HANDLING THE PERPETUAL NATURE OF THE UNITED STATES’ STUDENT LOAN CRISIS

Canceling $50,000 in student debt per borrower sounds like cause for celebration. The bleeding is in need of being stopped. In a Brookings analysis, Looney et al. state that student debt is about “$1.5 trillion, up from $250 billion in 2004.” The analysis continues that after mortgage, “Students loans are now the second-largest slice of household debt.” In some cases, you can imagine that student loan is the largest item owed seeing that it has become a hindrance to those trying to acquire homes. The Brookings analysis identifies two causes (among many) for the rise of student loan debt has to do with the rise of lower-income folks going to college while tuition pricing rising simultaneously. The article includes a good deal of helpful data (see below).

Are student debts worth the hassle? Is it worth going to school and borrowing? “College graduates earn 80% more than those with just a high school diploma, on average” (Hess). This is general consensus. We can entertain the argument that the traditional college track isn’t for everyone (and I don’t mean to say that this has no validity) In fact, “trade school offers skill-based learning with solid job opportunities — and significantly less debt than a college degree” (Das). Yes, by all means, trade school is valuable. We still have to face the reality that most would probably do well with an education that is more well rounded than simply skill-based learning. If anything, the recent widespread struggle with accepting election results as factual speaks volumes in terms of familiarity with various subjects. This isn’t a dismissal of trade schools and I can’t even speak with certainty about the % that is implied with the ‘most’ I mentioned earlier.

“Some 44 million Americans collectively [holding] over $1.6 trillion in student debt” (Hess) isn’t a crisis worth aggressive government measures to some. They offer the only solution as finding a budget formula that allows for repayment. Some share stories of how they overcame their debts through dedication to a plan they found feasible. There is even the insinuation that “all” (at least ‘most) are able to meet these challenges but they aren’t willing to make adequate sacrifices.

Obviously, I disagree. If the intent in attending undergrad is the prospect of future income when said income isn’t generated then it becomes problematic. Problematic for the individual isn’t problematic for the nation unless. . . well, 44 million is a pretty large number. But I’m no expert.

Wiping out 50k is a large bandage and a healing balm for a good deal of folks. What’s needed is a permanent solution. This is why I support the cause for state/government-run education institutions to be free to all at the undergrad level. I support universal education.

Consider the observation previously stated that college graduates make 80% more combined with the fact that the rise of student loans includes an increase of lower-income students.

“They should know what they are signing up for.” True. But how long should we keep saying this while the elephant stomps the room? Aren’t lower-income students the majority in the country? Obviously, the proposed solutions haven’t been heeded and aren’t working. Therefore revamping how education works in the US requires a shift of a radical nature.

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SOURCE

- Looney et al. Who owes all that student debt? And who’d benefit if it were forgiven? https://www.brookings.edu/.../who-owes-all-that-student.../

- Hess, Abigail J. How student debt became a $1.6 trillion crisishttps://www.cnbc.com/.../how-student-debt-became-a...

- Das, Bidisha. College vs. Trade School: Which Choice Is Right for You?https://thecollegepost.com/college-or-trade-school/