(CNN Newsource) — Senator Elizabeth Warren introduced a student loan debt forgiveness bill Tuesday. The 2020 Democratic presidential candidate’s measure would wipe out $50,000 worth of debt for households earning less than $100,000 a year. That covers 95 percent 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 and a proposed wealth tax would cover the expense. Warren 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 billion in outstanding debt. He says it would be paid for by a tax on Wall Street speculation.