Student Loan Forgiveness: An Economist's Analysis

Economics Professor Cameron Harwick breaks down the potential economic benefits and consequences of President Biden's Student Debt Relief plan.

Check out the Department of Accounting, Economics, and Finance at SUNY Brockport.

[danshearer]

I paid back both my undergrad and my grad work without any forgiveness... Do I get money back?

[lv]

Well, you forgot to mention me relatively minor consideration that no one has noticed .It’s just a cheap simple way to buy votes and not have to pay for it yourself when you’re the party in power

[dianacunningham]

What we are not talking about is the increase of funds flowing to colleges and universities, they are higher than inflation and heavy in administrative cost.

[ginger]

Question, are the visa students getting their college loans paid for too? Are American tax payers paying for that.?

[edwardmiller]

I don't want to pay for someone else's debt!

[davidparkin]

39% of 18 to 24 year old high school graduates go on to post secondary education which is optional yet the government wants everyone including blue collar workers, trades people and others to pay for their decisions to borrow. They could have joined the military and gotten the G.I. bill. Their parents could have enrolled them in a college prepayment plan. They could have taken advanced placement college classes while still in high school free and gotten college credits. There are high school students who took advantage of that and graduated early saving thousands of dollars or even simultaneously. They could graduate, defer college, work and save for a few years then go. They can attend state or community College, graduate with an associate degree then transfer to a four year university with advanced placement as a junior with two years of university credit. A large percentage of college leave or graduate never using the degrees or knowledge acquired from the course work of which they studied. Over 90% of university students surveyed admit to using A.I. programs to assist them in course assignments (cheating).

[katherinehamilton]

These kids get useless degrees that will never earn them enough to pay this back. No way this is right. I paid mine back as a single mom with 3 kids and no help. These kids have no excuse. Make them

[breakthrough]

Fjb! He is abusing our system against scotus rulings. He must go! Vote him out.

[josephruffing]

I paid my tuition while working full time to get my degree

[joeme]

We HAD a boss that was always complaining about his student loan debt.
Management started complaining abut the bad choices this boss was making.

I finally fired him.
Next question on the job app which is optional to fill in, how much student loan debt do you have.
If the number is close to what Mark was saying he owed, I passed.

Bad choices made in college are a good indicator of the choices to be made latter in the REAL WORLD.
I don't want them working for me.

[patrickpalmer]

This is not hard to understand at all, you borrowed the money, you pay it back. PERIOD!

[thumbob]

Totally illegal. But par for the course with admin who ignores our laws.

[mrdanno]

What gets me mad is that Biden is willing to forgive student loans for individuals making up to $125K/year. Why should Americans who make less than half that amount have to pay your loan? If you're making that kind of money, you should be able to pay your own loan.

[und]

Pay all my bills while you're at it. When do I get the checks ?

[jefferysurratt]

I have never made more than $35, 000 during my working years, averaging just $12, 000 per year. from 1971 to 2006. Since 2018 I have paid off $28, 000 in credit card debt, Purchased and paid off a New $37, 700 Ford Edge and put $14, 000 in savings. With a retirement income of just $40, 000 per year. The government did not bail me out and should not be bailing out people that are going to make way more money than I did during my work years. One thing they could do is allow student loan debt to be dischargeable in Bankruptcy, then the borrower who really does not have the ability to pay have a fresh start. Of course the bankruptcy would be on their credit report for 10 years. The rest can just suck it up and pay their bills like the rest of us.

[Patriot]

I worked on road construction crews in the summer and part time jobs in the winter to pay for my college education. I never borrowed a cent. I'm 71. I started hod tending for brick layers when I was 12 years old. I left a lot of blood on the hoe the first two or three weeks. The hot lime in the mortar and the rough surfaces on the bricks toughened my young hands quick. I learned to use my back while I was learning to use my mind. I don't understand this young generation that think I owe them an education. They can all kiss my a__.

[saxaphone]

The Executive branch doesn't have the ability to cancel Student loan debt, it was considered unconstitutonal by the US Supreme Court.

[paulstandaert]

If I got $10, 000 for my college expenses, I could have bought a house that was $10, 000 more expensive or built a $10, 000 bigger garage for it. These student loan forgiveness activists don't have any idea about from where the money comes.

[mikerosner-ex]

The forgiveness has to be paid for. Nothing is free. The funds came from the US Treasury which is funded by our tax dollars. In other words our tax money is paying for these loans. Paying off these loans means people will take out more loans and not pay them off in hopes their loans will be forgiven. That means our taxes will be paying for more loans.

[CharlesVaughn-bmgq]

So if parents make too much it’s not forgiven? Even though the student is in their twenties. Most people don’t realize taxpayers have to pay off the loans. The money is owed to somebody.