America's Hopeless Student Debt Crisis
Posted: Fri Nov 11, 2022 11:09 pm
Among the many major issues facing the United States is the country's student debt crisis. Over the past 40 years, college tuition costs and related fees have skyrocketed several fold, far beyond a rate that simple inflation can explain. In order to afford higher education, many students turn to student loans to help pay for college. Many of these interest-baring loans come from the federal government, and are supposed to be paid back over the coarse of 10 years after graduation, in addition to the interest. The average American college student accumulates $34,000+ in debt for just a basic bachelor's degree, with many getting into even heavier debt.
With student debt payments usually being $300.00+ a month, many former students struggle to make ends meet. Between inflation, rising housing prices, a fickle job market, and often meager starting wages, student debt is often a major burden for college graduates as they struggle to get their lives started. The COVID-19 pandemic greatly exacerbated the situation with the massive inflation and a considerably weaker, less stable economy.
While there is no denial that America has a student debt crisis, there is a lot of debate over how it should be solved. Recently, President Biden attempted to forgive up to $20,000 in student debt for most students who are in debt to the federal government. However, a ruling by a federal judge in Texas struck down the student loan forgiveness plan. An appeal by the Biden administration is possible, but unlikely to succeed as the 5th circuit is dominated by conservative judges.
With outright debt forgiveness now likely off the table, other proposed solutions include making all federal student loans zero interest. While this would certainly mean a slight reduction of monthly student loan payments, it likely won't be enough to help new graduates in a meaningful way. Another proposed solution is to double the length the time in which the loans have to be paid off, essentially cutting monthly payments in half.
And of course, there are a few who believe that nothing should be done about the crisis... for whatever reason. Personally, I support limited student loan forgiveness for all low to middle income recipients, in addition to making all federal student loans zero interest and requiring universities to lower their costs.
What are your thoughts?
With student debt payments usually being $300.00+ a month, many former students struggle to make ends meet. Between inflation, rising housing prices, a fickle job market, and often meager starting wages, student debt is often a major burden for college graduates as they struggle to get their lives started. The COVID-19 pandemic greatly exacerbated the situation with the massive inflation and a considerably weaker, less stable economy.
While there is no denial that America has a student debt crisis, there is a lot of debate over how it should be solved. Recently, President Biden attempted to forgive up to $20,000 in student debt for most students who are in debt to the federal government. However, a ruling by a federal judge in Texas struck down the student loan forgiveness plan. An appeal by the Biden administration is possible, but unlikely to succeed as the 5th circuit is dominated by conservative judges.
With outright debt forgiveness now likely off the table, other proposed solutions include making all federal student loans zero interest. While this would certainly mean a slight reduction of monthly student loan payments, it likely won't be enough to help new graduates in a meaningful way. Another proposed solution is to double the length the time in which the loans have to be paid off, essentially cutting monthly payments in half.
And of course, there are a few who believe that nothing should be done about the crisis... for whatever reason. Personally, I support limited student loan forgiveness for all low to middle income recipients, in addition to making all federal student loans zero interest and requiring universities to lower their costs.
What are your thoughts?