In a clear demonstration of the Biden Administration refusing to give up or give in, President Biden just announced next steps to cancel student debt for some 30 million Americans – despite Republicans actually going to the Supreme Court to prevent the administration from exercising its authority.
“Today, my Administration took another major step to cancel student debt for approximately 30 million Americans,,” President Biden stated. “By providing more information to borrowers on how they can take advantage of our upcoming debt relief programs, borrowers will be prepared to benefit swiftly once the rules are final. Despite attempts led by Republican elected officials to block our efforts, we won’t stop fighting to provide relief to student loan borrowers, fix the broken student loan system, and help borrowers get out from under the burden of student debt.
“Today’s announcement comes on top of the significant progress we’ve made for students and borrowers over the past three years. That includes canceling student debt for nearly 5 million Americans so far through various actions; providing the largest increases to the maximum Pell Grant in over a decade; fixing Income-Driven Repayment so borrowers get the relief they are entitled to under the law; and holding colleges accountable for taking advantage of students and families.
:From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to make higher education affordable and to make sure our Administration delivers for the American people.”
This fact sheet was provided by the White House:
Next Step Toward Additional Debt Relief for Tens of Millions of Student Loan Borrowers This Fall
Starting tomorrow, the Department will email borrowers telling them about potential debt relief and giving them the opportunity to opt out
The Biden-Harris Administration today announced that it will begin the next step toward providing student debt relief to tens of millions of borrowers this Fall. Starting tomorrow, the U.S. Department of Education (Department) will begin emailing all borrowers with at least one outstanding federally held student loan to provide updates on potential student debt relief, and to inform them they have until August 30 to call their servicer and opt out if they do not want this relief.
The rules that would provide this relief are not yet finalized, and the email does not guarantee specific borrowers will be eligible. The Department will provide additional information to borrowers once the rules are finalized this fall. These proposed rules build upon the Administration’s existing work that has approved more than $168 billion in student loan relief for nearly 4.8 million borrowers through various actions. These rules, if finalized as proposed, would bring the total number of borrowers eligible for student debt relief to over 30 million, including borrowers who have already been approved for debt cancellation by the Biden-Harris Administration over the past three years.
“Today, the Biden-Harris administration takes another step forward in our drive to deliver student debt relief to borrowers who’ve been failed by a broken system,” said U.S. Secretary of Education Miguel Cardona. “These latest steps will mark the next milestone in our efforts to help millions of borrowers who’ve been buried under a mountain of student loan interest, or who took on debt to pay for college programs that left them worse off financially, those who have been paying their loans for twenty or more years, and many others. The Biden-Harris Administration made a commitment to deliver student debt relief to as many borrowers as possible as quickly as possible, and today, as we near the end of a lengthy rulemaking process, we’re one step closer to keeping that promise.”
In April, the Administration released its first set of draft rules that proposed authorizing the Secretary of Education to grant student debt relief to tens of millions of borrowers across the country, including those whose balances have grown due to runaway interest and those who entered repayment on their loans a long time ago, among others. If these rules are finalized as the Department has proposed, they would authorize the Secretary of Education to provide partial or full debt relief for the following groups of borrowers:
Borrowers who owe more now than they did at the start of repayment. Borrowers would be eligible for relief if they have a current balance on certain types of Federal student loans that is greater than the balance of that loan when it entered repayment due to runaway interest. The Department estimates that this debt relief would impact nearly 23 million borrowers, the majority of whom are Pell Grant recipients.
Borrowers who have been in repayment for decades. If a borrower with only undergraduate loans has been in repayment for more than 20 years (received on or before July 1, 2005), they would be eligible for this relief. Borrowers with at least one graduate loan who have been in repayment for more than 25 years (received on or before July 1, 2000) would also be eligible.
Borrowers who are otherwise eligible for loan forgiveness but have not yet applied. If a borrower hasn’t successfully enrolled in an income-driven repayment (IDR) plan but would be eligible for immediate forgiveness, they would be eligible for relief. Borrowers who would be eligible for closed school discharge or other types of forgiveness opportunities but haven’t successfully applied would also be eligible for this relief.
Borrowers who enrolled in low-financial value programs. If a borrower attended an institution that failed to provide sufficient financial value, or that failed one of the Department’s accountability standards for institutions, those borrowers would also be eligible for debt relief.
If finalized as proposed, these new rules would authorize relief for borrowers across the country who have struggled with the burden of student loan debt. The Department expects that all four of these proposed forms of relief would be provided to eligible borrowers without requiring any action from borrowers; no application would be needed.
If, however, borrowers prefer to opt out of this debt relief for any reason, they can do so by contacting their servicer by Aug. 30, 2024. Borrowers who opt out of this debt relief will not be able to opt back in, and they will also be temporarily opted out of forgiveness due to enrollment in an IDR plan until the Department is able to automatically assess their eligibility for that benefit in a few months. In addition, borrowers would only be eligible for the proposed relief if they have entered repayment at the time that the Department would be determining eligibility, after the proposed rules are finalized.
An unparalleled track record of borrower assistance
The Biden-Harris Administration has taken historic steps to reduce the burden of student debt and ensure that student loans are not a barrier to educational and economic opportunity for students and families. The Administration secured a $900 increase to the maximum Pell Grant—the largest increase in a decade—and finalized new rules to help protect borrowers from career programs that leave graduates with unaffordable debts or insufficient earnings. The Administration continues its work to issue debt relief regulations under the Higher Education Act, with final regulations expected this fall.
The Biden-Harris Administration has approved the following debt relief for borrowers:
$69.2 billion for 946,000 borrowers through fixes to Public Service Loan Forgiveness (PSLF).
$51 billion for more than 1 million borrowers through administrative adjustments to IDR payment counts. These adjustments have brought borrowers closer to forgiveness and addressed longstanding concerns with the misuse of forbearance by loan servicers.
$28.7 billion for more than 1.6 million borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.
$14.1 billion for more than 548,000 borrowers with a total and permanent disability.
$5.5 billion for 414,000 borrowers through the SAVE Plan
The vigorous contest of
Democrats seeking the 2020 presidential nomination has produced excellent
policy proposals to address major issues. In a recent poll, Americans have
indicated that education is a top issue. Senator Amy Klobuchar released her “Many Paths to Success”
Post-Secondary Education Plan.
This is from the Klobuchar campaign:
Senator Klobuchar believes there are many paths to success. Her grandpa worked
1,500 feet underground in the mines, never graduated from high school, and
saved money in a coffee can in the basement to send her dad to community
college. Her sister didn’t graduate from high school, worked in manufacturing
in Iowa, got her GED, went to community college and eventually got a four-year
degree.
Today many of the fastest growing occupations require one- and two-year
degrees. The Bureau of Labor Statistics projects that there will be 74,000 job
openings for electricians over the next 10 years, 68,200 openings for plumbers,
and over 137,000 openings for nurses’ assistants. Senator Klobuchar believes we
must do more to connect people to an affordable education for the jobs we have
available today and tomorrow.
That’s why as President, Senator Klobuchar will focus on championing
tuition-free one- and two-year community college degrees and technical
certifications, expanding apprenticeship opportunities, respecting the dignity
of work by paying people a decent living wage so they can care for and support
their families, as well as making it easier for Americans who need help to
afford four year degrees.
As part of her Post-Secondary Education Plan, Senator Klobuchar
will:
Provide Tuition Free One- and Two-Year Community College Degrees and
Technical Certifications, Promote Apprenticeships, and Respect the Dignity of
Work
● Provide tuition-free community college and technical
certifications. Today many of the fastest growing occupations require one-
and two-year degrees. As President, Senator Klobuchar will create a new
federal-state partnership to provide tuition-free community college one- and
two-year degrees, technical certifications and industry-recognized credentials.
The federal government will match $3 for every $1 invested by the state for
students who qualify for in-state tuition, are enrolled at least half-time, and
maintain satisfactory academic progress. When certain economic indicators show
a state has increased financial need, the federal share of the match will
increase. To qualify for the federal funding, states will also be required to
maintain their spending on higher education, limit the rate of tuition
increases and ensure that students can easily transfer their credits to
four-year programs. This proposal is based on Senator Baldwin’s America’s
College Promise Act and an Obama Administration proposal.
● Connecting students to jobs and ensuring the
dignity of work. It is not enough to provide students and workers with an
affordable education, we must also connect students to job openings and ensure
the dignity of work for the jobs that are available today. As President,
Senator Klobuchar will invest in our workers so that everyone who works hard
can earn enough to care for and support their family. That means raising the
minimum wage, providing child care, and paid family leave and making sure
people have a secure retirement. She will also work with high schools,
community colleges, universities, businesses, labor unions, trade associations
and job training centers to provide information to students earlier in their
education about the availability and outlook for jobs in different careers,
their expected earning potential, and the necessary educational
credentials.
● Invest in apprenticeships. Apprenticeships combine
academic instruction with on-the-job training to give students the skills they
need to succeed while helping employers create a source of qualified workers.
Senator Klobuchar will direct her Secretary of Labor to analyze the use of
apprenticeships for In-Demand occupations, launch a nationwide campaign, and
expand apprenticeship opportunities and benefits with the goal of doubling the
number of apprenticeships to over a million by the end of her first term. She
will also work to pass the American Apprenticeship Act, a
bipartisan bill she leads in the Senate that would help states create and expand
tuition assistance programs for students in pre-apprenticeship and Registered
Apprenticeship programs.
● Improve tax incentives for retraining and
post-secondary education. Tax credits help make college more affordable for
many families, but too often they are not designed to help non-traditional
students. As President, Senator Klobuchar will work to pass bills she currently
leads in the Senate to allow older students and workers to use tax-advantaged
“529” savings accounts for recognized post-secondary credentials and
occupational licenses. As President, she will also pass bipartisan legislation
she leads in the Senate to remove age-based contribution restrictions for
Coverdell education accounts, allowing the accounts to be used for a broader
range of career and technical education costs. Both tax incentives would apply
to older students and workers pursuing retraining opportunities.
● Adapt high school curricula to improve workforce
readiness and post-secondary success and expand opportunities for dual
enrollment. As part of her previously announced Progress Partnerships for
K-12 education, Senator Klobuchar will create incentives for state education
departments to evaluate and improve student career readiness, including
coursework, curriculum and other policies that prepare students for the jobs
available in today’s workforce. As President, Senator Klobuchar will also help
school districts cover the tuition expenses of high schoolers enrolled in
community colleges, apprenticeships, technical certifications, and universities
through dual enrollment programs.
Lower the Cost of College and Reduce the Burden of Student
Loans
● Double the maximum Pell Grant and expand
eligibility to families making up to $100,000 per year. As President,
Senator Klobuchar will double the maximum Pell Grant — which, unlike loans, do
not have to be repaid — to $12,000 per year and expand eligibility to families
making up to $100,000 per year. She will also index Pell Grant levels to
inflation.
● Provide financial support beyond tuition. For
many college students, non-tuition expenses can present a significant hurdle to
completing their education. In addition to expanding Pell Grants, which can be
used for certain non-tuition expenses, Senator Klobuchar will work with states to
establish microgrant programs to help students with necessary expenses if they
face unexpected financial hardship. In addition, she will expand categorical
eligibility for SNAP benefits for low-income students and support pilot
projects to increase the availability of federal housing assistance to
students.
● Simplify the financial aid process. The
income verification process for the Free Application for Federal Student Aid
(FAFSA) can be a significant barrier for low-income students. As President,
Senator Klobuchar will work to improve coordination between the IRS and
Department of Education to streamline income verification. She will also allow
previous year tax forms to be used to avoid complications from income
estimates.
● Fix the Public Service Loan Forgiveness program
and expand it to cover In-Demand occupations. Loan forgiveness can be
a powerful tool to help encourage recent graduates and current students to
enter public service, but the current Public Service Loan Forgiveness program
is broken. As President, Senator Klobuchar will completely overhaul the Public
Service Loan Forgiveness program to require lenders to provide better
information to borrowers about their eligibility and progress toward
forgiveness, allow borrowers more flexibility to meet the program requirements,
and streamline reporting and verification requirements. She will also expand
the loan forgiveness program to borrowers who work in In-Demand occupations so
we can match students with the job openings of today and tomorrow. Under the
In-Demand occupation loan forgiveness program, any remaining balance on
undergraduate federal student loans would be forgiven after 10 years of
payments through an income-driven repayment plan.
● Allow borrowers to refinance their student loans to
lower rates. Senator Klobuchar believes that if billionaires can
refinance their yachts, students should be able to refinance their student
loans. As President, Senator Klobuchar will work with Congress to pass
legislation that allows students and parents with existing federal and private
student loans for undergraduate and graduate programs to refinance their loans
at lower rates.
● Protect student borrowers and increasing financial
literacy. Too many students have been taken advantage of by
unscrupulous private lenders. As President, Senator Klobuchar will restore and
strengthen rules that allow students who believe they were defrauded by their
colleges to apply for loan forgiveness, providing relief to thousands of
additional students. She will also establish best practices for student
financial literacy and require schools to notify student borrowers of their
total loan obligations, estimated interest rate, and expected monthly payment.
This proposal is modeled after the bipartisan Empowering Student Borrowers
Act, which Senator Klobuchar has co-sponsored in the Senate.
Support Multiple Paths to Success and Invest in Retraining
● Establish a Worker Training Tax Credit. Today
businesses are investing less in workforce training, particularly when it comes
to lower wage workers who are most at risk of losing their jobs to automation
and other emerging technologies. As President, Senator Klobuchar would create a
new tax credit for employers that invest in training for workers at risk of
being laid off through on-site training programs or provide paid time off for
off-site retraining. To qualify for the tax credit, training would have to lead
to an industry-recognized credential, certificate, or degree.
● Invest in adult basic education. In her
first 100 days as President, Senator Klobuchar will reverse President Trump’s
proposal to cut basic education programs for adults, and launch an initiative
focused on increasing opportunities for adults to master literacy and basic
math skills.
● Promote stackable credentials. Stackable
credentials are certifications or occupational licenses that can be combined
with additional coursework that will then lead to an associates degree. As
President, Senator Klobuchar will encourage states to work with employers,
unions, trade associations, and community colleges to develop stackable
credentials for In-Demand fields that provide meaningful employment skills
while building towards a degree.
● Expand accountable skills-based education.
Senator Klobuchar supports finding ways to give students credit for the skills
and knowledge they have from previous jobs or military experience. As a
Senator, her legislation was signed into law to make it easier for veterans
with training to become paramedics and law enforcement officers. As President,
Senator Klobuchar will initiate a grant program for skills-based education with
strong accountability and transparency standards to make it easier for students
to receive credit for skills and knowledge they’ve already acquired.
● Give students returning to school later in life a
fair shot. Students should be able to pursue post-secondary
opportunities later in life. Senator Klobuchar will allow students who are
returning to post-secondary education to requalify for Pell Grants by resetting
their Satisfactory Academic Progress (SAP) and to receive additional Pell
Grants even if they have reached the Lifetime Eligibility Used (LEU). She will
also restore Pell Grant eligibility for incarcerated students.
● Improve GED programs. As President, Senator Klobuchar will work to improve GED programs by linking them to career skills and community college curricula while increasing students’ chances of success through wraparound support services.
Provide All Students Opportunities for Success
● Increase STEM education including for women and
underrepresented minorities. As co-chair of the Diversify Tech Caucus and
Women’s High Tech Coalition, Senator Klobuchar has been a leader in expanding
STEM education including for women and underrepresented minorities. As Senator,
she successfully passed multiple bills to promote STEM-focused programs at
schools, improve the representation of underrepresented groups on the National
Science Foundation’s Advisory Panel, improve retention of minority STEM
teachers, strengthen NASA’s STEM outreach, and help the National Science
Foundation assist female entrepreneurs. As President, Senator Klobuchar will
continue to promote STEM education including computer science and data literacy.
● Strengthen and increase affordability for
Historically Black Colleges and Universities (HBCUs) and other Minority Serving
Institutions (MSIs). As President Senator Klobuchar will invest in HBCUs
and MSIs through a new Pathways to Student Success initiative. Participating
HBCUs and MSIs will receive federal funding to waive or significantly reduce
the first two years of tuition for low-income students at four-year
schools.
● Expand and fully support TRIO and GEAR UP. The
TRIO and GEAR UP programs help low-income, first-generation college students,
and students with disabilities, veterans, homeless youth, foster youth, and
individuals underrepresented in graduate education prepare for and succeed in
higher education. The Trump Administration has attempted to cut funding for
these programs, but as President, Senator Klobuchar will expand these programs
and ensure that they are fully funded.
● Ensure veterans have access to the educational
opportunities they have earned. Senator Klobuchar has been a champion
for expanding and modernizing education benefits for our servicemembers. As
President, she will push to reduce the burden of student debt on servicemembers
by lowering or eliminating the accrual of interest on student loans during
their service. She will also ensure that members of the National Guard and
Reserve receive the same GI Bill education benefits as their counterparts in
active duty and adjust tuition assistance for members of the National Guard and
Reserve to keep the tuition assistance competitive. And to support veterans on
college campuses and expand career counseling, Senator Klobuchar will launch
and implement a grant program to invest in college veteran education
centers.
● Remove barriers to education for homeless and
foster youth. During her first 100 days as President, Senator
Klobuchar will direct her Secretary of Education to remove barriers to higher
education for homeless and foster youth, including by ensuring grant programs
identify, recruit and prepare homeless and foster students for post-secondary
education.
● Invest in Tribal Colleges and Universities (TCUs). As
President, Senator Klobuchar will work to ensure that Tribal Colleges and
Universities are fully funded and that TCUs, Alaska Native-serving
institutions, Native Hawaiian-serving institutions and Native American-serving
nontribal institutions will be eligible for the Pathways to Student Success
initiative. She will also build on her work to provide resources for tribal
schools so that they can prepare students to be career and college ready.
● Support students with disabilities. Senator
Klobuchar is committed to accessible education for people of differing
abilities. That includes making sure that education facilities accommodate
people with disabilities, educators have the training and resources to
effectively teach students with learning and other disabilities, and schools
provide supportive resources for students with disabilities.
● Support student parents. Students who
have children are more likely to drop out of their educational programs without
completing them. As President, Senator Klobuchar will expand the Child Care
Access Means Parents in School (CCAMPIS) Program, which provides on-campus
child care services. She will also expand the eligibility for the Child and
Dependent Care Tax Credit to cover child care expenses while parents pursue
postsecondary education and make financial aid calculations fairer for student
parents.
To pay for these investments, Senator Klobuchar will raise the capital
gains and dividends rate for people in the top two income tax brackets, limit
the amount of capital gain deferral allowable through like-kind exchanges, and
implement the Buffet Rule through a 30 percent minimum tax for people with
incomes over $1 million.
Amid
a sea of “Bernie” signs and chants of “We are the 99%” and “We will win”, Jane
Sanders, looked out over the massive crowd of 25,000 that overflowed
Queensbridge Park, beneath the Queensborough Bridge, onto the street, and said,
“Here are people from every background in the melting pot called New York. Most
of our ancestors came to America for a better life- mine from Ireland to escape
famine, poverty; Bernie’s from Poland escaping anti-Semitism, poverty.
“All believed they could have a better life. But in the last 40 years that
promise has eroded. Bernie plans to change that.” And, noting that this is his
first rally since his heart attack, she said to massive cheers, “Bernie is
back. He’s healthy and more than ready to continue his lifelong fight for
working people of America.”
Michael Moore: “This is not just about defeating Trump, but the
rotten system that gave us Trump’
Democracy,
said documentary filmmaker Michael Moore, is where “Everyone gets a seat at the
table, a slice of the pie and not fight for last crumbs. We don’t just need a
democratic politics, we need a democratic economy.”
Moore said, “The powers that be are very unhappy you’re here, that Bernie is
back. The pundits, the media [boo] are throwing everything out there to get
people to think differently:
“That Bernie is too old. Here’s what’s too old: the Electoral College, the
$7 minimum wage, women not being paid the same as men, thousands and thousands
of dollars of student debt, $10,000 deductible for health care, Super
Delegates, the fossil fuel industry – that’s what’s too old.
“It’s a gift we have 78-year-old American running for president. The
experience he has, what he has seen. He knows what a pay raise is, a pension –
look it up. What it looks like to defend against fascism and white supremacy,
to have the library open every day, what regulations are (Boeing). I’m glad
he’s 78.
“Health? We should be talking about the health of planet that’s dying [crowd
chants “Green New Deal”]; the health of kids in Flint Michigan, of 40 million
living in poverty, of young black males shot in back by police [chant Black
Lives Matter, Black Lives Count]. The only heart attack we should talk about is
the one Wall Street will have when Bernie wins.
“Next, that Bernie can’t win. He will win he has won 8 times to the House, 2
times to the Senate, 22 states in 2016 – almost half [chant “We will win.]. In
2016 [Democratic primary], Bernie won Michigan, Wisconsin, Minnesota. Of the 11
states that border Canada, Bernie won 10 (not NY) [boo] – we can fix that. Of
the 5 states that border the Pacific, he won 4; of 6 in New England, won 4;
Bernie won West Virginia – all 55 counties. According to a poll, he is #1 in
Nevada, a dead heat in Iowa, #1 in New Hampshire. He has raised more money from
more donors with the smallest amount.
“Why say Bernie can’t win? Because they are lying to the American people.
Bernie will win. [Chant, “We will win”]
“They say he can’t win because he is a [Democratic] socialist [yay!]. That’s
not going to fly. The American people have loved socialism for the last 70
years. Social Security, free public school, Medicare, Medicaid, fire department
– all are socialist.
“What they don’t want to do is tell the truth, what would happen if they
structured economic policies with democracy instead of capitalism. And this
isn’t capitalism of your great grandpa, this is a form of greed, selfishness so
that just few at the top succeed, the rest struggle paycheck to paycheck.
“Afraid taxes on rich will go up under Sanders? It was depressing during the
debate to watch Democrats go after Medicare for All. What would Franklin
Roosevelt say?
“They say we can’t afford it? How does Canada afford it? Every other
industrialized country has figured it out, why can’t we? They don’t want us to
figure it out.
“They say taxes will go up? That is part of the big lie – your taxes already
are up. We don’t call it a tax – in Canada, France, Finland they get free
health care, free or nearly free day care and college, but pay more in tax for
these things. The average American family pays $12,000 a year for child care,
$4000 in student loans, $6000 for deductibles, co-pays and premiums for health
care – too damn much – the average is $20,000/year but we don’t call it a tax.
“We are here in Queensbridge Park, Manhattan Island just across the river is
headquarters of corporate America [boo], corporate media [boo], Wall Street
[boo]
. So much misery has been visited on the American people from a half mile
away. It must stop.
“They must hear us at Goldman Sachs, Fox News, Trump Tower – the scene of
the crime.
“This [election] is not just about defeating Trump, but the rotten system
that gave us Trump…. beating Trump isn’t enough. We must crush Trump at
the polls, then fix the rotten corrupt economic system that gave us Trump.”
San Juan Mayor Cruz: “Move forward on the path of progressive agenda.
We are equal. We will win. We must win.”
Calling herself a “climate change survivor,” San Juan Mayor Carmen Yulín Cruz
Soto, attacked Trump for “killing us with inefficiency” that contributed to
3,000 Puerto Ricans dying after being smacked by back-to-back hurricanes.
“Why we have to win” she says is for Medicare-for-All, so no one has to
choose between groceries and insulin; to be able to afford college and life
after college, to “stand against those who earn $100 million and pay workers
starving wages; who take away women’s right to choose; the crime of separating
families at southern border; climate change.
“I am a climate change survivor. Climate change is real – 3000 Puerto Ricans
were killed because Trump Is a racist, xenophobic, paper throwing demagogue.” [Chant, “Lock him up.
Vote him out.”]
“The time is now to be fearless, relentless. I stand with Sanders – I respect
every other candidate but there is one name only who can get the job done. Be
united in one progressive voice, cross generations. Move forward on the path of
progressive agenda. We are equal. We will win. We must win.”
Nina Turner: “We must knock out Billionaire class that doesn’t
believe working people deserve a good life.”
National
co chair Nina Turner quoted Congresswoman Barbara Jordan who said American
people want an America as good as its promise. “That means an America where
people don’t die because have to ration insulin; hospitals are not closing;
where there is clean water, air, food; a justice system that doesn’t gun down
black folks in their houses.
“We need to clean up the criminal injustice system, Truth & Reconciliation
about the ravages of racism, a health care system not commodified. We need to
take care of Mother Earth.”
Alluding to the Democratic candidates, she said, “There are many copies but
only one original. We finally have somebody in our lifetime, his own special
interest is people of nation.
“We must knock out Billionaire class that doesn’t believe working people
deserve a good life.”
Congresswoman Alexandria Ocasio-Cortez: “We need a United States
truly, authentically operated, owned by working people.”
“We must bring revolution of working class to the ballot box of America,”
declared Congresswoman Alexandria Ocasio-Cortez. She prompted chants of “Green
New Deal,” saying, “Queensbridge Park is ground zero in the fight for public
housing and environmental justice.
“Last February I was working as a waitress in Manhattan, shoulder to
shoulder with undocumented workers who were putting in12 hour days with no
healthcare, not a living wage. We didn’t think we deserved it. That is the
script we tell working people: your inherent worth, value as human depends on
income another underpays. Turn around that basic language… We must change the
system that puts corporate profit ahead of all human and planetary costs.”
After her parents put all they had to buy a house, she said she learned from
an early age that “kids’ destiny determined by zipcode. Income inequality is a
fact of life of children.” Her father died of cancer when she was 18 and she
learned, “We all are one accident away from everything falling apart.
Sanders, she said, has fought for Planned Parenthood, for public education,
for CHIP, for single-payer health care, for gender rights, to end
“life-crushing” student debt.
“He didn’t do it because it was popular. He fought when it came at the
highest political cost in America.
“In 2016, he changed politics in America. We now have one of the best
Democratic fields – much because of Sanders.
“I’m in Congress today but one year ago I was a sexually harassed waitress.
This freshman class in overwhelming numbers rejected corporate money – thanks
to Bernie – endorsed Medicare for All, sees the climate crisis as an
existential threat.
“[In Congress] it is no joke to stand up against corporate power and
establishment interests. Arms are twisted, political pressure psychological and
otherwise applied to make you abandon the working class.
“I have come to appreciate the nonstop advocacy of Sanders. It’s not just
what he fights for but how: mass mobilization of the working class at the
ballot box, a movement (against) racism, classism of Hyde Amendment,
imperialist and colonial histories that lead to endless war and immigration
crisis.
“NYCHA is underfunded by $30 billion –that is not an accident, but an
outcome of system that devalues poor, Logic that got us into this won’t get us
out.”
The
vigorous contest of Democrats seeking the 2020 presidential nomination has
produced excellent policy proposals to address major issues. In a recent poll,
Americans have indicated that education is a top issue. Vice President
Joe Biden has announced a detailed plan for education
beyond high school in order to build a stronger, more inclusive
middle class. This is from the Biden campaign:
For many, earning a bachelor’s degree, associate’s degree, or other credential
after high school is unaffordable or saddles them with so much debt it prevents
them from buying a home, saving for retirement. Or, it puts financial stress on
their parents and grandparents. In an increasingly globalized and
technology-driven economy, 12 years of education is no longer enough for
American workers to remain competitive and earn a good income. While 6 in 10
jobs require some education after high school, not all require a bachelor’s degree.
Biden is proposing a bold plan for education and training beyond high school
that will give hard-working Americans the chance to join or maintain their
place in the middle class, regardless of their parents’ income or the color of
their skin. Four years of college shouldn’t be the only path to the middle
class. Biden’s plan ensures every child in the U.S. can afford the path that
makes sense for them – whether its an industry credential, associate’s degree,
or bachelor’s degree. Coupled with his proposals to make sure there are quality
jobs ready for our workers, Biden is putting forward a bold plan to rebuild the
backbone of our country – the middle class – and this time make sure everyone
has the chance to come along.
As president, Biden will:
Invest in community colleges and training
to improve student success and grow a stronger, more prosperous, and more
inclusive middle class.
Strengthen college education as the
reliable pathway to the middle class, not an investment that provides
limited returns and leaves graduates with mountains of debt they can’t
afford.
Support colleges and universities that
play unique and vital roles in their communities, including Historically
Black Colleges and Universities and Minority-Serving Institutions.
Earlier this
week, the campaign announced Women for Biden, highlighting how Trump’s
administration has turned its back on women. The Trump Administration’s failure
to deal with the student debt crisis is a perfect example. Women hold two
thirds of the nation’s $1.5 trillion student debt. Instead of reducing the debt
burden or expanding educational opportunities for women, Trump’s administration
– with Secretary Betsy DeVos leading the U.S. Department of Education – has
worked to cut access to education and sided with for-profit colleges and loan
companies over students and graduates.
Biden’s plan builds on his and Dr. Biden’s work to give hard working Americans
access to two years of community college without debt. A majority of community
college students are women and face unique barriers to completing their
degrees. Biden will expand these students’ access to needed services like child
care, and ensure that Pell Grants can be used for other costs like housing and
books.
This plan builds on Vice President Biden’s comprehensive plan to invest in our children’s
education from birth through 12th grade. And, in the months ahead, Biden will
also outline in further detail his proposals to make sure there are quality
jobs ready for our workers.
FACT SHEET: THE BIDEN PLAN FOR EDUCATION BEYOND HIGH SCHOOL
Joe Biden is
running for president to rebuild the backbone of the United States – the middle
class – and this time make sure everyone has a chance to come along. In
today’s increasingly globalized and technology-driven economy, 12 years of
education is no longer enough for American workers to remain competitive and
earn a middle class income. Roughly 6 in 10
jobs require
some education beyond a high school diploma. And, because technology continues
to change, American workers – whether they have an industry-recognized
credential, an associate’s degree, a bachelor’s degree, or a PhD – will need
opportunities to continue to learn and grow their skills for career success and
increased wages in the 21st century economy.
But for too many, earning a degree or other credential after high school is
unaffordable today. For others, their education saddles them with so much debt
it prevents them from buying a home or saving for retirement, or their parents
or grandparents take on some of the financial burden.
Biden is proposing a bold plan for education and training beyond high school
that will give hard-working Americans the chance to join or maintain their
place in the middle class, regardless of their parents’ income or the color of
their skin. President Biden will:
Invest in
community colleges and training to improve student success and grow a stronger,
more prosperous, and more inclusive middle class.
Strengthen
college as the reliable pathway to the middle class, not an investment that
provides limited returns and leaves graduates with mountains of debt they can’t
afford.
Support
colleges and universities that play unique and vital roles in their
communities, including Historically Black Colleges and Universities and
Minority-Serving Institutions.
All of these
proposals will be implemented in partnership with states as well as school
faculty and staff. Educators must play a key role in decisions affecting
teaching and learning.
Of course, increasing the quality and affordability of post-secondary education
system alone is not enough to make sure our middle class succeeds. This plan
builds on Vice President Biden’s comprehensive plan to invest in our children’s
education from birth through 12th grade. And, in the months ahead, Biden will
also outline in further detail his proposals to make sure there are quality
jobs ready for our workers.
INVEST IN COMMUNITY COLLEGES AND
TRAINING TO IMPROVE STUDENT SUCCESS AND GROW A STRONGER, MORE PROSPEROUS, AND
MORE INCLUSIVE MIDDLE CLASS
Dr. Jill Biden, a current community college professor, refers to community
colleges as America’s best kept secret. They are a proven, high-quality tool
for providing hard-working Americans access to education and skills and a
pathway to the middle class. In fact, today in the United States there
are an estimated 30
million quality jobs,
with an average salary of $55,000, that don’t require a bachelor’s degree.
Every year, millions of Americans attend community
colleges to get the credentials they need to obtain these jobs. And, community
colleges offer affordable, quality ways for students to complete the first two
years of a four-year degree.
Part of what makes community colleges so extraordinary is that, working with
limited resources, they have figured out how to provide a high-quality,
cost-effective education to students often juggling additional
responsibilities, such as jobs or child care. But as a country, we haven’t
invested enough in making sure community colleges can reach all the Americans
who could benefit from their programs, or improve their quality and completion
rates.
The Biden Administration will build on community colleges’ success and unleash
their full potential to grow a stronger, more inclusive middle class by:
Providing
two years of community college or other high-quality training program without
debt for any hard-working individual looking to learn and improve their skills
to keep up with the changing nature of work. In 2015, President Obama and Vice
President Biden proposed to make two years of community
college tuition-free for hard-working students. Since then, Vice President
Biden and Dr. Biden have championed progress toward this goal, and hundreds of state and local College Promise programs have expanded access
to free two-year or four-year college educations. As president, Biden will
build on this progress by enacting legislation to ensure that every
hard-working individual, including those attending school part-time and DREAMers
(young adults who came to U.S. as children), can go to community college for up
to two years without having to pay tuition. Individuals will also be able to
use these funds to pursue training programs that have a track record of
participants completing their programs and securing good jobs. Importantly,
this initiative will not just be for recent high school graduates; it will also
be available to adults who never had the chance to pursue additional education
beyond high school or who need to learn new skills. And, students who do want a
bachelor’s degree could then transfer to a four-year school, including to
Historically Black Colleges and Universities and Minority-Serving Institutions
that play vital roles in their communities. This plan will be a federal-state
partnership, with the federal government covering 75% of the cost and states
contributing the remaining obligation. The federal government will cover up to
95% of the cost for Indian Tribes operating community colleges serving
low-income students.
Creating
a new grant program to assist community colleges in improving their students’
success. The
Biden Administration will support community colleges implementing
evidence-based practices and innovative solutions to increase their students’
retention and completion of credentials. Reforms could include academic and
career advising services; dual enrollment; credit articulation agreements;
investing in wages, benefits, and professional development to recruit and
retain faculty, including teacher residencies; and improvements to remediation
programs. The Biden plan will also help community colleges around the country
scale successful programs to help a larger number of students.
Tackling
the barriers that prevent students from completing their community college
degree or training credential. There are too many Americans who don’t complete their
education or training programs not because of a lack of will, but because of
other responsibilities they are juggling, such as a job to pay their bills or
caring for children. Often these students and their families also face housing
and food insecurity. The Biden Administration’s community college initiative
will be a first-dollar program, meaning that students will be able to use their
Pell grants, state aid, and other aid to help them cover expenses beyond
tuition and fees. In addition, the Biden plan will give states financial
incentives to foster collaboration between community colleges and
community-based organizations to provide wraparound support services for
students, especially veterans, single parents, low-income students, students of
color, and students with disabilities who may face unique challenges.
Wraparound support services can range from public benefits and additional
financial aid to cover textbook and transportation costs that often keep
students from staying enrolled, to child care and mental health services,
faculty mentoring, tutoring, and peer support groups. And, Biden will establish
a federal grant program to help community colleges create emergency grant
programs for students who experience an unexpected financial challenge that
threatens their ability to stay enrolled.
Make
a $50 billion investment in workforce training, including community-college
business partnerships and apprenticeships. In 2014, President Obama asked Vice President Biden to develop
a national strategy for reforming our nation’s workforce training programs
designed to prepare “ready-to-work
Americans with ready-to-be-filled jobs.” Building on the successful models championed through that
initiative, President Biden will make an investment of $50 billion in
high-quality training programs. These funds will create and support
partnerships between community colleges, businesses, unions, state, local, and
tribal governments, universities, and high schools to identify in-demand
knowledge and skills in a community and develop or modernize training programs
– which could be as short as a few months or as long as two years – that lead
to a relevant, high-demand industry-recognized credential. These funds will
also exponentially increase the number of apprenticeships in this country
through strengthening the Registered Apprenticeship Program and partnering with
unions who oversee some of the best apprenticeship programs throughout our
nation, not watering down the quality of the apprenticeship system like
President Trump is proposing.
Invest
in community college facilities and technology. Biden will invest $8 billion to help
community colleges improve the health and safety of their facilities, and equip
their schools with new technology that will empower their students to succeed
in the 21st century.
STRENGTHEN
COLLEGE AS A RELIABLE PATHWAY TO THE MIDDLE CLASS
This challenge is also intergenerational. Almost one in ten Americans in their 40s and 50s
still hold student loan debt. But, college debt has especially
impacted Millennials who
pursued educational opportunities during the height of the Great Recession and
now struggle to pay down their student loans instead of buying a house, opening
their own business, or setting money aside for retirement.
There are several drivers of this problem. The cost of higher education has
skyrocketed, roughly
doubling since
the mid-1990s. States have dramatically decreased investments in higher education, leaving
students and their families with the bill. And, too often individuals have been
swindled into paying for credentials that don’t provide value to graduates in
the job market. As president, Biden will address all of these challenges.
Biden’s plan to make two years of community college without debt will
immediately offer individuals a way to become work-ready with a two-year degree
or an industry certification. It will also halve their tuition costs for
obtaining a four-year degree, by earning an associate’s degree and then
transferring those credits to a four-year college or university. And, as a
federal-state partnership, it will ensure states both invest in community
colleges and give states some flexibility to also invest in college readiness
or affordability at four-year institutions. In addition, President Biden will:
Target
additional financial support to low-income and middle-class individuals by
doubling the maximum value of Pell grants, significantly increasing the number
of middle-class Americans who can participate in the program. Pell grants help 7 million
students a year
afford college, but they have not kept up with the rising cost of college. In
the 1970s, Pell grants covered roughly 70 to 80
percent of the
cost of a four-year degree at a public institution; today, that percentage has
been cut in more than half, to roughly 30 percent. Biden will double the maximum value of the Pell
grant, a level of investment experts say is necessary to close the gap
between the rich and poor so that everyone has the opportunity to receive an
education beyond high school, and will automatically
increase the value based on inflation.
Doubling the maximum value of Pell grants will increase the grant value for
individuals already eligible for Pell and, given the program’s formula for
determining eligibility, expand the benefits of Pell to more middle class
Americans. As president, Biden will also take care of young immigrants by
ensuring DREAMers are eligible for financial aid if they meet other
requirements for that aid. And, he will restore formerly incarcerated
individuals’ eligibility for Pell.
More
than halve payments on undergraduate federal student loans by simplifying and
increasing the generosity of today’s income-based repayment program. Under the Biden plan, individuals
making $25,000 or less per year will not owe any payments on their undergraduate
federal student loans and also won’t accrue any interest on those loans.
Everyone else will pay 5% of their discretionary income (income minus taxes and
essential spending like housing and food) over $25,000 toward their loans. This
plan will save millions of Americans thousands of dollars a year. After 20
years, the remainder of the loans for people who have responsibly made payments
through the program will be 100% forgiven. Individuals with new and existing
loans will all be automatically enrolled in the income-based repayment program,
with the opportunity to opt out if they wish. In addition to relieving some of
the burden of student debt, this will enable graduates to pursue careers in
public service and other fields without high levels of compensation. Biden will
also change the tax code so that debt forgiven through the income-based
repayment plan won’t be taxed. Americans shouldn’t have to take out a loan to
pay their taxes when they finally are free from their student loans.
Make
loan forgiveness work for public servants. Public servants do the hard work that
is essential to our country’s success – protecting us, teaching our children,
keeping our streets clean and our lights on, and so much more. But the program
designed to help these individuals serve without having to worry about the
burden of their student loans – the Public Service Loan Forgiveness Program –
is broken. Biden will create a new, simple program which offers $10,000 of
undergraduate or graduate student debt relief for every year of national or
community service, up to five years. Individuals working in schools,
government, and other non-profit settings will be automatically enrolled in
this forgiveness program; up to five years of prior national or community
service will also qualify. Additionally, Biden will fix the existing Public
Service Loan Forgiveness program by securing passage of the What You Can Do
For Your Country Act of
2019. Biden
will ensure adjunct professors are eligible for this loan forgiveness,
depending on the amount of time devoted to teaching.
Create
a “Title I for postsecondary education” to help students at
under-resourced four-year schools complete their degrees. The Biden Administration will
establish a new grant program to support under-resourced four-year schools that
serve large numbers of Pell-eligible students. The funds will be used to foster
collaboration between colleges and community-based organizations to provide
wraparound support services for students, especially veterans, single parents,
low-income students, students of color, and students with disabilities who may
face unique challenges. Wraparound support services can range from public
benefits and additional financial aid to cover textbook and transportation
costs that often keep students from staying enrolled, to child care and mental
health services, faculty mentoring, tutoring, and peer support groups. And,
Biden will ensure that these funds can be used to help colleges create
emergency grant programs for students who experience an unexpected financial
challenge that threatens their ability to stay enrolled.
Create
seamless pathways between high school, job training, community college, and
four-year programs to help students get their degrees and credentials
faster. The
Biden Administration will provide grants to states that work to accelerate
students’ attainment of credentials, including bachelor’s degrees, while still
ensuring quality and accountability. For example, some communities have adopted
the early college model, allowing students to begin earning credits towards an
associate’s degree while still in high school. And, in some areas students can
be dual enrolled in the community college and the four-year program they wish
to complete. Biden will challenge more communities to expand on these
accelerated pathways and create a seamless transition between high school,
community college, other job training, and four-year programs, enabling
students to obtain an associate’s or bachelor’s degree in less time. Approaches
to accelerating degree attainment include guided pathways that provide a
sequence of classes for a specific area of study; shifting toward a 12-month
academic calendar; better aligning high school, community college, and
four-year college courses; providing college credits for quality,
degree-related on-the-job training; and offering degree-related paid
internships for course credit. Read more about Joe Biden’s plan for education from birth
through 12th grade here.
Prioritize
the use of work-study funds for job-related and public service roles. Biden will work to reform federal
work study programs to ensure that more of these funds place students in roles
where they are either learning skills valuable for their intended careers, or
contributing to their communities by mentoring students in K-12 classrooms and
community centers.
Stop
for-profit education programs from profiteering off of students. Students who started their
education at for-profit colleges default on their student loans at a rate three times
higher than
those who start at non-profit colleges. These for-profit programs are often
predatory – devoted to high-pressure and misleading recruiting practices and
charging higher costs for lower quality education that leaves graduates with
mountains of debt and without good job opportunities. The Biden Administration
will require for-profits to first prove their value to the U.S. Department of
Education before gaining eligibility for federal aid. The Biden Administration
will also return to the Obama-Biden Borrower’s Defense Rule, forgiving the debt
held by individuals who were deceived by the worst for-profit college or career
profiteers. Finally, President Biden will enact legislation eliminating
the so-called 90/10 loophole that gives for-profit schools
an incentive to enroll veterans and servicemembers in programs that aren’t
delivering results.
Crack
down on private lenders profiteering off of students and allow individuals
holding private loans to discharge them in bankruptcy. In 2015, the Obama-Biden Administration
called for Congress to pass a law permitting the discharge of private student
loans in bankruptcy. As president, Biden will enact this legislation. In
addition, the Biden Administration will empower the Consumer Financial
Protection Bureau – established during the Obama-Biden Administration – to take
action against private lenders who are misleading students about their options
and do not provide an affordable payment plan when individuals are
experiencing acute periods
of financial hardship.
Support
and protect post-9/11 GI benefits for veterans and qualified family members. Veterans and their family
members served our country and as a nation, we must maintain our commitment to
GI benefits. The Obama-Biden Administration took groundbreaking action to
ensure that veterans and their family members were empowered to make informed
decisions regarding their education and, in turn, ensure that programs
educating them met high quality standards. President Biden will build and
convene coalitions of experts and advocates to continue this work. He’ll also
strengthen the GI Bill Comparison Tool and School Feedback
Tool to put an
end to post-secondary institutions’ predatory practices.
SUPPORT
COLLEGES AND UNIVERSITIES THAT PLAY UNIQUE AND VITAL ROLES IN THEIR COMMUNITIES
Historically Black Colleges and Universities (HBCUs), Tribal Colleges And
Universities (TCUs), Hispanic-serving Institutions (HSIs), Asian American And
Native American Pacific Islander-serving Institutions (AANAPISIs), Alaska
Native-serving Institutions and Native Hawaiian-serving Institutions (ANNHs),
Predominantly Black Institutions (PBIs), and Native American-serving Nontribal
Institutions (NASNTIs) serve a disproportionate number of students of color and
low-income students, yet are severely under-resourced, especially when compared
to other colleges and universities.
As president, Biden will take steps to rectify the funding disparities faced by
HBCUs, TCUs, and Minority-Serving Institutions (MSIs) so that the United States
can benefit from their unique strengths. Students at HBCUs, TCUs, and MSIs will
benefit from Biden’s proposals to double Pell grants, slash the income-based
repayment of loans to 5% of income, and provide free tuition for students at
all community colleges, including those that are MSIs. In addition, Biden will
invest over $70 billion in these colleges and universities to:
Make
HBCUs, TCUs, and under-resourced MSIs more affordable for their students. The Biden plan will invest $18
billion in grants to these four-year schools, equivalent to up to two years of
tuition per low-income and middle class student, including DREAMers and
students who transfer to a four-year HBCU, TCU, or MSI from a tuition-free
community college. Schools must invest in lowering costs, improving retention
and graduation rates, and closing equity gaps year over year for students of
color.
Invest
in the diverse talent at HBCUs, TCUs and MSIs to solve the country’s most
pressing problems. The Biden Administration will invest $10 billion to create at least
200 new centers of excellence that serve as research incubators and connect
students underrepresented in fields critical to our nation’s future – including
fields tackling climate change, globalization, inequality, health disparities,
and cancer – to learning and career opportunities. These funds will provide
additional work study opportunities and incentivize state, private, and
philanthropic dollars for these centers. Biden will also boost funding for
agricultural research at land-grant universities, many of which are HBCUs and
TCUs, as outlined in his Plan for Rural
America. As
president, Biden will also dedicate additional and increased priority funding
streams at federal agencies for grants and contracts for HBCUs and MSIs. And,
he will require any federal research grants to universities with an endowment
of over $1 billion to form a meaningful partnership and enter into a 10%
minimum subcontract with an HBCU, TCU, or MSI.
Build
the high tech labs and facilities and digital infrastructure needed for
learning, research, and innovation at HBCUs, TCUs, and MSIs. Biden will invest $20 billion in
infrastructure for HBCUs, TCUs, and MSIs to build the physical research
facilities and labs urgently needed to deliver on the country’s research and
development, to update and modernize deteriorating facilities, including
by strengthening the Historic
Preservation program,
and to create new space for increasing enrollments, especially at HSIs. While
schools will be able to use these funds to upgrade the digital infrastructure,
Biden will also support TCUs and other institutions in rural areas by investing
$20 billion in rural broadband infrastructure and tripling funding to expand
broadband access in rural areas. Additionally, as president, Biden will ensure
all HBCUs, TCUs, and MSIs have access to low-cost federal capital
financing programs and
will work with states to ensure they can take advantage of these programs. And,
he will work to incentivize further public, private, and philanthropic
investments in school infrastructure.
Provide
support to continuously improve the value of HBCUs, TCUs, and MSIs by investing
$10 billion in programs that increase enrollment, retention, completion, and
employment rates. These programs may include partnerships with both high
schools, other universities, and employers; evidence-based remedial courses;
academic and career advising services; and investing in wages, benefits, and
professional development and benefits to recruit and retain faculty, including
teacher residencies. Additionally, Biden will incentivize states, private, and
philanthropic dollars to invest in these programs, while ensuring schools that
do not receive matches increase their competitiveness.
Expand
career pathways for graduates of HBCUs, TCUs, and MSIs in areas that meet
national priorities, including building a diverse pipeline of public school
teachers. Biden
will invest $5 billion in graduate programs in teaching, health care, and STEM
and will develop robust internship and career pipelines at major research
agencies, including Department of Energy National Laboratories, National
Institutes of Health, National Science Foundation, and the Department of
Defense.
Triple
and make permanent the capacity-building and student support for HBCUs, TCUs,
and MSIs in Title III and Title V of the Higher Education Act. These funds serve as a lifeline to
under-resourced HBCUs, TCUs, and MSIs year over year, ensuring that the most
vulnerable students have the support they need to succeed. The Biden
Administration will make permanent $750 million per year in Title III and Title
V funding, which will provide a dedicated revenue stream of $7.5 billion over
the first ten years.
Reduce
disparities in funding for HBCUs, TCUs, and MSIs. Biden will require federal agencies
and states to publish reports of their allocation of federal funding to
colleges and universities. When inequities exist between HBCUs, TCUs, and MSIs
and similar non-HBCU, TCU, MSI colleges, federal agencies and states will be
required to publish robust rationale and show improvements in eliminating
disparities year over year. To ensure funding is more equitably distributed
among HBCUs, TCUs, and MSIs, the Biden Administration will require that
competitive grant programs make similar universities compete against each
other, for example, ensuring that HBCUs only compete against HBCUs. And,
President Biden will require higher education accreditors to provide increased
transparency in their processes.
Additionally,
Biden recognizes the critical role low-endowment private colleges and universities
play in providing educational opportunities and jobs in many rural communities.
As president, he will establish an innovation competitive grant fund for these
institutions, giving them additional funds to invest in increasing graduation
rates; closing ethnic, racial, and income disparities; and increasing career
outcomes for low-income students, students of color, first-generation students,
and students with disabilities..
SUPPORTING LEARNERS AND WORKERS,
NOT REWARDING WEALTH
The Biden plan for education beyond high school is a $750 billion investment
over ten years targeted at growing a stronger, more inclusive middle class. It
will be paid for by making sure that the super-wealthy pay their fair share.
Specifically, this plan will be paid for by eliminating the stepped-up basis
loophole and capping the itemized deductions the wealthiest Americans can take
to 28%.
For more on Vice President
Biden’s plan, see HERE. To
see how Vice President Biden’s plan would impact you, click HERE.
“Every American, whether they’re young or just young at heart, should be able to earn the skills and education necessary to compete and win in the 21st century economy.” – President Barack Obama
Democratic presidential candidates Bernie Sanders and Hillary Clinton have both made college affordability an issue of their campaigns, while the Republican candidates have ignored the issue entirely. And with the media’s obsessive focus on the presidential contest, and the Republican-controlled Congress’ insistence on obstructing any positive action President Obama might take, Americans are generally unaware of what Obama has been doing to make college affordable and ease the student debt crisis. The White House just issued a Fact Sheet on efforts to break down financial barriers to obtaining a college degree:
The Obama Administration announced a new $100 million investment for America’s Promise Job-Driven Training grants (America’s Promise Grants) to connect more Americans to education and in-demand jobs, in addition to 27 new free community college programs that have launched in states, communities and community colleges designed to make access to higher education available regardless of the ability to pay.
Details of the various programs were outlined by Vice President Joe Biden and Dr. Jill Biden at the Community College of Philadelphia, which modeled a free community college program after the President’s America’s College Promise plan this time last year.
The Obama Administration has focused on America’s more than 1,100 community colleges because they are “the backbone of the nation’s postsecondary education and training system. They serve over 7 million undergraduates, including many older, low- or moderate-income, minority, first-generation, and rural Americans an opportunity to earn a quality, affordable degree or credential that meet the demands of a competitive global economy,” the White House stated.
“That is why President Obama has challenged communities to take action to grow the momentum for America’s College Promise, a plan to make two years of community college free for responsible students, letting students earn the first half of a bachelor’s degree and the skills needed in the workforce at no cost. And, in order to help communities accept this challenge, he is calling on Congress take action on the America’s College Promise Act, introduced by Senator Baldwin and Congressman Scott, which would expand access to higher education for our nation’s students.
“Companies are choosing to grow in the U.S. in part because we have the most educated, creative, and adaptable workforce. Over the last six years, American businesses have created over 14 million new jobs. Of the new jobs the economy is expected to generate over the next ten years, around half will require postsecondary education or training. The President’s Job-Driven Training agenda has made federally supported education and training programs more responsive to employer needs. As part of this approach, community and technical colleges are playing a critical role in helping Americans get the skills to get good jobs. The $100 million America’s Promise Grants will help communities catalyze new and strengthen existing partnerships and programs to offer more Americans access to the knowledge and skills they need to pursue their educational and career goals, particularly in high-growth sectors like technology, manufacturing, and health care.”
These investments build on the Obama Administration’s record of investing in students and the workforce. Since 2009, the Obama Administration has invested more than $70 billion dollars in support of community colleges including over $66 billion in over 19 million Pell scholarships to help students and families pay for college; $2 billion in Job-Driven Training Community College Grants to strengthen education and training programs that lead to in-demand employment and provide a ticket to the middle class at nearly half of the nation’s community colleges; and $1.6 billion in Title III and Title V to strengthen institutions’ capacity for providing students an affordable, high-quality education. These critical investments have helped transform the role of community colleges as leading providers of high-quality, affordable, pathways for all Americans to work hard in pursuit of skills employers seek and of knowledge.
Highlights from the recent announcements:
$100 Million America’s Promise Grants. Early this summer, the Administration will launch an H-1B funded grant competition by the Department of Labor to create and expand innovative regional and sector partnerships between community colleges and other training providers, employers, and the public workforce system to create more dynamic, tuition-free education and training programs for in-demand middle and high-skilled jobs across the country. Built off the model of shared responsibility for educating this nation’s students and workforce, America’s Promise Grants continue to build on the Administration’s investments to strengthen education, training, and employer engagement.
More than $70 million in New Investments Building Progress on America’s College Promise for 40,000 Americans. Since the launch of America’s College Promise, state and local elected officials, community college leaders, non-profits, business, and philanthropy have come together across the country to expand free community college programs. Since President Obama announced America’s College Promise, at least 27 new free community college programs have launched in states, communities, and individual community colleges. Collectively, these new programs add over $70 million in new public and private investments to serve nearly 40,000 students at community colleges.
$100 Million for America’s Promise Grants:
Vice President Biden announced a commitment to make $100 million available through the Department of Labor to expand high quality education and training programs that give Americans the skills most in-demand from regional employers for middle- to high-skilled jobs. Grants will be awarded to pilot and scale innovative tuition-free partnerships between employers, economic development, workforce development boards, community and technical colleges and systems, training programs, K-12 education systems, and community-based organizations that will strengthen the pipeline of Americans ready for in-demand jobs, bridge students’ educational opportunities and employer needs, attract more jobs from overseas, and create more pathways for Americans to reach the middle class through the following activities:
o Increase opportunities for all Americans. With the rising costs of higher education, post-secondary education may feel out of reach for many Americans. Grantees will develop strategies to increase tuition-free opportunities for unemployed, underemployed, and low-income workers to enter skilled occupations and industries. Grantees will use and align existing resources to help sustain and scale up programs.
o Expand employer engagement. These regional partnerships from employers to support program design and delivery and identify skills and competencies needed to meet businesses’ needs. Employer partners will offer innovative ways for skills attainment through work-based learning and customized ‘upskilling’ strategies to move low-skilled individuals up a career pathway with registered apprenticeship, paid-work experience, and paid internship opportunities.
o Strengthen education and training performance. Grantees will reduce the need for remediation, and increase skills development through evidence-based interventions. Grantees are encouraged to use evidence-based designs that can increase the employability, employment, earnings, and educational outcomes of students, while supporting employers’ economic growth.
More than $70 million in New Investments Building Progress on America’s College Promise for 40,000 Americans.
In his 2015 State of the Union, the President announced a vision for America’s College Promise to make two years of community college free, letting responsible students earn the first half of a bachelor’s degree or earn skills needed in the workforce at no cost by creating a new partnership with states. The program would require everyone to do their part: community colleges must strengthen their programs and increase the number of students who graduate, states must invest more in higher education and training, and students must take responsibility for their education, earn good grades, and stay on track to graduate.
Since then, state and local elected officials, community college leaders, non-profits, business, and philanthropy from across the political spectrum and from all corners of the country are taking action, including through a new PSA from the Heads Up America campaign. At least 27 new free community college programs launched in states, communities, and individual community colleges since the President’s 2015 State of the Union address. Collectively, those new programs add over $70 million in new public and private investments to serve nearly 40,000 students at community colleges.
Statewide programs include: Oregon, Minnesota and Rhode Island.
Local efforts span at least 12 states and include: College of the Siskiyous (CA), Community College of Philadelphia (PA), Dabney Lancaster Community College (VA), Detroit (MI), Gateway Technical College (WI), Harper College (IL), Ivy Tech (IN), Lone Star College (TX), Los Angeles (CA), Manistee County Commitment Scholarship (MI), Milwaukee Area Technical College (WI), Madison Area Technical College (WI), Mid-north Promise (IN), Mohave Community College (AZ), Oakland (CA), Richmond County (NC), Salt Lake Community College (UT), San Diego Community College District (CA), Santa Barbara City College (CA), Scotland County (NC), Sinclair Community College (OH), Wichita Area Technical College (KS), Wisconsin Indianhead Technical College (WI), and Vance-Granville Community College (NC).
Additionally, a number of new legislative proposals have been made to expand free community college programs. At the Federal level, Sen. Tammy Baldwin (WI) and Rep. Bobby Scott (VA) proposed America’s College Promise Act of 2015 for the country’s community and technical colleges – including Historically Black Colleges and Universities and Minority-Serving Institutions –while 17 other states have proposed legislation to make community college free state-wide. Additionally, survey data from the American Association of Community Colleges shows that a quarter of community college presidents believe it is likely that their institutions will offer a tuition-free (or nearly free) program within the next two years, which would double the number of available tuition-free options.
States and communities are demonstrating that there is a range of thoughtful and effective ways to design a tuition-free Promise program customized to address local and state knowledge and skills needs, funding opportunities, and shared community goals. Nearly all these announced programs have features that ensure hard-working students have a fair shot and stay on track to graduate successfully. Key designs include:
o Supporting responsible high school graduatesby requiring participants to have graduated from high school and maintain at least a minimum grade point average (GPA). America’s College Promise designates a 2.5 GPA requirement, which is comparable to many of these programs.
o Promoting more credit accumulation through full-time or at least part-time enrollment to ensure that students are making progress towards completion, which can increase the likelihood of completing on time and save students tuition.
o Requiring FAFSA completion to help students access federal, state, institutional, and private financial aid. Over 39 percent of community college students do not complete the FAFSA, even though they are likely to qualify for some form of aid. These provisions help ensure students receive the financial support they need to pursue their education and stay on track to complete a degree or credential. Tennessee Promise’s FAFSA requirement helped lead to the greatest year over year increase at the state level, and helped Tennessee lead the country in FAFSA completion.
o Ensuring credits fully transferso that students are more likely to cut down on redundant courses, reduce remediation, and stay on track to earn half of the credit they need for a four-year degree on-time if they choose to transfer.
Building on the Obama Administration’s Investments in Community College to Strengthen Education and Job-Driven Training
Increasing Investments in Scholarships for Students. This Administration has invested over $66 billion in community colleges, providing over 19 million Pell scholarships to students attending community colleges; this funding to community colleges represents over one-third of all Pell grants. To continue improving and expanding these important investments, the Administration will soon announce selected pilot sites who for the first time will offer up to $20 million in Federal Pell Grants for over 10,000 high school students to pay for college courses typically provided by community colleges and put themselves on a fast-track to college completion before even setting foot on campus. Evidence shows that dual enrollment programs help high school students earn better grades and increase their likelihood of college enrollment, persistence and completion. In addition, to further strengthen community colleges, particularly for traditional underrepresented students, this Administration has invested $1.6 billion in Title III and Title V programs.
$2 Billion for 2,300 In-Demand Education and Training Programs at Community Colleges in all 50 States. The Trade Adjustment Assistance Community College and Career Training (TAACCCT) program, provided more than half of our nation’s community colleges and other eligible institutions of higher education with funds to partner with nearly 2,500 employers to expand and improve education and career training programs that help job seekers get the skills they need for in-demand jobs in industries such as information technology, health care, energy, and advanced manufacturing. To date, nearly 300,000 participants have enrolled in these programs, earning 160,000 credentials. 40 states received grants that supported state-wide systematic change by including all or most community colleges in the state. Select examples of successful partnerships, which have reached more than 4,500 individuals, include:
o Motlow State Community College (MSCC) (TN). MSCC received $3.3 million and partnered with Bridgestone Tire Company to develop a new mechatronics training facility on-site at Bridgestone in Smyrna, TN. In addition to contributing to curriculum development, Bridgestone has contributed over $4 million towards renovations and equipment.
o Piedmont Technical College (PTC) (SC). As part of a consortium consisting of 10 of the 16 public, two-year colleges in South Carolina and funded at nearly $20 million, PTC partnered with 37 employers to redesign a new advanced manufacturing certificate program. Sixteen of the partnering companies and local county organizations collectively contributed $1.4 million to create the PTC Center for Advanced Manufacturing to support the program.
o Alpena Community College (ACC) (MI): ACC received $2.8 million to implement the Sustainable Solutions for Northeast Michigan: Green Jobs and Clean Energy project to build a statewide energy partnership network, which included the Michigan National Guard and DTE Energy and Consumers Energy, the two largest energy employers in Michigan as well as the state workforce development board. This partnership network designed and implemented a “Gas Energy Bootcamp,” targeting unemployed people and returning veterans. Program completers had a 96 percent employment rate.
Launch of New Health Career Pathways Initiative: Business-Led Effort to Expand Career Pathways in Healthcare Industry. One of the key goals of the America’s Promise grants and other federal funding is to spur longer-term, industry led efforts to prepare more people from all backgrounds for in-demand jobs. Today, leading healthcare employers are building on a career pathways framework developed with a $19.6 million Job-Driven Training Community College Department of Labor grant to better match up training with their needs at a more national scale.
o Business-Led Task Force on Core Skills and Career Pathways. The Advisory Board Company will convene employers to agree on common ways to describe and measure the skills needed for healthcare jobs to focus training on in-demand skills and help workers to translate the skills they already have to move between roles and employers. Initial members include: University of Pittsburgh Medical Center, Sutter Health, New York City Health and Hospitals Corporation, Mercy Health West Michigan/Trinity Health, and Fairview Health Services
o Partnership with Communities to Adopt Common Skills and Career Pathways for Healthcare Workers. Brought together by Hope Street Group, seven founding “Health Career Pathway Communities” composed of 15 healthcare systems, 11 community colleges and systems, 7 workforce boards, and 12 community-based organizations will adopt common skill and career pathways and support more than 1,000 disadvantaged Americans with training and placement into healthcare jobs with paid internships, career counseling, etc. HPCs include: Grand Rapids and Muskegon, MI; Denver, CO; Minneapolis, MN; Charlotte, NC; Bronx, Westchester and Hudson Valley, NY; New York City, NY; and Sacramento, CA.
Scaling Up What Works Across Federal Programs with A Job-Driven Checklist Applied To Billions Of Training Dollars. In July 2014, the Administration laid out a Job-Driven Checklist of seven elements that matter most to get Americans into better jobs (e.g., strong employer engagement, work-based learning, better use of labor market information, accountability for employment outcomes). Since then, agencies have awarded over 15 competitive job-training grants that total more than $1.5 billion, with an additional 12 competitive grants of more than $800 million to be awarded over the remainder of 2016 that incorporate the job-driven training elements. More details on progress can be found here.
Expanding “learn and earn” training opportunities through apprenticeships:In September 2015, the Department of Labor awarded $175 million in American Apprenticeship Grants to 46 public-private partnerships that will help train more than 34,000 new apprentices in high-growth industries like health care, IT, and advanced manufacturing while scaling up proven programs. Earlier this month, DOL announced the newest investments for expanding apprenticeship through the $90 million ApprenticeshipUSA grants which will fund state, industry, and non-profit efforts to expand apprenticeship and increase the diversity of industries and workers in apprenticeship. Since the President’s 2014 State of the Union call to action, the US has added more than 75,000 new apprenticeship opportunities, the largest increase in nearly a decade.
Budget Proposals to Connect More Americans to Training for In-Demand Jobs
Expand Innovative Tuition-Free Training Programs at Community Colleges. Building on the TAACCCT program,the President’s Budget request includes $75 million for a new American Technical Training Fund, which are competitive grants that support the development, operation, and expansion of innovative, evidence-based, short-term, or accelerated job training programs that enable students, particularly from low-income backgrounds, to access tuition-free education and training leading to career pathways for jobs in high-demand fields. Projects would emphasize strong employer partnerships, work-based learning opportunities, accelerated training, and flexible scheduling.
Strengthening Partnerships between Businesses and Community Colleges to Grow the Middle Class. The Administration has proposed a new tax credit to incentivize employers to strengthen community and technical colleges through contributions like designing curriculum, donating instructors and equipment, and creating job-based learning opportunities. Employers can earn a one-time $5,000 tax credit for hiring a qualifying community college student graduate full-time. Altogether, this could help half a million students access the training and jobs they need to succeed over the course of five years.
Helping More Americans Complete College Affordably. Along with Continuing To Index The Pell Grant To Ensure It Keeps Pace With Inflation, the Administration is calling for significant new investments in the federal Pell Grant program—the cornerstone of college affordability – with two new Pell proposals that will help students accelerate progress towards their degrees and increase their likelihood of on-time completion. These two proposals include Pell for Accelerated Completion, which would allow full-time students to take courses in a third semester, and On-Track Pell Bonus, which offers $300 for students to take 15-credits, which would accelerate progress towards a degree. In fiscal year 2017, these changes would mean an additional $2 billion in Pell Grants for students working toward their degrees.
$3 Billion Talent Compact to Keep and Attract Jobs to the U.S. The President’s Budget proposes competitive funding to create over 50 “Talent Hotspots.” These would consist of employers, training programs, and workforce leaders that prioritize one sector and make a commitment to recruit and train the workforce to help businesses grow and attract more jobs from overseas. This proposal would produce a pipeline of about half a million skilled workers over five years.
The issue of student debt has been a key one on the Democratic side of the presidential campaign (not the Republicans who like to accentuate the stress without actually doing anything about it), but the Obama Administration has been taking what actions it can – in face of Republican obstruction in Congress to accomplish anything that would improve the lives of working Americans- to help Americans manage their student debt. The White House issued a Fact Sheet detailing these actions.
Higher education is one of the most important investment individuals can make for themselves and for our country. Today, 11 of the 15 fastest-growing occupations require a postsecondary education. That’s why the President has made historic investments to help millions of Americans afford college by doubling investments in grant and scholarship aid through Pell grants and tax credits, keeping interest rates low on federal student loans, and creating better options to help borrowers manage debt after college like the Pay as You Earn (PAYE) plan.
As detailed in a new post on student debt trends and state-by-state data being released by the Council of Economic Advisers, these efforts are paying off. More students are graduating college than ever before. More than four of five Direct Loan recipients with loans in repayment are current on their loans. Delinquencies, defaults, and hardship deferments are all trending downward, with nearly three million borrowers successfully accessing a pathway out of default through loan rehabilitation since 2010. And more students are taking action on their student debt when they need support, with nearly five million Direct Loan borrowers taking advantage of repayment options like the President’s PAYE plan, which caps monthly student loan payments at 10 percent of income, up from 700,000 enrolled in 2011.
Many students access student loans to help finance their education; typically, that investment pays off, with bachelor’s degree recipients earning $1 million more in their lifetime and associate’s degree recipients earning $360,000 more, compared to their high school counterparts. But for some, burdensome student loan debt can present a challenge as they seek to start a career, raise a family, purchase a home, start a business, or save for retirement.
Guaranteeing strong consumer protections and building a system of high-quality customer service are important components of a federal student loan system that expands college opportunity and provides reassurance to American families that pursuing a college degree and responsibly borrowing to pay for college will not threaten their future financial security.
The White House has just announced new actions while highlighting the progress already made to help ensure the more than 40 million Americans with student loan debt understand their repayment options and access high-quality customer service, strong consumer protections, and targeted support to repay their student debt successfully.
New Actions on Student Debt
Over the past few years, the Administration has stepped up efforts to ensure that flexible repayment options are available to support Americans with federal student debt. Today’s actions build on that progress and provide a roadmap to guide and support borrowers as they seek to manage and repay their debt successfully:
New Goal to Enroll 2 million More Borrowers in Plans like Pay As You Earn (PAYE).The President’s PAYE and related income-driven repayment plans are available to help borrowers who may be struggling to manage their debt effectively. Yet, too many borrowers still do not know about this important option. Leveraging key improvements in loan servicing and customer service, better tools and resources, targeted outreach to borrowers, and partnerships with key external organizations under the Student Debt Challenge, the Administration is announcing a new goal to enroll two million more borrowers in plans like PAYE by this time next year.
Launch of StudentLoans.gov/Repay. To help borrowers easily navigate the complexity of student loan repayment options, the U.S. Digital Service and the Department of Education’s Office of Federal Student Aid have launchedStudentLoans.gov/Repay to help drive students to their best repayment option in five steps or less. Built mobile-first, and using human-centered design,StudentLoans.gov/Repay was designed to make repayment information as easy to understand as possible.
Strengthening Consumer Protections through New Standards for Student Loan Servicing.The Department of Education and Department of the Treasury – after consulting with the Consumer Financial Protection Bureau (CFPB) and their work with Illinois Attorney General Lisa Madigan and other state attorneys’ general – have developed clear student loan borrower rights and protections in three key areas: (1) providing accurate and actionable information about account features, borrower protections, and loan terms; (2) establishing a clear set of expectations for minimum requirements for communication and services provided by student loan servicers, including adequate and timely customer service; and (3) holding servicers accountable for fixing errors, being responsive to borrowers, and resolving problems by ensuring that borrowers, federal and state agencies and regulators, and law enforcement officials have access to appropriate channels of recourse when violations of federal or state consumer financial laws occur. The Department of Education will ensure all borrowers with federal Direct Loans can rely on high-quality service in line with these standards and protections. The Department of Education will implement this effort as part of its new vision for servicing student loans.
Better Information to Help Borrowers Take Action on their Debt: CFPB Prototype Student Loan Payback Playbook. The CFPB is seeking comment on a new set of student loan servicing disclosures—a student loan Payback Playbook – that provides borrowers personalized information to better understand their repayment options and find a monthly payment they can afford. To help borrowers choose the best repayment plan with the most up-to-date information based on their circumstances, borrowers would see a plain language Playbook on their monthly bill, in regular email communications from their student loan servicer, or when they log into their student loan account. The Department of Education, working with the CFPB, will be finalizing and implementing these disclosures for federal loans borrowers.
Ensuring Effective Student Loan Counseling. The Department of Education will work to improve the timing and content of current loan counseling efforts, including statutorily required entrance and exit counseling, to help students make better borrowing decisions, increase college completion, promote successful loan repayment, and reduce delinquencies and defaults. Specifically, the Department will upgrade and redesign its Entrance and Exit Counseling tools on StudentLoans.gov – which serves 6.5 million students a year – based on user analytics and direct input from more than 500 borrowers, financial aid administrators, policymakers, and higher education organizations. The Department is also developing a loan counseling experiment to rigorously evaluate the effectiveness of different counseling tools and the impact of offering borrowers more frequent information and guidance beyond the statutorily required one-time entrance and one-time exit counseling.
Leveraging Research to Drive Better Student Outcomes. The Department of Education will pilot Advancing Insights through Data (AID), a research partnership program that will offer other federal agencies and affiliated researchers data access to conduct research that can inform and advance policies and practices that support students’ postsecondary success and strengthen repayment outcomes for borrowers. Starting with Federal Reserve Board researchers this fall, the program will allow experts to apply to securely access and match administrative student aid data files with other survey and administrative data, while ensuring safeguards are in place to protect the privacy of students and families. AID builds on the Administration’s recent efforts to leverage government data in ways that can improve service delivery, promote transparency, and strengthen accountability, particularly through the College Scorecard, which includes the most comprehensive, reliable data ever published on students’ post-college earnings and repayment outcomes. The Department is also exploring future opportunities for new research partnerships.
Modernizing Credit Reporting for Student Loans To Ensure Fair Treatment Of Borrowers. The Department of Education and the Department of the Treasury, in consultation with the CFPB, are working collaboratively with the credit reporting industry to develop guidance for servicers, lenders, and others who furnish data to the credit bureaus to determine how best to report student loan data so that it is fair, consistent, and accurately reflects repayment activity. This effort is another critical part of the Department’s new vision for servicing student loans.
Over 40 new student debt challenge takers.Earlier this month, the White House issued a call to action for colleges, universities, non-profits, businesses, state and local governments, and other employers to help more borrowers better understand their options, and to take action to enroll those borrowers in PAYE and related plans so they can manage their monthly payments and avoid delinquency and default. There is a growing list of commitments from organizations working to inform their employees and members about PAYE and related plans, train human resources (HR) staff on the importance of helping borrowers understand their student loan repayment options and the steps individuals must take to enroll, and use digital platforms to highlight PAYE and related plans. In the few short weeks since the Debt Challenge was launched, there have been over 40 commitment makers, and the Administration is encouraging more colleges, businesses, non-profits to take action. As of April 26, the list of commitments includes:
o ACCESS College Foundation
o AFSCME
o Achieving the Dream
o American Student Assistance
o American Sustainable Business Council
o California State University, Long Beach
o California Association of Nonprofits
o The Century Foundation
o College Advising Corps
o College Forward
o College Greenlight
o Dyersburg State Community College
o Florida International University
o Friendship Public Charter School
o Indiana University
o Iowa State University
o Jobs for the Future
o Lake Area Technical Institute
o Lone Star College
o Marcus Foster Education Institute
o Marks and Associates
o Montana State University Bozeman
o Morgan State University
o National Housing Resource Center
o Natixis Global Asset Management
o New Haven Promise
o Operation HOPE, Inc.
o Parkway School District
o Pharr-San Juan-Alamo Independent School District
o Rutgers University – Newark
o Tennessee Technological University
o University of Pittsburgh
o University of Memphis
o University of South Carolina School of Medicine Greenville
