No, Student Loan Cancellation will not Benefit the “Wealthy”

“The sample is too small, 30 percent of aggregate student debt is missing and not accounted for, the value of debt is frequently missing and statistically imputed”.

— Adam Looney

Source: National Bureau of Economic Research
Source: U.S. Department of Education (Q4 2020)
Source: U.S. Department of Education (Q4 2020)
Source: U.S. Department of Education (Q4 2020)

The beltway’s “regressive” argument falls apart in this more accurate context. Their definition of “wealthy”- which has nothing to do with net worth- is ridiculously ill-fitting to the borrowers who are being hurt. “Wealthy” people don’t struggle to repay their student loans into their 40’s, 50’s, and beyond.

Source: U.S. Department of Education (Q4 2020)

Adam Looney pointing to rare, young, high earning borrowers as representative of high earning, high balance student loan borrowers is misleading, intellectually dishonest, and frankly shameful. Looney and his like-minded colleagues in Washington D.C. ought to be held accountable for blatantly misleading the public and defending this predatory, nationally threatening loan program.

The lending system is finished, and no amount of beltway spin can make this not true.

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Alan Collinge

Alan Collinge

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I am Founder of StudentLoanJustice.Org, author of The Student Loan Scam (Beacon Press), and creator of the petition Change.Org/CancelStudentLoans