The Biden administration has announced the long-discussed partial student loan forgiveness. Briefly, the program intends to forgive $10,000 of student debt for people who earned less than $125,000 in 2020 or 2021. A significant debate arose around this topic covering a wide range of issues, including the fairness of the program, the impact this program will have on inequality, and whether the forgiven amount is sufficient. Here, I will focus mainly on the impact this debt forgiveness will have on the eligible people, along with what macroeconomic consequences it may have. Indirectly, this will also contribute to the discussion on the ‘fairness’ of this policy.
Economic Impacts of Student Loan Forgiveness
Economic Impacts of Student Loan Forgiveness
Economic Impacts of Student Loan Forgiveness
The Biden administration has announced the long-discussed partial student loan forgiveness. Briefly, the program intends to forgive $10,000 of student debt for people who earned less than $125,000 in 2020 or 2021. A significant debate arose around this topic covering a wide range of issues, including the fairness of the program, the impact this program will have on inequality, and whether the forgiven amount is sufficient. Here, I will focus mainly on the impact this debt forgiveness will have on the eligible people, along with what macroeconomic consequences it may have. Indirectly, this will also contribute to the discussion on the ‘fairness’ of this policy.