Democratic Presidential candidate Elizabeth Warren today proposed a major $640B Student Loan Debt Cancellation plan. ASU Assistant Professor Raphaël Charron-Chénier is one of four “leading experts on student loan debt to analyze the proposal and conclude that it would help close the “racial wealth gap.”
Charron-Chénier teaches at ASU’s School of Social Transformation, and tells Arizona’s Politics that he used Federal Reserve data to model the impacts of Sen. Warren’s proposal. “Based on the analyses, I think this policy can have a significant positive impact on the financial well-being of the majority of student loan borrowers and will disproportionately benefit borrowers in more precarious economic situations.”
The plan would cancel up to $50,000 in student loan debt for people with household incomes of less than $100,000 (with a sliding scale for those with incomes between $100-250k). Warren proposes to pay for the debt cancellation via a “wealth tax” of 2% on families worth more than $50M (each).
Warren will be talking about her plan on a live townhall televised tonight on CNN.
The letter from Charron-Chénier and the other analysts can be found here.