Make Student Loans Work for Students - Commentary

Claudia Sahm, founder of Sahm Consulting and a former Federal Reserve economist, writes:  Amid the debate over student loans — President Joe Biden’s administration tried and failed to forgive some of the debt, which starts accruing interest this month after a three-year pause — a crucial question has often been overlooked: Who benefits the most from student loans? It’s not necessarily the students. The main beneficiaries are colleges and other accredited post-secondary educational institutions, which receive the loans as transfers from the federal government via student borrowers. There are few strings attached. Colleges do not pay the loans back, nor do they pay interest to the government. Students do that.