Plain English with Derek Thompson Should We Cancel Student Debt?
Jan 28, 2022
Jordan Weissmann, Senior Editor at Slate.com, digs into America's staggering $1.7 trillion student debt crisis. He discusses the emotional and economic toll student loans take on individuals and society at large. The conversation includes robust arguments for and against debt cancellation, highlighting its implications for younger voters and marginalized communities. Weissmann also tackles objections to debt forgiveness and compares the U.S. system to more efficient models abroad, making a case for reforming education financing.
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Student Debt Explosion
- US student debt has tripled since 2006, reaching $1.7 trillion, equivalent to total US credit card debt.
- This surge stems from increased college enrollment and costs outpacing other services.
Debt Distribution
- 40% of millennial-led households hold student loans, double the 1990s rate.
- While the median debt is $20,000, the average is $40,000 due to a small percentage of borrowers with very high debt.
Debt Disparities
- Black borrowers and for-profit college students face disproportionate debt burdens, averaging 40% more than their counterparts.
- They also default at twice the rate of other student groups.