Close Menu
Badger InstituteBadger Institute
  • Home
  • Issues
    • Taxes
    • Education
    • Crime & Justice
    • Spending & Accountability
    • Economy & Infrastructure
    • Federalism
    • Licensing
    • Healthcare
    • Childcare
    • Marijuana
    • Energy
    • Civil Society
  • Mandate for Madison
  • Research
  • News & Analysis
    • News & Analysis
    • Viewpoints (Op-ed)
    • By the Numbers
    • Fact Sheets
    • Magazines
      • Diggings
      • Wisconsin Interest
  • Media
    • Badger in the News
    • Press Releases
    • Podcast
    • Video
    • Audio
    • Testimony
  • Events
  • About
    • Our Mission
    • Board of Directors
    • Team
    • Visiting Fellows
    • Careers
  • Newsletter
  • Donate
  • Contact Us

Subscribe for Updates

Get the latest news and updates from Badger Institute.

What's New

In Act 10 fight, unions don’t just want you to pay — they want power

December 7, 2023

The many problems with Republicans’ latest childcare bill

December 7, 2023

Legal attack on school choice threatens Public School Open Enrollment

November 30, 2023
Facebook X (Twitter) YouTube LinkedIn Instagram
TRENDING:
  • In Act 10 fight, unions don’t just want you to pay — they want power
  • The many problems with Republicans’ latest childcare bill
  • Legal attack on school choice threatens Public School Open Enrollment
  • Government Scrooges take cut of Christmas tree trade
  • Years after pandemic, Evers spending ARPA money on soccer and a railroad museum
  • Lessons in liberty
  • This is not four years ago
  • Billions in federal spending in Wisconsin unaudited; results never measured
  • Donate
  • Events
  • Contact
Facebook X (Twitter) YouTube LinkedIn Instagram
Badger InstituteBadger Institute
SUPPORT OUR MISSION
  • Issues
    • Taxes
    • Education
    • Crime & Justice
    • Spending & Accountability
    • Economy & Infrastructure
    • Federalism
    • Licensing
    • Healthcare
    • Childcare
    • Marijuana
    • Energy
    • Civil Society
  • Mandate for Madison
  • Research
  • News & Analysis
    • News & Analysis
    • Viewpoints (Op-ed)
    • By the Numbers
    • Fact Sheets
    • Magazines
      • Diggings
      • Wisconsin Interest
  • Media
    • Press Releases
    • Badger in the News
    • Podcast
    • Video
    • Audio
    • Testimony
  • About
    • Our Mission
    • Board of Directors
    • Team
    • Visiting Fellows
    • Careers
Facebook X (Twitter) YouTube LinkedIn
DONATE
Badger InstituteBadger Institute
Home » Education » Policy Brief: Forgiving Student Loan Debt
Crime and Justice

Policy Brief: Forgiving Student Loan Debt

By Scott Niederjohn, Ph.D.May 25, 2022
Share
Facebook Twitter LinkedIn Pinterest

Who wins and who loses?

Student debt forgiveness schemes are both inefficient and unfair policies for helping low-income families. First, it is clear that any plan to eliminate student debt across the board would end up benefiting doctors, lawyers and many others who have or are likely to get high-earning jobs and won’t need help paying off their loans. Further, because the majority of student debt—both nationally and in Wisconsin—is held by those in the top 40% of the income distribution, such a plan would most benefit the wealthy, contributing further to income and wealth inequality. In addition, debt forgiveness would add to inflationary pressures, as the former debt holders have freed-up money to spend on other uses.

Debt forgiveness amounts to spending $1 trillion from the federal Treasury exclusively on people who went to—and in most cases graduated from—college. This essentially punishes Americans who didn’t go to college and, because of that fact, are more likely to need government help.

In all, 58% of college student debt is held by students from the top 40% of incomes. Further, 56% of student debt is held by those with master’s, professional or doctoral degrees. Such groups are not typically targeted for federal welfare or subsidy programs. But that is exactly what any across-the-board student loan forgiveness program would do. Further, such a plan seems exceedingly unfair for families whose children either didn’t attend college or, if they did and borrowed money to do so, paid off their loans as most responsible borrowers do.

Read Full Report
News
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Scott Niederjohn, Ph.D.

Related Posts

The many problems with Republicans’ latest childcare bill

December 7, 2023

Legal attack on school choice threatens Public School Open Enrollment

November 30, 2023

Policy Brief: Marijuana legalization and the impact on public safety

November 14, 2023
Categories
Top Posts

This is not four years ago

November 10, 20221,410

Billions in federal spending in Wisconsin unaudited; results never measured

November 9, 2022558

Wisconsin didn’t ‘buck national trends’

October 26, 2022449

Legal attack on school choice threatens Public School Open Enrollment

November 30, 2023408
Archives

Top Picks

Subscribe for the latest news and research from Badger Institute

Name(Required)
By submitting this form, you are consenting to receive marketing emails from: Badger Institute, 700 W. Virginia St., Suite 301, Milwaukee, WI, 53204, US. You can revoke your consent to receive emails at any time by using unsubscribe link found at the bottom of every email.

Connect with Badger Institute
  • Facebook
  • Twitter
  • YouTube
  • LinkedIn
About Us
About Us

The Badger Institute is a nonpartisan, not-for-profit institute established in 1987 working to engage and energize Wisconsinites and others in discussions and timely action on key public policy issues critical to the state’s future, growth and prosperity.

Facebook X (Twitter) Instagram YouTube LinkedIn

Sign Up for Top Picks

Get the latest news and research from Badger Institute

Name(Required)
By submitting this form, you are consenting to receive marketing emails from: Badger Institute, 700 W. Virginia St., Suite 301, Milwaukee, WI, 53204, US. You can revoke your consent to receive emails at any time by using unsubscribe link found at the bottom of every email.

What’s New

In Act 10 fight, unions don’t just want you to pay — they want power

December 7, 2023

The many problems with Republicans’ latest childcare bill

December 7, 2023

Legal attack on school choice threatens Public School Open Enrollment

November 30, 2023

Government Scrooges take cut of Christmas tree trade

November 30, 2023
© 2023 Badger Institute | Privacy Policy | Disclaimer | Sitemap

Type above and press Enter to search. Press Esc to cancel.