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Why the Fight Against Student Loan Relief Hurts Us All
What the Conservative Attorneys General don’t tell you about student loan debt relief.
by Thomas DeVere Wolsey
Seven Republican Attorneys General obtained an injunction blocking federal student loan relief efforts, including the SAVE repayment plan[i]. Their injunction ignores rising tuition costs, past policy failures, and the economic benefits of forgiveness programs. As a borrower with significant student debt, I understand the frustration of many borrowers.
Between 2004 and 2008, I borrowed $80,000 for my education, expecting an academic career to repay it. After the Great Recession limited job prospects, my debt ballooned to $126,806 — a $46,806 increase from compounding interest[ii]. My story reflects those of millions trapped in a flawed system[iii].
The Missouri suit ignores the root causes of student debt. Government-backed loans, intended to make college accessible, instead incentivized tuition hikes[iv]. The government itself is responsible for creating the student loan industry, complete with boondoggles and taxpayer subsidies that went to lenders’ bottom lines rather than supporting students.[v] Between 1980 and 2019, college fees rose 169%, while wages for young adults increased only 19%.[vi]
