Maddow bringing the misinformation on student loans. Banks aren't a part of this at all. Student loans are a government program. And there aren't any profits. This program is milking American taxpayers. Helping college grads at the expense of everyone else. Try again, Maddow.
I’m happy to share the news that today I am joining
@AEI
as a Resident Scholar in
@AEIeducation
where I’ll continue to focus on higher education and work. I’m thrilled to be joining an impressive roster of colleagues and excited to share more work with you from this new perch.
The comparison to PPP is lazy. PPP was passed through legislation and was intended, off the bat, to be forgiven. It needed to be designed that way to allow millions of workers to keep their jobs through the Covid pandemic.
President Biden on the student loan ruling: "The hypocrisy of Republican elected officials is stunning. They had no problem with billions in pandemic-related loans to businesses – including hundreds of thousands and in some cases millions of dollars for their own businesses. And
SCOTUS on Student Loan Cancellation: US Solicitor General argued that inflation has caused hardship to borrowers with outstanding student debt. But inflation actually erodes the value of debt (relative to income) which makes debt easier to repay.
Today I’m unveiling my most recent project. Done in (interdisciplinary) collaboration with
@TEricWaters
. The most challenging and rewarding thing I’ve ever worked on. And also the cutest. Meet Eamon.
Opening this package over the weekend was a pretty special moment. This book has been a long time in the making and only exists because I was given the opportunity to spend countless hours writing it and abundant support from SO many who have been a part of the process.
Student loan forgiveness would make the overall problem worse. It would cause tuition to rise more quickly and borrowers to amass debts in excess of the level we see today. (1/4)
Folks, not paying your student loans when they come due is a really bad idea. I assure you that the joy you'd get from participating his sort of protest would be swamped by the long-run consequences.
This is sad. Best advice I ever received from a mentor was that you only need to work four hours a day on your research if you’re REALLY working. Hearing that as a grad student from a renowned economist was a game changer. Immediately started living my life again.
Yesterday, several grad students said they aren’t convinced they want to be a professor “because they want to be able to have weekends.” What are we doing? What are we modeling? Do we really think that to be a professor you must sacrifice all else in life in pursuit of a “Top5”?
This is theatrics. If dems had wanted cancellation they would have done it through legislation in the first two years of Biden's admin when they had control of both houses in congress and the White House. They may not be saying it, but moderate dems know this is bad policy.
Dozens of Democrats in the U.S. Senate and House signed a letter Tuesday reiterating their support for President Joe Biden’s student loan forgiveness plan.
Cancelling student loan debt would benefit 25,000,000 American Millennials by an average of $30,000 each. It’s wild that candidates have not publicly supported this policy to date.
I have some bittersweet news to share today. After a wonderful four + years, this will be my last day as a senior fellow with the
@ManhattanInst
. My life, both personally and professionally, has changed dramatically in this time and I am incredibly grateful to the entire
The American people support canceling student debt, even those who don’t have loans. One of the reasons? There's scarcely a working person in America who doesn't have a friend, family member, or coworker weighed down by this burden.
@POTUS
should
#CancelStudentDebt
.
Depending on the discipline, you might get the message that there is only one model for a successful career: academia. Real success is finding a path that’s a good fit and makes you happy. Don’t be shy about finding it.
I don't like this sort of student loan cancelation as a policy idea, but I especially don't like that it was attempted in this unlawful manner. Justice was served today.
I have another idea for getting more people into public service. One that doesn't introduce (er, perpetuate) perverse incentives in higher ed market and drive further tuition inflation.
I know this is going to sound crazy...
Pay them more.
I keep seeing the argument that forgiving student loans isn't fair to the people who paid out of pocket or already paid off their debt. This argument falls flat for me. I'm much more concerned about the fairness of giving a hand out to college educated workers...
This reminds me of the time I wouldn’t let my 2-year-old put his hand in the toaster and he laid on the floor screaming for ten minutes. He was also denied medical attention during that time.
“In essence, they tried to break us. They tried to break our bodies, they tried to break our spirits.”
One of the Vanderbilt protestors speaks after their 21-hour sit-in:
h/t
@lawyergonerogue
must-read from my former Brookings colleague. “In sheer magnitude, canceling $50k in student debt would rank among the largest transfer programs in US history. At a cost slightly above $1 t, it would equal the total amount spent on cash welfare since 1980”
As long as resources are scarce, I can't endorse spending upwards of one trillion dollars on a "stimulus" program that ignores the most economically vulnerable (ie not college educated) Americans.
Let’s be honest: If student debt cancellation really only benefited the wealthy, you can bet that Congress would have done it a long time ago. Full stop.
If we had a well functioning income driven repayment system for federal student loans then there’d be no reason to make them dischargeable in bankruptcy. Tell me (nicely) why I’m wrong.
@etkeld
Since you brought it up… I'd like to be addressed as "Dr. Beth 'social scientist extraordinaire' Akers, PhD" in all future email correspondence.
Is college really worth it? How should I go about choosing a school? And what about deciding on a major?
@DrBethAkers
’ new book, Making College Pay, answers these questions and more:
#MakingCollegePay
@penguinrandom
We’re all going to need to find a new strategy for engaging in politics. We too often resort to shaming and degrading those we disagree with. Regardless of who wins, we have deep wounds to heal in this nation.
Friends, I’m thrilled to announce that today we are launching my new podcast, An Economist Goes to College! I’ve had a blast recording the first few episodes and hope you’ll enjoy them too.
@AEI
@AEIeducation
#econtwitter
#highered
#finaid
Student loan forgiveness is not only regressive, it also won’t do much for the economy. Giving money to the poor works better on both those fronts. Cut another means tested stimulus check if you want to help people and the economy.
Student loan debt forgiveness likely has a multiplier close to zero.
Forgiveness is taxable. If this negative cash flow effect outweighs interest savings would even be net negative. And wealth effect small in short run.
Arbitrary/regressive $1T for ~$0 GDP, not a great idea.
🚨🚨 Keep an eye out:
@DrBethAkers
’ new book, Making College Pay, comes out in ONE MONTH!
In it, Beth explains how to sift through fact and fiction about paying for college to make a smart bet on higher education.
#MakingCollegePay
@penguinrandom
This morning I had the tremendous privilege of being able to give testimony for the US House
@EdLaborCmte
on college affordability. Thank you
@BobbyScott
and
@virginiafoxx
for this opportunity.
Work travel.
Pre-baby: [shufffles through suitcase] “Hmm, what to wear today to feel like a fierce boss-lady...”
Post-baby: [shuffles through pile of clothes and diapers] “hmm, what to wear today that doesn’t have puréed carrots all over it...”
I’m going to take a quick professional pause to enjoy some time with my family (and in the outdoors) but am looking forward to sharing news about my next professional endeavor when it gets a bit closer. In the meantime, you can contact me through my personal website linked above.
For whatever it's worth, I don't fault anyone who applies to have their student loans cancelled through Biden's plan. I hate the policy, but it's not the responsibility of individuals to police the spending of taxpayer dollars. Our political leaders are the ones who failed here.
I don’t think I’d be an economist today if I hadn’t met Eddie Lazear when I did. He was an amazing thinker and an amazing human. I’ll forever be grateful for the kindness and generosity he showed me when I was at an important crossroads in my life.
PSA: This is not an opportunity to measure how students learn online. Unless you believe that pandemics don’t affect learning. And that impromptu, mid-semester conversion of in-person classes to remote classes reflects best practices for online education.
For the first time, entire student bodies have been compelled to take all of their classes online. Jonathan Zimmerman says that now is a perfect opportunity to measure how students learn in that medium compared to face-to-face instruction.
Imagine not understanding that being able to afford a vacation in Paris puts you ahead of MOST Americans in terms of economic privilege. Not to mention having a college degree...
In 2015–16, students from households in the highest income quartile (those with incomes above $120,000) borrowed about $10,500 more than students from households in the lowest income quartile (those with incomes below $30,000).
and ignoring the majority of Americans who operate in the labor market without the luxury of a college degree and the heightened earnings that it affords. We have safety nets to ensure that borrowers aren't destroyed by student debts. And we should make them work better.
Biden loan cancellation plan is regressive. Despite income limits and pell grant advantage. That’s because it ignores least well off in the economy, those who never went to college, and advantages our highest earners, highly educated.
ANALYSIS: Even with the additional $10k for Pell recipients, the President's debt cancellation still mostly benefits higher earners.
𝟓𝟕 𝐭𝐨 𝟔𝟓 𝐩𝐞𝐫𝐜𝐞𝐧𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐛𝐞𝐧𝐞𝐟𝐢𝐭 𝐰𝐢𝐥𝐥 𝐠𝐨 𝐭𝐨 𝐭𝐡𝐞 𝐭𝐨𝐩 𝐡𝐚𝐥𝐟 of the income spectrum.
I appreciate that Mayor Pete’s
@PeteButtigieg
talking point on college affordability includes a note that “it also needs to be more affordable to not go to college.”
Thankful to
@OnTheMoney
for the invitation to talk with
@contessabrewer
about paying for college. Ciff’s notes: Employer benefits are great for those who give or get them. But for those really struggling we’ll need better safety nets.
“They don’t really understand the cost of sexual harassment. They don’t understand the way it can sap your motivation. They don’t understand the way that can make you doubt your own abilities, question yourself.”
@BetseyStevenson
nails it here.
#econmetoo
As a parent, I know how important
#BetterFAFSA
is for families.
2 years ago when filling out the FAFSA w/ my son it took about an hour. This year when filling it out with my daughter it took about 30 minutes. For busy families, that time saved counts.
Wondering what I think about the Sanders plan for student debt cancellation? Watch my hot take here:
'Game of Loans' author says Bernie Sanders' plan to eliminate student loan debt is absurd via
@abc7newsbayarea
Watching
@FoxNews
weekend anchors is worse than watching low ratings Fake News
@CNN
, or Lyin’ Brian Williams (remember when he totally fabricated a War Story trying to make himself into a hero, & got fired. A very dishonest journalist!) and the crew of degenerate......
This is so irresponsible. If it's so cruel to deny borrowers forgiveness, then why didn't dems make it happen through legislation when they held the house, senate and WH? Answer: Because it's a bad policy idea that doesn't even have unanimous support in your own party.
This disappointing and cruel student debt ruling shows the callousness of the MAGA Republican-controlled Supreme Court.
The fight will not end here.
The Biden administration has remaining legal routes to provide broad-based student debt cancellation.
We've sold the notion that a degree is the golden ticket to the American Dream. By doing this, we’ve put artificial pressure on individuals to consume higher ed at any price. We have not made it acceptable for people to operate in our economy without a degree.
Come on. We don't need to preserve incentives to work right now. We're actually telling people NOT to work, remember? Just cut the checks. Appropriate means test is 2020 tax filing.
Everyone else is just as uncomfortable as you are. Don’t hesitate to walk up and introduce yourself to people. You don’t need to have anything remarkable to say.
My colleague, Michael Brickman, explains the pending legal challenge of Biden's latest effort to cancel student loans.
Someone Is Stepping Up: Kansas Resists Biden’s Abuse of Power on Student Loans
California inflation relief checks:
Eligible people making up to $250,000 will receive payments ranging from $200 to $1,050.
Here's when first batch of checks will go out.
My experience with jerks in Econ: The jerks are so “loud" that I initially assumed everyone was a jerk. Took me a long time to start opening up to people in our field as a result. But I’ve since come to learn there are tons of awesome people in Econ.
Today, let's also highlight the GOOD actors in economics. To get it started, I am grateful to Guido Imbens, who kept me from dropping out of graduate school,
@lkatz42
who serves as an advisor LONG after graduate school ended, and
@HilaryHoynes
, who I aspire to be.😊
.
@crampell
on the mark when she explains: “I get it. ‘Reduce red tape to make existing programs work better!’ is less sexy than ‘Poof, everyone’s debts be gone!’ But if anyone could sell such practical wonkishness, it’s Warren.”
Edu twitter friends: I’m looking for some interesting new working papers on student loans and related policy. What should I be reading? Early stage research good too!
New evidence from three economists on Bennett Hypothesis in the context of graduate student loans.
**Spoiler Alert**
They find subsidies (uncapped borrowing) caused prices to rise. And no benefit for access.
In her latest for
@AEIdeas
,
@DrBethAkers
explains a new study on graduate school loans that finds that every dollar-increase in federal student loan eligibility translated into a $0.64 increase in net price.
It's time that federal oversight of higher education comes in line with student values and stops protecting institutions who defend bad outcomes with the flimsy notion that they are creating unmeasurable social value.
Summer pre-college programs for high school students are sometimes suggested to students as giving them a leg up in admissions to selective schools. This one at at Columbia U generated more than $20 million in revenue over the last two years.
Had the privilege of hosting this fantastic group of thinkers in Park City, UT this week for a working group on new business models in higher education. New working on this subject coming from the
@ManhattanInst
soon.
In this case, students will choose more expensive programs of study and borrow more than they otherwise would have. And this will only cause colleges to raise prices even further. (3/4)
@EDAnalyst
Here’s another unpopular opinion. If we want to spend gobs of money on higher ed, maybe we should spend them on living expenses for poor rather than tuition waivers for the rich. 🤷🏼♀️
It is validating to know I am not alone but also devastating to realize this is where we are. I have tremendous admiration for
@jenniferdoleac
and others who are working for change. Women in Economics Report Rampant Sexual Assault and Bias
This seemed to me to be the most credible legal challenge to Biden’s student loan cancellation. I don’t see much standing in the way of it moving ahead now.
Are you planning a virtual fall semester and looking for a guest speaker? I’m available to Skype/ Zoom in for your undergraduate course or for special events. Preference will be given to larger events!
I’m thrilled that I’ll have the opportunity to work on answering the policy questions that are central to ensuring the American dream under this exciting new initiative with
@AEI
.
@swinshi
@RobertDoar
@kevincorinth
🇺🇸 BIG NEWS 🇺🇸
We're launching the American Dream Initiative—an ambitious four-year research agenda.
@swinshi
&
@kevincorinth
will lead a new Center on Opportunity and Social Mobility.
Check out the press release👇
What if it's the risk of paying for college that's the problem and not the price? Some colleges are testing that hypothesis by offering programs that make enrollment less financially risky for students. Check out my new report:
Risk is a key factor influencing student decision-making in higher education, and money-back guarantees are an attractive and promising option to mitigate that risk by putting institutions on the hook for outcomes. via
@BethAkers_