The first Democratic debates are this week and all the candidates are trying to get their names into the news to bolster their profiles.
Bernie Sanders has announced a plan to cancel out all existing college student loan debt and also make college free.
The price tag for this proposal? A stunning two trillion dollars.
CBS News reported:
Bernie Sanders proposes total elimination of student debt
Democratic presidential candidate Sen. Bernie Sanders introduced a plan Monday to eliminate $1.6 trillion in student debt currently held by 45 million Americans. And he’s looking to Wall Street to pay for its cost.
Sanders, along with Reps. Pramila Jayapal, Ilhan Omar and Alexandria Ocasio-Cortez, are proposing a Wall Street tax — a tax of 0.5% on all trades, fees on bonds and derivatives. According to Sanders, the tax would raise $2.4 trillion over 10 years.
In addition to debt forgiveness, Sanders would make all public colleges and private historically black colleges and universities tuition-free.
“We are entering a proposal which will allow every person in this country to get all of the education that they need to live out their dreams because they are Americans,” Sanders said at a press conference Monday morning.
Sanders said millennials, a key demographic for his campaign, have been “sentenced to a lifetime of debt” upon graduating from college.
Here’s a video:
Reason pointed out some of the obvious problems with this plan:
Aside from its staggering cost, the policy is flawed in the same way that so many plans to cancel student debt are flawed: It rewards people who made unwise investments and transfers money to comparatively well-off people. The primary beneficiary of a college degree is not society at large, but the degree holders themselves, who tend to be more privileged and have better financial prospects than those who don’t have college degrees.
Making college free, of course, would encourage more people to attend. This would likely worsen the sort of “credentialist arms race” that the economist Bryan Caplan warns about in his excellent book, The Case Against Education.
Can you guess who supports this idea? Take a look:
I am one of the 45 million people with student debt—45 million people who are held back from pursuing their dreams because of the student debt crisis.
— Rep. Ilhan Omar (@Ilhan) June 23, 2019
"We have to both make public colleges tuition free and forgive all student loan debt at the same time," @AOC said Monday, introducing legislation with @BernieSanders. https://t.co/oJ6D2oP5wL pic.twitter.com/4gUNR4T2Tj
— POLITICO (@politico) June 24, 2019