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Elizabeth Warren Proposes Wiping Out Almost Everyone’s Student Debt

By Huffington Post

“The time for half-measures is over,” the Democratic presidential candidate saidRead full story

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  • Raakin Iqbal
    Raakin IqbalFounder at The Social App

    As currently someone who is still paying off student debts. I obviously find this proposal interesting and amazing. But a lot of key questions are raised. 1.) Who will pay for it obviously. 2.) For the millions of students who have already paid their debts, what would be done for them?

    I am sure plenty of more questions will arise as well. So in theory it sounds like a great proposition. But still needs further clarification or a roadmap.

  • Michael Allen
    Michael AllenRetired CFO and World Traveler

    An interesting proposition that could be an economic stimulus. My wife and I saved for years for our kids college and with help from them working they have no debt, but obviously many current and former students aren’t that fortunate. The fact that my Baby Boomer and prior generations benefited from tax subsidized, low cost college and then proceeded to abandon our children with that type of tax support has put a large financial burden on the current generation of students which impacts our economy

    An interesting proposition that could be an economic stimulus. My wife and I saved for years for our kids college and with help from them working they have no debt, but obviously many current and former students aren’t that fortunate. The fact that my Baby Boomer and prior generations benefited from tax subsidized, low cost college and then proceeded to abandon our children with that type of tax support has put a large financial burden on the current generation of students which impacts our economy. Ask yourself how much different this proposal is than the business tax breaks, corporate welfare and farm subsidies doled out in the interest of improving business incomes and stimulating investment? It seems no different to me. I’m not a fan of totally free college, but current debt relief followed by going back to the same financial support that my generation and those that proceeded ours benefited from would be a good start to giving our children and grandchildren the same economic opportunities we had.

  • See some comments saying giving education to all is economic madness. Let's be real here – are we seriously suggesting that the world's foremost superpower and biggest economy cannot find the money to educate its people?

  • Kyle King
    Kyle King

    I’d love for this to happen. Largely because student loans are an outrageous form of extortion these days. But I honestly don’t think it’s sustainable, and more importantly it becomes a “then what?” issue. The devil is in the details.

  • Edward Dowling
    Edward DowlingProduct Manager

    A one-off debt wipe isn’t going to solve the problem, unless it is accompanied by long-term changes to how education is delivered in the US. Statements like this make great headlines, but aren’t good policy (one thing Warren and Trump have in common is that they are extremely good at no-substance, poorly-considered but populist announcements).

  • Henry Tobias Jones
    Henry Tobias JonesEditor of Dyson on: at Dyson

    Brilliant idea. Paid for how and by who? People who already paid off their student debt presumably?

  • Craig Bohn
    Craig BohnChief Legal Ogre at OGR Corporation

    Once again politicians create a problem, then they come to the rescue. Congress nationalized student loans, and broadly issued Federal guarantees to the lenders, which in turn made the lenders quit verifying the students potential ability to repay the loans. Now, unsurprisingly, since there were no real plans on how to repay the college degrees that did not enable employment, the loans are overly burdensome. It is reminiscent of the housing bubble, where the federal government, through Fannie Mae

    Once again politicians create a problem, then they come to the rescue. Congress nationalized student loans, and broadly issued Federal guarantees to the lenders, which in turn made the lenders quit verifying the students potential ability to repay the loans. Now, unsurprisingly, since there were no real plans on how to repay the college degrees that did not enable employment, the loans are overly burdensome. It is reminiscent of the housing bubble, where the federal government, through Fannie Mae and Freddie Mac, made home loans broadly available, actually prosecuting lenders who would not provide loans to people who couldn't afford them. There too, everyone was surprised when people started defaulting on homes when they, unsurprisingly, couldn't pay them.

    We no longer can trust our politicians to act responsibly.

  • Samuel Best
    Samuel Best

    This frustrates me so much. Why has it become the expectation that everything in life should be free and equal. It’s not. Should not be. Never will be.

    How about a more logical approach...you pay for college, but at zero interest, and instead wiping out student debt completely, only wipe out the accumulated interest portion of that debt.

    It costs lots and lots of money to educate people so how can we expect to offer that to people for free? Come on people!!!

    The moderate path is the only path.

  • Mark Douglas
    Mark DouglasproPresident & CEO at SteelHouse

    There’s no such thing as wiping it out. They pay or I pay.

  • Ephrat Livni
    Ephrat LivniSenior Reporter at Quartz

    As someone carrying a small mortgage worth of student debt that never budges though I pay monthly, I appreciate the sentiment though I doubt many Americans will support Warren, unfortunately.

  • Weiyee IN
    Weiyee INChief Strategy Officer

    A pity to have paid off all my student debt almost three decades ago. A greater pity to have set up 529 and also paid my son's education out of pocket.

  • Allison Schrager
    Allison SchragerReporter at Quartz

    There’s not compelling evidence this is actually a drag on the economy. Most big debt holders are doctors and lawyers. Hard to think of a more regressive policy, of we really care about income inequality

  • Watching this story from the U.K. I am not sure how this plays out. Of course getting rid of debt may be seen as a positive by many voters but is there a concern that eliminating student fees will lead to less funding for universities and a decline in quality? And how does this fit within other government spending promises that Democrats will have given the national debt is so high? (the consequence of eliminating tuition fees must be that the government has to provide more direct support to the education sector)

  • Max Lockie
    Max LockiePlatform Editor at Quartz

    Wiping out student debt would be a massive handout to the professional class and a slap in the face for people like me who received full scholarships to attend a state university.

  • So American taxpayers would be responsible for paying off the debts of students who spent 6 years chugging beer at Southeastern Alaska State while earning a degree in Medieval Literature?

    Perhaps if the plan was tied to some accountability it might make sense. Personally, I would not be averse to wiping out the debt of students who graduated in the top 10% of their class with a STEM degree from a Top 50 university.

  • Paul O'Brien
    Paul O'BrienCEO at MediaTech Ventures

    And payments to all the people who worked their way through paying for college?

    I mean, neat notion, and college shouldn't be anywhere near as expensive at it is, people are getting screwed, but proposing to wipe out debt while everyone else who paid for it gets nothing is nothing short of a political publicity stunt. No?

  • It’s almost as if there should be some sort of system in which you pay yearly every April based on your income and they build roads and hospitals and your kids can go to school for free. Guess we’ll never figure out how to pay for free college!

  • Ronald Henry
    Ronald HenryCEO at Henry Telecom Group

    There are many places much smaller than the US and they have free education....well not free because taxes are so high but wouldn't that be a good reason to pay more taxes for free health and education?

  • Joanne Herzog
    Joanne HerzogBusiness Systems Analyst

    A real solution is long overdue.

  • Don Hawes
    Don Hawes

    If you haven't yet stopped to ask why we're not using K-12 to teach our kids what we believe they need to succeed, please do so now. The plan might sound great in a vacuum, but for me personally, when I think about the reasons why we're wanting to implement such a problem, it introduces a sharp cringing sensation all over my body. With new tech, education should be getting cheaper, yet for the portion where Government is involved, it's not.

  • Tyrone Polk
    Tyrone Polk

    It’s crazy to be honest , someone has to pay for it so I don’t feel like I need to be obligated to go to work knowing I’m paying for someone else’s education. What this country needs is more focus on vocational trade jobs , not more scholarships for liberal arts where the student goes and gets out and can’t find a job to be a productive part of society to pay for others education. This country needs more welders more pipe fitters ,... skilled labor is falling so behind in a country that always need infrastructure.

  • Ryan West
    Ryan West

    As the financial wealth leader of the FreeWorld can we not educate our citizens for free as to keep our status as a beacon of democracy?

    Broken democracy takes work from all involved

  • Joe Lawrence
    Joe Lawrence

    This would be extremely unfair to those that chose not to go to college because they couldn't afford it. Convet the loans to 0% interest and dont place on credit report. If they were forgiven the colleges attended should be docked not the taxpayers

  • Patricia Lynne
    Patricia Lynne

    So sorry, this is a *no* from me. Free things aren't valued and accepting more and more students in order to make ourselves feel good, will lower standards. Just my opinion.

    Signed,

    a first-in-family college educated, paid my way, sacrificed, mother of 2 with degrees, 1 working on graduate degree, university employed, can't find valuable partners in the trades, need more artists and musicians, homeowner. 😉🙄

  • My student debt likes the sound of this.

  • Douglas McIntyre
    Douglas McIntyre Editor at 24/7 Wall St

    Great idea but not a realistic way to pay for it

  • Ross Merritt
    Ross Merritt

    People are going in debt not just for tuition but for living expenses during college. If they want to live at home and go to a commuter college or work enough to support themselves the you can have a conversation about tuition cost or a way for it to be remibursed. But no one should expect someone pay for them to play and hang out and pretend to go to classes for 5+ years.

  • Victor Perri
    Victor Perri

    A typical response in favor of the proposal of Senator Warren, which I strongly endorse, is to analyze the proposal purely on economic terms as an investment in the future of America by making higher education accessible. This sort of analysis, although correct, is insufficient. Young people starting careers have already been saddled with enormous student loan debt at the most difficult time in their lives starting careers, new jobs and oftentimes beginning families. This is not only unwise and unfair

    A typical response in favor of the proposal of Senator Warren, which I strongly endorse, is to analyze the proposal purely on economic terms as an investment in the future of America by making higher education accessible. This sort of analysis, although correct, is insufficient. Young people starting careers have already been saddled with enormous student loan debt at the most difficult time in their lives starting careers, new jobs and oftentimes beginning families. This is not only unwise and unfair but has detrimental and daunting psychological effects. Also, considering making higher education financially feasible for all makes for an informed and knowledgeable citizenry who are more likely to be enriched by their college experience in ways that are not translatable into merely dollars and cents return on investment.

  • Kalesh Menon
    Kalesh MenonFinance Controller at Ingredion Thailand

    Why is debt considered as burden? Is it actually not a target to focus after finishing education and an incentive to push harder?🤔 If people are not getting jobs good enough to pay back these loans, then isn't that the actual problem?

    Anyway, this burden would be on the tax payers who probably slogged themselves to payoff their education loans and expecting to see their tax money being put to good use.

    Reminds me of the old adage 'catch me a fish and I'll eat today, teach me how to fish and

    Why is debt considered as burden? Is it actually not a target to focus after finishing education and an incentive to push harder?🤔 If people are not getting jobs good enough to pay back these loans, then isn't that the actual problem?

    Anyway, this burden would be on the tax payers who probably slogged themselves to payoff their education loans and expecting to see their tax money being put to good use.

    Reminds me of the old adage 'catch me a fish and I'll eat today, teach me how to fish and I'll feed myself for my lifetime..and probably pay it forward too'.

    Election gimmicks. 🙄

  • Suzan Benet
    Suzan Benet

    All interest and built in costs should be removed. And most students have paid off loans but the interest keeps them in mortgage level debt. Think of what a stimulus this would be to the economy

  • Joe Brown
    Joe BrownFreight relocation and logistics specialists.

    If I knew she was serious and it wasn't just talk I might think about voting for her but we are pretty much sure this is just another smoke blowing session and nothing would come of it after the election. The reason I say this is because I haven't seen anything from her about this until the election. And lets say she does away w/ student loan debt then what? Big brother give it away for "free"?

  • So, to clarify? Those of us who worked two jobs, joined the military and used the GI Bill, and who strived to make sure that we *didn't* accrue debt that we couldn't pay off? Now we get to pay for the college costs of those who *didn't* exercise such good judgement, by having to pay higher taxes to subsidize paying off the costs of the "loan forgiveness".

  • This is the most ridiculous VOTE FOR ME and ITS FREE pandering I have ever seen. How about reducing the cost of college and university so it’s actually affordable.

    How about a systematic way to look at how universities are some of the wealthiest entities in the world. They are continually raising money, and build their infrastructure.

    Instead of free, let’s tackle the real problem of spending first.

  • Tim C.
    Tim C.Supply Chain Engineering Manager

    This has been mentioned in the past by presidential candidates. Pretty sure the cycle will repeat itself beyond Warren’s run. Would be interested in hearing a candidate proposal that addresses the systematic problem of unrealistically high tuition rather than a lagging bandaid.

  • Actually Mr. Dowling, there are still the odd one of “Me” around and I can assure you that with today’s dollar being of almost no “real” value, in “a system that has lost its “moral” boundaries and “ethical” guidelines beyond “Any reasonable” doubt” Real, Alternative and Sound ideas are available “all around us” now, the Technology exists, for the “right” cost-benefit “ratio? I “think” that’s what we called it! Still a “bit” fuzzy on “some” details but pretty darn sure I can prove All of “it” in

    Actually Mr. Dowling, there are still the odd one of “Me” around and I can assure you that with today’s dollar being of almost no “real” value, in “a system that has lost its “moral” boundaries and “ethical” guidelines beyond “Any reasonable” doubt” Real, Alternative and Sound ideas are available “all around us” now, the Technology exists, for the “right” cost-benefit “ratio? I “think” that’s what we called it! Still a “bit” fuzzy on “some” details but pretty darn sure I can prove All of “it” in 1:) Any “1st” world countries Universities Laboratory’s Or 2:) In Any “Democratic Society’s” Federal Courtroom! Oh BTW, Check ‘CNN’ or ‘Google’ the “Facts” for Yourself! As “Mulder” would say! “The “TRUTH IS OUT THERE” People! Go and “Look it up” ON “Your own Dime” some of “US” had too! Why NOT you too! You know, strength in “numbers” and all that! Ask Sun Tzu! Oh and why was it we took away or failed to make that “rule or Law” about governments running balanced budgets like the “REST of REALITY” has too? Pretty Sure I remember at least one or two in “My” lifetime alone! How about You?

  • William Wood
    William WoodOwner at William Wood

    She lied about her heritage to get a job, more than once, and now she is giving people free stuff and dispensation, so she can get the Presidency. Do you believe it? If they want to pay off student loans how about attacking the College’s Endowment Funds...

  • Catherine Tannahill
    Catherine Tannahillprof, teacher

    So many bad laws, policies & practices have created this situation. A universal amnesty does not solve the problem Too many times we look at the obvious missing the underlying conditions. You don't have to go full time. You can live at home. You can in some professions leverage levels of certification. You actually can find scholarships if you get good grades & if you don't maybe you shouldn't go at all. You don't have to stress or cheat your way into a 'prestige' school. You don't even have to go to college to get a good job.

  • Chris Felts
    Chris Felts

    So taxing the rich will pay for 1. Medicare for All, 2. Green New Deal, 3. Universal Basic Income, and 4. Free Higher Education. Wow! Those individuals must hold like 99% of the world's wealth.

  • It would be a step in the right direction to start by eliminating the penalties and/or lowering the interest rates.

  • Ian Myers
    Ian MyersFounder at Country House Enterprises

    Bring us the girl

  • Susan Sons
    Susan SonsChief Security Analyst and occasional CISO

    Many people made a financial decision to give up on college precisely because the debt was untenable. It would be immoral, not to mention one heck of a perverse incentive, to ask everyone who made that choice to pay for the education of those who chose something they couldn't easily pay for. They'll keep the benefits, but want those without the benefits to foot the bill.

  • Mayhill Fowler
    Mayhill Fowler

    Tyrone Polk makes a good point here. We need more vocational training. US manufacturing has jobs we cannot fill for lack of basic math science training and hands-on skills. A focus here could be a good use of our tax dollars. But making two years of college, across the board, free? Remember the law of unintended consequences. Warren’s plan would be the death blow for many small private colleges and universities—already struggling in competition with cheaper state schools. Often these private institutions

    Tyrone Polk makes a good point here. We need more vocational training. US manufacturing has jobs we cannot fill for lack of basic math science training and hands-on skills. A focus here could be a good use of our tax dollars. But making two years of college, across the board, free? Remember the law of unintended consequences. Warren’s plan would be the death blow for many small private colleges and universities—already struggling in competition with cheaper state schools. Often these private institutions sit at the center of a small town economy and sometimes shore up the prosperity, such as it may be, of an entire county.

  • David Boyd
    David Boyd

    The concept of free college will just destroy the higher education in this country. just take a look at public schools and how bad they have become and how many parents are sending their kids to parochial schools or other alternatives that they end up having to pay out of their pocket to ensure that their children get good education. whenever we give anything for free away it gets abused it gets devalued and nobody wants to try to elevate themselves to higher level. there are more important things

    The concept of free college will just destroy the higher education in this country. just take a look at public schools and how bad they have become and how many parents are sending their kids to parochial schools or other alternatives that they end up having to pay out of their pocket to ensure that their children get good education. whenever we give anything for free away it gets abused it gets devalued and nobody wants to try to elevate themselves to higher level. there are more important things in this country to be spending money on than giving away college education for free. College is not a right it's a privilege for you to go and as such you need to pay for those privileges.

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