Over the weekend, California Sen. Kamala Harris caused some confusion on Twitter when she announced a program for student loan debt forgiveness.
What We Know:
- Harris tweeted that the program is geared toward Pell Grant recipients. Grads can have $20,000 of loans erased if they start a business that operates for three years in a disadvantaged community. During that period, they can also defer their debt interest-free.
- Many were quick to point out their concerns with the proposal. For one, only people who receive a Pell Grant are eligible, which are reserved for students from low-income households. According to data collected by the College Board, only 7 million people received Pell Grants in the 2017-2018 academic year.
- People were also stuck on the fact that the program fails to consider the difficulty of starting a business—especially right out of college—and have that business survive for three years.
I work at an incubator in a university that is deeply committed to innovation in a city that has what feels like an incubator in every corner, and this is so absurd… a LOT of new businesses fail, and they take a lot of money and effort regardless of success. Who does this help? https://t.co/pFvaQa7k33
— Camila Londoño (@drClondono) July 28, 2019
- Kamala defended her proposal, saying it’s a part of two new policy proposals designed to support closing the wealth gap among black Americans. was designed to close the wealth gap.
- In the plan, Harris also proposes increasing access to federal contracts for minority-owned businesses and bringing back the State Small Business Credit Initiative to support those businesses on a state level.
Harris’ previous proposals regarding student debt include making community college free, making four-year public college debt-free and expanding the income-driven repayment program, which allows borrowers to repay their loans as a percentage of their income.
Pell grant recipient here to say that I most likely will not have the funds to start a business…because my family is economically disadvantaged…which is why I qualified for Pell…and still had to take out loans. https://t.co/XgmrPRpjZd
— shea butter-scented grad (@charlizzleswamp) July 28, 2019
