Education — From Pre-K to Debt-Free College

The student debt crisis was constructed. $1.83 trillion in federal loans now weighs on 45 million borrowers. Graduate degree holders — just 14% of adults — carry 56% of that total. 50% of Black borrowers have defaulted within 20 years, compared to 29% of white borrowers. For-profit colleges enroll only 7–10% of students but produce 35% of borrowers behind on payments.

K-12 inequality is baked into property taxes. 81% of local K-12 funding comes from property wealth. New York districts spend $30,012 per pupil; Idaho districts spend $11,056 — a gap that determines kids' futures by accident of birthplace. Districts serving predominantly white students receive $23 billion more per year than districts serving students of color.

Teachers are punished for their credentials. Teacher pay now trails comparably educated professionals by 26.9% — a record. 44% of teachers leave the profession within five years. 411,500 teaching positions are unfilled or staffed by uncertified teachers. 71% of remaining teachers hold second jobs to survive.

And universal pre-K — the highest-leverage education investment of all — barely exists. Quality pre-K returns $16 for every $1 spent (Perry Preschool long-run data), but the U.S. has no federal pre-K system. France enrolls 95%+ of 3-year-olds. The U.S. is closer to 25–40% depending on the state.

For 25+ million current borrowers under $125K, debt relief is immediate — $500–700B in one-time cancellation. Below $75K household income, the balance is fully cancelled. From $75K to $125K, half is cancelled and the remainder is converted to zero-interest, income-contingent HECS-style repayment with a 20-year forgiveness cap. Default risk is eliminated by design.

For the 3.7 million K-12 teachers, the $60,000 pay floor (cost-of-living adjusted) ends the era when teaching was a vow of near-poverty. Title I teachers get their own student debt forgiven after 5 years of service. Student teachers receive an $18,000 federal stipend. The 411,500 teaching shortage closes as the profession becomes viable again.

For the 4.2 million 3-to-5-year-olds in America, universal pre-K is the single highest-leverage intervention in the plan. The long-run return is $16 per dollar invested. Working families save 10–35% of household income previously spent on childcare. Head Start is preserved and expanded, not replaced.

For 40+ million K-12 students, federal equalization fills the gap between rich and poor districts. No district loses funding; the poorest rise to the national floor. The result, per NBER: every 10% increase in per-pupil spending raises future adult wages by 7.25% — a direct, measurable transfer of opportunity.