May 19, 2019

How student debt causes lower incomes

Illustration: Aïda Amer/Axios

A new paper looking at student loans suggests that debt does come with more than just interest costs.

What they did: Three researchers, all of them business school professors, managed to persuade Equifax to give them detailed financial data on thousands of borrowers who had student loans from National Collegiate. When the company couldn't prove that it had chain of title, the borrowers' debts were discharged.

By the numbers: Does a significant student debt burden force you to earn more money, just so that you can repay your loans? Or does it just keep you stuck in a suboptimal job, when you might be able to earn more elsewhere?

  • The answer seems to be the latter.

The researchers report: "After the discharge, the borrowers' geographical mobility increases ... ultimately their income increases by more than $4,000 over a three year period, which is equivalent to about two months' average salary."

Go deeper

Trump signs executive order targeting protections for social media platforms

President Trump signed an executive order on Thursday designed to limit the legal protections that shield social media companies from liability for the content users post on their platforms.

What they're saying: "Currently, social media giants like Twitter received unprecedented viability shield based on the theory that they are a neutral platform, which they are not," Trump said in the Oval Office. "We are fed up with it. It is unfair, and it's been very unfair."

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 5,931,112 — Total deaths: 358,067 — Total recoveries — 2,388,172Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 1,711,313 — Total deaths: 101,129 — Total recoveries: 391,508 — Total tested: 15,192,481Map.
  3. States: New York to allow private businesses to deny entry to customers without masks.
  4. Public health: The mystery of coronavirus superspreaders.
  5. Congress: Pelosi slams McConnell on stimulus delay — Sen. Tim Kaine and wife test positive for coronavirus antibodies.
  6. 🏃‍♀️Boston Marathon: The race cancels its postponed event, asks runners to go virtual.
  7. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 44 mins ago - Politics & Policy

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Turkey will lift restrictions on intercity travel and allow several public places to reopen June 1, President Tayyip Erdogan said on Thursday, per Reuters.

By the numbers: Nearly 6 million people have tested positive for COVID-19 and over 2.3 million have recovered from the virus. Over 357,000 people have died globally. The U.S. has reported the most cases in the world with over 1.6 million.