Center for American Progress Action

Canceling at Least $10,000 of Student Loan Debt Will Help Lower the Cost of Living

Canceling at Least $10,000 of Student Loan Debt Will Help Lower the Cost of Living

Canceling student loans offers targeted relief crucial to helping households improve their financial security—it is not a decisive factor in battling inflation.

Commentary has been increasingly focused on whether student debt cancellation will exacerbate inflation. However, inflation is not the lens one should use to analyze the student debt crisis. The student debt crisis predates current inflationary pressures and is part of a decades-long affordability struggle challenging the 43 million Americans who are student loan borrowers as well as their households. The costs of student loan debt have been increasing faster than income for years as the volume of student loan debt has grown from around $750 billion to $1.6 trillion since 2010. Targeted student debt cancellation of at least $10,000 will help millions of Americans better manage their budgets, build wealth, and reduce the racial wealth gap, immediately improving financial security and laying the foundation for faster upward economic mobility.

The above excerpt was originally published in the Center for American Progress. Click here to view the full article.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.


Rose Khattar

Former Director of Economic Analysis, Inclusive Economy

Zahir Rasheed

Former Research and Press Assistant


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.