In 2008, subprime mortgages toppled the housing market to disastrous effect, setting off our country’s years-long Great Recession. In 2021, many economists are worried the nation’s burgeoning ledger of student loan debt—totaling $1.7 trillion at the end of last year—is the next bubble waiting to burst.
It’s just one of the urgent matters the Biden administration has fielded during the new president’s first months in office. On the campaign trail, then-candidate Biden proposed $10,000 in student loan forgiveness for all borrowers. Since his inauguration, members of Congress have called for more robust forgiveness plans, including up to $50,000 in debt cancellation put forth by senators Elizabeth Warren and Chuck Schumer, and 100% debt cancellation proposed by Senator Bernie Sanders.
But the question has lingered: What is the most fair, equitable, and affordable for all Americans? In a new report, the JPMorgan Chase Institute took a look at several possible forgiveness plans and who they really benefit. Here’s what it found: