Student loan forgiveness... But why is there so much to forgive?

Student loan forgiveness made headlines around the world last week as US President Joe Biden announced executive action to forgive $240 billion worth of student loans over the next ten years. Plenty has been written about the merits of the policy. 

On one hand, we’ve heard about the hardships that many students with loans face and the way it affects new business creation and upward mobility of borrowers. But on the other, we’ve heard from those that have already paid off their loans about the unfairness of the policy. And we’ve heard about the moral hazard it creates for colleges. 

Is this a solution that treats the symptom and not the cause? Today Alec and Sascha look at why student loan debt is such a big problem in America.

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