Student Loan Forgiveness 💵
Presidential Candidate Warren Announces Bold Plan
On Monday, Sen. Elizabeth Warren (D-MA) announced her student loan forgiveness program – a keystone of her presidential campaign. In addition to alleviating student loan debt, the program would create a $50 billion fund for HBCUs and eliminate federal subsidization given to for-profit universities and colleges.
The devil is in the details
The $1.25 trillion over 10 years price tag will be paid for by a 2% annual tax on wealth greater than $50 million, with an additional 1% on wealth greater than $1 billion.
The plan will erase $50k of debt for individuals with a household income less than $100k.
For individuals with household that earn more than $100k, the amount of debt erased will decrease by $1 for every $3 more than $100k earned. Ex: $130k household income will received $40k in debt forgiveness.
Individuals whose households earn more than $250k are not eligible for the program.
The right takes an antagonistic stance towards Warren’s program. They assert that the program is unfair to those that have worked hard to pay off their student loans and to those that have been making their payment for a longer duration. Furthermore, the right emphasizes that the program will be paid for using “other people’s money” and that the student loan “crisis” is significantly exaggerated. The right also stresses that this program will cost $640 billion, which amounts to approximately $2000 for every American. They frame the narrative that this is pandering from Warren in an attempt to improve herstruggling poll numbers.
The left highlights the potential benefits of Warren’s loan forgiveness program. They emphasize that the program would alleviate the disparity in the amount of student loans held by black and Latino students. Furthermore, they contend that the program would catalyze an economy hampered by diminished home ownership rates and small business creations. They cite a Bard College study that claims student loan forgiveness could increase the GDP by $1.1 trillion over the next decade. The left also points out that the average student loan payment is$4800 per year compared to the$1000 tax cut middle-income individuals received as part of Trump’s tax plan.
Where's the common ground?
As Warren’s student loan forgiveness program relies on her proposed ‘wealth tax,’ it is unsurprising that the right and left have polarizing opinions about it. However, both sides do address their concerns about the program – the right are concerned about the source of funding and the left are concerned about the program’s potential effectiveness.
When someone makes a very good point
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