Elizabeth Warren plans to eliminate 640 billion worth of student loan debt

Mar 2019
278
163
Portland, OR
Interesting idea, thoughts?

Sen. Elizabeth Warren rolled out yet another ambitious policy proposal Monday morning as she called for canceling approximately $640 billion in outstanding student loan debt.

“It’s a problem for all of us,” she said of the massive amount of debt carried by students, which has reached more than $1.5 trillion and affects more than 40 million Americans. “It’s reducing home ownership rates. It’s leading fewer people to start businesses. It’s forcing students to drop out of school before getting a degree.”

The plan would eliminate up to $50,000 in student loan debt for each person with less than $100,000 in household income. The $50,000 in relief would gradually diminish for people with household incomes between $100,000 and $250,000 ($1 less relief for every $3 earned). People with household incomes over $250,000 would not receive debt cancellation.

Warren couples the student debt forgiveness with a proposal to eliminate tuition and fees at all two-year and four-year public colleges. She presents the proposals as working in tandem: First, eliminate much of the student loan debt and then restructure the system to ensure that such debt doesn’t accumulate again.

“Once we’ve cleared out the debt that’s holding down an entire generation of Americans, we must ensure that we never have another student debt crisis again,” she wrote.

Warren proposes $640 billion student debt cancellation
I'm fine with cancelling all federal student loan debt and restructuring the program completely. I'd make federal student loans free and deducted from salary. I'd also make it only for marketable in-demand majors only and only relevant courses in other majors.
 
Sep 2017
5,469
6,538
Massachusetts
Interesting idea, thoughts?

Sen. Elizabeth Warren rolled out yet another ambitious policy proposal Monday morning as she called for canceling approximately $640 billion in outstanding student loan debt.

“It’s a problem for all of us,” she said of the massive amount of debt carried by students, which has reached more than $1.5 trillion and affects more than 40 million Americans. “It’s reducing home ownership rates. It’s leading fewer people to start businesses. It’s forcing students to drop out of school before getting a degree.”

The plan would eliminate up to $50,000 in student loan debt for each person with less than $100,000 in household income. The $50,000 in relief would gradually diminish for people with household incomes between $100,000 and $250,000 ($1 less relief for every $3 earned). People with household incomes over $250,000 would not receive debt cancellation.

Warren couples the student debt forgiveness with a proposal to eliminate tuition and fees at all two-year and four-year public colleges. She presents the proposals as working in tandem: First, eliminate much of the student loan debt and then restructure the system to ensure that such debt doesn’t accumulate again.

“Once we’ve cleared out the debt that’s holding down an entire generation of Americans, we must ensure that we never have another student debt crisis again,” she wrote.

Warren proposes $640 billion student debt cancellation
This is one of those areas where my selfishness weighs heavily against my notion of what's right for the country. Abstractly, I see that the massive debt overhang for young people is a problem for the nation and that we should be doing something about it. Plus, when I listen to the better angels of my nature, I feel for those young people. But, at the same time, student loan debt forgiveness irks me, because I didn't get any help of the sort. When I graduated school, I had student loan debt that was three times my starting salary, at 8.5% interest. I paid back every single penny without a bit of help from the government. It's frustrating to think that now, when I'm finally past that, I'll be paying to help others pay down their debt (regardless of how this is structured, it's ultimately going to be a transfer of wealth from those without that debt to those with it.) It's not just the government program, either. My employer recently started a program of student debt repayment assistance for employees -- a program they didn't have when I had that debt. That's essentially money that otherwise would have been available for higher salaries or other benefits.

Such programs are fair if they were always in place -- basically, you get help early on, in exchange for doing your part to help those who come after you. But there's an injustice when they're first put in place, in that the last generation without the benefit winds up paying for it for years, without ever having had the advantage of it. This is the type of thing I was worried about for my generation (Gen X). We're a small generation, and so we don't have the political heft to have our problems addressed (crushing student loan debt isn't a new thing -- Gen X had it, too). Yet, we also lack the heft to defend against wealth transfers from our generation to the Millennials. So, sandwiched between the Boomers and the Millennials, we'll get the worst of both worlds. The biggest screw job is probably still coming -- Social Security and Medicare. We've been paying in our whole careers at the higher rates that were phased in ending in 1990. Yet it's highly likely that after the Boomers suck the marrow from the bones of those programs, we'll be left with a desiccated skeleton -- means-testing, older eligibility, lower payouts, etc.
 
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Mar 2013
792
407
Texas
. This is the type of thing I was worried about for my generation (Gen X). We're a small generation, and so we don't have the political heft to have our problems addressed (crushing student loan debt isn't a new thing -- Gen X had it, too). Yet, we also lack the heft to defend against wealth transfers from our generation to the Millennials. So, sandwiched between the Boomers and the Millennials, we'll get the worst of both worlds. The biggest screw job is probably still coming -- Social Security and Medicare. We've been paying in our whole careers at the higher rates that were phased in ending in 1990. Yet it's highly likely that after the Boomers suck the marrow from the bones of those programs, we'll be left with a desiccated skeleton -- means-testing, older eligibility, lower payouts, etc.
Not sure how old you are but I doubt enough politicians are gonna have enough political courage for the next 10-12 years to address the coming SS/Medicare shortfalls. If you're in the 60+ demographic at that point,your benefits won't be touched.
 
Apr 2016
603
248
Seattle
Gotta get the young vote .... Reparations for the black vote ... gimmee gimmee gimmee
 

Rev. Hellh0und

Former Staff
Jul 2011
66,568
13,571
315 bowery/DMS
Interesting idea, thoughts?

Sen. Elizabeth Warren rolled out yet another ambitious policy proposal Monday morning as she called for canceling approximately $640 billion in outstanding student loan debt.

“It’s a problem for all of us,” she said of the massive amount of debt carried by students, which has reached more than $1.5 trillion and affects more than 40 million Americans. “It’s reducing home ownership rates. It’s leading fewer people to start businesses. It’s forcing students to drop out of school before getting a degree.”

The plan would eliminate up to $50,000 in student loan debt for each person with less than $100,000 in household income. The $50,000 in relief would gradually diminish for people with household incomes between $100,000 and $250,000 ($1 less relief for every $3 earned). People with household incomes over $250,000 would not receive debt cancellation.

Warren couples the student debt forgiveness with a proposal to eliminate tuition and fees at all two-year and four-year public colleges. She presents the proposals as working in tandem: First, eliminate much of the student loan debt and then restructure the system to ensure that such debt doesn’t accumulate again.

“Once we’ve cleared out the debt that’s holding down an entire generation of Americans, we must ensure that we never have another student debt crisis again,” she wrote.

Warren proposes $640 billion student debt cancellation


"eliminate" is a lie, "shift it to tax payers" seems more accurate.
 
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Sep 2014
5,100
1,601
South FL
Here comes Santa Claus, here comes Santa Claus, right down Santa Claus lane.

Liz Warren, I take your debt cancellation plan and one up that by offering mortgage debt forgiveness!
 
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Reactions: Rev. Hellh0und
Dec 2018
5,402
2,129
Florida
Here comes Santa Claus, here comes Santa Claus, right down Santa Claus lane.

Liz Warren, I take your debt cancellation plan and one up that by offering mortgage debt forgiveness!
I will one up both of you: #school #freefood #freebooze #freeweed #freeabortions PLUS debt cancelling on vehicles and mortgages and student loans.
 
Sep 2017
5,469
6,538
Massachusetts
Not sure how old you are but I doubt enough politicians are gonna have enough political courage for the next 10-12 years to address the coming SS/Medicare shortfalls. If you're in the 60+ demographic at that point,your benefits won't be touched.
I'm 45. So, if they were to, say, hike eligibility age, in 15 years, I'd be one of the ones screwed.