The Distributional Effects of Student Loan Forgiveness: An Update on SAVE and the COVID-19 Moratorium

B-Tier
Journal: National Tax Journal
Year: 2024
Volume: 77
Issue: 3
Pages: 655 - 680

Authors (3)

Sylvain Catherine (not in RePEc) Mark Pérez Clanton (not in RePEc) Constantine Yannelis (National Bureau of Economic Re...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Student loan forgiveness policies in the United States have undergone significant evolution and debate since 2020, with varying degrees of targeting and regressive implications. This paper offers an update on student loan forgiveness developments since 2020, evaluating recent proposals through the framework Catherine and Yannelis present in their work on the distributional effects of student loan forgiveness. We study the economic dynamics of student loan forgiveness in 2024, tracking proposed and implemented forgiveness measures and their distributional impacts. We find that new proposals expanding income-driven repayment are more progressive than a universal loan forgiveness plan, but we caution against the potential for increased moral hazard at the school level.

Technical Details

RePEc Handle
repec:ucp:nattax:doi:10.1086/731537
Journal Field
Public
Author Count
3
Added to Database
2026-01-29