Massachusetts Sen. Elizabeth Warren has introduced a bill eliminating existing student loan debt for millions of Americans.
“Today @WhipClyburn & I are officially introducing our Student Loan Debt Relief Act to cancel student debt for millions of Americans, end the student debt crisis, & help tackle the racial wealth gap,” the 2020 Democratic presidential candidate posted to Twitter on Monday.
According to CNBC, the proposal would cancel student loan debt for 45 million Americans and is broken down by household income.
The bill would forgive $50,000 in student loans for Americans in households earning less than $100,000 a year, resulting in immediate relief to more than an estimated 95% of the 45 million Americans with student debt.
For those earning more than $100,000, the bill would offer partial debt relief with the amount getting gradually smaller until it phases out.
Households that make more than $250,000 are not eligible for any debt relief.
Warren has partnered with Rep. James Clyburn, D-S.C., who will sponsor companion legislation in the House.
CNBC further reported, the degree of debt forgiveness a person receives would be determined by their income in the most recent tax year. The loan cancellations would take about a year from the time the bill is enacted to complete.
No paperwork will be required as the cancellations would be carried out automatically through information sharing between the Treasury Department, the Internal Revenue Service and the Department of Education.
According to reports, the campaign has said the one-time debt cancellation could cost $640 billion.
PHOTO: Sen. Elizabeth Warren, D-Mass., left, and Rep. Jim Clyburn, D-S.C., speak about a bill to cancel student loan debt, Tuesday, July 23, 2019, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)
