NPR: What would happen if student loans were forgiven?
UC economist joins NPR's Marketplace to discuss student loan forgiveness
NPR's Marketplace wanted to know what would happen if some or all student loans were forgiven and turned to experts, including University of Cincinnati economist Michael Jones.
Michael Jones, PhD, associate economics professor-educator and Kautz-Uible Economics Institute Academic Director.
Jones, PhD, the Kautz-Uible Professor of Economics at UC’s Carl H. Lindner College of Business, said the pause on student loan payments in the early days of the COVID-19 pandemic was a relief for millions of people. Now that unemployment has decreased and the economy has strengthened, Jones said, the justification for the pause isn't as strong.
If President Joe Biden's plan to cancel $10,000 to $20,000 of debt for some borrowers was enacted, Jones said, economists worry it could add to inflation.
Another concern of forgiving student debt is “moral hazard,” the idea that students might make riskier choices if they think their debt will end up being forgiven, Jones said.
Featured image at top: Interior of UC's Carl H. Lindner College of Business. Photos/Andrew Higley/UC Marketing + Brand
Impact Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Prestigious green and gold accolades highlight UC Earth Day 2021
April 19, 2021
There’s no making light of the ‘Gold’ accolade recently earned by the University of Cincinnati’s Carl H. Lindner College of Business’ new home on campus.
UC’s summer semester offers students short sessions, flexibility
April 12, 2021
Coming into the summertime of 2020, Sumedha Kappagantula was considering ways to make the most her opportunities during what is usually a break from the academic rigor of her traditional school year. As a Biomedical Engineering major in the UC’s College of Engineering and Applied Sciences, Kappagantula is minoring in Chemistry and Biological Sciences, taking classes through the College of Arts and Sciences. She thought summer semester would be a great time to get ahead in her coursework, and move her degree forward.
'To make him proud was high on her list'
April 1, 2021
Alex Lewis lost her 82-year-old grandfather to Covid-19 just five weeks before her dream school showed up on the front steps of Roger Bacon High School to tell the senior that she has been admitted to the University of Cincinnati College of Nursing as part of a touching Decision Day surprise effort this year.