Senator Warren vows to cancel student loan debt on first day if elected president

Senator Warren released a plan Tuesday stating that she would use executive power to cancel student loan debt if she becomes president.

As part of the plan, Warren will direct the Secretary of Education to use their authority to begin to compromise and modify federal student loans consistent with her plan to cancel up to $50,000 in debt for 95% of student loan borrowers (about 42 million people).

Warren also stated that she would direct the Secretary of Education to use authority available to “rein in” the for-profit college industry, crack down on predatory student lending, and combat the racial disparities in our higher education system.

In her statement, Warren says that the Higher Education Act gives the Department of Education the ability to modify, compromise, waive, or release student loans.

“We’re facing a student loan crisis — one that’s holding back our economy and crushing millions of American families. I have already proposed bold steps to broadly cancel student loan debt, provide universal tuition free public two- and four-year college and technical school, ban for-profit colleges from receiving federal aid, and help end racial disparities in college enrollment and resources.”

“But the Department of Education already has broad legal authority to cancel student debt, and we can’t afford to wait for Congress to act. So I will start to use existing laws on day one of my presidency to implement my student loan debt cancellation plan that offers relief to 42 million Americans — in addition to using all available tools to address racial disparities in higher education, crack down on for-profit institutions, and eliminate predatory lending.”

“For-profit colleges have targeted low-income students, service members, and students of color, leaving them saddled with debt.”

“I’m committed to ending federal financial aid to for-profit colleges — and until Congress takes action on that proposal, I will use all of the options available to crack down on the industry’s predatory practices and to safeguard students.”