There are few factors that have affected the US economy more than student loan debt. Home ownership is down, especially among millennials. While this is due to a number of different factors, student loan debt may be the biggest.
A number of Democratic hopefuls have promised to tackle the issue, with Bernie Sanders and Elizabeth Warren pushing the most aggressive plans. On Tuesday, Warren released a plan to cancel out the majority of the countries education debts on day one of her presidency.
Warren’s plan would not cancel out every cent of debt like Sanders’ plan would. The Massachusetts senator’s plan is based on income and not all would be eligible. She still estimates the program would cancel out 95% of the loans.
The lawmaker says she wouldn’t wait for congressional approval. The Secretary of Education has the power to cancel student debt at their discretion.
In a statement on her website, former educator Warren said this has always been a key issue for her. “Along the way, I learned two key things,” she wrote. “First, the student debt crisis is deeper than many experts thought was possible. And second, the Department of Education has broad authority to end that crisis.”
She also explained how the plan would boost the economy and create opportunity. Warren continued, “If we want to achieve the kind of big, structural changes that will make our education system, our economy, and our society work for everyone, we’re going to need to use every tool, every scrap of opportunity that comes our way, to help working families.”
Warren’s plan is likely to be discussed during Tuesday nights debate.