Student debt is a crisis, for students and for graduates living with debt. There’s near-universal bipartisan agreement that reform is desperately needed, but almost as much disagreement about what, exactly, to do about it. On Monday, Senator Elizabeth Warren, one of the Democratic hopefuls vying for the White House in 2020, released a comprehensive college-affordability plan that she believes could fix a fundamentally flawed system of paying for college.
In a Medium post, Warren criticized the government’s hands-off approach as affordable access to America’s universities declined. “Rather than stepping in to hold states accountable, or to pick up more of the tab and keep costs reasonable, the federal government went with a third option: pushing families that can’t afford to pay the outrageous costs of higher education towards taking out loans,” she wrote in the post. To remedy this, she is calling for a series of ambitious proposals, including the cancellation of student debt, universal free public college, and greater support for minority and low-income students. Of course, Warren is not the first politician to call for any of these policies specifically, but the details of her plan separate her reform package from the pack; she plans to pay for it with her “ultra-millionaire tax”—an annual 2 percent tax on families with $50 million or more in wealth. Critics of a wealth tax argue that it would be difficult to implement—accounting for assets such as antiques or land poses considerable difficulties—and that it would lead to more aggressive tax avoidance.