Students shouldn’t have to borrow to get a college education. Decades ago, free college education was provided by many governments in the United States and free college remains the norm in several European countries, all of which are less rich than the United States. For decades, the cost of a college education has gradually been shifted from the government to working class parents and students. Between 1980 and 2018, the cost of tuition rose about twice as fast as the median household income.
During the 2020 presidential campaign, Joe Biden promised to eliminate at least $10 thousand of federal student loan debt for each borrower. Since then, Senator Elizabeth Warren has been joined by the moderate Senate Majority Leader Chuck Schumer in calling for cancelling $50 thousand in federal student loan debt. Many have pointed out that cancelling repayment of federal student loan debt can occur without enacting a new law, simply through an executive action.
According to the Roosevelt Institute, cancelling $50 thousand in federal student loans would increase black wealth by 40%. In addition, it would help many others, mostly of lower to moderate incomes, who are financially underwater because of student loans. Without having to worry about such a large debt, they will be able to focus their resources on building a better, more secure future for themselves and their children.
This can and should be the first step to make college free for this generation and those that follow.
Janssen Economics 