Warren's plan to wipe out student debt (and how she'd pay for it)

[brooklynite]

NBC News

Sen. Elizabeth Warren, D-Mass., unveiled a new plan on Monday that would offer free public college for future students while cancelling up to $50,000 in student debt for over 40 million Americans.

Warren said her proposal was designed to confront a recent surge in student loans, now totaling $1.5 trillion nationally. She blamed insufficient funding in higher education in favor of lower taxes for the mounting student debt.

"The first step in addressing this crisis is to deal head-on with the outstanding debt that is weighing down millions of families and should never have been required in the first place," she said in a statement.

...snip...

Households making under $100,000 could cancel up to $50,000 of student loan debt. Those making up to $250,000 could still qualify for partial debt cancellation, with the amount available declining by $1 for every $3 they make over $100,000.

[still_one]

1. There is no doubt in my mind that she is probably the smartest candidate we have running. While I

think it would be challenging for her to win the general election, in my view she is the most qualified on domestic issues, and if she got the nomination, I would enthusiastically be supporting her

[mcar]

2. Another Warren plan and how to pay for it

[PBC_Democrat]

3. I agree that the student loan debt is a problem

But this is not an equitable solution.

What do you tell the young couple that worked hard, scrimped and just finally paid off their student loans?

What do you tell the young graduate that passed on loans, worked two or three jobs, and missed all the cool parties to be able to graduate with no debt?

I would be very much in favor of the government refinancing outstanding debt at a very low (1 or 2%) and indexing payments to income along with a maximum number of payments (120 or 180).

I also support loan reduction for certain professions (military, teaching, public health) and in under served geographies based on public priorities.

I have no sympathy for the Dance major that takes on $120,000 in debt and then can't pay it back.

Loans must be paid back, one way or the other, ... that's a basic tenet of becoming an adult.

As an aside, it's doubtful that the wealth tax Constitutional.

Constitutional Concerns Are a Major Risk for a Federal Wealth Tax
http://nymag.com/intelligencer/2019/02/constitutional-concerns-are-a-major-risk-for-a-wealth-tax.html

We DO need a VIABLE solution to the existing problem AS WELL as a way to mitigate this in the future.

[Marengo]

4. Hope you're wearing anti-flash cream!

[PBC_Democrat]

5. I am ...

But I'm thinking many of my fellow DU'ers worked hard to pay back their student loans and, while sympathetic, aren't willing to have society take on this burden.

I agree tuition is too high but students who made poor decisions on what to study don't necessarily deserve to be rescued.

[zipplewrath]

6. Let's stay on topic

No one is getting $120,000 in debt relief. It was quoted as $50K. And that was for people under $100K in income. Warren's assertion is that the $50K in debt never should have been incurred in the first place.

As for those that didn't incur debt for whatever reason, they can count themselves lucky. I'm about as concerned about that as I was about people underwater on their mortgages in the recent economic collapse. I didn't get any relief on my mortgage, but I didn't care that people did get assistance and relief on theirs.

[LanternWaste]

9. Does your sentiment apply as well to healthcare?

"What do you tell the young couple that worked hard, scrimped and just finally paid off their student loans?"

Does that same sentiment apply as well to healthcare? Should Universal HealthCare (or an equitable substitute) ever become reality, would it then be unfair to all previous patients who paid (i.e., "worked hard, scrimped and finally paid off their medical loans...&quot higher rates for the same procedure?

If not, what then is the precise, valid and relevant difference?

[PBC_Democrat]

11. My sentiment does not apply to healthcare

People choose to go to college, choose a course of study, and choose to borrow money.

Getting sick is not a choice. Contracting a fatal disease is not a choice.
There is an element of unfairness for those that paid off medical bills ... but they can take assurance that that burden will never happen to them or their loved ones again.

Every social beneficial program has to start somewhere, there will always be someone who just missed the cutoff.

Some sort of universal healthcare is long overdue.

[gtar100]

10. What have you got against dance? Not practical?

Education has become the new term for "job training", which has become yet another capitalist way to pass off expenses to the public sector. We are a deprived culture for harboring such ideas. Alternatively, education should be for the enrichment of future generations by means of passing on knowledge and wisdom in all areas of study, not just what directly feeds our capitalist economic engine. Or is our life's meaning and purpose simply a measurement of our economic productivity?

As far as I can tell, the American model of capitalism has been propped up for generations by the social programs supported by government. Anyone else see the hypocrisy of people raging against welfare programs as they put private sector capitalism on a pedestal?

[peggysue2]

7. I had to work to pay off my student loan but I certainly don't begrudge debt relief for . . .

current graduates or those who incurred massive debt in the last few decades. The costs at universities have skyrocketed and as a society we pushed the idea that everyone should get a minimum of a Bachelor's degree. Students followed the messaging, then were given no breaks on their debt load. Private institutions popped up to take advantage of government funding and in a number of cases offered students little in return beyond promises of great opportunities that never materialized. Over a decade ago, I recall catching an expose of several of these scam operations preying on the poorest communities, focusing a lot of attention on reservation kids. It was sickening.There are also a lot of parents and grandparents that co-signed on these loans, and now they too are strapped.

Elizabeth Warren is the strongest and smartest candidate for the progressive message. I think all our candidates are on board with offering free tuition, first two years at community college. Warren's plan addresses the student loan/debt head-on and provides a means to fund the relief. Economically, the relief makes sense because the massive loan burden puts a long delay on people getting married, buying houses, cars, other consumer goods. And do we really want to punish family members for wanting to help off-spring with what they thought would be a better future?

I think debt relief is long overdue. Back in the day, we didn't know how big a problem this would become. Now we do. Time for a correction.

[Gothmog]

8. Sirota is attacking Senator Warren

Link to tweet