Thread by @tonetalks

So in effect a white person earning $75k or less but that will inherit a million dollars will get student loans forgiven. But an #ados Black making $130k helping family gets 0.
nytimes.com/2022/08/24/us/…

In addition this is likely scaled between $75k and $125k. Literally punishing people for making an amount that might be $30k more after taxes. Taking away substantial sums of the forgiveness.

Also 2021 taxes will kick a lot of people that reported increased income from coronavirus aid either off receiving forgiveness or higher on the income scale.

If this was serious it would look at parents and grandparents wealth. And also average 10 years of income as the metric. Lastly it would focus on #ados Black American families.

Even amongst those small number of Blacks that went to college the default rate was 32 percent in 2017. This does nothing to fix their credit. Nor is it clear if it applies if the debt has been moved to a secondary credit collection agency.

So we cut out #ados Blacks that may have dug themselves out and into a income right above $125k. And are helping family as gov’t. Then we see depreciated impact on those Blacks in most dire need that have defaulted.

I’ll point out another thing. This is a windfall for white married couples. Their threshold is $250k but 1 person can earn $175k and the other $50k and they both get the full debt relief. The white marriage rate is much higher than Black Americans. Another way it will tilt white.

It’s effectively a white wealth student debt relief mask.

If we look at the recent public service loan forgiveness for guidance you couldn’t access it until you were out of default. Which could take thousands of dollars the borrower doesn’t have in some cases.