Student Loans

Student loan policy addresses the $1.7 trillion in outstanding federal student debt held by approximately 43 million Americans — a crisis that has grown over four decades of rising tuition, stagnant wages, and expanded access to borrowing with insufficient attention to whether the debt could be repaid. Federal student loans now fund the majority of higher education financing, with interest rates set by Congress and repayment plans administered by the Department of Education through loan servicers. Income-driven repayment (IDR) plans tie monthly payments to a borrower's income and provide forgiveness after 20–25 years; the Biden administration's SAVE plan would have shortened that timeline and lowered payments significantly but was struck down by federal courts in 2024. President Biden attempted broad loan cancellation — $10,000 for most borrowers, $20,000 for Pell Grant recipients — but the Supreme Court blocked the plan in Biden v. Nebraska (2023) on major questions doctrine grounds. Subsequent targeted forgiveness for borrowers defrauded by schools, those in public service (Public Service Loan Forgiveness), and those with permanent disabilities has proceeded. Tuition at four-year institutions has roughly tripled in inflation-adjusted terms since 1980, driven by reduced state funding, administrative expansion, and the availability of loans that insulate institutions from price sensitivity. Internationally, many European countries offer free or heavily subsidized university education; Australia uses an income-contingent repayment system praised for its efficiency.