Elizabeth Warren, the leading 2020 presidential candidate of the Democrat, has unveiled her plan on Monday to cancel the debt of 42 million Americans who owe student loan.
She revealed in her plan that each person’s student loan would get a relief of $50,000 if the family he/she comes from has an income of up to $100,000. Also, people with a higher family income would also get a massive reduction in their loan too in relation to their household income.
For example, someone with a family income of $130,000 will have a reduction of $40,000 in their loan and someone with a family income of $160,000 will get a loan reduction of $30,000. However, her loan reduction plan exempts individuals with a family income of $250,000 and above.
According to a blog post where she revealed her funding plan for the project, it will cost the American Government not less than $640 billion to fund the proposed plan. In further explanations in the blog post, she declared that the 75,000 American families who have wealth valued up to $50 million would be charged a 2% annual tax of their total wealth through a tax scheme she termed “the Ultra Millionaire Tax.” The funds generated from this tax scheme will also be enough to fund the “Universal Free College” project.
However, her proposed plan has been met by criticism by many who are of the view that taxpayers’ money shouldn’t be used to pay off someone else’s obligations as student loans are agreed commitments.
Others were of the view that those who attended cheaper, public universities and had no college loan should get a refund of their fees too. A Twitter user asked if those who had paid off their student loans will get a refund too.
