Elizabeth Warren Is Putting Her Plan For Student Loan Debt Into Action
As the race heats up between more than a dozen Democratic Presidential candidates, there are certain issues that continue to be brought up time and time again both on the campaign trail and during debates. One of those issues is student loan debt, with the idea of some sort of debt forgiveness being at the top of a lot of a lot of voters’ list.
Senator Elizabeth Warren has been vocal about her plan for student loan forgiveness over the past couple of months, but now, she’s really putting that plan into action.
The Massachusetts politician introduced a bill on Tuesday that would forgive student loans for tens of millions of Americans, which would mean three-quarters of borrowers would have their balances reset to zero. The Senator first released her plan to do this very thing back in April, but the legislation–which has been dubbed the Student Loan Debt Relief Act–offers new details on how she would go about dismantling the country’s outstanding student debt, which is soon expected to exceed $2 trillion.
Under Warren’s newly introduced proposal, borrowers with household incomes under $100,000 would get $50,000 of their student debt completely forgiven. People who earn between $100,000 and $250,000 would be eligible for forgiveness on a sliding scale. And those who earn more than $250,000 would not get any debt relief.
For those wondering about the logistics of this whole thing: the degree of debt forgiveness a person receives would be determined by their income in the most recent tax year and the loan cancellations would take about a year from the time the bill is enacted to complete.
Though most people crippled by their student loan debt are probably huge fans of this idea, not everyone is on board with completely cancelling out such a tab.
Consumer advocacy groups like the National Consumer Law Center came out in support of the plan, saying, “we support bills like the Student Loan Debt Relief Act because it recognizes the enormity of the crisis facing today’s borrowers.” Others oppose the plan, like President and CEO of the Consumer Bankers Association Richard Hunt, who says, “this proposal does nothing to decrease the cost of college and does not help future students.”
But all in all, the proposal is popular among voters. In a Politico/Morning Consult poll, 56% of registered voters said they support the Massachusetts senator’s proposal to cancel outstanding education loans by raising taxes on the wealthiest Americans. Only 27% of voters said they opposed the plan.
Here’s what people on Twitter had to say about Warren’s controversial plan: