Here’s What ‘Forgiving’ College Debt Would Do

Student debt has become 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 Boudreaux explains what really happens and why “debt forgiveness” merely transfers the debt to others.

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