Something has to give on student loans. The $1.4 trillion in outstanding student loan debt has weakened the macroeconomy and has become a form of regressive taxation. In the process, an increasing number of individuals have had to defer starting a family, accept jobs that they do not want, and endure the significant psychological and physical burdens of heavy indebtedness.
Although there has been plenty of discussion surrounding these issues, with a specific focus on student loan interest rates and income-based repayment plans, little has been said about the U.S. Department of Education’s broad powers to outright cancel existing student loans. This series of four essays will discuss the most important of those powers, and why the Department’s authority has not been frequently discussed—much less invoked by the agency.