expand the Pell Grant, a financial need based federal subsidy for college students. 

Warren has also proposed an elimination of student loans though less large-scale than Sanders’. Her plan, first posted on Medium, would completely cancel student loan debt for more than 75% of borrowers, and would cancel some level of debt for more than 75% of Americans. 

The plan would eliminate debt of up to $50,000 for people who make less than $100,000 per year. The amount of loan cancellation increases incrementally as income increases, with people making over $250,000 a year not eligible for any. Warren would also eliminate tuition and fees for public two- and four-year colleges.

Both Biden and Buttigieg have publicly disclosed student loans that are in their names. Biden, an SU College of Law alumnus, said he has $280,000 in debt after putting three kids through college and graduate school, Forbes reported. Buttigieg said he and his husband have $131,296 in student debt. If elected, he would like to be the first president paying off student loans, per The Associated Press. 

The education section of Biden’s platform includes a plan to help teachers and other educators pay off their student loans by fixing and simplifying the PSLF program. The program allows forgiveness on direct loans after an individual has made 120 monthly payments while working full time. In 2018, the Trump administration approved only 1% of program applicants, CNBC reported.

Buttieg and Harris’ plans also include debt cancellation and tuition reduction. Low- and middle-income students would receive free public tuition under Buttigieg’s plan. He also proposed debt cancellation for students who attended low-quality higher education programs. Such institutions failed the federal gainful-employment rule, which requires that the institution “prepare students for gainful employment in a recognized occupation.”

Borrowers could receive $20,000 in loan forgiveness under Harris’ plan, if they meet three requirements: a Pell Grant recipient, started a business in a disadvantaged community and ran the business for three years, CNBC reported. 

Published on September 23, 2019 at 10:31 am

Contact India: irmiragl@syr.edu