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May 23, 2024
Biden’s Unending Student Loan Forgiveness Run
On Tuesday, the Biden administration announced $7.7 billion in student debt cancellation for about 161,000 borrowers, equating to about $48,000 per borrower. Compared to what has already been spent on loan forgiveness since the pandemic began, that’s an enormous drop in a gargantuan bucket. AEI’s Student Debt Forgiveness Tracker, which I run, tracks all student loan revenue from…
May 22, 2024
Missed Opportunities in the Proposed Farm Bill
House Agriculture Committee Chairman Glenn Thompson’s proposed Farm Bill reauthorization, The Farm, Food, and National Security Act of 2024, heads to committee markup today. The Farm Bill is a tough reauthorization normally, and even more difficult in a tightly divided House. While there are provisions that would improve the program, Supplemental Nutrition Assistance Program (SNAP) needs…
May 6, 2024
How Much Are You Willing to Spend on Student Loan Forgiveness?
Last Wednesday, the Biden administration announced $6.1 billion in student debt cancellation for over 300,000 borrowers who attended the Art Institutes, a defunct network of for-profit colleges that, according to the Department of Education, defrauded borrowers. This cancellation is generous—all borrowers, regardless of their current economic circumstances, who attended the Art Institutes between 2004 and 2017 will have their…
April 26, 2024
Washington, District of Benefit Cliffs
As the welfare state expands while policymakers struggle to contain its costs, one unintended result is the creation of significant benefit cliffs. A little-noticed September 2023 report authored by Elias Ilin and Alvaro Sanchez of the Federal Reserve Bank of Atlanta (“Mitigating Benefits Cliffs for Low-Income Families: District of Columbia Career Mobility Action Plan as a Case Study”) explains…
April 10, 2024
Biden Irresponsibly Encourages Borrowers to Enroll in SAVE Plan
President Biden is hard at work encouraging student borrowers to enroll in his new SAVE Plan, a de facto loan forgiveness program that faces increasing legal scrutiny. 11 states, led by Kansas, filed a lawsuit. Just recently, Missouri and six other states announced that they would also sue the Biden Administration, bringing the total to 18 states. He…
April 9, 2024
Maddow Spreads Misinformation on Student Loan Cancellation
Last night, progressive television pundit Rachel Maddow took jabs at Republicans concerned with President Biden’s latest effort to cancel student debt. But her jabs were actually sucker punches. She took advantage of the public’s being uninformed on the issue of student debt to spread misinformation, aimed at scoring partisan points and defending Biden’s indefensible vote-buying…
April 9, 2024
The Child Tax Credit: My Long-Read Q&A with Kevin Corinth
The Child Tax Credit is a tax benefit available to many American families for the purpose of reducing their federal income tax liability. It’s specifically designed to help offset the cost of raising children. The CTC of today, however, differs starkly from its pre-pandemic structure. Many economists, including Kevin Corinth, think that the post-pandemic changes were a step…
April 9, 2024
Biden Knows Student Loan Cancellation Is a Bad Idea
This morning, President Biden announced new details about the latest effort to cancel student debt that he says will reduce balances or completely cancel student debt for over 30 million Americans. First, he plans to cancel up to $20,000 of accumulated unpaid interest, regardless of the borrowers’ income. Second, the administration plans to automatically cancel debt for…
April 5, 2024
What’s Wrong with the US Economy? Anything?
Economists were expecting 200,000 net new jobs added in March. Instead it was 50 percent more. Unexpected strength, but maybe not so unexpected, really, for an economy that continues to deliver surprise after surprise. It’s been a great run lately for economic optimists: real wage gains, faster labor productivity, and gobs of jobs. A tight summary…
April 3, 2024
Feds Should Take a Big Step Back on Student Loans
The federal student loan program has gone off the rails. What was first designed as a program to alleviate the liquidity problem students face when paying for college is now an out-of-control entitlement program that rewards students for spending as much as possible on higher education, causing tuition costs to skyrocket in turn. Biden’s reforms…