Warren calls for universal free college, cancellation of student loan debt
Senator and 2020 Presidential candidate Elizabeth Warren released details on Tuesday about a solution to help get rid of up to $50,000 in student loan debt for every household with a gross income less than $100,00, according to an article written by Elizabeth Warren herself on Medium.
The Majority Whip of the House of Representatives, James E. Clyburn, also worked with Warren in creating a solution in getting rid of student debt called the Student Loan Debt Act.
“Student loan debt has reached crisis proportions 45 million Americans dealing with student loan debt, they really get caught in an America that says you need a post high school education to get a ticket into America’s middle class, a chance to build something moving forward but the cost out that education has shot through the roof and you are pretty much on your own,” Senator Warren said.
The plan aims to cancel 95 percent of student loan debt, get rid of debt from 75 percent of Americans, increase wealth for Black and Latino families, boost economic growth, increase home purchase and increase small business formation.
According to a study from the NeighborWorks America at Home, 59 percent of millennials knew someone who delayed buying a home because of student loan debt.
Revoking debt would happen automatically for Americans that qualify, but private loans may have to go through a process of cancellation with the federal government working with borrowers.
“The enormous student debt burden weighing down our economy isn’t the result of laziness or irresponsibility. 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,” Warren stated in her article on Medium.
After clearing out the debt for Americans,Senator Warren said she wants to provide universal free college that will give Americans the opportunity to attend college without any tuition.
The federal government will work with the states to split the costs of tuition and fees also maintain the financial aid that may be needed.
“Experts estimate my debt cancellation plan creates a one-time cost to the government of $640 billion,” Warren said. “The Universal Free College program brings the total cost of the program to roughly $1.25 trillion over ten years.”
Warren’s fellow 2020 Democratic candidate Bernie Sanders proposed a similar plan in June alongside Reps. Pramila Jayapal, D-Wash., Ilhan Omar, D-Minn., and Alexandria Ocasio-Cortez, D-N.Y. Their legislation would cancel all $1.6 trillion of student loan debt in the U.S.
Warren’s plan would cancel debt entirely for about 75 percent of borrowers, and offer relief to 95 percent.