Coronavirus: Elizabeth Warren Proposes Student Debt Cancellation

Following President Trump’s recent press conferences and his talks of temporarily waiving Federal Student Loan interest in response to the coronavirus, Democrat Sen. Elizabeth Warren and Democrat Rep. Ayanna Pressley have called upon Congress to do even more for Americans with student loans.

President Trump signed into law legislation to provide $8.3 billion toward research and relief for COVID-19.

According to CBS, there will be multiple phases of legislation for spending on COVID-19. “Phase Two’’, according to Mitch McConnell, may be upwards of $1 trillion. The Phase Two package would include airline industry assistance of an estimated $50 billion, $200-$300 billion for small business loans, and $250 billion in direct cash payments to American adults.

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Sen. Elizabeth Warren and Rep. Ayanna Pressley believe that Congress should add student debt cancellation to the next round of coronavirus funding.

Sen. Warren pushed for student debt relief throughout her failed presidential campaign.

Elizabeth Warren tweeted, “Student loan debt cancellation MUST be a part of the next emergency coronavirus package to deliver relief immediately to millions of families and remove a giant weight that’s dragging down our economy.”

Rep. Ayanna Pressley, a member of the freshman Democrat “Squad,” believes that total student debt cancellation is a necessary step to stop the pending financial crisis. Pressley tweeted, “We need bold action now. A plan that will ensure that we do not repeat the mistakes of the 2008 financial crisis.”

If American does indeed experience an economic crisis similar to that which Warren and Pressley are warning of, many Americans will be in serious financial trouble. According to NBC News, an estimated 44.7M Americans have student loan debt.

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Warren and Pressley aren’t the only politicians pushing for total student debt cancellation. New York Attorney General Letitia James (D) is calling for similar measures.

Like the other proposed spending packages, this student debt relief plan will require a high level of tax-payer funding. Warren and Pressley have not proposed any numbers on what this current plan would cost.

This plan for student debt relief would certainly help many Americans, but it leaves more questions that need to be answered. If the federal government eliminates student loan debt, what’s next? Will they all cancel mortgages, too?

And the most important question is, for a country that is already over $23 trillion in debt, where will all this money come from?