Former Vice President Joe Biden and presidential hopeful is rolling out a plan to help make college more affordable and ease the student loan crisis, especially for low- and middle-income families.

“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 says in his plan.

Here is his plan:

What Joe Biden Plans to Do about College Affordability 

  • Provide two years of community college or other high-quality training program without debt 
  • Provide free tuition at 4-year public colleges for students from families with an annual income under $125,000
  • Create a new grant program to assist community colleges in improving their students’ success, including academic and career advising services
  • Double the maximum value of Pell Grants
  • Expand the Pell Grant, state grants and other grants for usage beyond tuition and fees
  • Invest $18 billion in grants for Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Hispanic-Serving Institutions (HSIs) and other under-resourced Minority-Serving Institutions (MSIs)

 What Joe Biden Plans to Do about Student Loans

Simplify and expand income-driven repayment plans as follows:

  • Individuals will be automatically enrolled in an income-driven repayment plan with the option to opt out if they’d like.
  • Borrowers making $25,000 or less per year will not owe any payments on their undergraduate federal student loans. These loans also won’t accrue any interest.
  • Anyone making over $25,000 will pay 5% of their discretionary income.
  • After 20 years, the remainder of the student loans for people who have responsibly made payments will be 100% forgiven.
  • Any forgiven loans through the income-based repayment program won’t be taxed.

Joe Biden also plans to revamp the Public Service Loan Forgiveness (PSLF) program. His program would offer $10,000 of undergraduate or graduate student debt relief for each year of national or community service, for up to five years.

Borrowers working in schools, government and other non-profit settings would be automatically enrolled in the PSLF program.

Joe Biden would also allow private student loan borrowers to discharge student loans in bankruptcy.

Unlike Elizabeth Warren and Bernie Sanders, Joe Biden does not support wide-spread student loan forgiveness.