The distributional effects of student loan forgiveness

A-Tier
Journal: Journal of Financial Economics
Year: 2023
Volume: 147
Issue: 2
Pages: 297-316

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the distributional consequences of student debt forgiveness in present value terms, accounting for differences in repayment behavior across the earnings distribution. Full or partial forgiveness is regressive because high earners took larger loans, but also because, for low earners, balances greatly overstate the benefits of debt cancellation. Consequently, forgiveness would benefit the top decile as much as the bottom three deciles combined. Enrolling households who would benefit from income-driven repayment is less expensive and distributes more funds to lower-income households.

Technical Details

RePEc Handle
repec:eee:jfinec:v:147:y:2023:i:2:p:297-316
Journal Field
Finance
Author Count
2
Added to Database
2026-01-29