Scholarship News

Warren Pitches Loan Forgiveness, Free College Education


April 23, 2019 3:17 PM
by Susan Dutca-Lovell
Democratic presidential candidate Senator Elizabeth Warren is proposing the elimination of existing college student loan debt for millions of Americans; over 42 million individuals.

Democratic presidential candidate Senator Elizabeth Warren is proposing the elimination of existing college student loan debt for millions of Americans; over 42 million individuals.

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According to Warren's proposal, up to $50,000 in student loan debt would be eliminated for every person with a household income up to $100,000, which is roughly more than 95% of Americans. Debt cancellation would also extend to those who earn up to $250,000, with the $50,000 cancellation amount phasing out by $1 for every $3 in income above $100,000. The plan would cost the federal government a one-off price tag of $640 billion, according to the proposal. The cost of the policy would be "more than covered by my Ultra-Millionaire Tax - "a 2% annual tax on the 75,000 families with $50 million or more in wealth," stated Warren.

Unlike other expensive and more "regressive” proposals, Warren's mass student loan forgiveness plan "tapers forgiveness for higher earners," so that it would not give big breaks to upper middle class graduates, including high-earning lawyers, doctors and engineers who racked up six-figure tabs, according to Slate.

While the plan would benefit students with existing student loan debt, it would not be advantageous to students who paid back their loans in full or those who opted to go to less expensive schools to avoid being saddled with student loan debt. While many support the proposal and would welcome the opportunity to attend college at no cost, some users took to social media to express their discontent with the idea, claiming that they did not want to "pay for other people's college or their college debts" or asking that Warren issue refunds to individuals who diligently repaid their student loans. There were also some users who would rather continue to pay off their loans since they "signed the dotted line" and "refuse to let [Warren] rob" them of fulfilling their obligation. In your opinion, do you think that Warren's mass student loan forgiveness plan is a good idea? Why or why not?

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Kim E.  on  6/15/2019 9:52:06 PM commented:

This is PURE BS pandering to young voters and ain't gonna happen and she knows it! This is honestly like cheating....she is saying whatever she thinks will get the most votes no matter how outlandish! Although we know she tells tall tales about being Native American, so this is just more of the same!!!!!!!!

Serious About Education  on  5/5/2019 6:53:17 PM commented:

Worst idea! As always coming from Warren. I value education. My kids had grades, test scores, and accomplishments to get into MIT, Caltech, etc. However, I wasn't going to pay $75K per year for multiple kids. I told them to compete for scholarships and attend a flagship state university. Now I have been robbed for being prudent & careful not to overburden myself with debt. My kids should have gone to MIT or Caltech, racked up $300K in debt and then had Warren pay it off for free. Only people who are wasteful and make bad decisions will benefit from Warren's plan. Responsible people will be punished. Let's get Warren and all like her (with this idea that we make everything free for the careless - meaning paid for by people who are careful) out of the public debate on how to help people. How about teaching people common sense. Only purchase what you can afford and only buy something that is worth the price. If you buy a university education and can't pay it off, you made a bad choice.

MA  on  5/1/2019 8:15:04 AM commented:

FREE FREE FREE this is all we hear today. My daughter works full time and also takes 15 to 18 hours a semester. She chose to take the less expensive route, community college and now State University. She has 9g in debt so far but owes 12g because of interest. Her counselor has suggested that she starts paying on her loan while she is still in school so that the interest does not get out of control. This country cannot afford to pay off all the debt for every student. Nor should the tax payer be strapped with the bourdon. We already pay taxes to these community colleges that are in our counties. If you want to help the students, find a way to make school less expensive or just make all the loans for college interest FREE. Private universities are just money making machines. I heard Warren got paid hundreds of thousands of dollars to teach a class at a university and we all know she did not even have to teach it.

Seregon O.  on  4/29/2019 9:01:04 PM commented:

Absolutely not. I worked for every penny of my education as everyone should. When you pay for it yourself you value it more. Also, I'm sick of democrats wanting to give everything away to other people. If they want "free" education, they can pay for it themselves.

DL W  on  4/26/2019 10:23:48 PM commented:

This is not fair to those who have worked and showed responsibility in order to have the privilege of attending a college or university. Earning it builds character....Getting it paid for by the tax payers and not working to pay it back creates individuals who are less responsible and therefore less successful.

S.C.  on  4/25/2019 8:57:19 PM commented:

I think this is a good idea, but it does have the potential to promote bad borrowing habits because individuals would know that the debt will be forgiven. I would suggest that the loan forgiveness only apply to students who went to a state university or community college (no private schools), have completed a degree/certificate (though that should go without saying), and the forgiven amount is proportional to that degree (It would not be fair to eliminate 4 years of debt for an associates degree because the student wasted their time). I also think there should be some sort of accountability/proof of intention to pay; forgiveness should be put into place for students who have made their payments on time for a year (not including deferrals). Loans in default should be reviewed on a case by case basis for those who are unable to pay their loan for unforeseen/insurmountable circumstances. I only approve if the tax mentioned before for the "Ultra-Millionaires" is how it is paid for. I do not, I repeat DO NOT, want middle or working class citizens to pay for anyone elses debt.

Nicolas A.  on  4/23/2019 8:30:36 PM commented:

Cool. Spread the wealth strategy. Hasn't Russia tried to do that before? Might as well just give our entire paychecks to the government and work for free... wait...

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