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Warren introduces bill to cancel student loan debt for millions

A bill that would wipe out nearly all U.S. student loan debt was introduced Tuesday by Sen. Elizabeth WarrenElizabeth WarrenMcConnell seeks to divide and conquer Democrats Mark Cuban: ProPublica 'not being honest' about taxes on wealthy On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax MORE (D-Mass.), a top-tier 2020 presidential candidate. 

Warren and House Majority Whip Jim ClyburnJames (Jim) Enos ClyburnPelosi, leaders seek to squelch Omar controversy with rare joint statement Black Republican advocates his case for CBC membership Meet the most powerful woman in Washington not named Pelosi or Harris MORE (D-S.C.) in June first announced the bicameral legislation to forgive up to $50,000 in loan debt for those with a total household income below $100,000. 

Debtors with between $100,000 and $250,000 in total household income would have less of their debt eliminated.

Clyburn and Warren said "The Student Loan Debt Relief Act" would end the student debt crisis and lessen the racial wealth gap.

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"My very first bill when I got to the Senate was legislation to tackle the growing student debt crisis because I was sick of Washington allowing the wealthy to pay less, while burying tens of millions of Americans in mountains of student loan debt. Since then, Washington has only allowed this crisis to get worse — especially for people of color. Enough is enough," Warren said in a statement Tuesday.  

"Post-secondary education should be the springboard to enable students to achieve their dreams not the impediment that prevents the realization of those goals," Clyburn added. 

The bill would provide automatic cancellation using data already available to the federal government regarding household gross income and outstanding student loan debt. 

It would not treat canceled debt as taxable income. 

Warren's Senate colleague and Democratic primary opponent Sen. Bernie SandersBernie SandersThe Memo: Democratic tensions will only get worse as left loses patience McConnell seeks to divide and conquer Democrats Socially-distanced 'action figure' photo of G7 leaders goes viral MORE (I-Vt.) in June announced a plan to cancel $1.6 trillion in student debt, following Warren's announced plan. 

Sanders's plan would wipe out student debt for all, whereas Warren's student debt forgiveness plan is capped at household incomes of $250,000. 

Sanders and Warren, both in the top of the crowded 2020 field, are two of the most progressive candidates seeking the nomination. 

Sanders's plan is backed by Reps. Ilhan OmarIlhan OmarThe Memo: Democratic tensions will only get worse as left loses patience Simmering Democratic tensions show signs of boiling over Pelosi signals no further action against Omar MORE (D-Minn.) and Pramila JayapalPramila JayapalNew Alzheimer's drug sparks backlash over FDA, pricing Hillicon Valley: House targets tech giants with antitrust bills | Oversight chair presses JBS over payment to hackers | Trump spokesman to join tech company | YouTube suspends GOP senator Simmering Democratic tensions show signs of boiling over MORE (D-Wash.).