Senator Elizabeth Warren, along with members of the far-left ‘Squad’ in Congress, are making a serious push to cancel student loan debt.
According to U.S. News and World Report, student loan debt reached $1.6 trillion in 2019.
Warren: “The Single Biggest Stimulus”
Speaking at a New York Times summit, Senator Warren urged Joe Biden, who the media claims has the won the presidential election, to cancel student debt, saying it would be the “single biggest stimulus” to help the economy grow post-coronavirus.
“For me it is a mandate to Joe Biden and Kamala Harris to do the things we can do, to cancel student loan debt for tens of millions of Americans, [the] single biggest stimulus we could add to the economy,” Warren said.
Senator Chuck Schumer said this week that he had been working with Warren to push forward a plan to cancel the first $50,000 of debt for every American, which they say could be done by Biden through executive action, “as opposed to legislation.”
Warren suggested in a tweet that student debt was a racial issue, stating that “cancelling student loan debt will build black and brown wealth and help close the racial wealth gap.”
Generations of discrimination have left communities of color with less savings and intergenerational wealth—forcing them to borrow more for the same degrees. Cancelling student loan debt will build Black and Brown wealth and help close the racial wealth gap.
— Elizabeth Warren (@ewarren) November 18, 2020
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She is joined in her plan by members of the far-left “Squad,” like Alexandria Ocasio-Cortez and Ilhan Omar, along with other members of Congress.
A popular line of argument is that, since the US government happily bails out large corporations at huge taxpayer expense, they should also bailout student loan debtors.
Student Loan Forgiveness: tHatS uNfaiR
Corporate Bailouts: Understandable, have a nice day
— Donna Imam (@donnaimamTX) November 19, 2020
Student loan forgiveness is good, actually
— Alexandria Ocasio-Cortez (@AOC) November 16, 2020
Women hold $929 billion in student loans, nearly two-thirds of our entire student debt and Black women hold more debt than other women.
Especially during an economic crisis that is already hitting us harder, student debt forgiveness is a feminist issue. pic.twitter.com/gXQRvXu2fk
— Women’s March (@womensmarch) November 18, 2020
It’s simple, really. We want to cancel student and medical debt because we believe education and healthcare are human rights.
— Cori Bush (@CoriBush) November 18, 2020
No guide needed, the answer is yes.https://t.co/axQGEGNUY7
— Ilhan Omar (@IlhanMN) November 18, 2020
Serious Criticism From Economists
However, the plan has serious critics, from not only commentators on the right, but economists as well.
Adam Looney, an economist at the Brookings Institute, said that student debt forgiveness is “not a great form of stimulus,” as the biggest gainers of this would be from higher incomes.
Economists argue that lower earners tend to stimulate the economy more with more spending, as opposed to saving, and that if you have a degree, you would be therefore more likely to get a higher paying job.
Total student debt forgiveness would reach a whopping $1.56 trillion.
As NPR points out, various plans from Warren, Bernie Sanders, and others, would all cost the government well over $1 trillion. The government is funded, of course, by taxpayers.
The debt doesn’t go away, as it has to be paid by someone.
Like, say, workers who didn’t go to college.
Student loan forgiveness is taking money from blue collar workers (plumbers, firemen, garbage collectors, transit workers) and giving it to middle class kids who spent 4 yrs learning nothing and having a ton of sex. Tuitions will go up, and more kids will borrow money. Smart! https://t.co/I22xpnNhL2
— James Altucher (@jaltucher) November 19, 2020
Forgiving student loan debt doesn’t mean that debt goes away. It just means your burden is now on everyone else. SMH.
— Joy Villa (@Joy_Villa) November 18, 2020
For his part, Biden said he’s looking to forgive some student loan debt straight away if he takes office, albeit the first $10,000, rather than the $50,000 that Warren and Schumer suggested in their plan.
Ironically, Breitbart’s Joel Pollak noted that Joe Biden was responsible for supporting the law that stopped student loan debt being forgiven when declaring bankruptcy.
— Joel Pollak (@joelpollak) November 19, 2020