By: Cole Turner
Source: Federal Reserve Bank of New York
The chart above shows that approximately 45% of college graduates work a “good” job that does not require a college degree. The Federal Reserve Bank of NY defines a “good” job as a full-time job paying $45,000 or more. Cancelling student debt is regressive. However, many students complete degrees with little job market demand and struggle to make payments years after graduation.
Instead of distracting ourselves with cancellation, which will disproportionately benefit high-income professionals with graduate degrees like doctors and lawyers, income-based programs need reform to better address the needs of the underemployed. Better yet, cheaper methods of job training leading to these “good” jobs would cut out the need for college altogether.
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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