Liz Warren is Making Moves: "Elizabeth Warren Proposes Wiping Out Almost Everyone's Student Debt"

[LovingA2andMI]

"Last year, outstanding student debt in the U.S. topped $1.5 trillion, a growing financial burden that Warren argues is "crushing millions of families and acting as an anchor on our economy."

"It's reducing home ownership rates," she wrote. "It's leading fewer people to start businesses. It's forcing students to drop out of school before getting a degree. It's a problem for all of us."

To address the problem, Warren is suggesting what she calls a "truly transformational" approach: wiping out $50,000 in student loan debt for anyone with a household income below $100,000. People with student loans and a household income between $100,000 and $250,000 would receive substantial relief as well. At that point, "the $50,000 cancellation amount phases out by $1 for every $3 in income above $100,000," Warren wrote.

That means someone with a household income of $130,000 would get $40,000 of their loans wiped out. Someone with a household income of $160,000 would get $30,000 in relief.

People with household incomes above $250,000 would not be eligible for debt cancellation.

Under Warren's proposed plan, up to 76 percent of households with student loan debt would receive "total loan forgiveness," according to an economic analysis of the proposal by academics at Arizona State University, Brandeis University and the University of Tennessee, Knoxville. Ninety-five percent, or 42 million Americans, would be eligible to have at least some of their debt canceled."

You Go, Elizabeth Warren!!!

[Shell_Seas]

1. If this happens, will the cost of tuition rise? What will happen to future debt?

[leftofcool]

3. I would imagine tuition will go up but it's going to go up anyway

Future debts will likely have to be paid back.

[LovingA2andMI]

12. Why would it?

There is a LIMIT for this Proposal. If the Costs of Tuition continues to rise, schools would have to face the choice of not instilling those increases as the student population not desiring to have a student debt lock and ball chain attached to them for the rest of their life will choose other venues for education (and yes, they are available).

[leftofcool]

20. Tuition as been going up every year for the last 20 years or more

Instead of costing 100K to send my grand daughter to college for 4 years it will cost 150K in 2 years when she is ready. And that doesn't count medical school. College IS her only venue as it is with any student with a 4.3 GPA. Other students who can't afford college will just have to seek out those "other venues" or work their way through.

[leftofcool]

2. Sounds good but how does she propose to pay for it

Wealth tax, corporate tax? Link anyone?

[McKim]

22. We Can Pay for it By Diverting War Funding!

And why can’t we have nice things? Because of spending trillions on resource wars of choice! There is plenty of money for this, we are just spending it on the wrong things! Electing Warren would put a stop to this!

[leftofcool]

52. Yea, well, she has to get it passed through Congress

That is the problem with promising something you might not be able to deliver. The President doesn't control the purse strings. Trump is finding that out right now.

[mcar]

36. It's in her proposal

[hedda_foil]

50. Wealth tax. She explained quite clearly in the Town Hall.

[MrsCoffee]

4. K&R

[USALiberal]

5. What about people who paid their own off this year? Nt

[LovingA2andMI]

10. Excellent....

You have and had the resources to do so. There are millions that don't. These Millions are who Warren is speaking too in this proposal.

[USALiberal]

11. Millions struggle to pay it back, 2 jobs, they deserve money also. Nt

[LovingA2andMI]

13. Yes, but if they paid it back...

Then that's done right? Just like to President Obama's Home Affordable Refinance Program (HARP) -- if a homeowner was not underwater or facing foreclosure, they likely would not have needed the program.

No difference. No need, then Great. If a need exist, then Warren's proposal is excellent and a great start to eliminate the issue with Student Loan Debt.

Maybe talk to your candidate about it? We plan on asking the same to Senator Harris.

[MichMan]

37. I must have missed the part in HARP that wiped out the mortgage debt and gave people the homes

HARP allowed people to refinance for lower interest rates and payment terms that made it easier to make the payments. It did not eliminate all the mortgage debt and transfer title of the homes to the borrower with no more owed. It is not at all analogous to what is being proposed here.

[meadowlander]

26. Any social program is going to have a cut off point

and some people are going to miss out. That doesn't mean it's not worth doing.

I'm in the process of paying off my student loans (and so, I imagine are most of the people who would benefit from this program). It's not like she is proposing to forgive loans of people who walked away from them.

At the moment it takes up 20% of my take home pay which means even though I make almost a six figure salary, I'm still living like a monk. I couldn't afford to get a mortgage until I was 42. I couldn't afford to have kids.

This seems like a great place to start tilting the tables back towards fairness. It's not like it was my fault that college fees shot up, along with housing costs, health care costs, etc. or that I happened to come out of grad school into the middle of the global financial crisis. I applied for more than 700 jobs between 2009-2010 and couldn't even get an interview at McDonald's-type jobs because I was "over qualified". I didn't choose to be unemployed for four years and I worked my ass off to get out of that situation. And just once before I'm seventy it would be nice to be able to enjoy some of the benefits of my hard work instead of seeing every penny of it evaporate out the door for debt servicing.

Let's not be like Republicans and pretend that any social program that doesn't directly benefit us must be a handout to scrubbers who don't deserve it.

[LovingA2andMI]

31. Thank You!!!

....

Let's not be like Republicans and pretend that any social program that doesn't directly benefit us must be a handout to scrubbers who don't deserve it.

[RobertDevereaux]

6. I love what Liz has been up to these many months!

[LovingA2andMI]

14. She's Making Moves....

[jezebel321]

7. can I have my credit card debt wiped out instead? My hubby and I have paid off our

student loan debt.

[LovingA2andMI]

9. Then obviously, this would not apply to you...

Last edited Mon Apr 22, 2019, 04:01 PM - Edit history (1)

Student Debt and the Student Loan crisis is the next 2008 Deja Vu Mortgage Crisis facing this country. For Elizabeth Warren to take this on is putting her on the map along with being first to call for Idiot's Impeachment, is impressive. As for other candidates, including the one we are supporting now, Kamala Harris -- they need to get on board ASAP. Period!

[LongtimeAZDem]

19. No, you're shit out of luck for having lived up to your responsibility

[leftofcool]

21. Same here

[LovingA2andMI]

32. This sounds so....

47% ist. This is DU right?

[leftofcool]

53. No it does not.

Some of us worked our asses off to pay off our loans like responsible adults. Same way we paid off car loans and mortgages, put our own kids through college so we could retire a little bit more comfortably and help our grand daughters get through college. We didn't whine about it and the hard work didn't kill us.

[Lancero]

58. So, your argument is... Bootstraps?

[Ruby the Liberal]

41. I wasn't able to pay into my 401k for a very long time

while I paid off my student loans, so struggling to catch up on that now, and just seeing today that there is a newly published risk that SS may be drastically reduced for those of us who are now around 50.

Not greeting this with the same accolades as most here.

[renate]

55. yep. this is a complicated proposition

And obviously Warren is still my first choice.

I 100% love the idea of changing the system over time. But you missed out on investing in your retirement; we also missed out on investing in ours, in order to ensure our kids graduated without debt. And because of employment situations, some of that came out of savings, not disposable income.

So I would also like to know what the plan is for people who paid full price for their own or their kids' educations. Do we get a little top-off for our IRAs? That would be nice. And there's no possible compensation for people who didn't have kids because of their debt.

On the other hand, the situation for students is dire, and is helping nobody. So if debt forgiveness starts a few years too late for us and for you, I guess that's the way it is. I just mainly wish our country had started getting better a long time ago.

[Ruby the Liberal]

60. Great points

and I love the thought of goosing SS/IRA retirement for those of us who spent ~20 years paying off this debt. Shoring up SS would probably help a LOT with this plan.

And I agree completely on your last point. My degrees would have cost 3x (if not more) today. I was in debt for almost 2 decades, but not destitute.

There is a balance to be found here, and even Buttigieg backed off his previous hard 'nope' when asked about it last night. This is a winning idea - just needs to get a few kinks worked out.

Elizabeth was my 2016 dream candidate. While I will #VoteBlueNoMatterWho, I will bust my ass for her if she captures the nomination.

Sleep is overrated.

[MichMan]

8. Should everyone currently paying stop immediately?

[McKim]

23. A National Boycott by Education Debtors Would Spur Action

I like your idea! Why not have a national boycott on student loan payers.....they the banks would have to figure out some new solutions, like debt forgiveness.

[MichMan]

39. You realize that the banks have had nothing to do with student loans for 10 years now.

The lender is the Federal government. People can always stop paying at anytime if they are willing to accept the consequences of forgiveness not getting implemented.

[artislife]

15. The Root loves this

https://www.theroot.com/elizabeth-warren-proposes-50-billion-in-aide-to-hbcus-1834213462

If you subscribe on FB, you will see loads of positive comments. Check out the rest of the articles. One of my favorite reads.

[LovingA2andMI]

16. Great to Hear....

Again Senator Warren is Making Moves. Good for Her!!!

[DoctorJoJo]

17. Who Will Win the Giveaway Race? How About $1M for Everyone Not Already a Millionaire?

[LovingA2andMI]

18. Sounds kinda like....

The 47% quote again. Ummm.....

[Yo_Mama_Been_Loggin]

24. When I was of college age it was rare to run up massive student loan debt

I was able to attend community college working part time at a minimum wage job.

Tuition at public colleges and universities started going up around the time Ronny Reagan took over. The increases were not due to inflation but rather that students were required to pay for a larger share of the costs at public institutions.

It's time we give the next generation the same opportunities we had.

[Bradshaw3]

33. Good point

State and federal funding has been going down for more than 20 years thanks to repub policies, forcing parents and students to make up the gap. This is simply a way to change that direction. Unfortunately, some on here blame the victims of this sweeping change rather than appreciating the effort to redirect our national resources.

[Gothmog]

25. Sirota is attacking Senator Warren

Link to tweet

[at140]

27. I want refund of student debt already paid

It has to be retroactive to be fair.

[LovingA2andMI]

29. Why So?

If it's paid then what is the issue? What about the former students that can never pay? If you don't get a refund then their ball and chain debts should never be partially repaid or forgiven?

[at140]

35. Because we paid more than minimum required

to reduce total interest charges. If I had paid minimum amounts required, we would still be paying.
So I sacrificed spending, pinched pennies, and therefore I get nothing like those who do not sacrifice spending and pay minimum amounts? Entirely unfair!

[Freethinker65]

28. Great. After my husband and I saved and sacrificed to help our son

To help our son come out debt free from college, it ends up we should have just had him take out student loans up to $50,000? We would have saved $50K. That would have been well over a years salary when we started saving.

I am all for making college/trade school/certification programs/etc. affordable by giving grants and subsidies where needed. I also feel that for many, if they do not risk some of their own money, they might not put in as much effort. I say this from personal experience...things sure changed with my college education once my money was involved.

[LovingA2andMI]

30. That's great....

You were able to save $50K. What is your race if we can kindly ask?

As not many (this is a key term in this sentence -- don't skip it) minorities who vote for Democrats normally can save $50K to sent a kid to college without debt while paying for the basics of daily and yearly living.

[Freethinker65]

38. You should have inquired about my socio-economic status

Instead you questioned my race?

I said I was fine with subsidies and grants (tax free that did not ever need to be paid back) for higher education for those in need (minorities and non-minorities, because I feel the need is what is important). Blanket loan forgiveness is not something I support, even with Warren's income parameters.

Also, I never said everyone would be able to do what we did or should. In fact, if Warren's proposal becomes law, I would probably suggest not saving for college.

[MichMan]

45. I understand the reasoning of those who paid off their loans

I'm not sure why you don't understand why some who saved for many years, and sent their kids to Community College for the first 2 years while they lived at home, as it was more affordable, might have an issue with eliminating the debts of someone who never saved a dime, didn't work while in school, and borrowed the max for a pricey 4 year school ?

[Aaron Pereira]

34. This is great.

I've seen people in my own family struggle with college debt. It's prevented them from moving forward in their own lives, buying a house or investing in themselves by starting a business.

For those of us who had college loans and paid them we need to move beyond the idea it's unfair to us and start thinking about improving the prospects of people in their 20's and 30's.

[MichMan]

40. Why not start by making the payments for your own family members that have debt ?

It might take awhile for Warren's proposal or one like it to be implemented

[Aaron Pereira]

47. I help where I can.

The only long term solution to the problem is going to be a program of publicly financed college coupled with debt relief.

[riversedge]

42. I have never been a single issue voter but this issue sure could make me one.

Elizabeth Warren releases sweeping student debt cancellation and free college plan

https://www.cnn.com/2019/04/22/politics/elizabeth-warren-student-debt-college-tuition-plan/index.html?utm_medium=social&utm_content=2019-04-22T19%3A29%3A32&utm_source=twCNNp&utm_term=image


Updated 12:28 PM ET, Mon April 22, 2019


(CNN)Sen. Elizabeth Warren on Monday proposed eliminating the student loan debts of tens of millions of Americans and making all public colleges tuition-free, staking out an ambitious stance on one of the central policy debates of the 2020 Democratic primary.


Student debt and college affordability have become a key dividing line in the Democratic race, between more progressive candidates who favor sweeping new tuition and student-loan benefits and others who support more incremental adjustments to the way Americans pay for education.

Warren's new plan would forgive $50,000 in student loans for Americans in households earning less than $100,000 a year. According to analysis provided by her campaign, that would provide immediate relief to more than 95% of the 45 million Americans with student debt. The Massachusetts Democrat and 2020 contender is also calling for a drastic increase in federal spending on higher education that would make tuition and fees free for all students at two- and four-year public colleges and expand grants for lower-income and minority students to cover costs like housing, food, books and child care.

The campaign estimates that the plan would cost $1.25 trillion over 10 years.

The revenue from Warren's wealth tax proposal -- a 2% tax on wealth above $50 million and a 3% tax on wealth above $1 billion -- would pay for her newest proposal, her campaign said. According to details shared by her campaign, the massive debt cancellation and free college plan additionally asks states to chip in to cover the cost of tuition and fees. Warren has also said her universal child care proposal would be paid for by her wealth tax.

Asked about connecting the viability of her new proposal to another, Warren insisted that there is broad support for the idea of taxing the ultra-rich. ......................................

Link to tweet

[betsuni]

43. K&R

[BlueWI]

44. I love her effort to build a strong legislative agenda.

It's critical to let voters know what a Democratic president and majority will do for the country. Good work, Senator Warren!!

[Honeycombe8]

46. Hmmm. I'm not sure about the fairness of that.

Is that fair to the ones who chose a lesser college and worked through college so as not to incur debt? Is it fair to the ones who didn't go to college because of the fear of not being able to pay back the loan? Is it fair to the taxpayers and country, who loaned that money?

I think interest is charged. What about lowering the interest rate? Or lowering the amount so that the workers have a better chance of paying it back?

If people take out loans, they should be able to pay a certain amount of it back.

I'd focus on the cost of college, and plans on going to the right college. Some people took out loans to go to an ivy league university to get a degree to be a teacher. The ivy league degree isn't very helpful for that, and teaching doesn't pay enough to pay for a loan that large. A student to go to a community college for a couple of years, then transfer to a good state college. The degree is from the state college, and will be as meaningful for the student's future as any other good college.

[renate]

56. just think of all the people who decided against any higher education at all because of the cost

And now they'd be bidding on homes and investing in IRAs and 401k's amongst younger people with more education whose loans have been forgiven.

That pre-loan-forgiveness demographic would be absolutely screwn. Tuition should be free, but this situation could become so unfair if it weren't handled carefully.

[Honeycombe8]

59. Other candidates are suggesting alternatives, like refinancing ability @ lower rate...

I am shocked that they CAN'T refinance. Maybe there are realities as to why they can't (too large a number of loans all handled by the govt, all refinancing at the same time?), but something can be done about that.

Things like that.

It doesn't seem quite right to reward someone for not paying back a loan that he/she got, and so someone else who also needed it, did not get it. Mayor Pete and someone else had an idea about it that I liked better, though I forget what it was.

[Luciferous]

48. I really like her policy proposals so far. She is a close second for me to Pete.

[ecstatic]

49. Great! Maybe I should slow down my repayments. Lol. Nt

[Midnight Writer]

51. Just zero out the interest, and have a "forgiveness" period for delinquent payers. Subsidize tuition

See where that goes, first. I know lots of them got a bad deal, but they did, after all, apply for the loans. And millions have paid them back.

Honestly, if we are going to throw 1.5 trillion at something, it should be healthcare. That is something that affects everyone.

[Amyishere]

54. so let me get this right

The main argument against something that will help the entire nation as a whole is "I suffered, so you should have to as well"?

Because that's what it sounds like to me.

Just out of curiousity, if there are any Christians taking that position, I would like to know. I would like to direct them to the parable of the man who hired out workers for his fields all during the day, and paid out the latest hired worker the same as the one who had worked all day, and when people griped, he told them it was his money to do with what he liked, and that they had been hired to do what he said, not to worry about others.

But people will always gripe it seems if anyone else is "getting over". I am just surprised to see so much of it coming from people that profess democratic ideals.

[loyalsister]

57. Bizarre reading in this thread

This is an approach specific to a current set of circumstances. We wouldn't expect subsidized tuition to reach back and compensate every person who has ever paid tuition in the US. Economic disparities are a product of a huge constellation of policies. Shopping around trying to find away to fit into categories outside of immediate influence reminds me of the way some people make a mission out of finding tax credits.

Not every policy is going to solve all the world's problems. She seems to have enough proposals to address as many problems as she can think of. She's truly that committed to building a fairer system.