Wooing young voters with a $58 billion plan that gives money primarily to college graduates who don’t need it.
Democrats face an uphill battle in their quest to hold the Senate in November. In their effort to get an edge, they’ve targeted one group in particular: college-educated voters with student-loan debt. Democratic plans to help student-loan borrowers have been a key talking point on the campaign trail this year, and sit at the center of the party’s “Fair Shot” agenda.
Massachusetts Sen. Elizabeth Warren has become the party’s chief evangelist on the issue, thanks to her proposal that would allow borrowers to refinance their student loans at current rates, supposedly paid for with a tax increase on millionaires. After Republicans blocked Sen. Warren’s bill in June, she went straight to Kentucky to campaign against Minority Leader Mitch McConnell, and has accused him and fellow Republicans of “choosing to side with billionaires instead of with students.” This week Sen. Warren and her fellow Democrats raised the issue again as the campaigns enter the home stretch.
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Sen. Elizabeth Warren in Kentucky campaigning for Democratic Senate candidate Alison Lundergan Grimes at the University of Louisville, June 29. Timothy D. Easley/Associated Press
Democrats want to define the student-loan debate as a choice between poor college students and the super rich. But Sen. Warren’s ideas are an expensive and ineffective way to ease the burden of student debt. Worse yet, they set up a far more troubling tension: Lavishing federal money on the college-educated erodes our ability to help disadvantaged students make it to college in the first place.
Take Sen. Warren’s refinancing plan. Allowing former students to refinance at lower interest rates would bring down almost every borrower’s payments. So while this would provide some modest assistance to those who are struggling to pay back their loans, it would also give nearly three-quarters of borrowers who are doing fine a handout from the federal government. Think of it as a stimulus package for the college-educated.