President of Purdue University calls student loan forgiveness a ‘gift to the wealthy’ and the ‘most regressive policy idea we’ve seen’

President of Purdue University calls student loan forgiveness a ‘gift to the wealthy’ and the ‘most regressive policy idea we’ve seen’

Purdue University President Mitch Daniels on Wednesday that he believes student loan forgiveness will worsen the inequities it was designed to remedy, calling it "the most regressive policy idea we've seen." "It's a gift to the wealthy," Daniels, the former governor of Indiana, told CNBC's Squawk Box. "Doctors and lawyers are the two categories who would benefit the most. Only 5% even of the most modest suggestion would go to the bottom quintile." Daniels appeared to be citing a from the University of Chicago published last year, which found student-debt cancellation ranging from $10,000 to full forgiveness would redistribute income upward, as nearly half of all the student debt belongs to individuals pursuing careers in high-income fields. The University of Chicago study, which has also been referenced by the Committee for a Responsible Federal Budget, found that only 5% of the debt relief would benefit individuals in the lowest-earning tier. The to future high earners has been a consistent argument against student-loan relief. However, as loan forgiveness could boost the economy, as well as benefit minorities and low-income households. White House Press Secretary Jen Psaki last week that President Joe Biden is considering student-debt forgiveness for borrowers who make less