Opinion | Should Biden Cancel Student Debt? - The New York Times - 0 views
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Should Biden Cancel Student Debt?Economics offers only part of the answer. The rest depends on whether you think higher education is an investment or a public good.
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Whenever I think about student loan debt, one of the first things I think about — besides my own — is a 2018 essay by my colleague M.H. Miller. As one of the 45 million Americans who collectively owe $1.71 trillion for student loans, Mr. Miller wrote about what it is like to have debt — more than $100,000 worth in his case — become the organizing principle of your life, to be incapacitated by it, suspended, at age 30, “in a state of perpetual childishness.”
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The economic injustice argument tends to invite a lot of debate about how best to tailor cancellation to those who are suffering most from the crisis, which isn’t always the same thing as who has the largest student loan balance. That’s because student debt, in dollar terms, is concentrated among people who make more money and tend to be much better able to make their monthly payments than borrowers who owe relatively small amounts.Here’s a chart from Matt Bruenig at the People’s Policy Project that shows the spread:Editors’ PicksWhere Is Hollywood When Broadway Needs It?75 Artists, 7 Questions, One
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From this vantage, proponents argue that the student debt crisis incurs social costs even in the case of better-off borrowers, like lawyers who have to go into corporate law instead of becoming public defenders because they have $200,000 in law school loans to pay off. And then there are borrowers for whom “affording” payments means being saddled with the depressing obligation to delay or forgo major life milestones like having children, owning a home and saving for retirement.
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Virtually everyone in this debate agrees that cancellation would only treat the symptoms of the student debt crisis, not cure its causes. Some say it could make the problem even worse by, in effect, bailing out schools whose value has outstripped their cost, causing tuitions to rise even higher and incentivizing people to take out loans they can’t afford with the expectation they will be forgiven.