Bloomberg Donates $ 100 Million to Pay Off Student Loans


Michael Bloomberg will donate $ 100 million to four schools to provide scholarships of up to $ 100,000 to ease the student loan burden.

Here’s what you need to know.

Student Loans

Bloomberg, the former New York City mayor and billionaire and founder of Bloomberg LP, will donate $ 100 million to the country’s four historically black medical schools to help lower student loan debt for approximately 800 medical students. The four schools are:

  • Morehouse School of Medicine in Atlanta, Georgia
  • Howard University College of Medicine in Washington, DC
  • Meharry Medical College in Nashville, TN
  • Charles R. Drew University of Medicine and Science in Los Angeles, California

The gift is the greatest single philanthropic gift ever received from the four historically black medical schools. With these four-year scholarships, students at these medical schools can reduce their student loan debt burden and have more economic opportunities after graduation.

“COVID-19 has been particularly devastating to the black community and the lack of black doctors practicing in black communities is one reason,” Bloomberg said. “More black doctors mean more black lives saved and fewer health problems that limit economic opportunity. But right now the shortage of black doctors could get worse due to the burden of student debt and lack of financial aid. “

Bloomberg: How to Pay Off Student Loan Debt

As a presidential candidate, Bloomberg sponsored several initiatives to help you pay off student loan debts. These guidelines include:

1. Tuition Free College

Bloomberg, like Democratic candidate Joe Biden, supported making two-year public colleges free of charge. However, Bloomberg did not support making public four-year colleges tuition free.

2. Double Pell Grants

As part of Bloomberg’s education plan, Bloomberg would double the maximum Pell grant amount, up to $ 12,690, and increase state funding for education through the federal government.

3. No debt on student loans for some students

Bloomberg helped eradicate student loan debt for the lowest-income students attending public two-year colleges. His college plan would have covered the full cost of their college, including books, meals, transportation, and childcare.

4. Improve income-oriented repayment plans

Like President Donald Trump and Biden, Bloomberg supported the revision of income-based repayment plans. Income-oriented repayment plans will help you lower the payment of your federal student loan based on your income, family size, and other factors. Bloomberg proposed changing income-driven repayment plans as follows:

  1. Upper limit at 5% of income: Like Biden, Bloomberg would cap federal student loan payments under an income-driven repayment plan to 5% of disposable income (up from 10% today).
  2. To make payments for student loans through paychecks: You can pay the student loan payments through your paycheck. Senator Lamar Alexander (R-TN) proposed a similar plan for federal student loans.
  3. Student loan waiver: As with current income-oriented repayment plans, Bloomberg would allow you to continue to waive student loans through income-oriented repayment plans. However, Bloomberg would have focused student loan waiver for undergraduate borrowers and capped student loan waivers at $ 57,500 (the maximum amount that federal loan students can borrow). However, unlike the current income-oriented repayment plans, you would waive the student loan tax free after 20 years.
  4. Automatic login: To cut red tape, Bloomberg would have ensured automatic registration for income-based repayment plans. Currently, you must sign up for an income-based repayment plan; the process is not automatic.
  5. To cancel student loan debt: Unlike Biden, Bloomberg didn’t endorse canceling student loan debt.

How to pay off student loans

Not sure how to pay off student loans? Start with these four options, all of which are free of charge:

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