Is Student Loan Forgiveness A Good Idea?

Money For the Rest of Us

Should the U.S. cancel $10,000 or more of student loan debt per borrower? What would be the economic and financial impact? Why the student loan system is broken and how to fix it.

Topics covered include:

• How large and what is the growth rate of U.S. student loan balances
• What are the projections for student loan losses
• What are the pros and cons of forgiving student loans
• What would be the impact on federal finances of canceling student loans
• Why the U.S. government is already technically insolvent
• How student loan programs should be restructured

Thanks to LinkedIn and Policygenius for sponsoring the episode.

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Show Notes

Student Loans Owned and Securitized, Outstanding—Federal Reserve Bank of St. Louise

Senate majority gives Biden path to student loan forgiveness by Sylvan Lane—The Hill

Schumer pressures Biden to bypass Congress to cancel $50,000 in student debt per borrower by Annie Nova—CNBC

Biden will call on Congress to forgive $10,000 in student debt for all borrowers by Annie Nova—CNBC

Outreach From Borrowers Could Overwhelm Student Loan System When Pandemic Pauses End by: Sarah Sattelmeyer and Lexi West—PEW

Financial Report of the United States Government FY 2019

Warren makes case to Fed chair for canceling student loan debt by Naomi Jagoda—The Hill

Student Loan Losses Seen Costing U.S. More Than $400 Billion by Josh Mitchell—The Wall Street Journal

Final Monthly Treasury Statement Receipts and Outlays of the United States Government For Fiscal Year 2020 Through September 30, 2020, and Other Periods—U.S. Department of the Treasury

Average Student Loan Debt at Graduation by Mark Kantrowitz—Savingforcollege.com

Profile Of The Labor Force By Educational Attainment by Vernon Brundage, Jr.—U.S. Bureau of Labor Statistics

Millennial life: How young adulthood today compares with prior generations by Kristen Bialkin and Richard Fry—PEW Research Center

Forgiving Student Debt Isn’t a Great Stimulus Plan by Noah Smith—Bloomberg

Average annual salary of bachelor's degree recipients employed full time 1 year after graduation, by field of study: Selected years, 1976 through 2001—National Center for Education Statistics

NACE Salary Survey Winter 2020—National Associations of Colleges and Employers

Australia’s student loan problem is a teachable moment for the U.S. by Jason Delisle and Alex Usher—Brookings

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