Published: Mon, April 22, 2019
Markets | By Otis Pena

Warren unveils plan to cancel $640 billion in student loan debt

Warren unveils plan to cancel $640 billion in student loan debt

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The costs of debt cancellation and universal free college, Warren said, would be "more than covered by my Ultra-Millionaire Tax - a 2% annual tax on the 75,000 families with $50 million or more in wealth". American households with higher incomes, up to $250,000, would also see some of their debt written off as well.

To keep students from accumulating more debt in the future, Warren also proposes making two- and four-year public colleges tuition free, according to a plan unveiled in advance of a Monday evening CNN town hall focused on issues of interest to young voters.

Warren, in a Medium post, explained that her plan would cancel $50,000 of public and private student loan debt for individuals with household incomes under $100,000. According to analysis provided by her campaign, that would provide immediate relief to more than 95% of the 45 million Americans with student debt.

That's just a fraction of the $18.2 million raised by Vermont Sen.

Warren also takes aim at for-profit colleges, which have been criticized for saddling low-income students and people of color with debt while providing degrees of dubious career value.

Pictured is a depiction of student debt. Bernie Sanders (I-Vt.), who is seeking the Democratic nomination for president, has proposed the College for All Act, for instance, a cost-sharing program that would send $47 billion a year to states who agree to increase their higher-education funding. Households that make less than $100,000 a year would get $50,000 in loan cancellation, with the amount of relief getting gradually smaller as income level goes up, with households that make more than $250,000 not eligible for any debt relief.

"Free college" has become a popular progressive rallying cry in recent years, with Sanders helping bring the idea mainstream during his 2016 presidential campaign.

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Sen. Warren would then eliminate tuition and fees fro all two-year and four-year public colleges as a means to restructure the higher education system to ensure that Americans do not accumulate more college debt. "My broad cancellation plan is a real solution to our student debt crisis".

Warren, who said she dropped out of college initially at 19 to get married, said she was able to re-enroll on her waitressing salary when tuition was just $50 a semester.

"Research shows that more funding for non-tuition costs helps improve graduation rates, which must be our goal", Warren wrote. They do not need to be paid back.

Education has been a topic on the campaign trail for some of Warren's rivals as well.

"It's not enough to make sure every American can graduate from a public college debt-free".

But other candidates - including Sen. But he has called for expanding Pell grants and incentivizing states to invest more money in higher education.

The plan also calls for prohibiting public colleges from considering criminal history or citizenship status in admissions decisions and would create a fund specifically aimed at supporting historically black colleges and universities.

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