Why Student Debt Is So High and Why Forgiving It Doesn't Fix the Problem

Money For the Rest of Us

What are the drivers that lead to higher student loan balances? Why a one-time student loan forgiveness program doesn't solve the problem of increasing student debt. What are some more viable longer-term solutions.

Topics covered include:

• How big is the Biden Administration student debt forgiveness plan
• How big has the student debt burden grown
• Why are borrowings for students increasing
• Why Baby Boomers spent so much less on college
• How are student loans accounted for by the U.S. federal government
• What is the impact on the deficit and potentially inflation of forgiving billions of dollars of student debt

For more information on this episode click here.

Show Notes

Student Debt And The Federal Budget | How Student Loans Impact The U.S. Fiscal Outlook, November 2021—Bipartisan Policy Center

What the Student-Loan Debate Overlooks by Ronald Brownstein—The Atlantic

See the Average College Tuition in 2022-2023 by Emma Kerr and Sarah Wood—U.S. News & World Report

Biden’s Student-Debt Plan Could Chip Away at the Racial Wealth Gap by Sheelah Kolhatkar—The New Yorker

If your federal student loan payments are high compared to your income, you may want to repay your loans under an income-driven repayment plan—Federal Student Aid

What Does Student Debt Cancellation Mean for Federal Finances?—Committee for a Responsible Federal Budget

Government payments by program—Economic Research Service, U.S. Department of Agriculture

Projected Lifetime Earnings by Major by Douglas A. Webber, December 1st, 2019

Related Episodes

245: Is College Worth It?

307: Income Share Agreements—Good for Students or Investors?

327: Is Student Loan Forgiveness A Good Idea?

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