Who Is Impacted by Student Loan Forgiveness and How?

I don’t know how accurate any of this is one way or another, but I’m betting the effect of lowering the monthly payment by around $100 a month – a third of the average monthly payment- will have minimum impact of the persons finances. In fact, I wonder if after a few months it’s even noticed. Cynical old me😱

Unsecured debt — such as student, credit card or medical debt — is not backed by an asset the way a house backs a mortgage because lenders cannot repossess someone’s education if the individual fails to pay a student loan.

The $10,000 reduction in student debt would decrease the amount of total unsecured liabilities owed by 33.0% on average of those who have any student debt.

Hispanic individuals with a high school degree but no college degree (43.2%) and associate degrees (38.4%) are expected to experience among the greatest reduction in what they owed in unsecured loans.

Non-Hispanic individuals who are neither White nor Black with a high school degree, but no college degree (51.7%) and associate degrees (52.2%) are also expected to experience among the greatest reduction of unsecured amounts owed.

The $10,000 reduction in student loans is expected to have some of the smallest impacts on unsecured amounts owed by those with advanced degrees: between 17.5% and 24.2% in unsecured debt across race and ethnic groups.

Hispanic women (40.4%) are expected to experience among the largest shares of unsecured debt relief.

Source: Who Is Impacted by Student Loan Forgiveness and How?


  1. The article covers the race of who gets what as far as loan forgiveness but doesn’t answer the question of what programs are most responsible for the massive amount of loans in the first place.

    Are the low salaries that prevents borrowers from paying back loans due to dropping out before completion or because they didn’t do well in cosmetology school or the modern dance major doesn’t lead to a job or do culinary arts schools only lead to a cook job at Waffle House?

    These questions should be looked at to prevent this problem in the future, not just which racial group benefits most from loan forgiveness. An aside to several other posts where one asserts that tax deduction for mortgage interest was government aid. Keeping money you earned is not government aid.


    1. You gave your hard warned money to the bank, but the government did not tax you as much because your paid the bank. Government aid in my book.


  2. I was recently on a trip with my brother-in-law and he mentioned his daughter-in-law was a college admissions administrator. I already knew that, but what I didn’t know was that she was compensated for how many people she signed up.
    I have long suspected that colleges weren’t making quality assessments as to whether their programs were a good fit for a particular prospective student; but a slick admissions person was admitting students knowing full well their chances for graduation in a sustainable income producing career were virtually nil. But the college got their money.
    My own daughter-in-law is also a victim of following her dreams in Art studies where she was working retail in a make-your-own pottery store. But of course, not making enough to pay her $30,000 in student loans and in perpetual forbearance.
    Our ability to rationalize our choices and punt to better days tomorrow has no bounds.
    Buyer beware.


    1. Even “non profit” colleges are for profit. When they get too much money, they build another building or something. Or they pay the administrators more money. It just go to show you that it is all about the Benjamins. Academic standards have been dropping for a while now and “racism” is the the excuse that prevents people for succeeding which is total BS. But the colleges found out that they can now admit more students and collect more tuition.


  3. I read the Census Bureau article it appears to partisan BS to support the administration. First they are over using percentages which makes it very suspect. If a $10K forgiveness solves a persons unsecured debt by 33%, then how are they going to pay back the other 66% or $20K of unsecured debt? Why should I as a taxpayer pay any part of their unsecured debt? Who is going to pay any of my unsecured debt? Sorry, I forgot, I don’t have any.

    My first mortgage 35 years ago was double their debt and I paid it back without government help. I also understood what I was agreeing to when I sign my loan papers.

    I also fail to see how individuals with only high school degrees are going to benefit. Are these groups of people who went to college and never finished? If a person got an associated degree, then they should be able to pay off their debt. You can bet that they are making their monthly car payments.

    I think colleges should be held liable to admitting these students who were unqualified to attend college. Colleges failed to give them a proper education by the fact they cannot handle their finances. Colleges are dropping SAT requirements to be woke and at the same time raising tuition because of the guaranteed federal student loans. Instead of taking my tax money, take the money from the college endowment funds which is estimated to be $691 billion. You take the money from the endowments and I guarantee that colleges will ensure that students finish in careers that pay high wages.

    For profit colleges have demonstrated that you can teach students online and in rented space in an office park. You do not need fancy labs or student centers for lectures and book learning in a classroom, so why do these colleges need these large endowment funds for anyway? They are not using it to keep tuition low.

    I took this article as justifying the vote buying while allowing individuals to dodge their financial responsibilities just so they can spend their money elsewhere while the taxpayer pays for their poor college and financial decisions. I doubt that these people will ever lower their unsecured debt.


    1. “My first mortgage 35 years ago was double their debt and I paid it back without government help.” So you did not deduct any of the mortgage interest you paid on your tax returns? If you did, then that is government help.


      1. I believe back then I that I would have deducted my mortgage interest, but I don’t consider that helping me to pay my mortgage. The government didn’t pay my mortgage, I did. I consider that the government wasn’t taxing my earnings and that was no factor in me taking on a mortgage at 10% because I never knew exactly how much of my money would not be taxed each year.

        How many of these college graduates that can’t pay back their student loan because they are working at jobs that do not pay them enough? How many of them get 100% of their income tax money refunded? That is not to count all the extra things like child tax credits added in. So by you income tax deductions comparison, then I say we already helped them enough. They took on the loans, not me, why should I pay their debts? Did they pay mine?


      2. You appear to be jealous of those who managed to purchase a home. You also seem to have a problem telling the difference between interest and principal. The government decided foregoing taxes on home mortgage interest was worth it, considering how much of the economy is driven by home construction, building materials and purchasing. How much does a “studies” degree do for the economy? If anything, it’s a money pit, and definitely not worth loan forgiveness.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s