6,190 views | May 12, 2020, 04:59pm EDT
Zack Friedman Contributor Opinions expressed by Forbes Contributors are their own.Bestselling Author, The Lemonade Life. I write and speak about leadership and greatness.
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House Democrats want one more bite of the apple with student loan forgiveness.
Here’s what you need to know.
House Democrats pitched an ambitious $3 trillion new stimulus spending proposal – called the HEROES Act – that, among other benefits, includes a new, one-time stimulus check for $1,200 for each individual ($2,400 for married couples) and $1,200 for each dependent (with a maximum of three dependents). Also included – in addition to extended unemployment benefits – is a student loan forgiveness proposal to cancel $10,000 of student loan debt.
This student loan forgiveness proposal is pared back significantly from some previous student loan forgiveness proposals offered by presidential candidates and members of Congress. For example, the House stimulus bill proposal most closely mirrors a proposal from Senate Democrats, whose student loan forgiveness plan would forgive at least $10,000 of federal student loans for all borrowers. However, the current proposal is much smaller than an earlier House Democrats proposal that called for $30,000 of student loan forgiveness .
The current proposal to forgive $10,000 of federal student loans is substantially less than proposals from three 2020 presidential candidates: Joe Biden, Bernie Sanders and Elizabeth Warren. Here are recent student loan forgiveness plans from the three candidates:
For supporters of student loan forgiveness, $10,000 of student loan forgiveness is a much smaller than cancelling all $1.6 trillion of student loan debt forgiveness. Why is this current smaller than student loan debt cancellation plans proposed by Biden, Sanders and Warren? Here are a few potential reasons why Democrats proposed $10,000 of student loan debt forgiveness:
While public leaders debate the future of student loan forgiveness, remember that you need a student loan repayment plan. These four options are a good place to start:
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… Read MoreZack Friedman is the bestselling author of the blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Apple named The Lemonade Life one of "Fall's Biggest Audiobooks" and a "Must-Listen." Zack is the Founder & CEO of Make Lemonade, a leading online personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights, including more than 70 million people who have read his advice. Previously, he was a chief financial officer, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.
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