Official Student Debt Cancellation Watch Thread
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NaijaProdigy Redux
Veteran
Does $10K move the needle for a lot of you guys here?
Just curious.
Just curious.
Allowing bankruptcy is nonsensical
Read this question again
And it’s not just 10k. It’s over 2 years of of no payments and/or your entire payment going to principle
And if you were in default or had any negative marks due to student loans it’s being removed from your credit report
the marketing should be that this is a Middle-Class tax cut
heisenbergreport.com
The estimated distributional effects are — how should I put this? — mixed. Under no scenario does more than 12% of the financial benefit accrue to the bottom income quintile. The optimal scenario is (not coincidentally), $10,000 in relief with a $125,000 income cap. That would maximize the combined benefit for the bottom and second income quintiles, shown with bars in the figure (below) for simplicity.
Amusingly (and remember, I’m allowed to laugh at this because I lean Progressive, so I’m effectively laughing at myself), the worst outcome results from no-questions-asked, $50,000 forgiveness. In that scenario, almost 3% of the benefits would go to the top 5% of earners, and 8% to the top 10%. That’s not surprising. Those earning more than $150,000 per year are more likely to have jobs requiring expensive, advanced degrees.
Note that using Penn’s estimate for the year-one cost of $50,000 in relief with no income cap, the 2.43% of benefits which would accrue to borrowers in the top 5% of earners equates to nearly $20 billion.
Crucially (and unfortunately) more than two-thirds of the debt relief accrues to borrowers in the top 60% of the income distribution in all scenarios. The distributional outcome doesn’t change if you control for so-called “lifecycle effects” by limiting the analysis to borrowers aged 25 to 35.
Here’s How Much Student Debt Forgiveness Will Cost
Update: On Wednesday, the Biden administration confirmed $10,000 in debt relief per borrower subject to income, with additional relief for Pell Grant recipients. The payment moratorium will be exte…
heisenbergreport.com
The estimated distributional effects are — how should I put this? — mixed. Under no scenario does more than 12% of the financial benefit accrue to the bottom income quintile. The optimal scenario is (not coincidentally), $10,000 in relief with a $125,000 income cap. That would maximize the combined benefit for the bottom and second income quintiles, shown with bars in the figure (below) for simplicity.
Amusingly (and remember, I’m allowed to laugh at this because I lean Progressive, so I’m effectively laughing at myself), the worst outcome results from no-questions-asked, $50,000 forgiveness. In that scenario, almost 3% of the benefits would go to the top 5% of earners, and 8% to the top 10%. That’s not surprising. Those earning more than $150,000 per year are more likely to have jobs requiring expensive, advanced degrees.
Note that using Penn’s estimate for the year-one cost of $50,000 in relief with no income cap, the 2.43% of benefits which would accrue to borrowers in the top 5% of earners equates to nearly $20 billion.
Crucially (and unfortunately) more than two-thirds of the debt relief accrues to borrowers in the top 60% of the income distribution in all scenarios. The distributional outcome doesn’t change if you control for so-called “lifecycle effects” by limiting the analysis to borrowers aged 25 to 35.
Leavingtheecstasy
All Star
Would've been cool. He would've had to be doing executive actions like a mf to get anything in his agenda done though.
Good for everyone that has student loans. The 125k cap is disrespectful though
NaijaProdigy Redux
Veteran
Eh…my question was just to gauge how large the average balance (or the spread) is for people on this siteAllowing bankruptcy is nonsensical
Read this question again
And it’s not just 10k. It’s over 2 years of of no payments and/or your entire payment going to principle
And if you were in default or had any negative marks due to student loans it’s being removed from your credit report
I’m not critical of the plan.
Everyone on this site makes more than 125k
Average student loan debt is between 15k & 30k
Almost all the people with high debt balances are lawyers, doctors, professors etc
Breh you in the like the 1%
We all know 10k is like a weekend in the Hamptons for you
NaijaProdigy Redux
Veteran
Breh you in the like the 1%
We all know 10k is like a weekend in the Hamptons for you
I make less than $125K and have around $10-12k in student loan debt.
The extra money in my checks since the pandemic started has been cool but it’s not exactly life changing.
I’m not mad at getting a break regardless of the size. We don’t do enough for people in the middle and I know this will help a lot of folks with kids who are on tight budgets.
i have about 27k sooo 10k would be a little over 30% for me
Poor people don’t go to collegethe marketing should be that this is a Middle-Class tax cut
Here’s How Much Student Debt Forgiveness Will Cost
Update: On Wednesday, the Biden administration confirmed $10,000 in debt relief per borrower subject to income, with additional relief for Pell Grant recipients. The payment moratorium will be exte…
The estimated distributional effects are — how should I put this? — mixed. Under no scenario does more than 12% of the financial benefit accrue to the bottom income quintile. The optimal scenario is (not coincidentally), $10,000 in relief with a $125,000 income cap. That would maximize the combined benefit for the bottom and second income quintiles, shown with bars in the figure (below) for simplicity.
Amusingly (and remember, I’m allowed to laugh at this because I lean Progressive, so I’m effectively laughing at myself), the worst outcome results from no-questions-asked, $50,000 forgiveness. In that scenario, almost 3% of the benefits would go to the top 5% of earners, and 8% to the top 10%. That’s not surprising. Those earning more than $150,000 per year are more likely to have jobs requiring expensive, advanced degrees.
Note that using Penn’s estimate for the year-one cost of $50,000 in relief with no income cap, the 2.43% of benefits which would accrue to borrowers in the top 5% of earners equates to nearly $20 billion.
Crucially (and unfortunately) more than two-thirds of the debt relief accrues to borrowers in the top 60% of the income distribution in all scenarios. The distributional outcome doesn’t change if you control for so-called “lifecycle effects” by limiting the analysis to borrowers aged 25 to 35.
I wonder if there will be a phase out on that threshold. I figure that would play nicer with folks in HCL areas.
Good luck to y'all. I hope you get it. Being debt free is a great feeling.
Good luck to y'all. I hope you get it. Being debt free is a great feeling.