• 274 days Could Crypto Overtake Traditional Investment?
  • 279 days Americans Still Quitting Jobs At Record Pace
  • 281 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 284 days Is The Dollar Too Strong?
  • 284 days Big Tech Disappoints Investors on Earnings Calls
  • 285 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 287 days China Is Quietly Trying To Distance Itself From Russia
  • 287 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 291 days Crypto Investors Won Big In 2021
  • 291 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 292 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 294 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 295 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 298 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 299 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 299 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 301 days Are NFTs About To Take Over Gaming?
  • 302 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 305 days What’s Causing Inflation In The United States?
  • 306 days Intel Joins Russian Exodus as Chip Shortage Digs In
Big Money Pouring into Air Taxis

Big Money Pouring into Air Taxis

U.S.-based electric vertical takeoff and…

Oligarch “Traitors” Appear to Flee Russia for Dubai

Oligarch “Traitors” Appear to Flee Russia for Dubai

Hours after Putin’s speech, several…

  1. Home
  2. News
  3. Breaking News

Bernie Sanders Proposes $1.6 Trillion In Student Loan Forgiveness

Student Loan Debt

Vermont Senator and 2020 presidential hopeful Bernie Sanders has revealed a new plan to eliminate student loan debt for over 45 million Americans.

Sanders is looking to have the federal government pay to wipe clean the $1.6 trillion in student debt held by 45 million Americans-- including all private and graduate school debt-- as part of a plan called "The College for All Act".

Sanders' bill would also cap student interest rates at no greater than what the federal government pays for its financial obligation. The point here is so the federal government isn't benefiting off student loan programs. Additionally, the bill will supply at least $1.3 billion each year to eliminate or minimize tuition and fees for low-income students at two- and four-year, private not-for-profit traditionally black universities.

The proposal goes further than fellow political rival Elizabeth Warren's strategy, which caps student debt forgiveness at $50,000 and offers no relief to customers who make more than $250,000.

While the plans vary on how they would raise the money to pay off the country's outstanding trainee financial obligation, both proposals look to boost the middle class by erasing a monetary concern that can make it harder for households to manage a house or automobile. Since the end of the 2008 recession, the nation's outstanding student loan debt has more than doubled, rising from $700 billion in 2009 to $1.6 trillion today.

Sanders plans to fund his student loan forgiveness plan through a new tax on financial transactions, which he predicts could raise more than $2 trillion over the next decade. The tax plan will consist of a 0.5% cost on all stock trades, a 0.1% fee on all bond trades and a 0.005% cost on all derivatives trades.

Senator Sanders told The Washington Post, “This is truly a revolutionary proposal,” adding “In a generation hard hit by the Wall Street crash of 2008, it forgives all student debt and ends the absurdity of sentencing an entire generation to a lifetime of debt for the ‘crime’ of getting a college education.”

Critics say Sanders and Warren's strategy is too costly and fails to target customers who many require relief, while advocates argue that the proposition attends to a debt burden that has actually ballooned over the last years and has actually stunted the monetary lives of a generation of Americans.

Sanders overtakes Warren

Sanders' announcement comes at a time when second place in Democratic primary polling, behind former Vice President Joe Biden, appears up for grabs-- with Warren increasing in recent voter surveys. With this most current, in-depth pitch, Sanders intends to solidify his credentials as the most progressive candidate in a field that has mostly embraced the priorities he brought to a national audience in 2016. Related: Can Meditation Make A Business More Profitable?

The proposition is likely to spark new criticism from Democratic moderates, who have attempted to cast themselves as practical options to Sanders' efforts to fundamentally rebuild the country's financial system.

Other Democrats have concluded that a blanket, all-inclusive debt forgiveness plan would intensify the gap between black and white wealth since white individuals tend to look for advanced degrees in higher numbers-- and for that reason may benefit more from a loan reduction policy that does not take income into account.

Joe Biden, for his part, had previously expressed support for free college when he was vice president. But in a January interview, he scoffed at and mocked millennials-- many of whom are having a hard time to purchase a home and obtain financial stability because of the extreme debt they are facing.

By Michael Kern for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment