WASHINGTON–Sen. Elizabeth Warren (D-MA) has proposed a new plan that calls for eliminating the student debt held by more than 40-million Americans, as well as making all public colleges tuition-free.
But such a plan is a long way from becoming reality, noted a spokesperson for NAFCU.
Warren, who is seeking the Democratic nomination for president in 2020, has proposed forgiving $50,000 in student loans for Americans in households earning less than $100,000 a year. Her campaign said doing so would provide immediate relief to more than 95% of the 45 million Americans with student debt.
Under Warren’s plan, the amount of relief gets gradually smaller as income level goes up, with households that make more than $250,000 not eligible for any debt relief.
Altogether, it would wipe out all student debt –
including both federal and private loans -- for more than 75% of Americans with outstanding loans, according to analysis provided by Warren's campaign.
Other Proposals
Warren is also calling for a significant 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. Warren is one of several Democratic candidates pitching similar proposals.
At numerous campaign events, the Massachusetts senator has told audiences, "I got married at 19 and I took a job answering phones and I thought that was going to be my whole life. And the fact that there was a commuter college about 45 minutes away that I could pay for on a part-time waitressing job – you know, it opened a door. It all started with that chance in college."
Warren would eventually go on to become a law professor.
NAFCU Response
NAFCU’s Carrie Hunt reminded the Warren proposal is just that, a proposal.
“We are a long way from seeing anything move or anything people can really get behind,” said Hunt, NAFCU’s EVP and general counsel. “This is a complicated issue and there’s a long way to go.”