There’s no doubt that the United States faces a student loan debt crisis. But the problem would be addressed much more effectively — and progressively — by a series of reforms targeted at those who bear the brunt of the crisis than by providing most borrowers with up to $50,000 in debt forgiveness.
The overall numbers are daunting. According to the credit reporting agency Experian, 165.2 million Americans owed about $1.57 trillion in student loan debt in 2020, making it the second-highest category of consumer debt, behind only mortgages. About 10.8 percent of borrowers were in default on nearly $120 billion in student loan debt last year, and another 2.8 million people who owe almost $123 billion have loans in forbearance.
