Students walk on the campus of Miami Dade College in Miami. By Jared Bernstein Jared Bernstein Bio Follow Jared Bernstein, a former chief economist to Vice President Joe Biden, is a senior fellow at the Center on Budget and Policy Priorities and author of 'The Reconnection Agenda: Reuniting Growth and Prosperity'. April 22 at 11:28 AM When it comes to offering polices that target American inequality, Sen. Elizabeth Warren is on a tear.
Why not just cancel all student debt and be done with it? Because, as journalist David Leonhardt argues, that’s not as progressive an idea as it sounds. The problem is that the “the highest-earning quarter of the population holds about half of all student debt...[w]hich means that universal student debt cancellation would be a giant welfare program for the bourgeoisie.”
According to the Brandeis and other researchers, Warren’s proposal would, by reducing the indebtedness of minority households with student loans, significantly raise the ratio of black/white wealth in such households from about 3 to about 28 percent, and the white-Latino gap from 54 to 81 percent. In fact, while the student debt problem is invariably described as a “crisis,” some experts view such labeling as overwrought. Higher education expert Sandy Baum, for example, convincingly argues that even with the debt they’ve accrued, most college grads “…are better off than they would have been if they hadn’t borrowed and hadn’t gone to college.” And there’s compelling evidence that even with loans, investment in higher ed reliably pays off in terms of future earnings.
If anyone had sold investment plans with as little risk disclosure, or signaling, as what universities and colleges do when selling their education investments, and then the investments had soured, they would probably be trotting away to prison.
I am not paying
It won’t work. Natives are used to being ignored when we Mae complaints but she can’t run from the fact the pretended to our ethnicity without any relationship established. You can’t just decide to be Native.
Moral of the story. DON'T write checks your ass can't cash. Take classes that will further your economic standing. Get a job and pay your debt. PERIOD.
This is an attempt to buy votes and should be illegal
The problem is government guaranteed loans and crooked universities who are over charging students. You bail out the students and the irresponsible universities get rich. Warren is buying votes with taxpayer money and this is a stupid idea.
Being Poor has nothing to do with Race!!
Racially unjust Are u kidding. Please don’t tell me white kids are the ones who are still gonna be paying and all the others won’t.
Is it “racially unjust” to make a poor white guy like me pay for illegal aliens college? So sick of this shit.
Will there be refunds for those who recently paid off their debt?
Accountability and responsibility. Two words foreign to too many.
Racially unjust?
That's nothing new Hillary had her plan. Hillary won the popular vote. But Trump was declared President. Trump stole the presidency from the first female popularly elected president. Trump, Gop lawyer misogynist & Russian aid, will steal it from her also. US DEATH 2 democracy
Yes!!!!
Liberalism is a mental disorder and evil
Student Loans will become the new Recession soon in the US economy if Government doesn't act now.
About time to reduce college tuition
Dear Brothers & Sisters, YOU ARE KING. You can serve our AMERICA better than any Politician. No need to join Politics to serve our Nation. WAKE-UP.....Our AMERICA is calling you for HELP.
'Racially' unjust Really? Banks are making billions and turning an entire generation - of all races, genders, etc. - into debt slaves, via government guaranteed student loans, which means they can't be discharged via bankruptcy.
We spent $200K for our daughter's education. Do we get that money back?
Hit my article limit. Can anyone explain how student debt is “racially unjust?”
And we can all ride unicorns to work on rainbows and dine on cotton candy flavored tax increases
Again this Harvard Grad is giving away money. I guess she doesn't understand money. Is She gonna write lizzy checks. Like her money. Maybe we should average all the grades of everyone's loans forgiven. Does everyone gets a C+
There's nothing racial about it at all. Stop this racist crap.
Democrat Candidates SUCKING UP LIES: Everything FREE is SOCIALISM: FREE HEALTHCARE, FREE CHILD CARE, FREE COLLEGE TUITION, FREE BABY KILLING ABORTIONS, FREE HOUSING, FREE FOOD STAMPS, FREE REPARATION MONEY to BLACKS, INDIANS FOR DEMOCRAT SLAVERY PARTY SLAVERY
UsToo. I've paid over 100K in student debt.
I'm glad she's taking bold ideas that have been on the periphery of the progressive policy spectrum and just supporting them full-throttle.
There is nothing bold about this, it’s very easy to pay off debt with other people’s money. Millions have mortgages lets pay those off too.
I have taken on student debt & I have to live with the consequences. BUT here's an option: lower the interest rates. Since college debt cannot be written off in bankruptcy proceedings,students are obligated to pay regardless. Lower interest rates will make payments manageable
And is no one realizing how they are being played by her, lets give away everything, Free, Free, Free, but how does she pay for it? If you are dumb, then vote for her? My GOD, will this never end?realDonaldTrump SenWarren
I have been saying for a VERY LONG TIME that whatever candidate chooses to address the StudentDebtCrisis will make GREAT strides with millennials! Now if we can just get the media to give her coverage!
Can't wait to see those tax hikes!
Nice gesture, but we know America votes on personality. Warren is almost as toxic, if not more than HRC to 25% of the population. This country wants reality TV stars, not policy wonks.
Giving handouts to people who already have higher earning power with a degree? Doesn't sound very helpful to the people below the poverty line.
That is only for Native Americans? You know!! she is aaaa native by birth!! I think CNN NYTimes WashingtonPost
Racially unjust?
There she goes again? What?
I've been really impressed with her putting forth real policy solutions.
Who pays for it?
Promises promises
I absolutely support this idea.
What about the people who paid theirs off?
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