Warren's Student Debt Plan: An Outsized Economic Boon for People of Color

[ehrnst]

Warren’s plan, announced in a Medium post, is as follows: Everyone would receive free public college at two- or four-year schools with a massive expansion of Pell Grants for low-income and middle-class students to help pay for living costs and other expenses that make up the majority of borrowing. It is effectively both a guarantee of free college for everyone and a guarantee of debt-free college for students with low income. The plan would cancel up to $50,000 in student loan debt for families making under $100,000 annually, with a sliding scale of forgiveness for those making between $100,000 and $250,000.

Economists estimate that 80 percent of Black households with debt and 83 percent of Latinx households with debt, would see it eliminated entirely. The vast majority of low-income and middle-class households would see their debt forgiven, compared to about a quarter of families from the top 10 percent, according to Warren’s estimates. And while slightly more dollars would flow to upper-middle-class households, the impact of canceling all debt for low-wealth households cannot be overstated. It removes a serious level of risk, allowing for peace of mind and the ability to get out from under financial strain.

Reducing or eliminating the need to borrow at public colleges through the expansion of Pell Grants to cover things like fees, living costs, books, and childcare offers a pathway to college without any debt for those who are currently most likely to borrow and struggle to repay their loans. It links the simplicity of tuition-free college with the progressivity (and concern about non-tuition costs) that debt-free college advocates endorse. It expands funding for Historically Black Colleges and Universities that, due to centuries of structural racism, do not have the same resources as predominately white institutions.

https://rewire.news/article/2019/04/26/elizabeth-warrens-student-debt-plan-an-outsized-economic-boon-for-people-of-color/

[mr_lebowski]

1. I wish articles wouldn't use this verbiage as the RWNJ's always exploit it ...

"It is effectively both a guarantee of free college for everyone"

This is a misnomer. When it comes to 4 year college, YOU STILL MUST QUALIFY with the academic requirements. None of these sorts of programs are guaranteeing EVERYONE can get INTO a 4 year college. You still must have the grades, etc.

Obviously 2-year/community colleges are different, basically almost anyone is allowed to attend those (I think many have reqs that the you have a HS diploma or equivalent but that's about it).

But the RWNJ's use the clumsily worded articles to suggest that Dems want to make it so 'undeserving' people get to go to 4 year colleges, i.e. 'free college' means 'every single person has a right to a free 4 year college education at the college/uni of their choice', when this is NOT what is meant by it.