The campaign to waive student loan debt continues to be a critical debate in the United States. Supporters of this policy argue that loan forgiveness will make people’s lives better and provide more opportunities, while opponents have said the policy is tantamount to fool’s gold.
For one thing, it’s not fair to people who attended college and paid off their student loans. Secondly, waiving loans would carry significant implications for colleges, the value of the US dollar, and inflation.
Sen. Elizabeth Warren (D-MA) doesn’t think so, though. In fact, Warren is on record denying that any link exists between student loan forgiveness and negative impacts on inflation.
The Latest From Warren on Student Loan Debt and Inflation
This past Thursday, the Democratic congresswoman spoke with CNN, again endorsing the need for people who willingly took out loans to have them “forgiven” by the federal government.
Warren also claimed student loan debt should be waived across America and include $50,000 per borrower.
Interestingly enough, CNN pushed back on this a little, citing the concerns that many people have about how this would impact inflation.
Democrat Senator Elizabeth Warren dismisses economists' concerns that student loan debt cancellation is "regressive" and "adding fuel to the fire of inflation."
"No, actually, not paying student loan debts has already been baked in." pic.twitter.com/gjcZMoAhiY
— RNC Research (@RNCResearch) April 24, 2022
Warren countered these concerns by alleging “no evidence” is available to show inflation will grow if student loans are waived. Then, the congressman pivoted away from inflation, saying that loan forgiveness will help the working class.
Later, Warren pointed out that a sizable majority of people with student loan debt didn’t even get to graduate with their degrees intact. According to the senator, “life” often happens and steers people away from completing higher education.
This is far from the first time Warren’s dismissed claims that student loan forgiveness would trigger an uptick in inflation.
An Emphasis on Working People?
Before Warren’s interview with CNN wrapped up, she reiterated the need for the US economy to do more to meet the needs of working people in this country.
However, the current constraints on the economy are having the worst impacts on working people, especially those who are living paycheck to paycheck.
20 years after taking out their student loans, the typical white borrower owes just 6% of their original debt. But the typical Black borrower? 95% of their original debt.
Student debt is a racial justice issue and it's time for @POTUS to #CancelStudentDebt.
— Elizabeth Warren (@SenWarren) June 20, 2022
The congresswoman, in other settings, has also claimed student loan debt is a driver of perceived racial inequalities in America. This is a view shared by many Democrats nationwide.