As we get nearer to the 2020 elections, we’re starting to see the candidates roll out their promises. Earlier today we revealed a plan by Andrew Yang to give $1,000 to each American every month. Now Elizabeth Warren is trying to tap into the freebee game. She’s offering complete student debt cancellation for millions of Americans.
That’s right. If you have student loan debt and your income is under $100,000, her proposal will wipe out your debt. Well, there is a limit of $50,000, but the average amount of debt owed is $37,000. Student debt cancellation is only one of Warren’s big ideas. She also hopes to add a new corporate tax, give universal child-care coverage, and more.
Under Warren’s student debt cancellation plan, this money wouldn’t be taxed. Currently, you still have to pay debt, even if you have your debt forgiven. She says she understands the burdens and wants to help others.
“The enormous student debt burden weighing down our economy isn’t the result of laziness or irresponsibility,” Warren, whose first bill as a Senator sought to provide relief to student borrowers, writes. “It’s the result of a government that has consistently put the interests of the wealthy and well-connected over the interests of working families,” said Warren.
Student Debt Cancellation Plan Details
According to Brandeis University, Warren’s plan would make 75% of borrower’s debt-free. 95% would receive some type of help. The cost of student debt cancellation plan is estimated around $1.25 trillion. She figures her tax on ultra-millionaires will be enough to pay for it. Not only that, but Warren hopes to help the lower class.
She wants to give a $100 billion boost to Pell Grants for low-income people and students of color. This would also include a ban on schools receiving massive federal dollars. Many suspect that the schools receiving federal money allows them to dramatically increase tuition. That increase hurts low-income people and puts them in major debt.
“We got into this crisis because state governments and the federal government decided that instead of treating higher education like our public school system — free and accessible to all Americans — they’d rather cut taxes for billionaires and giant corporations and offload the cost of higher education onto students and their families,” Warren writes. “The student debt crisis is the direct result of this failed experiment.”