Problem
Some Americans become saddled with educational debt that they cannot repay, often because they did not complete their degree or graduated from a school or program with a low return on investment. The main option for such borrowers today is to enroll in an income-driven repayment plan, though these are surprisingly complex. With a more robust safety net, more people might see the risk of investing in higher education as worthwhile.
Solution
This situation calls for the option to have student loans, both federal and private, dischargeable in bankruptcy under certain conditions.
Date of Proposal : April 13, 2021
Beth Akers, “Student Debt: Assessing Its Impacts on Individuals and the Economy,” testimony before the US Senate Committee on Banking, Housing, and Urban Affairs, Subcommittee on Economic Policy, April 13, 2021, Read more.