The place Trump and Biden stand on the coed mortgage disaster
Trump and Biden would approach the student loan crisis very differently.
Jim Watson | AFP | Getty Images
Whether Donald Trump or Joe Biden win the presidency can have a significant impact on the country's 42 million borrowers.
Student loans have outpaced credit card and car debt as a burden on Americans, and every year 70% of college graduates are in the red. The average balance is $ 30,000, up from $ 10,000 in the early 1990s, and many borrowers owe $ 100,000 or more. The typical monthly payment is $ 400.
According to a poll by Politico / Morning Consult, there is a clear desire for change: More than half of Americans say student debt is "a big problem" for the country.
Here's what the different views of candidates can mean for borrowers.
Trump has proposed monthly payments to student loan borrowers that would be 12.5% of their discretionary income. Students would pay for 15 years and students for 30 years.
Meanwhile, Biden has called for monthly loan bills to be set at 5% of borrowers' discretionary income, and they would be on the plan for 20 years.
Granting of public sector loans
Biden would keep the program but make changes to it. Instead of canceling the borrower's remaining debt after a decade, he would cancel $ 10,000 per year of their debt for up to five years.
Forgiveness of student loan
As president, Biden says he would give tuition-related tuition fees to students enrolled in public colleges and historically black colleges and universities for those earning less than $ 125,000 a year.
It would also cancel student debt of $ 10,000 for all borrowers.
Trump didn't say anything about extensive student loan forgiveness.