Republicans Just Killed Elizabeth Warren’s Plan to Ease Americans’ Crushing Student Loan Debt

The Senate voted Wednesday on the Massachusetts senator’s bill to lower interest rates for student loans.

J. Scott Applewhite/AP

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Sen. Elizabeth Warren (D-Mass.) can’t catch a break. Senate Republicans voted Wednesday morning to block her latest piece of liberal reform. The Senate voted 56-38 in favor of Warren’s bill to help ease the burden of student loan debt. Despite a majority of senators approving the measure, it failed to reach the 60 votes needed to overcome Republicans’ filibuster of the measure.

Warren’s bill is a simple concept. Current students can take out government loans at 3.86 percent interest, a cheaper rate than many of the loans held by past generations of students. The bill would also allow borrowers to refinance their current loans down to that lower rate.

Student loans have become a major drag on the economic fortunes of young Americans, hampering their ability to take risks in seeking jobs and delaying their ability to make the sort of purchases (cars, homes, etc.) that have typically defined a middle-class American life. More than 40 million people still owe money for their higher education. The total pool of loans still owed currently hovers over $1.2 trillion, more than the country’s outstanding credit card debt. About 15 percent of student loans go into default within three years.

The main reason Republicans objected to the measure has less to do with the idea of easing student loan debt, and more with the mechanism Warren used to offset the cost of refinancing those loans. It would cost the government $51 billion over the next decade to allow borrowers to refinance. But Warren’s bill would have actually reduced the deficit, bringing in $72 billion in new revenues by implementing the so-called Buffet Rule, an added surcharge tax on millionaires to ensure that they pay at least 30 percent of their income in taxes. “It’s a basic question on our values,” Warren told the Boston Globe this week. “Does this country protect millionaires’ and billionaires’ tax loopholes? Or does it try to help young people who are just starting their economic lives?”

But when even conservative fire-breathers in Republican leadership are tossed aside as RINOs, anything with the whiff of a tax increase is off the table for Republicans. Instead, it’s easier to ignore the troubles of young Americans wallowing in debt.

Senate Democrats aren’t finished pushing Warren’s bill, though. Democrats up for reelection this year have been using the bill to hammer their opponents, and the party has rolled it into their wider push for aiding women, since women are more likely to attend college but earn less for their degrees than their male peers.  

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate