Elizabeth Warren: ‘No proof’ student loan waiver leads to inflation

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Appearing on CNN’s “New Day” on Thursday, Senator Elizabeth Warren, D-Mass., again called for student loan debt forgiveness in the wake of record inflation.

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

Co-host John Berman noted that several people are concerned that these policies could lead to worse inflation as more money is poured into the economy.

sen.  Elizabeth Warren, D-Mass., speaks at a protest outside the US Supreme Court Tuesday, May 3, 2022 in Washington.  (AP Photo/Alex Brandon)

sen. Elizabeth Warren, D-Mass., speaks at a protest outside the US Supreme Court Tuesday, May 3, 2022 in Washington. (AP Photo/Alex Brandon)

However, Warren denied that debt cancellation would be a problem.

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“So remember that even conservative economists say, ‘No, maybe, maybe it could be about 0.2 of 1 percent effect on inflation.’ There’s just no evidence that student loan forgiveness contributes to inflation,” Warren said.

In April, several economic pundits criticized President Biden’s original backing for canceling $10,000 in student loans. They suggested that the policy could raise current inflation somewhere between 0.3% and 20%.

Despite opposition to this plan, Warren reiterated the need to ease “the burden of payment” on the working class.

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

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

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

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

“I just wanted to ask one question. My daughter is leaving school. I have saved all my money. She has no student loans. Do I get my money back?’ the father asked.

“Of course not,” Warren replied without hesitation.

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

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

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She concluded on Thursday, saying: “Forgiveness of $50,000 in student loans 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 policies are.” should be focused on.”

Morgan Phillips of Fox News contributed to this report.

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