Buzz
It’s an exciting time for Democratic presidential hopefuls, as the large number of candidates has led to two debates this week to accommodate the 20 leading contenders. Yes, twenty!
In a bid to stand out from the crowded field of candidates, Bernard Sanders unveiled a proposal this week to completely eliminate student loan debt.
Bernie Sanders, who is still serving as Vermont’s senator while campaigning for president, introduced a bill with fellow Democrats Ilhan Omar of Minnesota and Pramila Jayapal of Washington to immediately cancel all student debt for 45 million Americans. 'It is time to hit the reset button. Under the proposal that we introduced today, all student debt would be canceled in six months,' Sanders said at a news conference, as reported by CNN. The $1.6 trillion in debt cancellation would be funded by a new tax on stock trades.
Elizabeth Warren, Massachusetts senator and presidential candidate, has a student debt forgiveness plan that closely mirrors Bernie’s but with a longer timeline. Warren’s proposal would tax the 'ultra-rich' to generate $2.75 trillion in revenue over the next decade, part of which would go toward addressing student loan debt.
Warren revealed just last week her intention to introduce a bill aimed at canceling up to $50,000 in student loan debt for the majority of student borrowers, according to a statement from her office to Marketwatch.
However, it seems Bernie got there first. The College for All Act would not only cancel tuition fees at four-year public universities but also reduce undergraduate student loan interest rates by 50% and expand the federal work-study program.
Don't stop paying your loans while we wait for change
This is undoubtedly exciting news for the millions of Americans burdened by student debt, but don’t expect Bernie to wipe your balance away before your next due payment. Head over to FedLoan right now and confirm that autopay is set up for your monthly payment.
If you think this or any similar legislation will pass before the next election, you’re... mistaken.
I’d be the first to celebrate if this never-ending bill were to vanish, leaving me with an extra $364 every month to save for emergencies. I’d be thrilled if the hundreds of thousands of dollars my friends owe for their education could be erased. But I’m not holding my breath.
If you’re paying more than the minimum, keep going—by the time any legislation like this is passed, you’ll likely be free from debt!
So yes, continue fighting the good fight. Call your senators! Call your representatives! Use that #cancelstudentdebt hashtag as much as you like (after you’ve made those calls). But don’t expect Warren, Sanders, or any other candidate to quickly erase student loans. This will take a lot of time to sort out, and trust me, it’s going to be messy.
Thank you for joining my debate week prep session.
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