America has a problem that’s growing on an unimaginable scale. In the last decade student loan debt has become an issue that should be at the forefront of any agenda looking to push serious long term change. The fact is, college is a wonderful thing for the growth of a nation, and while I certainly agree that we shouldn’t be so focused on pushing everyone to go, those who want to go, and can go, should be able to attend without the nagging fear of walking out with their arms filled with an eternal debt. Innovation and change is fueled through the education of the next generation, and college is a wonderful place to further the potential of young people.
Over the last decade student debt in the US has nearly quadrupled. Today the average student walks out with nearly $30,000 in debt (about 31,000 in Delaware, also, keep in mind that this number changes based on where you look. All of it is in the high 20,000 range usually) and over 37 million Americans currently have student debt. Here’s another frightening fact, about 7 million people have defaulted on their loans, or about 20% of the total borrowers. Those who do default are subject to huge penalties, losses of different licenses, the destruction of their credit, potential unemployment, and more. Student loan debt is also credited as a major reason why new graduates don’t buy cars, start families, or buy houses. So while the average wage in the US hasn’t moved much in decades, the amount of people struggling due to student debt has skyrocketed.
This should be nothing short of drastically alarming. Do we want the next generations weighed down by the threat of the expenses of college? Do we want students deterred from learning more, getting a wonderful experience, and furthering themselves because of this crisis?
The question is, what do we do about this? Well, while Republicans have seemingly just written the issue off, democrats like Senator Elizabeth Warren have done introduced legislation to tackle the issue head on (She recently introduced a bill to allow millions to refinance student loans at lower interest rates). Things like the use of public in-state colleges more can as well reduce student loan debt (As the average public student’s debt is usually about 5-6 thousand lower than a private student or more). We can also work to reduce interest rates, and manage the loans that are dished out in a more professional manner. Did you know the US government makes $50 Billion a year in profit off of student loans? Solving problems like these can be a much needed remedy to an important problem.
But how can we do more than just throw a band-aid on the issue? Sure, we can push more people to try community college, public universities, and work to bring down interest rates, all that will provide a much needed level of assistance to drowning students. But can’t we do more?
Well, in my opinion, we can. Looking at other nations around the world, you’ll find that a significant amount of developed nations have much less student debt on average than us. Programs like the UK’s allow students to take loans from the government, then pay it back through a percentage of their income until the debt has been repaid or forgiven (which if I remember correctly, all debt is forgiven after 20 years). Even better, no income is deducted until you reach 21,000 pounds in yearly income, or about $35,000 US Dollars.
Truthfully, I think a mixture of ideas could really prove very helpful to US students. I think if America is to continue in the right direction, it’s time we handle the issue of our education system and the foundation we lay for the next generations.