The Buckeye Institute: Student Loans Forgiven but Negative Consequences Not Forgotten

Aug 24, 2022

Columbus, OH – Logan Kolas, an economic policy analyst at the Economic Research Center at The Buckeye Institute, commented on the Biden Administration’s decision to forgive $10,000 in student loan debt for non-Pell Grant recipients and $20,000 for Pell Grant recipients making less than $125,000 a year as individuals or $250,000 a year as a family.

“The Biden Administration’s decision is a poorly conceived policy that helps those who need it least—college graduates who can expect to make more money in the future as a reward for their investment. And nearly everyone else—including those who didn’t go to college—will pay the price through higher inflation and higher taxes.

“Only 15 percent (links here and here) of Ohioans have student loan debt, and the Biden Administration’s decision will incentivize incoming college students to take on greater amounts of debt at universities that will further hike tuition for degrees more likely to be detached from employer needs.

“Student loans can be forgiven, but the negative consequences certainly will not be forgotten.”

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