Sanders proposes canceling $1.6 trillion in US student debt

Sen. Bernie SandersBernie SandersOvernight Health Care — Presented by Partnership for America's Health Care Future — Pelosi unveils signature plan to lower drug prices | Trump says it's 'great to see' plan | Progressives pushing for changes Krystal Ball calls on Sanders to follow Yang's lead on war on drugs Buttigieg calls Warren 'evasive' on Medicare for all MORE (I-Vt.), a top-tier 2020 presidential candidate, rolled out legislation on Monday to cancel $1.6 trillion in outstanding student debt for 45 million borrowers. 

The legislation, which is being co-sponsored by Reps. Ilhan OmarIlhan OmarHillicon Valley: Zuckerberg to meet with lawmakers | Big tech defends efforts against online extremism | Trump attends secretive Silicon Valley fundraiser | Omar urges Twitter to take action against Trump tweet Omar asks Twitter what it's doing in response to Trump spreading 'lies that put my life at risk' Trump seeks to expand electoral map with New Mexico rally MORE (D-Minn.) and Pramila JayapalPramila JayapalProgressives push for changes to Pelosi drug pricing plan Pelosi woos progressives on prescription drug pricing plan Democrats ignore Asian American and Pacific Islander voters at their peril MORE (D-Wash.), a co-chair of the Congressional Progressive Caucus, also calls for public universities, community colleges and trade schools to go tuition free. 

The bill will also propose absolving student debt for undergrad and graduate students. 

A Wall Street tax, which would include taxes on stock transactions, bond trades, and derivatives transactions, will pay for the legislation by collecting $2 trillion over a decade. 

"During the financial crisis, Wall Street received the largest taxpayer bailout in American history. Now it is Wall Street’s turn to help rebuild the disappearing middle class," Sanders tweeted on Monday. 

 

 

News of the legislation was first reported by The Washington Post on Sunday. 

Sanders's presidential primary opponent and fellow progressive Sen. Elizabeth WarrenElizabeth Ann WarrenOvernight Health Care — Presented by Partnership for America's Health Care Future — Pelosi unveils signature plan to lower drug prices | Trump says it's 'great to see' plan | Progressives pushing for changes Buttigieg calls Warren 'evasive' on Medicare for all Sanders hits 1 million donors MORE (D-Mass.) announced legislation earlier this month to wipe out nearly all student loan debt in the country. 

Warren's plan would forgive up to $50,000 in student loan debt for anyone with a total household income below $100,000.

Through Warren's plan, a wealth tax would pay for debt forgiveness. 

The two senators' plans to combat student debt could be targeted at the progressive wing's generally young base, grappling with student debt.