In the eve of the first Democratic presidential debates, Sen. Bernie Sanders is about to propose Monday a bill called College For All Act to eliminate all $1.6 trillion of student loan debt, affecting nearly 45 million people.
His Democratic counterpart Sen. Elizabeth Warren was first to propose a similar plan. However, her debt relief package included income eligibility levels in determining how much each person would receive. In Warren's view, it was a way to close the racial wealth gap in our country.
Sen. Warren planned to eliminate $50,000 in student debt for every person with proven household income under $100,000. It also offered a significant debt cancellation to everyone with household income between $100,000 and $250,000. According to her proposal, people making over $250,000 would not qualify.
Contrary to her, Sen. Sanders' plan does not take into consideration the income of debtors. As he put it, if the legislation is signed into law, all student debt will be erased. Sanders would present the plan to the public Monday at a press conference alongside the bill sponsors, Minnesota Rep. Ilhan Omar and Washington Rep. Pramila Jayapal.
Apart from eliminating the student debt, Sen. Sanders would also propose funding streams to states, tribes, as well as historically black undergraduate colleges to help them eliminate tuition fees.
In addition to that, the College For All Act would increase spending on work-study programs. Furthermore, it would help low-income students get education by providing federal grant program for unprivileged prospective students to cover their expenses for accommodation, books, and transportation.
The College For All Act would potentially save the average borrower $3,000 year, Sanders estimated. The proposed legislation would benefit everyone in debt but targets mainly the millennials, said Sanders, as it would allow them to buy homes and cars which they would otherwise not be able to afford.
The College For All Act would cost $2.2 billion, noted Sanders. He would also present a detailed road-map to explain how he would cover the expenses of erasing the student debt.
As expected, the blueprint focuses on Wall Street. Sanders would come up with a new series of taxes to raise more than $2.4 trillion in the next decade. The road-map includes a 0.5 % tax on stock trades, meaning 50 cents for every $100 worth of stock. In addition to that, Sanders wants to impose a 0.1% fee on bonds as well as a 0.005% fee on derivatives.
What do you think? Do you support or oppose the idea of Bernie Sanders to erase student debt for all?