Student Debt Relief: Policies and Controversies

This chapter explores a significant proposal for student debt forgiveness in the U.S., including a detailed examination of its financial implications and political ramifications. It discusses the controversial decision to forgive loans based on income, the potential inflationary effects, and the distributional impacts that could favor wealthier individuals. Additionally, the chapter addresses the motivations behind these policies, particularly in the context of upcoming elections, and critiques their failure to resolve the underlying issues of rising higher education costs.