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Sanders Makes New Proposal To Pay Off National Student Debt

Democratic presidential candidate Bernie Sanders rolled out a plan on Monday to eliminate student loan debt in the United States. Sanders, a self-described Democratic Socialist, says a tax on Wall Street will pay the United States’ collective $1.6 trillion student loan debt in only a few years.

Other Democratic candidates, including Massachusetts Senator Elizabeth Warren, have unveiled proposals for tackling the student loan debt crisis, but none, so far, have specifically proposed taxing Wall Street. Alexandria Ocasio-Cortez, a freshman Congresswoman from New York who also calls herself a Democratic Socialist, called Sanders’ plan “revolutionary.”

Sanders’ plan would tax financial transactions, including a 0.5 percent tax on stock transactions and a 0.1 percent tax on bonds.

However, not everyone is thrilled with Sanders’ plan. Some critics claim it will benefit people who already make plenty of money. College-educated Americans still far out-earn those with only high school diplomas, regardless of their student loan burden.

“The cost will march toward $3 trillion and benefit a lot of wealthy families and future high-earners,” Brian Riedl of the Manhattan Institute said.

Sanders is losing ground in recent polls, falling behind former Vice President Joe Biden, the front-runner, and progressive rival Elizabeth Warren. Sanders’ college plan was perceived by many political analysts as an attempt to compete with Warren, who has made free college and student loan forgiveness a key part of her platform.