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Forgiving student debt will not fix a broken system

US President Joe Biden’s loan forgiveness plan will bring relief to students, but it won’t help the economy or improve American college education.

Protesters outside the White House during a rally in April calling for the cancellation of student debt. PHOTO: NYTIMES
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United States President Joe Biden announced on Aug 24 that the government would cancel up to US$20,000 (S$27,900) worth of federal student loans for millions of people. It will also extend the pause on monthly student loan repayments, so that borrowers do not have to resume payments until at least January next year.

But is this a good move? Let's look at the numbers.

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