Econ Comments & Analysis
Forbes | Student Loan Forgiveness Could Be Expensive Education For Taxpayers
Student loan debt has become a major economic policy issue in the country. Total student loan debt has been climbing sharply over the last decade and has now reached about $1.3 trillion. This has been deemed a crisis by many and has spurred numerous calls for student loan forgiveness, government subsidized loan interest rates, and other actions designed to lift the supposedly heavy burden from all these poor students’ shoulders. Student loan debt has even been blamed for the slow housing recovery and a slowdown in car sales. Yet the real problem with student loan debt at the moment is that taxpayers just got stuck with a $22 billion bill for expected non-payment of student loans.
