Sens. Elizabeth Warren (D-Mass.) and Chuck Schumer (D-N.Y.) want to give up to $50,000 in debt relief to every American with student loans. Though they claim to be progressives, there is nothing progressive about this. It would benefit households in the top half of the income scale far more than those in the bottom half. Almost half of those with student debt have graduate degrees, after all.
It’s no wonder so many working-class voters have abandoned the Democratic Party. Bailing out college graduates with decent incomes will convince many that the Republicans are correct: The Democrats are elitists who don’t care about those without college degrees.
President Biden proposes to forgive only $10,000 in student debt, targeted to borrowers from low-income families. That is a more progressive approach, but it won’t help those who never went to college. According to the Census Bureau, only roughly 36 percent of Americans over age 25 have four-year college degrees, while 38 percent never attended a day of college. Only 20 percent of U.S. households have student debt.
With a little creativity, the president could help needy borrowers while also investing in non-college goers. Specifically, the administration should propose $10,000 per person in “career opportunity accounts” for working Americans aged 18 to 55 who earn less than $75,000 a year. Roughly two-thirds of all full-time, year-round workers earn less than $75,000. (To avoid penalizing those who earn just over $75,000, the money could be phased out between $70,000 and $80,000.)
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