Student debt is a serious issue in the United States, especially due to the fact that high

unemployment has caused many students in higher education to question whether the debt they

are piling on in pursuit of their degrees is worth it if they are still unable to get a job. Alan

Collinge, Neal McCluskey, and Andrew Ross have all weighed in on the topic, but none of them

has offered real, practical solutions that can assuage the burden that many students and families

face. Tackling student debt will require multiple policy interventions, but it is imperative that

action is taken.

According to Collinge, the primary reason for exorbitant student debt is the removal of

bankruptcy protections on student loans, which are no longer dischargeable since changes in

bankruptcy law in 1998 and 2005 (federal student loans first underwent the change and private

loans followed suit). Likewise, many unethical lenders have profited from defaults even as the

nation as a whole has approximately $1 trillion in student debt. Collinge suggests the solution is

to reinstitute dischargeable student loans so that students can be “freed” from their education

debt if they become bankrupt. The problem with his suggestion is that does not actually solve the

student debt problem but provides a way out once the situation is completely out of control and

cannot be resolved in any other way. He also fails to mention that bankruptcy can significantly

lower an individual’s credit score and make it more difficult to find employment—in addition to

many other negative effects.

gone into bankruptcy, but she will have to deal with new long-term challenges. An alternative

solution would be to set up a scheme in which loans can be repaid overtime as a portion of the

debtor’s income. This seems like a fair arrangement because it