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[quote=Anonymous][quote=Anonymous]OP was pointing out the moral hazzard of the loan forgiveness approach. It really makes no sense as policy. Estimated cost of the Schumer/Warren approach are $1T. If we want to spend $1T on benefitting US society, this is not remotely how you would do it. Why not give it out in a means-tested way to low income people (or through expanded child tax credit)? Compared to that- student loan forgiveness a) is worse at targeting those with greater need, b) is less stimulatory to the economy, c) has less humanitarian benefit of decreasing child poverty and the long-term gains associated with that, d)  creates greater moral hazzards and e) would contribute to price distortions driving up tuition costs. Any change from just giving money should be to target a particular societal benefit, and student loan forgiveness performs worse in every way than just giving money.[/quote]

This, this, a thousand times this.  And if you don't like an expanded child tax credit, there are scores of other ways to benefit American society with that $1T+ than student loan forgiveness.

How about paying off ever car loan for someone making less than 3 times the poverty limit?   Or paying a rental/mortgage subsidy to those same people?

- A liberal democrat (which is increasingly distinct from a progressive).  [/quote]

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