Sen. Elizabeth Warren (D-Mass.) is right that we need to address the skyrocketing tuition costs at American universities, but complete student-loan debt forgiveness is not the solution, according to a Wall Street Journal commentary. Most college students will generate enough income over time to repay their student debt, and will also quickly earn more than their non-college-attending peers. Forgiving student debt, then, would in many cases help the relatively well-off become even more well-off. Sen. Warren’s proposal calls for canceling $50,000 of debt for those with annual household incomes under $100,000, and providing “substantial debt cancellation” for people whose households earn between $100,000 and $250,000 a year. A real solution to rising tuition costs would have to be long-term and address the overemphasis that American society places on the four-year degree, according to the commentary. Read the full commentary. (Subscription required.)
*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.
The issue of student loan debt in bankruptcy is addressed in recommendations of the Final Report of ABI’s Commission on Consumer Bankruptcy. To download a copy of the report, please click here.
