Brooklyn Journal of Corporate, Financial & Commercial Law


Crystal Liu

First Page



This Note addresses the student loan debt problem in the United States, the serious risks it poses, and why a multi-level solution is required to tackle this growing problem. With the increasing cost of college tuition and correspondingly greater amounts of student loan debt but slower income growth, the mismatch between loan and repayment capability keeps widening. A multi-level approach is required to tackle the $1.7 trillion (and increasing) student loan debt problem. First, tuition must be reduced because even if all student loan debt were to be wiped out today, the unaffordability of tuition would continue to increase, and the student debt would amass again. Second, current student loan borrowers need assistance with repayment, especially given the current pandemic-induced economic environment. Third, student loans need to be dischargeable in bankruptcy proceedings as a last-resort safety net. Inspiration can be taken from the real estate industry in handling each of these levels.