Two US senators, Sanders and Warren, recently passed plans and recommendations regarding Student Loan Forgiveness. Senator Sanders introduced a plan where all of the students who have had subscribed for a student loan will no longer be made to pay back the debt. This basically means that all the loans of the 44 million students will be canceled and they will not be charged with anything.
Warren, on the other hand, has proposed a different plan. His proposal states that households with annual income that ranges below $100,000 will receive a cut by $50,000. It also included the eligibility of canceling private student loan debts.
The Things You Need To Know
Who Receives The Student Loans?
Senator Sanders’ proposal intends to benefit all students. On the other hand, Senator Warren’s plan for the cancellation of the debts will be on the basis of family income.
How Will The Loan be Paid?
Sander’s plan will be backed up through a new taxation system which includes additional fees on stock trades, bond trades, and derivative trades. Warren’s plan, however, will be funded by what is called an Ultra-Millionaire Tax, where a 2% increase in annual income tax will be put as an additional tax for the those who belong to the Ultra-Millionaire group.
What are the University’s Responsibilities?
With the impending increase in the amount of tuition fees, student loans have also shown an unprecedented rise. The universities are expected to do their part in doing every means possible to decrease student expenditures while maintaining quality service.
Student Loans are a popular option for students are in need of help for educational fees. It is the government’s prerogative to balance out who and when to give loan forgiveness but it is also their responsibility to make sure that every student are able to have quality education.