I know this is an issue that affects only a certain segment of the American public, but fairness matters even if you part of a specialized cohort. And student loan debt is simply out of control and too exploitative for too many borrowers. In fact, a sizable minority—27%—of all borrowers owe more in interest than their original principal amount borrowed 12 years after they took out their loans; we find this policy is racist as it is nearly twice as high a rate—52%—for African-Americans.
There is no way that borrowers should end up owing more than their initial loan in interest or anywhere near that. I therefore propose to limit the total amount in interest owed on any student loan to be 50% of the principal; once the cumulative interest amount hits 50% of the original borrowed amount, no more interest may be charged, period. This will save millions of borrowers thousands of dollars over time and protect them from excessive, punitive interest accruing over time, especially Africa-Americans, who are exploited by lenders the most.