New post at Policy Shop. Excerpt:
Whatever else there is to say about student debt, it cannot be said that debt falls primarily on lower income households. You would expect, from what we know of the college wage premium, that debt would primarily fall on higher income households, and indeed that’s what you find. For those worried about the distributive impact of policies, this is a reality that must be contended with when constructing policy responses to the student debt issue. One way to respond to the student debt issue in a way that is senstive to this distributive reality is to implement a Pay It Forward tuition-financing system similar to what Oregon is currently considering.