Plans to Tackle Student Loan Debt in 2020


December 30, 2019 2:44 PM
by Susan Dutca-Lovell
If there is one thing upon which 2020 Presidential candidates and government officials agree, it is that something must be done to resolve the issue of college student debt, which has now outpaced credit card and auto debt. More than fifty percent of Americans believe that college student debt is a major problem, with the average college student currently graduating with $30,000 in student loan debt. Some of the proposed college debt plans - such as student loan forgiveness plans - would leave students debt-free, while others would offer new repayment and refinancing options. Here are some of the major changes that could take place in the near future:

If there is one thing upon which 2020 Presidential candidates and government officials agree, it is that something must be done to resolve the issue of college student debt, which has now outpaced credit card and auto debt. More than fifty percent of Americans believe that college student debt is "a major problem", with the average college student currently graduating with $30,000 in student loan debt. Some of the proposed college debt plans - such as student loan forgiveness plans - would leave students debt-free, while others would offer new repayment and refinancing options. Here are some of the major changes that could take place in the near future:

U.S. Department of Education

U.S. Secretary of Education Betsy DeVos wants to get the Education Department out of the student lending business by having federal student loans managed by a standalone entity that is separate and independent from the Education Department, such as the Federal Student Aid (FSA). The FSA is the nation’s largest provider of financial aid and could better manage and administer student loans, according to DeVos.

The Department of Education also wishes to simplify student loan repayment as there are currently 8 different repayment plans (4 of which are income-driven and each with different eligibility requirements); more than 30 variations of deferment and forbearance options; 14 forgiveness options, and 11 different servicers. The Trump administration proposed combining the existing student loan repayment plans into a single, simpler repayment plan to help borrowers pay off their student loans faster. Under this new income-based repayment plan, there would be a monthly student loan payment cap at 12.5% discretionary income, forgiving the remaining balance after 15 years.

The government may also offer income-sharing agreements where, unlike with a traditional loan, the borrower does not pay anything back until they secure a job following graduation. Once they land a job, they are responsible for a certain percentage of their income for a set period of years. As opposed to traditional loan payments - which are driven by principal and interest – income-share agreement payments are driven by income and time. If borrowers earn more, they pay more; if they make less, they pay less. Several institutions currently offer income-share agreements, including Purdue University, the University of California at San Diego, Clarkson University, Messiah College and the University of Utah.

Student Loan Forgiveness Proposals

At the forefront of eradicating college student loan debt is Senator Bernie Sanders, who proposes erasing the country's $1.6 trillion outstanding college student debt. "The College for All Act" would forgive all 45 million Americans with outstanding balances from their college student debt and would be funded by the proposed new tax on Wall Street transactions - including a 0.5 percent tax on stock transactions and a 0.1 percent tax on bonds. Sanders' plan would also make trade schools and apprenticeship programs, two- and four-year public colleges and universities tuition- and debt-free. Less radical Is Senator Elizabeth Warren's plan, which caps college debt at $50,000 and offers no relief to borrowers who earn more than $250,000. People who earn less than $100,000 would get $50,000 of their student debt forgiven while people who earn between $100,000 and $250,000 would be eligible for forgiveness on a sliding scale - $50,000 in debt relief drops by $1 for every $3 a person earns over $100,000.

Just because there are millions of college scholarships out there doesn’t mean you have time to go searching, and many won’t even match your profile. We’ve done the work and Scholarships.com is totally free. We have the search algorithms and scholarships database, saving you time in searching, finding and applying to thousands of dollars in college scholarships. Get instantly matched to scholarships that meet your unique talents, skillset and strengths, only those you qualify for. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
In response to the COVID-19 pandemic, colleges and universities quickly transitioned from in-person instruction to online learning, inadvertently overlooking the needs of students with disabilities and placing them on the backburner 'en masse.' While eductors have been transferring two months' worth of lesson plans to digital format, disabled students have been left without adequate digital accessibility to succeed in the unprecedented and current remote learning environment.

COVID-19 Pandemic Impact on Students with Disabilities

April 9, 2020 8:06 AM
by Susan Dutca-Lovell
In response to the COVID-19 pandemic, colleges and universities quickly transitioned from in-person instruction to online learning, inadvertently overlooking the needs of students with disabilities
Higher education has long been seen as a pillar in American life, as an essential element of our economic system and society. But the coronavirus pandemic has accelerated the underlying health conditions of this cultural institution. Many colleges and universities have been struggling to meet the needs of students while also keeping themselves above water financially. While we hope that our lives will return to normal when this crisis is over, it is hard to imagine that higher education will ever be the same.

Coronavirus Puts Higher Education in Perilous Position

April 7, 2020 2:43 PM
by Izzy Hall
Higher education has long been seen as a pillar in American life, as an essential element of our economic system and society. But the coronavirus pandemic has accelerated the underlying health
Just as schools have closed their doors due to coronavirus, charities and non-profit organizations have had to shutter down. While they might suspend board meetings, community fundraisers or award ceremonies, chances are they haven't shut down their scholarship offerings - in fact, many non-profits have extended their scholarship application windows from mid- or late March into April, May or even June. If you've been applying for scholarships this spring and missed out on some March or early April deadlines, check your account - you may find that some scholarships have had their due dates pushed back, giving you more time to submit an application.

Scholarship Deadlines Extended Due to COVID-19

April 2, 2020 1:16 PM
by Izzy Hall
Just as schools have closed their doors due to coronavirus, charities and non-profit organizations have had to shutter down. While they might suspend board meetings, community fundraisers or award
From student loans to college athletics, Scholarships.com is keeping you updated on all of the latest information on the coronavirus pandemic and its impact on high school and higher education. If you're tired of reading about COVID-19, take a break by checking out your latest scholarship matches and earning money for college here.

Coronavirus News Update for Students, Families, Colleges

March 31, 2020 3:27 PM
by Susan Dutca-Lovell
From student loans to college athletics, Scholarships.com is keeping you updated on all of the latest information on the coronavirus pandemic and its impact on high school and higher education. If
As a high school student in the midst of the standardized testing season and living through the COVID-19 pandemic, you may be wondering what the future holds for standardized test scores, AP courses, and the college admissions process. A recent survey conducted by The College Board revealed than 91 percent of 18,000 polled enrollees still want to take their AP tests. In fact, in 900 pages of comments responding to the AP survey, AP students begged to be allowed at least one championship bout with an AP test.

Coronavirus Impact on SAT, ACT, and AP Testing

March 26, 2020 2:56 PM
by Susan Dutca-Lovell
As a high school student in the midst of the standardized testing season and living through the COVID-19 pandemic, you may be wondering what the future holds for standardized test scores, AP courses,
Negotiations and proposals for an economic stimulus package are being mulled over by lawmakers, ones that will ultimately affect school and education funding. Currently, student-loan borrowers are able enter forbearance on their student loans for 60 days without accruing interest. The U.S. Department of Education will also suspend student loan payments by borrowers who are over 31 days delinquent. The White House has already announced that it will waive the interest on federal student loan payments. Here are some of the recent developments in proposed relief for students, colleges and universities as part of the COVID-19 stimulus plan:

Coronavirus Stimulus Package: Higher Ed Edition

March 24, 2020 11:51 AM
by Susan Dutca-Lovell
Negotiations and proposals for an economic stimulus package are being mulled over by lawmakers, ones that will ultimately affect school and education funding. Currently, student-loan borrowers are
There's no better time to apply for scholarships than when you aren't inundated with school, athletic and other responsibilities. That means that this upcoming spring break is probably your best opportunity at applying for and winning scholarships!

Scholarships to Apply for Over Spring Break

March 10, 2020 2:45 PM
by Susan Dutca-Lovell
There's no better time to apply for scholarships than when you aren't inundated with school, athletic and other responsibilities. That means that this upcoming spring break is probably your best
What's at the end of the rainbow? These March 2020 scholarships. We're adding more green to your college financial aid package this month - lucky you! Start off by browsing through our featured list of popular March scholarships or by completing a free profile to get instantly matched to opportunities for which you qualify. Either way, it's bound to be your lucky day!

Get Lucky with March 2020 Scholarships

March 6, 2020 1:24 PM
by Susan Dutca-Lovell
What's at the end of the rainbow? These March 2020 scholarships. We're adding more green to your college financial aid package this month - lucky you! Start off by browsing through our featured list