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Bernie Sanders reveals plan to cancel all $1.6 trillion of student loan debt by taxing Wall Street

June 27, 2019

On Monday, Senator Bernie Sanders (I-Vt.) revealed his plan to eliminate all $1.6 trillion of student loan debt for every American.

His proposed legislation would eliminate all $1.6 trillion of undergraduate and graduate student loan debt for approximately 45 million people. His plan would have no limitations for eligibility and would be paid for by taxing Wall Street.

Speaking at a news conference in Washington on Monday, Sanders said, “This proposal completely eliminates student debt in this country and ends the absurdity of sentencing an entire generation, the millennial generation, to a lifetime of debt for the crime of doing the right thing – and that is going out and getting a higher education.”

Sanders introduced the legislation alongside Representatives Ilhan Omar (D-Mn.), Pramila Jayapal (D-Wa.), and Alexandria Ocasio-Cortez (D-N.Y.). The three are set to co-sponsor two House bills that will accompany Sanders’s proposed legislation.

“The bottom line is, we shouldn’t be punishing people for getting to higher education,” Sanders added. “It is time to hit the reset button. Under the proposal that we introduced today, all student loan debt would be canceled in six months.”

Last weekend, Sanders said, “We are going to forgive student debt in this country. We have for the first time in the modern history of this country a younger generation that if we don’t change it, and we intend to change it, will have a lower standard of living than their parents, more in debt, lower wages than their parents, unable to buy the house that they desire.”

On Monday, Sanders said, “We will make a full and complete education a human right in American, to which all of our people are entitled. This means making public colleges, universities and HBCUs tuition-free and debt-free by tripling the work study program, expanding Pell grants and other financial incentives.”

Sanders has detailed how he would pay off his proposed legislation – by taxing Wall Street that would raise the estimated $2.2 trillion dollars necessary for his plan. This will include a 0.5% tax on stock trades (50 cents for every $100 worth of stock), a 0.1% fee on bonds, and a 0.005% fee on derivatives.

Sanders said that he believes that the taxes will be enough to raise more than $2.4 trillion over the next ten years.

– MK. II

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