The limits placed on the program make it less of a bonanza for the upper-middle class than it could have been. The largest debt loads are typically held by those with advanced, not just undergraduate, degrees, so blanket forgiveness would have been a massive windfall for young lawyers. But the $125,000 income threshold doesn’t come close to targeting the most sympathetic cases: those who were preyed upon by low-quality colleges, often didn’t even earn a degree, and wound up working at the proverbial Starbucks. The
median earnings for a U.S. female working full-time and year-round were about $50,000 in 2020; for a male, the number was roughly $60,000. Yet the White House set its cutoff for five-figure handouts at more than twice those amounts—and, citing numbers prepared by its own Department of Education, boasts that 87 percent of the debt relief announced yesterday will go to those earning less than $75,000 in individual income. Even that would be an odd threshold for taxpayer largesse, as it’s above the 2020
median household income and
more than triple the 2022 Federal Poverty Level for a family of three. But rest assured: “only” about $65 billion will go to individuals earning even more than that by themselves, at a cost of $200 per U.S. resident.
Thanks to the income cap, this is not a handout to the rich—but it’s a handout to a lot of not particularly needy Americans:
educated, young, with their peak earning years ahead, and oftentimes already well-off. Many of these individuals made deliberate, well-informed decisions to borrow money to attend college, and benefited from it.
