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[quote=Anonymous][quote=Anonymous]Suppose we wiped away all student debt today. What would it mean for a student about to enroll in college this fall?

It means they would be smart to borrow every penny they could for school, and hope and pray for a politically inevitable second round of loan forgiveness. Maybe they would even choose a more expensive school. Why not?

[b]At the same time, colleges and universities would certainly notice this increased willingness to pay higher tuition prices and would accordingly adjust prices upward — only adding to the already out-of-control tuition inflation. [/b]

It’s important for Biden to keep in mind that broad student loan forgiveness, while politically popular, would only exacerbate underlying problems with tuition inflation and overborrowing. [/quote]

This really is the biggest downside in my opinion.  Student Loan forgiveness will make a terrible situation of unaffordable education even worse.

Econ 101 is that subsidies are (typically) going to raise the price of a good/service. [/quote]

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