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For future students and the families of those intending to go to college, here are two additional initiatives included in the American Families Plan that could help minimize debt:
Keep in mind that no student loan forgiveness legislation has been officially presented yet, and Congress needs to approve it before Biden can sign it into law
Increase Pell Grants: Biden said during his presidential campaign that he wanted to increase the maximum value of Pell Grants so that more middle-class Americans could participate. Later in April, he called for an $85 billion investment in the award as part of the American Families Plan to “help students seeking a certificate or a two- or four-year degree.” The president’s proposal adds $1,400 in additional Pell Grant assistance (the maximum award for the 2021-2022 school year is $6,495). The White House said that roughly seven million students depend on Pell Grants to help pay for college, but the value of these grants has fallen from covering nearly 80% of the cost of a four-year college degree to under 30%.
Biden’s administration has already rolled back Trump administration rules to cancel roughly $3 billion in student loans, some from fraudulent colleges, universities and career schools
Free college tuition: While on the campaign, Biden also said that he wants to “make four-year public colleges and universities tuition-free for all students whose family incomes are below $125,000.” As part of the American Families Plan, the president has already called for $109 billion to “ensure that first-time students and workers wanting to reskill can enroll in our website a community college to earn a degree or credential for free.” Under this proposal, the federal government would team up with states, territories and Tribes to provide a free college education for roughly 5.5 million students.
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