Article 4YX1H Beware the Incentives of "Forgiving" Student Loan Debt

Beware the Incentives of "Forgiving" Student Loan Debt

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When politicians decide to "forgive" debt, they give people an incentive to borrow more and to borrow less prudently. For the same reason that people's menu choices change when someone else is picking up the tab at the restaurant, so too would students' and parents' behaviors change if Warren forces someone else to pay the tuition bill.

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