Economy

NSU students react to Senator Warren's plan

NSU students react to Senator Warren's plan

In a blog post on Medium Monday, Warren, who is running for president on the Democratic ticket in 2020, called for "something truly transformational" - canceling up to $50,000 in student loan debt for 42 million people in the United States, as well giving Americans the opportunity to attend a two-year or four-year public college tuition free. 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. And it means improving the existing federal program to help those struggling with their debt: income-driven repayment plans that can help students lower debt payments or eliminate it after 20-25 years.

"We are vulnerable in terms of all of the systems that hold together our financial systems, that hold together our medical care systems", she said. By her own estimates, the full plan, which also includes funds for Pell Grants and historically black colleges, would cost about $1.25 trillion, which she says she would pay for with a tax on wealth that she announced earlier this year.

"For decades, we've allowed the wealthy to pay less while burying tens of millions of working Americans in education debt". "She wants to forgive loans for people who have loans now". Rather than waiting on that nonexistent trickle down, she writes that this will "provide an enormous middle-class stimulus that will boost economic growth, increase home purchases, and fuel a new wave of small business formation".

A campaign aide said Warren's impeachment pronouncement did not signal a shift in her focus on "big policy" initiatives that have been the hallmark of her campaign.

But Warren is not looking to attack the systemic faults of higher education so much as to replace and expand them with an even more sweeping system of federal intrusion.

But Warren's proposal of forgiving outstanding student debt goes a significant step further than previous Democratic policy plans.

Warren is the first Democratic candidate to release a detailed policy to tackle the high cost of higher education for people who want to go to college and those who are still paying for it. Some say her plan will cost too much.

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The canceled debt would not be taxed as income, Warren said. "It's time to make different choices", Warren wrote. Elizabeth Warren (D-MA) received a question about one of the odder quirks of her personal history: Why did she, a registered Republican until 1995, end up becoming one of the most progressive members of Congress?

Several of the almost 20 Democratic contenders have proposed debt-free college plans.

Student loans are now the largest portion of consumer debt in the United States.

But Klobuchar said she is in support of letting those with student debt refinance their loans at a lower rate, expanding Pell Grants, and making community college free.

Forgiveness could wipe out the typical graduate's annual loan repayment of $4,800, far more than the $1,000 the average wage earner received from the Tax Cuts and Jobs Act.

"What I worry about is that works to Trump's advantage", he said. "You could ask why 25% of people with professional degrees need debt cancellation". The campaign has called this total loan forgiveness for more than 75% of households with such debt, leaving out the perhaps significant "up to". For households between $100,000 and $250,000, the debt cancellation decreases by $1 for every $3 in income. Under that formula, a person with a household income of $130,000 gets $40,000 in debt canceled, while a person with a household income of $160,000 gets $30,000 in debt canceled.

"Here's the thing: I don't think kids starting out in New Hampshire are making $100,000, so any type of student loan debt forgiveness program that helps younger graduates or recent graduates I think would be beneficial", Berube said.