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Mr. Sanders’s plan, which he introduced alongside Reps. Ilhan Omar (D., Minn.) and Pramila Jayapal (D., Wash.) on Monday, would erase all existing student debt, including private and graduate-school loans. Mr. Sanders would pay for the canceled debt with a new tax he is proposing on stock, bond and derivatives trades, which his office projected would raise $2.4 trillion over a decade.
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Earlier this spring, Sen. Elizabeth Warren (D., Mass.), who appeals to many of the same liberal voters as Mr. Sanders, unveiled a plan to cancel a large chunk of existing student debt. Her proposal, which would cost $640 billion, would offer assistance to people with incomes up to $100,000 and cap loan forgiveness at $50,000 per person.