Written By Travis Hornsby, CFA®, CFP®
Senator Elizabeth Warren's student loan relief plan was released as part of her 2020 presidential campaign. She didn't win the Democratic nomination. But she's remained one of the most prominent voices for broad student loan debt cancellation.
Senator Warren's student loan plan included providing up to $50,000 of student debt forgiveness for federal and private student loans. However, her plan based loan forgiveness eligibility on household income. It also included passing The Universal Free College program. This program would have eliminated tuition and fees at every public two- and four-year college in America.
These important higher education topics are still being debated at the highest level. However, Senator Warren is adamant President Joe Biden has the authority to cancel $50,000 of federal student debt without the consent of Congress.
Is her push for broad student loan forgiveness realistic? Could it pass, and what does it mean for the state of student loan policy?
Senator Warren's argument for student debt cancellation via executive order
Senator Warren, Senate Majority Leader Chuck Schumer and other prominent Democrats support providing broad student loan cancellation unilaterally via executive order. They believe the president has the authority to do so without Congressional action. This authority, in theory, comes from a section of the Higher Education Act of 1965. It provides the Department of Education with the ability to forgive student loans. Historically, it's been used for very specific circumstances, such as for borrowers whose schools defrauded them.
Student loan cancellation supporters, like Senator Warren, see this as an opportunity to help stimulate a struggling economy in the aftermath of the COVID-19 pandemic. Additionally, they argue debt cancellation will reduce racial wealth gaps, among other benefits.
President Biden previously vocalized his support for up to $10,000 in student loan forgiveness for federal student loan borrowers. However, he's receiving immense pressure from student loan advocates and elected officials like Senator Warren to do more. Therefore, he directed Education Secretary Miguel Cardona to evaluate his authority to cancel up to $50,000 in student loans via executive order.
As an added note, Senator Warren is also pushing for the Biden administration to extend the COVID-19 federal student loan repayment forbearance. It’s currently set to expire August 30, 2023, unless the courts rule on lawsuits sooner than that.
Broad cancellation efforts will likely receive fierce resistance from Republicans
I don't think a broad student cancellation plan, like Senator Warren's plan, has a shot at passing with the current balance of power in Washington.
Her original plan was met with clear Republican opposition, based on the reaction of some conservative media outlets. This opposition might stem from certain aspects of Warren's plan, such as using a wealth tax to pay for higher education initiatives. It could also just be blanket opposition to any broad student loan cancellation efforts due to the sheer overall cost.
This is one of the reasons Democratic leadership is looking to President Biden to sign an executive order at this point.
Keep in mind that student loan cancellation via executive order would likely lead to legal challenges all the way up to the Supreme Court.
Elizabeth Warren attempts to make student debt relief progressive instead of regressive
I want Student Loan Planner® to focus on the analysis of various student debt proposals. You can sound off in the comments section on what you think of broad student debt cancellation politically.
Senator Warren's student loans efforts aim for drastic relief for the borrowers with the smallest balances. This would obviously cost the least as well.
When politicians call to forgive all student loan debt, they perhaps unknowingly are supporting a regressive policy. This means most of the benefit would go disproportionately to the wealthiest borrowers. For example, we love making New York University dentists custom plans for their student loan debt. However, forgiving the $600,000 debt of one NYU dentist could cost the same as wiping away the $10,000 debt burdens of 60 borrowers who attended a shady barber school with poor job placement rates.
Very small student loan balances have a massive impact on the poorest students. These loan burdens often come from not finishing a degree program.
The vast majority of proposals I've seen on student loan reform don't pick up this nuance. However, Senator Warren and others who support $50,000 of student loan forgiveness have paid attention to these details.
Senator Warren's plan does little to help borrowers with huge balances
To Senator Warren's credit, she supports expanding Public Service Loan Forgiveness (PSLF) and other forgiveness programs. By focusing on $50,000 of student loan debt relief, Senator Elizabeth Warren's student loans efforts help the broadest number of people at the lowest possible cost.
I imagine she would do a lot more for borrowers with six-figure balances if she had the power. But this wasn't an area of focus during her campaign. Nor is it as she continues to pressure the Biden administration to act on the student debt crisis.
Unfortunately, one area where her plan and other student debt proposals are lacking is how we could stop the problem of graduate programs who've decided to raise their prices to sky-high levels in the face of zero underwriting standards for debt.
Physicians are in great shape with PSLF. However, groups with little access to PSLF-qualifying jobs (e.g. veterinarians, dentists, chiropractors) seem to have gotten little attention from Senator Warren and other Democratic leaders.
Could private loans be included in a federal student loan forgiveness program?
The original Senator Warren student loans plan included paying off private as well as federal loans with her one-time $50,000 forgiveness. While private student loans are no longer at the forefront of forgiveness discussions, I wonder if that proposed scenario would actually be legal. That could significantly impair prepayment models of banks and other lenders, and they might sue due to lost interest income. I'm not defending these companies. Rather, I wonder how practical it is to forgive debt that's not on the federal balance sheet.
The Federal Family Education Loan Program (FFEL) debt is always treated in a weird way with new federal student loan reform proposals. That's because the debt is issued by banks but guaranteed by the federal government. That's one reason consolidation is necessary to make FFEL Loans eligible for new repayment programs. I'm not sure the original agreements with financial institutions allowed for the most generous forgiveness provisions like PSLF.
Warren's student loan plan shows potential for generous changes in student loan rules
Every time I turn around these days, there seems to be a new proposal for helping student loan borrowers with ever more generous terms. Sens. Tim Kaine, D-Va., and Kirsten Gillibrand, D-N.Y., made a big effort to expand PSLF. Sen. Lamar Alexander, R-Tenn., even wants to allow income-driven repayment to come directly out of your paycheck. It might even exempt spousal income from the payment calculation.
Despite the media and posts I've seen on social media decrying how the government earns a profit on student loans, politicians have no long-term desire to make a large financial return for the taxpayer on direct federal lending. They've made this clear by not imposing limits on borrowing for schools and passing ever more generous repayment and forgiveness programs. Note the percentage of your income going to loans has only ever gone down since 2007, not up.
What do you think of Warren's plan to forgive a large number of borrowers' student loans? Do you think it's unfair to borrowers who owe significantly more than that? Comment below!
Refinance student loans, get a bonus in 2024
| Lender Name | Lender | Offer | Learn more |
|---|---|---|---|
|
$500 Bonus
*Includes optional 0.25% Auto Pay discount. For 100k or more.
|
Fixed 5.24 - 9.99% APR*
Variable 6.24 - 9.99% APR*
|
|
|
$1,000 Bonus
For 100k or more. $300 for 50k to $99,999
|
Fixed 5.19 - 10.24% APPR
Variable 5.28 - 10.24% APR
|
|
|
$1,000 Bonus
For 100k or more. $200 for 50k to $99,999
|
Fixed 5.19 - 9.74% APR
Variable 5.99 - 9.74% APR
|
|
|
$1,050 Bonus
For 100k+, $300 for 50k to 99k.
|
Fixed 5.44 - 9.75% APR
Variable 5.49 - 9.95% APR
|
|
|
$1,275 Bonus
For 150k+, $300 to $575 for 50k to 149k.
|
Fixed 5.48 - 8.69% APR
Variable 5.28 - 8.99% APR
|
|
|
$1,250 Bonus
For 100k+, $350 for 50k to 100k. $100 for 5k to 50k
|
Fixed 5.48 - 10.98% APR
Variable 5.28 - 12.41% AR
|
Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).
This plan would change my life. With the current debt from my husband’s loans, we won’t be able to START saving for a house down payment until we are in our fifties. This would make our loan payment wayyy more manageable. We were planning to refinance next year, but now, even though it’s a long shot, maybe we will wait just in case this passes in some form and there are issues with forgiving private loans.
Her plan does include private loans but it’s worth saying I dont think there’s a chance this passes unless the Dems win in a landslide in 2020 which is unlikely in the Senate.
Thanks for the article this has been on the back of my mind for quite some time. Before finding the Fi community I was carrying around $60k of student loans then started aggressively paying down and have approx $12k left. If a democrat wins as you said we will see some sort of student loan reform….so instead of being so aggressive should I just calm down and build up my savings…I refinanced my loans from the government to a private lender (using your handy referral link) and am kind of kicking myself now seeing that this may be a reality.
I wouldn’t kick yourself too hard. If we still had loans (paid them off as of 2017) I would not let this affect my strategy. It’s just interesting to think about.
From a financial standpoint, I always operate based on available information as of today. Anything else is speculation.
Regarding your situation, it seems a bit unfair doesn’t it. There are so many scenarios that many people will be treated unfairly (parent’s who paid out of their pockets, families who pre-saved to pay, people who make larger amounts of money, people who have no kids who will pay the taxes to pay for it).
Personally, I would not plan on this coming to fruition. It really doesn’t stand a chance as it is NOT even remotely affordable. And with healthcare a bigger concern, it really becomes a low priority.
Bottom line, I believe, if you spent the money, you should pay for it. Just like any other loan. It sounds like you have, but many would like the rest of us to pay for their. There is always IBR (income based repayment) for those who find their payments excessive (like mine – I owe 500K for a medical education and pay 15% of my gross).
I’m glad you mentioned the “speculation” part. It’s the same issue I see with investing and saving. People think they should wait “maybe” their will be a recession, but then if it doesn’t happen you’ve just lost a year of potential compounding and the price of the EFT or Stock would possibly have gone up. This paying off student loans is a tricky one for me. I think in many ways it could be rewarding irresponsible behavior as well. I’ve met people who went to school out of state, stayed in expensive dorms and have $100k for an art degree and their not even working in a museum or teaching. Versus the person who well researched their options, when to the most affordable school, worked along the way and chose a profession that was definitely hiring, interned to make sure they had critical thinking and the right experience the job was looking for. The should revamp Bachelors curriculum. Like retaking basics that you really should have in High School. Someone paying $1500 for a basic class at a University when same class is $175 at Community college. That’s just irresponsible in my opinion
And what happens to wages when we have the surplus of workers in certain fields, if you understand supply and demand, then you know wages will go down because employers will have the upper hand. Bring back workshop and internships for high school students. Create a 2 year service program where you can help their community or under privileged sort of like the teacher or 501c3 incentive. Encourage more employers to offer help with loan repayments.
Thank you for your blog post. Do you happen to know if current PSLFs would be grandfathered in Warren’s plan? And is the proposal for the $50,000 to come out of the principal or the interest for those with >$50K in loans? Thank you!
Yes they would and interest would probably be forgiven before principal
Thank you.
[…] Elizabeth Warren, Loan Forgiveness Plan Article: https://www.studentloanplanner.com/elizabeth-warren-student-debt-plan/ […]
If I were to refinance my loans through Earnest and Warren’s plan actually comes to fruition, would I still qualify? It’s hard enough even being able to be independent and move on my own because of these cursed loans (regretting going to university ever since I graduated).
There’s no guarantees. Honestly the part about the private loan forgiveness was very murky to me so that part of her proposal isnt well outlined.
This is ridiculous. I have paid over 70k+ back in student loans by working my ass off. Now someone who has loans will get them paid off while I had to bust my ass to pay them? I don’t think so! Not so fast, not getting my vote and I’m.sure many other students who have paid most of their loans like me will feel the same way. I want credit for the loans I paid off. This won’t pass for that very reason. YOU need to make it fair for EVERYONE.
I don’t think this particular proposal has a shot of passing, but everyone should make their voices heard and tell their elected reps how they feel
I agree. I took out student loans and I paid them back. Her plan does not address the problem of students taking out loans that their future careers don’t have a chance of paying back. I can’t go out and buy a home I can’t afford so why do students take out loans they can’t realistically afford.
Because they take student loans out when they are 17 and think they have no choice if they want to get a job. They are promised something that rarely materializes.
@Justin
Fascinating. Punish other people because you want to be a little brat about the way your own life went. Sounds like you were a shoo-in to vote Trump 2020 to begin with.
Exactly Butch! It sounds like @Justin is operating out of pure envy. If everyone who had a tough go at life, made others feel the same way, how would we ever advance? We need to help improve things for future generations, not selfishly repeat the same problematic patterns.
That’s why Andrew Yangs’s Universal Basic Income, UBI, of 1000 a month for everyone over 18 is a better solution because it’s fair to everyone. A 500,000 loan could be paid off in about five years or less.
If the banks could be bailed out with billions of dollars then the richest country in the world could afford a UBI or Freedom Dividend.
This plan would boost our economy and allow people to thrive.
Good god your math is horrendous. 500k loan paid off in 5 years based off of 12k per year? Maybe if the person was making a ton of money already.
I’ve paid over 60+ back and I would be totally fine If no one had to struggle in this way again. So please stop being so selfish. I don’t understand how someone who understands the struggle would wish this on others.
Thank god for you.
What do I get for paying off all of my student debt by making a smart real estate investment and refinancing. I’m a teacher that makes $48,000 a year and was able to wipe my debt clean in 5 years. I hope I get free money also. As I actually did the right thing.
Exactly! Education is an investment and esp university education, yet no one treats it that way. If you choose to study sociology and get a bachelors degree at an expensive private school, one needs to weigh their investment vs future pay to make a smart financial decision. Why should the rest of us pay for bad decisions? What is next? If I buy a house I cannot afford, does the government need to bail me out?
Should we also expect a high school student to understand loans and the outcome of degrees? So many kids are not well informed about college loans let alone degrees and career paths when they start taking them out. Many are filled with false hopes and dreams of what happens just by going to college that was feed to us by our parents. Many of us graduated during a recession when there was no work and it took years before the economy started to rebound. By that time many easily fell behind.
Would parent plus loans be forgiven as well?? My Daughter couldn’t take out a student loan so I had to take a parent plus loan out for her to be able to attend school.
It depends whats in the final plan which doesnt exist yet, but it probably would if it passed, but thats a low chance unless they win everything in 2020
I am a parent who got a parent plus loan to help my daughter go to college. Would that be covered under this plan also?
Great question I don’t think it’s been fleshed out that specifically yet, but I think yes it would be.
Doubtful. Esp if you make decent money.
Also, since when is it the job of others to pay for the college education of our own kids. Reminds me of the parents who come to work with money raising products to pay for their kids to go to camp. Why do others, who make the same amount of money as me, expect me to pay for their kids camp?
Seriously, I owe 500K for my education and pay my monthly payments on time. It IS struggle, but I don’t expect anyone to pay for my choices. People need to be accountable for their personal purchases, education included. I mean, what’s next, anyone can just pickup and go to any school they want at any stage of life? What if a 65 yo wants to go to a private school for $30,000 a year? Do we just pay for that too? Where does it end?
Right now yes the govt would lend to that 65 year old.
Thank you to Elizabeth Warren for coming up with a Plan for Student Debt. She’s about solutions….so tired of the people that criticize but, then don’t have any solutions of their own….tired of all the negative attention from the Republican party, that just want to make their millions supporting lobbyists against this plan. Let’s be real and watch if they come up with anything or want to leave as is….
This is a dream of a plan. That’s all. A dream. It won’t pass and if it does, it will be disastrous like universal health care that they’re trying to force on us. Where are the benefits for those that worked hard to pay off their loans? Dems want to make everything free at the cost of the tax payers. Hey Linda, look around. Those that are the one percent and making millions…that’s your party. Elizabeth Warren is truly delusional and needs to take a seat and take Nancy Pelosi with her.
Elizabeth Warren’s plan is genius. The middle class won’t be taxed and be relieved of $50,000. I have debt of 65,000 and the plan would go a long way toward my financing a home of my own.
Does this payout apply to the current loan balance or the initial loan balance? Or worded differently, do those students that worked like mad to pay down their debt still see a benefit from this plan?
No you’d get some benefit if you still owed money but you wouldn’t get a refund check.
Something needs to be done. I have seen far too many young people graduate from college only to go further in debt back going back to graduate and professional school trying to give themselves skills to get a decent job. I know far too many young people working jobs that in no way can they pay off the loans. They just keep spreading out the debt over more years making Betsy DeVoss family richer.
I agree something has to be done. But Sec. Devos doesn’t actually have her wealth materially affected by anything she does relating to the Dept of Ed. She might not be doing a great job but she isn’t profiting as a high percent of her net worth off the crisis.
Funny but a Masters Degree just isn’t what it used to be in the work force. No pay bump no advancement multiplier. its just a debt, if you cannot afford it don’t do it. Its like every other thing in life if you think its important quit complaining about the cost and make it happen but don’t expect the rest of us to pick up your tab
This kind of proposal makes me ill. When will people see this type of activity for what it is. Elizabeth Warren is buying votes, plain and simple. And on the backs of the 50% of the population who actually pays taxes. In the end, it is typical left wing schemes proclaimed in the name of virtue. The problem is that one cannot be truly virtuous by spending others money.
Reminds me of the political machine of the 1920s when people counted on the city politicians for all sorts of little treats. In exchange, they got the votes to stay in power. The current Democratic party is offering more and more of this “payola”. Everything is about expanding your base and sold under the guise of virtue. People better wake up as these re-distribution schemes never end well.
If I file my taxes Married, filing separately, would my husband’s income count toward my household income? Adding his income pushes me over $100,000 but I wasn’t sure since I file Married Separate if his income would count.
On REPAYE it would on IBR and PAYE it wouldnt.
Nothing is free. If a person choses to attend college then they should pay the costs. This democratic vision of free everything is nothing but a vote carrot anyone with common sense knows its not sustainable. Just make the loans interest free and the problem is solved everyone will be happy and we wont go broke like California. Elisabeth Warren should tackle some real political issues. Never gonna be nominated ask Bernie Creepy Uncle Joe has the nomination in his wandering hands
Good article, and comments, on the pros and cons. What about the students from lower-income families: 1) the one who decides to go to an
affordable two-year college first, then transfers to a 4-yr, requiring only $30,000 in student loans? 2) the one who decides she can never afford college and decides to join the military to get educated; 3) the one who takes 7 yrs to graduate because he works full-time all through his college years? 4) the one who, rather than go into debt, takes up a trade and still cannot afford a home? And, as others have mentioned, what about all those who have worked overtime and restricted their spending for years and managed to pay off their loans? Warren’s and Bernie’s plans are soooooo unfair and will never pass. Education beyond high school is not the same as affordable health insurance, which we absolutely need to ensure a productive life.
That’s why Andrew Yangs’s Universal Basic Income, UBI, of 1000 a month for everyone over 18 is a better solution because it’s fair to everyone. A 500,000 loan could be paid off in about five years or less.
If the banks could be bailed out with billions of dollars then the richest country in the world could afford a UBI or Freedom Dividend.
This plan would boost our economy and allow people to thrive.
The root problem is unjustably high salaries paid to university executives and extravagant amenities and program offerings on campus. Until those are reigned in, higher education will merrily continue on its wasteful ways.
I like this! To the comments regarding fairness – I get it. However, nothing is fair in the USA. Us as citizens, paid out $29 trillion to bail out the banks. Thats not fair either. Id rather bail out the middle class, actual working people, than banks. I also paid off my house after the housing market crashed. That was lots of money. Now am I mad that my neighbor paid 1/6 the cost that I did? No, of course not. Nothing in life is free, I get it. But at the same time, this would be treated as a bailout, and it could potentially stimulate the economy more than what tax breaks could do for corporations. A team of economist did a study on the macroeconomic impact of a student debt cancellation would do: https://www.levyinstitute.org/pubs/rpr_2_6.pdf
And surprisingly, its nothing but positive benefits. Rather than being upset about it, most people would benefit, and so would small businesses, the economy, unemployment levels, and suicide rates surprisingly, etc.
I get overall what she is trying to do I think? So she hopes to tax the higher class because the disproportionately wealth gap among low-income people of color. I think from the comments people are questioning how come other folxs can’t just pay their own debit off like they did. Which is a valid question, I think this nation holds education in high regard to worth of the person as working hard. In low-income and maybe even middle class may not have the choice of really choosing how they will fund education, when they do not have assets. So loans is a huge way and I wonder how will this effect DACA students. And the question about graduate studies and funding that. At this time I do know having a college degree really isn’t option if you want to advance into higher positions and getting out of poverty at least in the most expensive state I live. And with the other systems that come into play with finding and financing education it is alot of red-tape. And even thinking about the process of loan forgiveness for helping professions is super hard and impossible to actually get through. I do like the blogger states in theory some of this sounds cool but in practice and regulations what does this look like? And how will this work in different states where the cost of living and tuition is less then others? Whats fair and whats equitable here?
I agree with all the above. And the hixtory of this country was founded on genocide and unfairness. How do we level that?
So let me get this right??? Those who went to College and took out loans should not be responsible for THEIR DEBT? No one made them go to College and sign a loan contract with a gun to their head. I paid off a substantial student loan on my own, does this mean that Mrs. Warren will be cutting me a check for that full amount? (I highly doubt it) I kept my student loan debt manageable by working while attending college, something many students refuse to do. I also watched my spending, ate Kraft Dinner, and never went on vacations that I couldn’t afford. Many of these people that are in this situation brought it upon themselves by taking out loans to cover their housing, going out for drinks and dinners 5 days a week, touring Europe and “radical self reliance” at the Burning Man. To reward this kind of behavior would be a total injustice! Student loans should only be used for Tuition, not “FUN COUPONS.” For the record, I am not a Republican, I have never been to Europe, and I live off 34,000$ a year before taxes.
The financial ‘breathing room‘ millions of Americans will get ,if this is done, will be amazing. I have paid thousands in student loans, that was the only way I could afford my education in 2007. Is very selfish to ask for someone else to suffer because I did. The whole idea that someone who had college paid for is somehow more worthy that someone who would benefit from this is stupid; so suze’s gma left her an inheritance. Therefore, she is free an clear. Dream from the top of the mountain. You are as entitled as those you criticize
This would be amazing. I am a single mom of 2, and my son has a lifelong cognitive disability. I have put myself through school, and have a great job to support my family. I have been paying my loans for 10 yrs, making no headway on my balance. Not having this added monthly expense would change my life drastically!
As for the folks who are upset by this proposal due to having already worked do hard to pay their loans off, while you be upset about the possibility of not reaping this reward, the improvement to our economy ad a whole would benefit everyone! Our future workforce would also improve, because our children would be able to afford higher education, which means that as we all continue to age, upcoming generations will indeed be able to fill in the gspsbin the workforce….I love it.
Why are people assuming that all Democrats are for this student loan forgiveness? It isn’t just Republicans who scrimped and saved so their children would not have to take out student loans. It isn’t just Republicans who paid off their children’s student loans. It isn’t just Republicans that are having their children pay back parents who paid off their student loans. It isn’t just Republicans that will be livid if students who partied instead of going to class, then dropped out, have their debt forgiven. It isn’t just Republicans that taught their children to live frugally while in college. It isn’t just Republicans that insisted their children get jobs while in college so that they could afford to go out with friends once in a while. Democrats subscribe to the same work ethic as Republicans. Democrats also think that if you incur a debt, you should pay it back. Democrats do not want their taxes paying for slackers who refuse to work so that their wages cannot be garnished.
I had every intention of paying back Parent-Plus loans, but unexpected medical issues leading to unexpected loss of income, and a loan rate of 7%, with compounding interest that accrued faster than we could pay it, made it an impossible situation (the payments would barely make a dent in the interest, and not even touch the principal). So we applied for income-based repayment to avoid defaulting and now that we are trying to live on an income that is about 1/3 of what we had previously, and this mountain of debt continues to grow, I see no hope of ever paying it off. We currently qualify for a pmt of $0. So I think if even just the interest is forgiven and we are allowed to refinance the principal with the government at a reasonable rate of, say, 1-2% maybe we could afford payments and actually fulfill our obligation to repay it, while at the same time the government would get (at least some of) its money back. Win win. Fortunately the loans will be forgiven when I’m old and dead.
If all public universities are free what will happen to all private universities? Nearly all of the smaller ones will go out of business. What about all of the students who were responsible, or the millennials who sacrificed to pay off their loans? This is just another plan that rewards bad behavior.
My wife had about 100k in loans just like her co workers for her job. We decided to live small and work hard and paid them off fast. Her co workers have bought houses and new Cars and still have their loans so now we’re going to have to help pay theirs off too?
I was also one of those who put my nose to the grindstone and paid off over $65k forgoing cars, clothes, trips many of my peers continued to take.
Ultimately if student loan forgiveness includes reform to ensure we don’t have another future generation overwhelmed with unreasonable debt and high interest rates, well that is something I and and others could get behind.
Fix the problem, get outrageous tuition increases under control, reduce loan interest rates, at the rate tuition is increasing now what my husband paid to attend a state school will go from $40k to well over $240k for the same degree for our child to attend. That’s insane.
A loan forgiveness would help millions out of this burden they were not properly informed about and economic situations that were out of their control. Take away having to pay large amounts every month, with ridiculous interest rates, and people would be able to increase savings, buy a a home, wouldn’t be afraid to start a new business venture or plan for retirement. We could all be consumers again. Imagine the boost to the economy when people can actually spend money on goods again. As a country we would thrive. Everyone who has a problem with it are narrow minded and thinking for themselves in this moment.
Hi Travis
Liked the article but have to disagree with one statement:
“Physicians would still be in great shape with PSLF under President Warren. However, veterinarians, dentists, chiropractors and other groups with little access to PSLF-eligible jobs seem to have gotten little attention from Warren ..”
I don’t know about dentists and chiropractors but us veterinarians have a lot of opportunities for PSLF. You could work in for a non-profit or state/federal gov’t based research facility (e.g. NIH, VA, any number of state universities, etc.), you could work for other federal agencies like the USDA, CDC, DoD, USFWS, etc. You could also go into public health, which is likely to be gov’t or non-profit. In other words, there are ample opportunities for vets, just not in private practice.
That’s a good point and we’ve written other articles about those opportunities. I suppose what I meant was “comparatively little access,” which I’d argue is a fair statement bc virtually half of physician jobs qualify bc of how many 501c3 hospitals are out there, and perhaps 10% to 20% of vet jobs qualify tops I think. So that’s where it’s coming from. Seems weird to me to subsidize not for profit physicians at teaching hospitals in urban areas over veterinarians, dentists, and chiropractors in rural areas.
I am one of the lucky folks that finished without loans in 1993, I know a fair amount of people that have paid back loans and folks that have struggled. I would not be opposed to some debt relief such as zero interest loans with payment plans of thirty years ($100/month would payoff 36K). I would limit debt relief to bachelors degrees. In addition to any plan, high schools and colleges should provide counseling prior to enrollment about the negatives of loans and firmly state that college education does not guarantee financial success. I have empathy for todays students as I bought into the same line of get a degree and you will be successful (I got an engineering degree and it took 10 months to find my first job due to a recession in my industry). Just for disclosure, I am a moderate that leans right and believes that the best ideas from both parties should advance. Good luck to all and thank you for reading my opinion.
I personally think cancelling student debt is not only unfair to those who in fact did work hard to pay it off, but it’s also really stupid. Cancelling debt does not solve the problem, it only puts a bandage on it short-term where in 5 years we will be back at the table having the very same conversation. We need to change the system. We need to, first of all, address the issue of systemic discrimination based on where people went to college. A digree from a state university has the equivalent quality to a private college $500k degree, the knowledge is the same, the issue is the society placing too much value on certain names and titles. Secondly, young people need to be taught responsibility from a young age. If they choose to go to Yale or Harvard because of the prestige of the school’s name they should consider that this prestige comes with a hefty price tag, full stop. A school’s prestige can make them feel unique for a while, special maybe, but they should be made aware of the responsibility that the bill for school is theirs to pay, too. If the government decides to cancel student debt, the only way to make it fair is to give an equal tax credit to all people who have attended university in the past proportional to the equivalent money power when they attended. I spent $30K on my state university degree 10 years back. I could have invested this money, rather than try and be responsible and work while studying in order to pay my student fees. I would have been far better off now.