Larry Summers Slams Student Loan Debt Relief, Warns of Recession

Americans owed nearly $1.2 trillion in student loan debt as of March 2015, more than three times the amount of debt from just a decade ago. But is student loan debt really a crisis? Hxdbzxy/iStock

Student loan debt relief is a regressive policy that mostly benefits high-income households, says former U.S. Treasury Secretary Larry Summers.

In a series of tweets, the former director of the National Economic Council (NEC) in the Obama administration stated that “all serious economists” agree that debt reduction is “regressive.”