Left wing politicians and liberal activists continue to push for blanket student loan forgiveness. Their sunny promises don’t tell the truth.
Bailing out student loan borrowers will do more to help wealthy students who attend pricey private colleges than it will to provide relief to low-income students who hold a disproportionately smaller amount of federal student loan debt.
But don’t just take our word for it, here’s what others are saying:
- “This [student loan forgiveness] is the worst macro policy I’ve ever heard of…
- Source: Justin Wolfers, Professor of Public Policy and Economics, December 6, 2020
- “While it is nice to make topical arguments, if we are being honest about things, student debt forgiveness is possibly the least effective stimulus imaginable on a dollar-for-dollar basis…”
- Source: Matt Bruenig, President of People’s Policy Project, November 16, 2020
- “A blanket forgiveness of student debt would be a Brahmin bailout, delivering economic benefits to the upper class while doing nothing for the trucker in Toledo, Ohio, or the Waffle House waitress in Atlanta. It would increase divisions between the college-educated and the rest of the country without reforming the student lending system or bloated universities that created the debt problem.”
- Source: Zaid Jilani, Journalist, November 29, 2020