Student loan relief written on the blackboard and graduation cap.

Student Debt Is a Policy Failure, Appel Says

In a recent Marketplace interview, Hannah Appel, associate faculty director of the UCLA Luskin Institute on Inequality and Democracy, said that “canceling student debt is the quickest way to narrow the racial wealth gap.” The Department of Education announced a plan to change the federal student loan system to make it easier for lower-income student loan borrowers to have their debt forgiven, prompting discussions about canceling all student loan debt. The vast majority of student loans are “simply uncollectable,” Appel said, adding that the impact of student loan debt falls disproportionately on people of color. She explained that student loan debt is unique because it’s held 95%-plus by the federal government. “We’ve seen the most progress and we’ve been able to build the most power around student debt, because it plainly is a policy failure for which we can hold the government accountable, and they can reverse course,” she said.


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