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
Bazinga! UC physicist cracks ‘Big Bang Theory’ problem
December 19, 2025
A physicist at the University of Cincinnati and his colleagues figured out something two of America’s most famous fictional physicists couldn’t: theoretically how to produce subatomic particles called axions in fusion reactors.
Broad co-opportunities
December 18, 2025
Sakura Adachi exemplifies the Bearcat spirit: she works hard, she gives back and she takes full advantage of the opportunities the University of Cincinnati offers.
Hoffman Honors Scholar wins world championship
December 18, 2025
Shea Scarborough, a second-year Hoffman Honors Scholar majoring in Marketing and Sports Administration at the Lindner College of Business, has won a world martial arts championship in Lei Tai.