Unfortunately, the debt-cancellation campaign fails to address the underlying problems with student lending — and such efforts at mass forgiveness only accelerate the unraveling of our federal student loan program. Student loan privatization could therefore save taxpayers at least a quarter of a trillion dollars over a decade. A return to the Federal Family Education Loan (FFEL) program, for instance — when the federal government guaranteed private loans — should be discouraged. Scaling back federal lending alone is not enough to create a thriving private student loan market. American universities remain the envy of the world, but the dysfunction of the federal student loan program has broken the promise of higher education for too many students.

Source: CNN May 09, 2024 17:09 UTC