Economists Respond to Joe Biden’s Call to Forgive Student Loans

Joe Biden says Congress should take action to forgive student loans.

Members of the Biden team say their plan is to push lawmakers on Capitol Hill to forgive 10,000 dollars of student loan debt for borrowers. Democratic Senators Elizabeth Warren and Chuck Schumer are pushing for even more than Biden’s team. They’re calling for 50,000 dollars of student loan debt forgiveness, and they claim Biden could do it through an executive order. However, economists like Vance Ginn at the Texas Public Policy Foundation say any amount is a bad idea.

“What we really need to be thinking about is what are the majors that people are undertaking? Are there jobs available? And will they be able to pay back those student loans once they are done?” Ginn said.

He and other economists argue broad student debt forgiveness is not fair to people who paid off their debts early. They say it doesn't stimulate the economy, and helps the wealthy more than the poor.

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