Don’t just delay student debt, prevent it
The Biden administration this week announced another 90-delay in federal student loan interest, payments and collections. This is welcome news to tens of millions of borrowers and an important decision but — at best — it’s a short-term solution.
At worst, we’re at risk of treating a symptom when an underlying condition is what ails us.
The truth is, we can’t delay or cancel our way out of America’s student loan debt crisis. We must prevent debt to begin with.
That means thinking holistically about our system and embracing affordable, employer-backed education programs that don’t make students pay out of pocket and having a broader conversation about associating high cost with high quality.
The federal government, including the Biden administration, is doing everything that it can to right past wrongs, but it’s apparent that it is not enough and a complete solution sits with the private sector and a broader solution.
America’s student loan debt has grown ceaselessly, and it’s been exacerbated by our nation’s slow recovery from the COVID-19 pandemic. In the U.S., there are more than 44 million borrowers who collectively own $1.5 trillion in student loan debt. (That’s just behind mortgage loan debt, and higher than credit and auto loans.)As the […]