Writer for The Hill outlines potential impact of student loan forgiveness on the economy and borrowers who take on loans in the future.
04/20/2022 9:45 A.M.
1.5 minute read
Following the latest extension of the hold on student loan payments through August, opinion contributor and visiting fellow at the Independent Women’s Voice Kristin Tate writes in a piece for The Hill that, “the numerous student loan pauses, as well as demands to fully forgive student loans, have little to do with the pandemic and everything to do with a political goal ahead of the 2022 midterms.”
Tate also questions why, if the economy is as strong as the White House says, the pauses in student loan payments or the possibility of complete student loan forgiveness continues on Capitol Hill.
“Should President Biden take the next step and issue blanket student loan forgiveness, as many in his party are loudly demanding, there would be severe economic impacts at the expense of working taxpayers—including minority and blue-collar workers, who would be forced to foot the massive bill,” Tate writes.
According to Tate, the expectation of student loan forgiveness—even if it doesn’t happen—“would incentivize young people to pursue expensive, non-practical degrees at the most prestigious schools possible.”
Tate also highlights the discrepancy between earnings in the U.S. and the people who have student loan debt, stating that “the richest 40 percent of the American public holds 60 percent of the student loan debt, while the bottom 40 percent holds just 20 percent of the debt.”
Read Tate’s complete article here.
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Kristin Tate is a visiting fellow at the Independent Women’s Voice and a libertarian writer. Her latest book is “How Do I Tax Thee? A Field Guide to the Great American Rip-Off.” Follow her on Twitter @KristinBTate.
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