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[hector13]

Well, theoretically it’s investing in your future because an educated workforce is likely to be a high(er) skilled workforce, which will result in higher tax incomes due to higher wages and purchasing power fueling growth.

[Maximum Spin]

Hrm. I had to do some reading; I didn't realize that such a high percentage of all student loans in the US was, in fact, federal; I thought more was private.  I think this was because my loan servicer was not the government but some random bank... or maybe that's just how the Direct loans worked...

It's still unclear, though, if the government is better spending "tax dollars" on loan forgiveness versus whatever we'd have to spend them on if we didn't forgive the loans.  No such thing as a free lunch, and all that...

The government can't legally forgive loans from OTHER PEOPLE, unless it, well, pays them back with taxpayer money; it would violate the Fifth Amendment takings clause, since a debt is an asset the lender owns. All the student loan forgiveness being bandied around is debts from the government itself.

It's extremely unlikely that loan forgiveness will change any other category of government spending for the smaller, especially since college graduates are considerably richer on average than non-graduates. Student loan forgiveness is in this sense a large wealth transfer to the rich.

Well, theoretically it’s investing in your future because an educated workforce is likely to be a high(er) skilled workforce, which will result in higher tax incomes due to higher wages and purchasing power fueling growth.

That's what the intent behind the original loan was meant to be, yes, but forgiving it will not now alter the composition of the workforce in any way unless there is some subtle knock-on effect of making people more likely to take bigger student loans in the future counting on them being forgiven (which is probably not a great idea, let's be honest).

[McTraveller]

The government can't legally forgive loans from OTHER PEOPLE, unless it, well, pays them back with taxpayer money

Ah I should clarify: I meant that I didn't realize that so much of the total student loan balance was federal, meaning I didn't think that there would be that much of a burden on "the taxpayer" in the first place.  But something like 92-93% of all student loans are federal, apparently.  I didn't mean to suggest that the government was redeeming private loans.

[Chevaleresse]

...You do realize wealthy people don't need student loans, right? Relief is primarily targeted at people who aren't able to pay off their loans due to the hilariously bad job market despite being college-educated.

[Maximum Spin]

Nevertheless, statistics clearly show that recipients are richer on average than non-graduates.

[hector13]

That’s probably because graduates tend to earn more :p

In part as a consequence of having to service student loans.

[Chevaleresse]

That doesn’t mean "student loan forgiveness is a wealth transfer to the rich" is a sensible statement. It is objectively not that, it is a wealth transfer to people who are trying to overcome poverty by educating themselves.

[EuchreJack]

That doesn’t mean "student loan forgiveness is a wealth transfer to the rich" is a sensible statement. It is objectively not that, it is a wealth transfer to people who are trying to overcome poverty by educating themselves.

Considering rich people don't need student loans, "student loan forgiveness is a wealth transfer to the rich"" is clearly Rich propaganda.

[hector13]

Well, graduates earn more, so it’s not exactly taking from the rich and giving to the poor.

From my own experience, it does seem as though the loans are basically expected to be forgiven rather than repaid. Income based repayment stuff can reduce your monthly payment to zero depending on circumstances.