The Student Loan System is Dead. The Pandemic Killed it.

“…If a borrower’s spending increased during the pandemic, they should review their budgets to free up money to start making student loan payments. Cut back on discretionary expenses. Borrowers can also increase their income by asking for a raise, working a part-time job in the evening and weekends, or by switching to a better-paying job.”

Forbes Headlines Before the Presidential Election, and More Recently

The student loan “apocalypse” has already happened- more than two years ago. The pandemic is the nail in it’s coffin. There is no saving this lending system, and there is no good reason to save it.

Source: Department of Education Loan Status Report
Source: U.S. Department of Education (Q4 2020)

A default rate 3–4 times higher than the subprime rate. Most borrowers not paying. 80% of all borrowers underwater. Older borrowers outnumbering younger borrowers, and owing far more despite having borrowed far less. All of these happening before the pandemic. This is indisputable, clinching evidence of a totally- catastrophically- failed lending system.

Trying to turn Federal Student Loans back on.

Federal student loans are, for better or worse, vanishing into a mist of illegitimacy, and time only hardens this popular rejection. There is literally nothing that can be done to change this fact.



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Alan Collinge

Alan Collinge


I am Founder of StudentLoanJustice.Org, author of The Student Loan Scam (Beacon Press), and creator of the petition Change.Org/CancelStudentLoans