Higher-Education for Everyone: How Corporate Income Tax Can Mitigate the Student Loan Crisis

Abstract

The United States remains the OECD country with the third highest spending on higher education per student as a share of per Capita GDP (Delisle & Cooper, 2019). However, its related problems are numerous, and many of its residents—especially African Americans and other communities of color—lack access to this increasingly necessary level of education. Even when granted access, many are left with unmanageable debt. This debt often reduces generational wealth and spending power, and importantly also restricts their socio-economic mobility. In this paper, I examine whether an improved Pell Grant—funded through an increase in corporate income tax—may be an effective avenue for addressing the student loan crisis. This could be accomplished by making college debt free for all low- and middle-income recipients attending public colleges. Also examined is the student loan debt crisis and a complimentary cancellation of all outstanding student loan debt. Finally, I address potential criticisms of these policy options and discuss alternatives that may mitigate them while also producing maximal positive impact.