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Our student-loan system needs fixing — and this change would be smarter than just forgiving debt

·6 min read
Our student-loan system needs fixing — and this change would be smarter than just forgiving debt

Most of the recent discussion of student debt has focused on the prospect of forgiving that debt—telling borrowers that they don’t have to repay the funds the federal government provided to help them pay for college or graduate school. The fierce debates about the pros and cons of such a policy rarely focus on the advantages of extending credit to students or on what debt forgiveness today would mean for students borrowing tomorrow, next year, and for the foreseeable future. Should President Biden cancel outstanding student debt, it would not relieve students from reliance on borrowing in the future.