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Senator Elizabeth Warren, a Massachusetts Democrat seeking her party’s presidential nomination, on Monday released a proposal to cancel the student loan debt of 42 million borrowers.
Warren’s plan calls for canceling up to $50,000 in loan debt for borrowers with incomes of less than $100,000. Borrowers with incomes up to $250,000 would receive loan forgiveness on a graduated scale. Those with higher household incomes would not receive loan forgiveness under the plan.
Her campaign said the plan would wipe out the student loan debt of three-quarters of borrowers and reduce the racial wealth gap in the U.S.
The proposal also calls for free college tuition at all two- and four-year public institutions and would cover nontuition expenses for low-income students.
Warren’s campaign said the debt cancellation and free college proposals would cost $1.25 trillion over 10 years. It would be paid for with an ultramillionaire tax she previously proposed.
