In April 2012, US student loan debt topped one trillion dollars, more than credit card debt. Although corporate media dutifully reported this milestone, they underplayed its significance and ignored one promising solution. Student loan debt is the only form of consumer loan debt that has increased substantially since 2008. The threat of massive student loan defaults requiring another taxpayer bailout is a systemic risk as serious as the bank failures that brought the US economy to the brink of collapse in 2008. The Federal Reserve could introduce a new quantitative easing program to remove student loan debt, giving the economy a boost similar to that created by the GI Bill.
Censored News Cluster: From “Bankster Bailout” to “Blessed Unrest”: News We Can Use to Create a US Economy for the 99 Percent
Ellen Brown, “A Jubilee for Student Debt?” Yes! Magazine, October 20, 2011, http://www.yesmagazine.org/new-economy/a-jubilee-for-student-debt.
Alex Pareene, “The $1 Trillion Student Loan Rip-Off: How an Entire Generation Was Tricked into Taking on Crushing Debt that Just Enriches Banks,” AlterNet, October 20, 2011, http://www.alternet.org/story/152809/the_$1_trillion_student_loan_rip-off%3A_how_an_entire_generation_was_tricked_into_taking_on_crushing_debt_that_just_enriches_banks/?page=1.
Student Researcher: Joshua Nervis (Sonoma State University)
Faculty Evaluator: David McCuan (Sonoma State University)