Progressive calls for President-elect Joe Biden to forgive student debt in his first 100 days of office should be ignored in lieu of a more moderate proposal: forgiveness capped at $5,000 of debt, according to a commentary in today's Wall Street Journal. Workers with a college degree are the highest paid in the economy and the last to get laid off during a downturn. Borrowers with the largest balances are the least likely to default, according to the commentary. That’s because they’ve often invested in professional or graduate degrees that lead to careers with high earning potential. Borrowers who owe less than $5,000 are the most likely to default, according to the commentary. Many in this category started a degree but didn’t finish, and thus aren’t enjoying the higher earnings afforded by a degree. Then there are those with no college education. The plight of borrowers with college degrees is surely preferable to that of workers getting by on the lower wages paid to the less-educated. Many Americans without degrees come from less well-off families; a higher percentage lack emergency savings; and they are the first to be laid off in a downturn. Read the full commentary. (Subscription required.)
*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.
