The Law and Political Economy of a Student Debt Jubilee

Abstract

The notion of a student debt jubilee has begun its march from the margin of policy debates to the center. This article discusses why such a jubilee would be desirable and how it might be implemented. After reviewing the history of student debt, the arguments for cancellation, and the two bills that have been introduced in Congress over the past year by leading candidates for the Democratic presidential nomination, the last section of the article presents the possibility that a substantial amount of public student debt cancellation could be undertaken without further legislation. The Department of Education has already been given the authority “compromise, waive, or release” its claims against students, and nothing under current law clearly limits that authority.

Keywords: student debt, administrative law, education, legal history, public goods