Her plan has little chance of becoming law….
But her effort spotlights a drain on American’s financing their college education….
Hopefully her efforts will lead to some kind changes in the student loan program that preys on those who walk into its traps….
Democratic 2020 candidate Sen. Elizabeth Warren on Tuesday disclosed the details of her promise to cancel approximately $640 billion of student loan debt, targeted at lower and middle-income earners.
Warren’s measure follows a competing bill released earlier this year by her presidential campaign opponent, Sen. Bernie Sanders (I-Vt.). His plan would go further in eliminating all outstanding student loan debt, regardless of a borrower’s income.
Warren (Mass.) is introducing the bill — dubbed The Student Loan Debt Relief Act — along with Rep. Jim Clyburn, (S.C.), the No. 3 House Democrat, who will sponsor a companion measure in that chamber.
The legislation calls for automatically canceling most student loans without requiring borrowers to submit applications. The government would use existing income and debt information to determine who qualifies.
Private student loan borrowers would be eligible for debt relief under the bill by refinancing their private debt into federal student loans. The bill also calls for lowering the interest rate on all existing federal student loans….