Pay Off Loans Until Student Debt Is Canceled
This is an exciting time for Democrats who want to be president, as many are running at this early stage, and we are having two debates this week to consider the top 20 candidates. Twenty!
Not to be overshadowed by his many opponents, this week candidate Bernard Sanders announced a plan to completely eliminate student loan arrears.
Sanders, still a Senator from Vermont when not running for president, along with fellow Democrats Ilhan Omar of Minnesota and Pramila Jayapal of Washington, introduced a bill to immediately write off all student debts for the 45 million people carrying them in the United States. “It’s time to hit the reset button. According to the proposal we presented today, all student debt will be written off within six months, ”Sanders said at today’s press conference, CNN reported . A $ 1.6 trillion debt relief will be sponsored by a new equity trading tax.
Massachusetts Senator and Presidential Candidate Elizabeth Warren’s student debt write-off plan is similar, but takes longer to implement. According to Warren’s plan, the super-rich will tax $ 2.75 trillion in income over 10 years, with some of that money going to pay off student loan arrears.
Just last week, Warren announced that she plans to introduce a bill to cancel student loan debt of up to $ 50,000 for “the bulk of student borrowers,” according to a statement from her office to Marketwatch .
But it looks like Bernie got ahead of her. The Colleges for All Act will also abolish undergraduate education in four-year government institutions, halve the undergraduate student loan interest rate, and expand the federal work and study program.
Don’t miss loan repayments while we wait
All of this worries millions of Americans saddled with student debt, but don’t cross your fingers and hope Bernie makes your balance disappear before the next payment is due. Log in to FedLoan now and make sure you have Auto Pay configured for the required monthly payment.
If you think that this or a similar law will be passed before the next election, you … are wrong.
I would be the first in line to get this never-ending bill to leave and leave me $ 364 of extra dollars every month to invest in my emergency fund. I would be so grateful if the hundreds of thousands of dollars that my friends collectively (and some individually) owe for their education, turned to zero. But I don’t hope.
If you pay more than the minimum, don’t slow down – by the time such a law is passed, you will probably be out of debt!
So yeah, fight a good fight. Call your senators! Call your representatives! Use the hashtag #cancelstudentdebt as long as you like (after you’ve made these calls). But don’t expect Warren, Sanders, or any other candidate to swoop in and cancel student loans at any rate. It will take a while to figure out, and heck it won’t be pretty.
Thank you for coming to my debate week prep session.