Forgiving student loans is a costly mistake

New policy: A graduation ceremony in progress at a US university. Student-loan forgiveness of any kind is highly regressive, benefiting those who graduated college at the expense of the roughly 60% of Americans who didn’t. — AFP

WITH Wednesday’s long-awaited announcement forgiving the debts of certain student borrowers, President Joe Biden hopes to give Democrats a boost in this fall’s midterm elections.

Whatever the short-term political gains, the decision is a costly mistake – and one that the administration will almost certainly come to regret.