JP Morgan chief Jamie Dimon says we need to "fix the broken parts" of student lending in the United States.

"What we've done is a disgrace and it's hurting America," JP Morgan's chairman and CEO told Yahoo Finance in an interview Tuesday.

With $1.6 trillion outstanding student debt in the United States, student lending is crippling many Americans. Today the average college graduate leaves school $30,000 in the debt, up from $10,000 in the 1990s.

"I think they should look at all parts of student lending, fix the broken parts, and then forgive those people [who] need forgiveness, and then help people get into school, and then make sure the schools are responsible in getting the kids out," Dimon said.