One of the key issues for the 2020 presidential election is student loans, and Elizabeth Warren is proposing to cancel 95 percent of debt. Warren is campaigning on the idea of forgiving up to $50,000 of student loan debt thanks to an “Ultra-Millionaire Tax” as described on her website.
Elizabeth’s plan isn’t some pie-in-the-sky idea: It’s a proposal that would make a tangible impact on millions of Americans’ lives — and 100% of it would be paid for by Elizabeth’s Ultra-Millionaire Tax.
Warren’s policy likely sounds appealing to millions of Americans with student loan debt but is Warren’s plan realistic? Warren suggests the cancelation can happen thanks to a new two percent annual tax on families with $50 million or more in wealth.
The entire cost of my broad debt cancellation plan and universal free college is more than covered by my Ultra-Millionaire Tax — a 2% annual tax on the 75,000 families with $50 million or more in wealth. For decades, we’ve allowed the wealthy to pay less while burying tens of millions of working Americans in education debt. It’s time to make different choices.
Elizabeth Warren’s Student Loan Forgiveness Plan Differs Slightly From Bernie Sanders
Bernie Sanders is another Democratic candidate that has been outspoken about his desire to change the student loan debt crisis. Warren’s plan has a cap for each person and also has an income restriction.
Sanders is proposing to eradicate all student loan debt which would cost $2.2 trillion over 10 years, per USA Today. Sanders’ plan to pay for the debt cancelation is via a tax on Wall Street, per his campaign site.
We can guarantee higher education as a right for all and cancel all student debt for an estimated $2.2 trillion. To pay for this, we will impose a tax of a fraction of a percent on Wall Street speculators who nearly destroyed the economy a decade ago. This Wall Street speculation tax will raise $2.4 trillion over the next ten years. It works by placing a 0.5 percent tax on stock trades – 50 cents on every $100 of stock – a 0.1 percent fee on bond trades, and a 0.005 percent fee on derivative trades.
Warren Is Proposing Her 2% Tax Will Also Help Pay for “Universal Free College”
Not only is Warren proposing to wipe out a good portion of student loan debt, her plan suggests that the two-percent “Ultra-Rich Tax” will also help make college free for all. Warren’s goal is to make college more accessible and prevent future students from taking on massive amounts of debt, per the candidate’s website.
My plan for universal free college will:
Give every American the opportunity to attend a two-year or four-year public college without paying a dime in tuition or fees;
Make free college truly universal — not just in theory, but in practice — by making higher education of all kinds more inclusive and available to every single American, especially lower-income, Black, and Latinx students, without the need to take on debt to cover costs.
Warren offers potential voters a debt calculator to see how her proposed student loan forgiveness plan would impact them directly. Warren is likely to gain support from many young voters crippled with student loan debt.
However, opponents are likely to continue questioning the practicality of Warren’s plan along with its potential impact on the economy. As the race for the Democratic nomination heats up, Warren will be asked to go into greater detail on the logistics of her tax proposal along with the corresponding loan forgiveness.