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What Would Happen If We ‘Forgive’ Student Loan Debt?
What Would Happen If We ‘Forgive’ Student Loan Debt?
Oct 28, 2025 10:02 PM

Student debt has e a hot issue this election season, with both Democratic candidates —Clinton and Sanders — offering proposals for forgiving student loans.

But what would happen if the U.S. actually forgave student debt? Would the loans simply vanish? Would tuition prices decline?

Economist Don Boudreauxexplains what really happens and why “debt forgiveness” merely transfers the debt to others.

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