> Accounting correctly for both human capital and effect of subsidies in student lending plans, almost a third of all student debt is owed by the wealthiest 20 percent of households and only 8 percent by the bottom 20 percent. Across-the-board student loan forgiveness is regressive measured by income, family affluence, educational attainment—and also wealth.
The highest debt loads obviously go to expensive graduate degrees like lawyers and doctors. Medical school is vastly more expensive than a regular college degree.
That's why none of the proposals would actually wipe all student debt. Plans to pay off the first $10K of debt and such would be far more equitable than just paying off everyone's debt. The latter would vastly benefit graduate degree holders, a cohort which has the highest earnings and lowest unemployment. Would be terribly dumb to do that.
Maybe not strictly doctors and lawyers but if you have a college degree then you statistically make more money than if you didnt. Why send money to those people and not to the people who make less money?
