The Bident Student Loan Forgiveness Plan – All You Need to Know

In April of 2019, the Bipartisan Policy Center (BPC) released a report detailing a student loan forgiveness plan. The proposal was created by a group of policy experts and think tanks from across the political spectrum. The group’s goal was to design a student loan forgiveness plan that would be viable in the current political and economic climate.

The plan, which has been dubbed the “Bident Student Loan Forgiveness Plan,” would forgive $700 billion in student loan debt over the next ten years. Under the plan, borrowers would see their loans forgiven after making 20 years of income-based payments. Any remaining balance would be forgiven after 25 years.

The plan has been met with mixed reviews. Some say that it is a much-needed solution to the student loan crisis, while others argue that it is unfair to taxpayers who do not have any student loan debt. Regardless of where you stand on the issue, it’s important to be informed about the details of the plan.

Who Would Be Eligible for Loan Forgiveness Under the Plan?
In order to be eligible for loan forgiveness under the Bident Student Loan Forgiveness Plan, borrowers must make 20 years of income-based payments. Payments would be capped at 10% of their discretionary income. Any remaining balance would be forgiven after 25 years.

To put this into perspective, let’s say you have $50,000 in student loan debt and your discretionary income is $30,000 per year. Under the terms of the Bident Student Loan Forgiveness Plan, your monthly payment would be $300 per month ($30,000 x 10%). After 20 years of making these payments, your remaining balance would be forgiven.

How Would the Plan Be Paid For?
There are two ways that the BPC has proposed funding the Bident Student Loan Forgiveness Plan. The first option is to fund the program through budget savings generated by changes to other federal student aid programs. The second option is to fund the program through an increase in marginal tax rates.

The BPC estimates that funding the program through budget savings would result in an increase in federal spending of 0.25% over ten years. They estimate that funding the program through an increase in marginal tax rates would result in an increase in federal revenue of 1% over ten years.

Conclusion

The Bident Student Loan Forgiveness Plan is a proposal that has been met with mixed reviews. Some say that it is a much-needed solution to the student loan crisis, while others argue that it is unfair to taxpayers who do not have any student loan debt. Regardless of where you stand on the issue, it’s important to be informed about the details of the plan so that you can make an educated decision about whether or not it is right for you.

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