Elizabeth Warren wants to cancel your student loan debt. Here's her plan.
, there are more than 44 million Americans who collectively owe $1.6 trillion in student loan debt. Today, according to personal finance site Make Lemonade, student loan debt is now the second highest consumer debt category - second only to mortgages and higher than credit card debt and auto loans. By 2023, 40% of student loan borrowers may default on their student loans.
Warren said that the U.S. Department of Education has the authority to cancel student loan debt and she would instruct the Secretary of Education to begin student loan forgiveness on day one of a Warren administration, if Warren is elected president in November 2020. While the Education Department can cancel federal student loans due to death, disability or fraud, others argue that a broad-scale student loan forgiveness plan may need congressional legislation.
Streamline the student loan debt forgiveness process using data and income information already available to the federal government. Importantly, Warren's plan offers no student loan debt cancellation to borrowers with a household income above $250,000, which she says is the Top 5% of earners. There would also be"phase-outs" based on income. The $50,000 cancellation amount would phase out by $1 for every $3 in income above $100,000.
Warren's campaign proposal included an Ultra-Millionaire Tax that would include a 2% annual tax on the 75,000 families in the U.S. who have at least $50 million in net worth.U.S. Sen. Bernie Sanders , another 2020 presidential candidate, said he would forgive all $1.6 trillion of student loan debt, including both private and federal student loans. Sanders would set no criteria for student loan forgiveness - anyone with a student loan is eligible.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Progressive groups call for unity as Elizabeth Warren and Bernie Sanders feudLeading progressive groups are issuing a call for unity as the public rift between Bernie Sanders and Elizabeth Warren widens ahead of the first round of Democratic presidential primary voting.
Read more »
Elizabeth Warren Accuses Bernie Sanders of Calling Her a Liar After DebateElizabeth Warren not only snubbed Bernie Sanders for a handshake after the debate, she went at him for calling her a liar.
Read more »
Elizabeth Warren Shares Plan To Cancel Student Debt On 'Day 1' Of Her PresidencyDemocratic presidential candidate Elizabeth Warren just rolled out her plan to use federal authority to cancel student debt on day 1 of presidency.
Read more »
Elizabeth Warren, Bernie Sanders And The Handshake That Wasn’tElizabeth Warren left Bernie Sanders hanging when it was time to shake hands at the debate last night. The two had clashed earlier in the debate over differing recollections of a discussion about the potential electability of a woman.
Read more »
Who's lying? How the Bernie Sanders-Elizabeth Warren feud could reshape the Democratic raceThe escalating tiff between Bernie Sanders and Elizabeth Warren threatens to divide the Democratic left.
Read more »
Wall Street is more terrified of an Elizabeth Warren presidency than previously thought, new report finds | Markets InsiderA series of five reports that Barclays drew up last year drew a largely negative portrait of a Warren presidency, according to a recent Mother J...
Read more »