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Business School Profs Say Student Loan Forgiveness Disproportionately Benefits the Wealthy

Business School Profs Say Student Loan Forgiveness Disproportionately Benefits the Wealthy

“highly regressive policy”

This has been said by many people who are smart enough to see it, but Democrats continue to insist this is about helping disadvantaged students.

Campus Reform reports:

Top business school profs say student loan forgiveness, is a ‘highly regressive policy’

A working paper from professors at two of the nation’s top business schools is adding to the data calling student loan forgiveness policies into question.

University of Pennsylvania Wharton School Professor Sylvain Catherine and University of Chicago Booth School Professor Constantine Yannelis found student loan forgiveness, a policy supported by former Vice President Joe Biden, to be a “highly regressive policy,” disproportionately benefiting wealthier Americans.

Catherine took to social media to summarize the study’s core findings.

Notably, the average person in the bottom decile of income earners would receive $3,000 of balance forgiveness in present value terms, while someone in the top three deciles would receive roughly $8,000,

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Comments

I received an email yesterday asking me if I would like my student loans taken out of forbearance, since I have continued to make payments during the last few months.

The forbearance was initiated by the government without my request. They say it’s related to covid. I kept making payments because the current interest rate of 0% means that every penny I pay goes to principal, and because I’ve stayed employed this year so I could.

My assumption is that if I say, “Yes, let’s officially end the forbearance for me and no one else, even though I don’t have to” then when (really if) the promised student loan forgiveness comes through, it won’t apply to me.

I might already have screwed myself out of it by trying to be smart and responsible.

If this looks like it’s going to happen then we should all take out student loans. It’s an easy way to make thousands of $$.

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