(FinancialHealth.net) – Senator Elizabeth Warren (D-MA) announced her plan to cancel student loan debt this week. Unfortunately, it looks like she’s going to punish America’s most successful citizens in the process.
Warren’s plan will cancel up to $50,000 of student loan debt for people who make under $100,000 annually. For those who make over that but up to $250,000, a portion of their debt will also be canceled based on their income.
So, what does that mean for you?
Well, if you make under $100,000, in theory, this plan would be good for you. Keep in mind, she plans to pay for it with a wealth tax and there’s talk that it would harm the economy.
However, if you have accrued a tremendous amount of debt getting an advanced degree so that you could make more money, you’re basically getting penalized.
If you are still under the $250,000 mark, less of your debt will be forgiven — even though you have more of it. Finally, if you used your degree and you make more than that, you won’t get any debt forgiveness at all.
Seems her plan isn’t all it’s cracked up to be.
~Here’s to Your Financial Health!
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