Plans from Bernie Sanders and Elizabeth Warren could have unintended consequences.
Senator Bernie Sanders on Monday proposed canceling all $1.6 trillion of outstanding student loan debt in the United States, one-upping a rival for the Democratic presidential nomination, Senator Elizabeth Warren, who has proposed canceling $640 million of the debt.
But there is a potential problem with the Sanders plan, and, to a lesser extent, the Warren plan. Their solutions for the past and plans for the future don’t line up.
The scope of higher education borrowing is vast. There are over 44 million student debtors, and researchers estimate that as many as 40 percent could default. Other Democratic candidates have put forth proposals to make college cheaper and debt easier to repay. But none of the plans are so big as those from Mr. Sanders and Ms. Warren.
“I don’t often use the phrase, but today we are, in fact, offering a revolutionary proposal” that will let people “get all of the education that they need to live out their dreams,” Mr. Sanders said in introducing his bill.