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Elizabeth Warren: ‘No evidence’ student loan debt forgiveness will lead to inflation

 

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While appearing on CNN’s “New Day” on Thursday, Sen. Elizabeth Warren, D-Mass., once again called for the cancellation of student loan debt in the wake of record-level inflation.

Warren, who has repeatedly proposed canceling student loan debt nationwide, reaffirmed her support for President Biden to cancel up to $50,000 worth of loans.

Co-host John Berman noted that several people are concerned that this policy could lead to worse inflation rates as more money is put into the economy.

Sen. Elizabeth Warren, D-Mass., speaks during a protest outside of the U.S. Supreme Court Tuesday, May 3, 2022 in Washington. (AP Photo/Alex Brandon)

Warren, however, denied that debt forgiveness would be an issue.

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“So, keep in mind that even conservative economists say, ‘No, maybe, maybe it could be about .2 of 1 percent effect on inflation.’ There is just no evidence that canceling student loan debt contributes to inflation,” Warren said.

In April, several economic experts criticized President Biden’s original support for forgiving $10,000 of student loan debt. They suggested that the policy could raise the current inflation rate anywhere between .3% and 20%.

Despite backlash against this plan, Warren reiterated the need to “relieve the burden of payment” for the working class.

WASHINGTON, DC - FEBRUARY 4: Senate Majority Leader Chuck Schumer (D-NY) speaks during a press conference about student debt outside the U.S. Capitol on February 4, 2021 in Washington, DC. Also pictured, L-R, Rep. Mondaire Jones (D-NY), Rep. Alma Adams (D-NC), Rep. Ilhan Omar (D-MN), Sen. Elizabeth Warren (D-MA) and Rep. Ayanna Pressley (D-MA). (Photo by Drew Angerer/Getty Images)

WASHINGTON, DC – FEBRUARY 4: Senate Majority Leader Chuck Schumer (D-NY) speaks during a press conference about student debt outside the U.S. Capitol on February 4, 2021 in Washington, DC. Also pictured, L-R, Rep. Mondaire Jones (D-NY), Rep. Alma Adams (D-NC), Rep. Ilhan Omar (D-MN), Sen. Elizabeth Warren (D-MA) and Rep. Ayanna Pressley (D-MA). (Photo by Drew Angerer/Getty Images)

“But here’s what it does. It relieves the burden of payment for a lot of working families. Keep in mind, that only 58 percent of the people who have student loan debt actually have a college diploma. That remaining 42 percent tried and God bless them, but pregnancy, they were trying to work three jobs and couldn’t hold it altogether, they now earn like a high school graduate earns, but they are trying to manage student loan debt and it is crushing them,” Warren explained.

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In Jan. 2020, Warren was confronted by an angry father over her desire to forgive student loan debt.

“I just wanted to ask one question. My daughter is getting out of school. I’ve saved all my money. She doesn’t have any student loans. Am I going to get my money back?” the father asked.

“Of course not,” Warren answered, without hesitation.

Democratic presidential candidate Sen. Elizabeth Warren (D-MA) visits with striking Chicago teachers at Oscar DePriest Elementary School on October 22, 2019 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)

Democratic presidential candidate Sen. Elizabeth Warren (D-MA) visits with striking Chicago teachers at Oscar DePriest Elementary School on October 22, 2019 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)

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She closed Thursday saying, “Canceling $50,000 of student loan debt would be a huge relief for tens of millions of working people. And ultimately, I think we need to do more to make this economy work for working people. That’s what our policy should be directed toward.”

Fox News’ Morgan Phillips contributed to this report.

 

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