Given the stakes both for students and the budget it is important for policymakers and the general public to understand the effects of different forgiveness options. Many economists have already pointed out that loan forgiveness would disproportionately help people on the upper end of the earning scale: Two scholars with the Brookings Institution, for instance, note that 60 percent of educational debt is owed by households in the top 40 percent of earners those, that is, with an annual income of $74,000 or more. This skew is hardly surprising, as many Americans do not go to college and only a fraction go to graduate or professional schools. And those who do go to college earn substantially more, in part thanks to the degree: Over t…
Read the full article at: https://www.washingtonpost.com/outlook/2020/12/28/student-loan-forgiveness-repayment-income-regressive/