Elizabeth Warren’s Student Loan Relief Plan
Massachusetts Sen. Elizabeth Warren has issued a proposal for up to $640 billion in student loan relief, that would get funded by the rich. This new proposal is part of her campaign for the Democratic presidential nomination in 2020.
President Donald Trump is also working on a different type of debt relief for students, which you can read about by visiting this page next.
Trump’s student loan relief plan focuses on simplifying the existing student loan relief options, just making it easier for students to use. In my opinion, Trump’s plan beats Warren’s proposal by a long shot. And I am not just saying that because I’m a Republican; my focus is purely in terms of debt relief.
Potentially, Warren’s new plan could write off hundreds of billions of dollars in existing student loan debt and benefit over 42 million Americans that are earning under $100,000 per year.
Highlights of Warren’s New Student Loan Relief Plan
- 42 million students could get up to $50,000 of their federal student loan debt eliminated (these students must earn below $100,000 per year)
- for students that earn between $100,000 and $250,000 per year, these students would also get substantial debt cancellation
- the plan could cost $1.25 trillion over ten years, which would get funded by a new tax on multimillionaires
First off, let’s talk about point number one:
“Students could get up to $50,000 of their federal student loan debt eliminated if they have an annual adjusted gross income of under $100,000.”
Students can already get more than $50,000 in student loan debt forgiven, through the federal student loan relief options. And the wealthy don’t have to pay for it! The government ends up paying. Currently, if a student gets their debt forgiven, the government loses money. Could that be the reason for the lack of education on how to take advantage of these options in 2019? Trump’s new debt relief program simplifies these existing student loan relief options, making it clear for students how they can get debt forgiveness. Additionally, Trump’s plan focuses on making it easier for veterans to get relief.
Here’s an example of a student that consolidated $97,535 into a low monthly payment of $216. This student could end up getting close to $100,000 in debt forgiven – one of the millions of examples of students who already qualify for this type of relief. Many students just don’t know about their options due to a lack of education. And lack of education is not the students’ fault, but rather the failure of the government, student loan servicers, and the Department of Education.
Student Loan Consolidation & Income-Driven Repayment Plans (available in 2019)
As of today, you can already consolidate your student loans into an income-driven repayment plan that offers you a monthly payment of as low as zero dollars per month. These hardship programs have been available for many years now. Here’s an example of a student getting approved for the zero dollars per month payment plan back in 2014, and this same program has helped millions of students obtain student loan relief over the years.
The problem again is a lack of education.
How to get on an income-driven repayment plan that offers a $0 per month payment
You could have $200,000 in student loan debt and end up getting most of it forgiven. Here are the step by step instructions on how to consolidate, get on an income-driven repayment plan, and loan forgiveness.
If you have credit card debt, relief is also available. Here are the best debt relief programs for credit card relief in 2019.
If you owe above $15,000 in total unsecured debt, you may also qualify for help at Golden Financial Services. Call (866) 376-9846 for a free consultation today!