Cancelling student loans frees up borrowers to make decisions that can improve their financial lives.
The findings come as debate rages over a proposal from Senator Elizabeth Warren, a Massachusetts Democrat and presidential candidate, to cancel student debt for millions of borrowers. Di Maggio cautioned that the study’s findings are “far away from an endorsement of Warren’s plan,” and the paper doesn’t measure the cost of widespread student debt cancellationStill, Di Maggio said, the findings “give us insight on what we should expect if a policy like that is implemented — on the benefit side.
The researchers looked at cases where judges threw the suits out, matched those legal filings to borrowers’ credit information to see what happened when the debt was wiped away. They then compared those borrowers’ experiences to that of people demographically similar, living in the same zip code, with a similar amount of student debt and who were also in default.
And what did it teach those who worked hard and paid their own debts off or never borrowed at all?
You should have to declare bankruptcy if you want your debts cancelled. How about allowing student debt to be written off in the bankruptcy process? Democrats have to forgive everybody’s debt when most are capable of paying it back.
So what? Pay off your loan like a real adult.
We're not giving you a bailout. Pay your debts. Period. This isn't a socialist country. If that's what you want, go to Europe. We don't need you.
And reduces my income by much more than that? Fair?
Of course it does with what amounts to taxpayer subsidies to borrowers.
Is there a plan to pay back all of us who have already paid our loans?
Of course it is grossly unfair to those who worked their way thru; or chose another path....
Looks like a bunch of dead beats to me. They demand their debt gets cancelled. If that happens they should never be able to mortgage a house.
I guess we need to feel sorry for the shmucks that spent 4 years on an Art History degree and can't find a job.
Yes, and for State, a huge loss money -- public debt. It's also injust if we take the moral perspective, when someome lends you some money, you must return it!
Who told these people to take out loans that they knew couldn’t be paid back ? Hey can someone pay my car loans off too
I worked three jobs to pay college. These babies are no different.
I paid my debt. Someone owes me money!
So would canceling mortgages and credit card debt. Stupid.
Great! I guess the taxpayers foot the bill again. Just like company bailouts.
The wrong message is implied. Our federal government has been operating on a significantly unbalanced budget for far too long. Start with that. Also, borrowing funds for education, not all bad. Taxpayers underwriting student loan debts = the next bubble to burst.
Yea, let’s keep enabling the youth and promoting irresponsibility and laziness, great plan
So why should their debt be transferred to taxpayers? We didn’t choose to incur the debt, they did. I’m sick of all you “free everything “ fools. If you took the loan, pay it back. Simple! Marketwatch is lying fake news.
I think o% interest is more Realistic
and lower my income in the process. I paid my bills like an adult and so should you! you chose the school you went to, a city school would have worked just fine. that's why Im hiding my money in muniland. can't touch it aoc, SenSanders and ewarren investing bonds loans
Remember... your debt only gets cancelled if you did nothing with your degree. The cancellation phases out at middle class income ranges. How is this fair. This sure looks like wealth redistribution. Why not just remove Student Loan restrictions from bankruptcy protections?
Cancel my mortgage and car debt and my income mysteriously goes up too. magic
yes and teaches them that someone else will ALWAYS BAIL THEM OUT.. This is ridiculous
Well sure it would. But who is is going to break
Thank God each state gets two senators! CA WY IL WV NY IA etc
You would think somebody held a gun to their head and made them take the loan
Who eats the loss?
Instead of cancelling, apply it as a debit to their Social Security?
Just think how much of a lifesaving event cancelling mortgage, auto loan, and credit card debt would be... Hell, just make everything free...
Would this plan also cancel debt for future college students?
Canceling the debts that's impossible but cancel the interests for the debts long term. I do agree.
It's sending a Wrong Message...
canceling student debt totally fucks the people who sacrificed, saved and paid.
Now do home mortgages. Then all types of people insurance. How about credit cards. Stop spewing trash news.
And what about the lives of those who will be forced to pay for it?
In NYC there are many excellent state and city colleges that provide an excellent education at a very affordable price. Those who chose to attend expensive private colleges chose the debt and are upset that they now have an obligation to pay for what they got.
When does responsible borrowing come in? Getting educated in a field with jobs? Why is their debt the tax payers responsibility, nothing is free. Hard pass
It has a big impact on future students too. They no longer give a shit about borrowing a reasonable amount to study something marketable.
not fair
Why don’t they protest on the college campus re the high tuition rate? Why does the government have to pay for their schooling after public high school? Learn a trade and work to pay for future education....
Anyone see a moral hazard here? These students didn’t protest when they received the loan proceeds. What about the rest of us who paid off our debt? Do we get a rebate? What makes these borrowers different?
Raises their income to incur more debt....
How bout pay yourFuckin debt