Commentary: We have a real problem with how the rising cost of college is contributing to economic inequality, but neither party is talking about meaningful reforms.
A couple years ago, when the topic of forgiving student loans began to be a major talking point among prominent Democrats, I asked my students what they thought. I assumed they would be overwhelmingly in favor of it. I was wrong.
Other students noted that they had younger brothers and sisters who would be going to college in a few years. Who was going to help them with their loans? But student debt relief is not like other wealth transfer programs. The median household income of those holding student debt is $76,000 per year compared to $44,000 for the average household. Even with the proposed income caps on eligibility, much of the wealth transfer will go up, not down.
But there is a major problem. By adding an estimated $500 billion to the federal debt while doing nothing to address structural problems in higher education funding, the overall effect will be to bolster a flawed system that is largely responsible for economic and racial inequities in this country. Democrats are hoping this issue will help them win over more college-educated voters during the elections this fall. Republicans are betting their opposition to it will boost support among working-class voters.
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