We Failed to Stop the Student Debt Crisis. Let’s Prevent the Next One.

Real Clear Education 

Ethan Pollock & Erica Cuevas

March 17, 2023

The Supreme Court recently heard arguments in two cases that could scuttle the Biden administration’s student debt relief plan. If the plan survives, it could be a potentially life-changing financial reprieve for more than 40 million eligible Americans.

But no matter what the Court decides, students, families, and taxpayers might soon find themselves in a similar dire situation. The Committee for a Responsible Federal Budget estimates that even if everyone eligible under the Biden administration’s plan receives debt cancellation, the balance of outstanding federal student loans will return to its current amount—an astounding $1.6 trillion—by 2028.

The current crisis resulted from systemic failures that began long ago and continued across multiple presidential administrations and with the oversight of both political parties. Colleges and universities have continued to raise ns and many have not adapted their pricing and financial aid practices to support their students—particularly first-generation college-goers, students with jobs, and students who are parents or have caregiving responsibilities—all the way to completion.

Because the causes of this problem are so many and so complex, fixing it will require action across multiple fronts to reduce college costs and prevent students from defaulting—or from needing to borrow such unsustainable amounts in the first place. The administration’s plans for debt relief and expanding the generosity of Income-Driven Repayment plans are good first steps. But if policymakers do nothing to improve the cost, value, and return on investment of education and training, we’ll be in trouble again soon enough.

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