Wealthier Households will Actually Benefit

As we and others have detailed elsewhere: "Also, some argue that debt forgiveness won’t do much for the economy right now because the extra cash it frees up will be spread over years, will flow disproportionately to wealthier households less likely to spend it, and may incur tax liabilities that cancel out the stimulus effect," Bloomberg writes.

And further: "Advocates agree that wealthier families tend to have larger student debt totals, so they might get a greater break in simple dollar terms from forgiveness," and yet they still argue, "But, they say, student debt is even more of a burden for lower-income families, so relief would benefit them more even if the value of loans forgiven is less."

Read the full Bloomberg analysis here.