A COMMENT ON THE US STUDENT LOAN SITUATION FROM A POST-KEYNESIAN PERSPECTIVE

Gustavo Pereira Serra

doi:10.33834/bkr.v9i1.291

Gustavo Pereira Serra The New School For Social Research https://orcid.org/0000-0001-7414-3790

DOI: https://doi.org/10.33834/bkr.v9i1.291

Keywords: Household Debt, Student Loans, Debt Canceling, Post-Keynesian Economics

Abstract

This paper aims to contribute to the debate on the US student debt situation. First, it highlights the determination of labor earnings and economic activity as a function of macroeconomic conditions and the relevance of considering this endogeneity to analyzing student debt sustainability. Next, I present a background on student loans and the labor market in the US. Moreover, using a Minskyian framework, I argue that the current student debt situation can have adverse results on economic activity, although not leading to financial instability. Last, I comment on the student debt cancellation debate, proposing alternative policies with more progressive and lasting effects.

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