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Suppose Mr. Biden administration forgives up to $10,000 in debt for each borrower with a student loan balance. Typically, the funds are issued to the

Suppose Mr. Biden administration forgives up to $10,000 in debt for each borrower with a student loan balance. Typically, the funds are issued to the lenders who hold these loans, but the money could be paid directly to the borrowers. If you are a borrower, which payment scheme would you prefer? From the perspective of the tax payers who fund this program, does it matter which payment scheme is used? Please explain your responses.

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