this post was submitted on 08 Oct 2025
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Student loans in the US are a problem because they are a bad deal.
If they were replaced with a more generous interest rate (eg somewhere equivalent to break even for government debt, maybe higher to compensate for low earners, but nothing like the profit making rates used), and only applied progressively (which as you point out, will be generally fine since graduates should earn plenty on average), then maybe nobody would be pushing for forgiveness.
But US student loan debt is privatised, so the government can’t easily improve the terms, thus everyone reaches for the hammer of paying it off.