Almost two-thirds of all student debt — nearly $929 billion as of 2019 — in the U.S. is held by women. One-third of Latino borrowers do not complete their degrees, compared to only one-fourth of white borrowers. 35 percent of Latino student loan borrowers who started college in 2003-2004 defaulted on their loans, compared to only 20 percent of white borrowers. Black students take out loans at a higher rate to pay for school, graduate with more student debt than white counterparts and, because of income disparities, take longer to pay it off while paying more interest. This proposal would cut the racial wealth gap for young Americans by more than half– from 12:1 to 5:1. Bernie believes our country is morally bound to close the racial wealth divide. In order to do that we are going to cancel all student debt.
Seventy-three percent of the benefits of cancelling all student debt will go to the bottom 80 percent of Americans, who are making less than $127,000 a year. President Trump’s tax cuts for the wealthy and big corporations cost more than $2 trillion, 83 percent of which will end up going to the top 1 percent. Bernie believes that money would be better spent on freeing millions of hardworking people from the burden of student debt, boosting the economy by $1 trillion over the next ten years, and creating up to 1.5 million new jobs every year. By canceling student debt, we will save the average student loan borrower around $3,000 a year in student loan payments. That money will be freed up to spend on everything from housing to starting a business.