{"id":4104,"date":"2020-12-28T21:57:57","date_gmt":"2020-12-28T21:57:57","guid":{"rendered":"http:\/\/lonecandle.com\/?p=4104"},"modified":"2020-12-28T21:57:57","modified_gmt":"2020-12-28T21:57:57","slug":"the-debate-over-joe-biden-canceling-student-debt-explained","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=4104","title":{"rendered":"The debate over Joe Biden canceling student debt, explained"},"content":{"rendered":"\n

\n\n“\u201cNo matter how it\u2019s designed, student-debt forgiveness is very poorly targeted,\u201d Bloomberg\u2019s editorial board warned in November<\/a>. \u201cEven if relief could be better focused on the poor, severe drawbacks remain. For one, the vast majority of Americans who don\u2019t have student debt would rightly feel left out. Many never had the opportunity to get a higher education; others put off financial goals (such as saving for retirement) to pay it down. Also, it would do little<\/a> to improve the immediate cash flow of the many debtors who \u2014 because they\u2019re in default or in income-based repayment plans \u2014 are making small or no monthly payments.\u201d”
…
“At the heart of the argument for canceling student debt, especially in the midst of the pandemic, is that it would be good for millions of people and, therefore, the economy. How <\/em>good is where the disagreement resides \u2014 and because mass student debt forgiveness isn\u2019t something we\u2019ve seen in the past, the data on what could happen is relatively limited.<\/p>\n\n\n\n

One 2019 working paper<\/a> from Harvard Business School looked at what happened when students in default had their debt discharged because of a lawsuit. They found that borrowers reduced their overall indebtedness by a quarter and were also less likely to default on other accounts. That\u2019s good for them and for the entities they owe money to.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“People also demonstrated more mobility \u2014 they moved states, changed jobs, and took more risks that often translated to higher incomes.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“\u201cIf you give the same type of forgiveness to people that are not in that situation, one effect that we don\u2019t capture is that your monthly payment is going down,\u201d he said. The $300 people were putting toward loan payments every month could then be spent elsewhere.”<\/p>\n\n\n\n


https:\/\/www.vox.com\/policy-and-politics\/22152601\/biden-student-loan-debt-cancellation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“\u201cNo matter how it\u2019s designed, student-debt forgiveness is very poorly targeted,\u201d Bloomberg\u2019s editorial board warned in November. \u201cEven if relief could be better focused on the poor, severe drawbacks remain. For one, the vast majority of Americans who don\u2019t have student debt would rightly feel left out. Many never had the opportunity to get a higher education; others put off financial goals (such as saving for retirement) to pay it down. Also, it would do little to improve the immediate cash flow of the many debtors who \u2014 because they\u2019re in default or in income-based repayment plans \u2014 are making small or no monthly payments.\u201d”<\/p>\n

…<\/p>\n

“At the heart of the argument for canceling student debt, especially in the midst of the pandemic, is that it would be good for millions of people and, therefore, the economy. How good is where the disagreement resides \u2014 and because mass student debt forgiveness isn\u2019t something we\u2019ve seen in the past, the data on what could happen is relatively limited.
\nOne 2019 working paper from Harvard Business School looked at what happened when students in default had their debt discharged because of a lawsuit. They found that borrowers reduced their overall indebtedness by a quarter and were also less likely to default on other accounts. That\u2019s good for them and for the entities they owe money to.”<\/p>\n

…<\/p>\n

“People also demonstrated more mobility \u2014 they moved states, changed jobs, and took more risks that often translated to higher incomes.”<\/p>\n

…<\/p>\n

“\u201cIf you give the same type of forgiveness to people that are not in that situation, one effect that we don\u2019t capture is that your monthly payment is going down,\u201d he said. The $300 people were putting toward loan payments every month could then be spent elsewhere.”<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[375,7,780,740],"class_list":["post-4104","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-biden","tag-debt","tag-joe-biden","tag-student-loans"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/4104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4104"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/4104\/revisions"}],"predecessor-version":[{"id":4105,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/4104\/revisions\/4105"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}