n style="left: 173.5px; top: 522.786px; font-size: 17.4547px; font-family: sans-serif; transform: scaleX(0.951145);">We study the distributional consequences of student debt forgiveness in present valueterms, accounting for differences in repayment behavior across the earnings distribution.Full or partial forgiveness is regressive because high earners took larger loans, but alsobecause, for low earners, balances greatly overstate present values. Consequently, forgive-ness would benefit the top decile as much as the bottom three deciles combined. Blacks and Hispanics would also benefit substantially less than balances suggest. Enrolling house-holds who would benefit from income-driven repayment is the least expensive and mostprogressive policy we consider.Read Full Article »
