(CNN & CBS) – According to the Board of Governors of the Federal Reserve System, U.S. student loan borrowers owed a collective $1.6 trillion in federal and private student loan debt as of March 2019. Statistics show most college students at graduation will spend over their lifetime attempting to clear the debt.
Senator Elizabeth Warren is introducing a student loan debt forgiveness bill that is said to repair this massive issue.
WATCH: Senator Elizabeth Warren and House Majority Whip Jim Clyburn introduce ‘The Student Loan Debt Relief Act’
The 2020 Democratic Presidential Candidate’s measure would wipe out $50,000 worth of debt for households earning less than 100,000 dollars a year.
That covers 95% of the 45 million Americans who are carrying student debt.
Households earning up to $250,000 are also covered on a rolling scale that reduces the amount of forgiveness as income increases.
Warren’s campaign says the debt relief would cost about $640 Billion dollars and a proposed wealth tax would cover the expense.
She is partnering with South Carolina Representative James Clyburn, who will sponsor Companion Legislation in the house.
Senator Bernie Sanders also has a student debt cancellation proposal. His proposal wipes out all $1.6 trillion in outstanding debt. He says it would be paid for by a tax on Wall Street speculation.