Chuck Shumer recently stated that Joe Biden should sign an executive order that forgives $50,000 in student loan debt. This is not only unfair to American taxpayer but is a bad idea.
If you are trying to help people in lower income brackets this is not the way to do it. The brookings institute states in regards to student loan forgiveness: "the top 20 percent of households receive about 27 percent of all annual savings, and the top 40 percent about 66 percent. The bottom 20 percent of borrowers by income get only 4 percent of the savings"
Forbes claims: "The top fifth of households holds $3 in student loans
for every $1 held by the bottom fifth, according to an analysis
by the People’s Policy Project. In fact, that probably understates how regressive student loan forgiveness might be, because many student borrowers in lower income quintiles are young and will probably earn more later in their careers.Students from rich families tend to borrow more
than students from poor families, since wealthy students disproportionately choose expensive private colleges where even rich families must resort to borrowing."
Out of 255 million adult Americans, just 45 million have federal student debt. If economic relief is in order, it’s highly inequitable to distribute tens of thousands of dollars to the 45 million while the other 210 million get nothing.
We are taking money out of the average american and working class citizen and most will benefit the wealthy.
In practice will make colleges more unaffordable. College student loans are gauranteed by the government. This means the colleges face very little risk is raising prices, as they automatically ge there money whether the student can pay it back or not. Paying off student loans will only incentivize colleges to increase their tuition as well as incentivizing individuals to go to colleges that are unaffordable to them or their degree in hopes that they will receive the same treatment.
Finally it is just unfair. Making individuals who didnt go to college, those who went to cheaper community colleges, or those who worked to pay off their debt now have to pay for those who made poor decisions. When I buy a Lamborghini that i cant afford, i dont get to expect the taxpayer to pay it off and allow me to reap the rewards.