Marc Goldwein: An Honest Discussion on the Impact of Canceling Student Loan Debt
Marc Goldwein is senior vice president and senior policy director of the Committee for a Responsible Federal Budget. He recently appeared on Clark Hill's Credit Eco to Go podcast, the audio of which is below.
On the podcast, Marc discussed the Committee’s recent blog, Canceling Student Loan Debt is Poor Economic Stimulus. Marc noted that current proposals to cancel student debt would increase cash flow by approximately $90 billion per year, targeted towards those with the lowest propensity to spend, and therefore would likely only yield between eight and 23 cents of economic output for every dollar of cancelled debt, making them relatively ineffective economic stimulus measures. As alternatives to full student loan debt cancellation, Marc suggested policymakers could continue the current policy of forbearance with a gradual phase-out over the short-term, while also reforming Income-Driven Repayment (IDR) plans over the medium- and long-term.
"My Views" are works published by members or staff of the Committee for a Responsible Federal Budget, but they do not necessarily reflect the views of all members or staff of the Committee.