Majority of student debt in Wisconsin held by those in top 40% of income distribution A Badger Institute Policy Brief: Forgiving Student Loan Debt Executive summary May 2022 | By Scott Niederjohn, Ph.D. Student debt forgiveness schemes are both inefficient and unfair policies for helping low-income families. First, it is clear that any plan to eliminate student debt across the board would end up benefiting doctors, lawyers and many others who have or are likely to get high-earning jobs and won’t need help paying off their loans. Further, because the majority of student debt—both nationally and in Wisconsin—is held by those in the top 40% of the income distribution, such a plan would most benefit the wealthy, contributing further to income and wealth inequality. In addition, debt forgiveness would add to inflationary pressures, as the former debt holders have freed-up money to spend on other uses. Debt forgiveness amounts to spending $1 trillion from the federal Treasury exclusively on people who went to—and in most cases graduated from—college. This essentially punishes Americans who didn’t go to college and, because of that fact, are more likely to need government help. In all, 58% of college student debt is held by students from the top 40% of incomes. Further, 56% of student debt is held by those with master’s, professional or doctoral degrees. Such groups are not typically targeted for federal welfare or subsidy programs. But that is exactly what any across-the-board student loan forgiveness program would do. Further, such a plan seems exceedingly unfair for families whose children either didn’t attend college or, if they did and borrowed money to do so, paid off their loans as most responsible borrowers do. Read the Full Policy Brief Share This Email Share This Email Share This Email Invest in the Badger Institute For 35 years, the Badger Institute, formerly known as the Wisconsin Policy Research Institute (WPRI), has been at the forefront of the fight for school choice, right to work, welfare reform, tax restructuring, limited government, civil society and so much more. If you appreciate the Institute’s legacy and want to support free markets, opportunity and prosperity, please consider donating $35, $350 or $3,500 today. Your support will help the Institute continue to advocate for conservative principles for the next 35 years – and beyond! The Institute never has, and never will, accept government funding. We gratefully welcome your online donation or email Angela Smith, Vice President of Development. The Badger Institute is a 501(c)(3) tax-exempt nonprofit organization. Support Freedom Let the experts at the Badger Institute bring a policy talk on topics such as student loan forgiveness, unemployment compensation, school choice and more to your local group or meeting. If you’re interested in a presentation or a speaker, contact Michael Jahr, Vice President of Communications, at [email protected]. Request a Speaker Badger Institute | 700 W Virginia St, Suite 301, Milwaukee, WI 53204 www.badgerinstitute.org Unsubscribe [email protected] Update Profile | Constant Contact Data Notice Sent by [email protected] in collaboration with Try email marketing for free today!