The slow rise in tuition has led students to become more in debt than ever. In a past post, I talked about the rising cost of tuition across the US and how it has led students to take out loans. Today I’m going to be focusing on how we got to this point and the situation now.
The student loan program began in 1958 by Eisenhower for students studying math or science. It continued to expand under subsequent presidents, this made education easier to access. In the 2008 financial crisis, the government cut funding for public universities, which raised costs and tuition to make up the difference that they lost from funding. F. King Alexander, the former president of Louisiana State University stated in the Guardian that “We’re quietly privatizing public higher education throughout the country.” He isn’t wrong the average cost of a private university is $41,540 compared to a public university at almost $30,000 for out-of-state students, making it harder for students to get their degree. Furthermore, the burden of student loan debt disproportionately affects lower-income families, perpetuating cycles of poverty and limiting socioeconomic mobility. Students from disadvantaged backgrounds often face significant barriers to accessing higher education, and those who do attend college may be forced to take on more debt or forgo their education altogether due to financial constraints.
We are expected to make a life decision after graduating from high school at 18 years old. being told that having an education is important and that without it we won’t be able to have a successful job. The lack of a college degree is a barrier that we face and will affect our future. According to the Guardian, 43% of the US population has an outstanding debt of over 1.73 trillion. In light of these challenges, policymakers must consider implementing comprehensive reforms to address the student loan crisis. This could include initiatives such as loan forgiveness programs, income-driven repayment plans, and increased government funding for higher education. By enacting meaningful policy changes, we can mitigate the adverse effects of student loan debt and ensure that all individuals have access to affordable education and opportunities for socioeconomic advancement.
The debt is made worse by student loan services which manage the loans on behalf of the government. In theory, they are supposed to be a guide to navigate the system. Yet in practice, they often make problems worse. having misinformation and incorrect billing leads to payment plants having a 99% failure rate.
After graduation, we are then faced with another problem. finding a job to pay off the loans, leading many to compete in the job marketplace. Most if not all aren’t getting a high-paying job, instead get minimum pay. Moreover, the rising interest rates on student loans exacerbate the financial burden faced by borrowers, as high-interest payments can significantly inflate the total amount owed over time. This can make it even more challenging for graduates to repay their loans, especially if they experience financial hardships or struggle to find well-paying jobs after graduation.
Sources:
https://www.cnn.com/2023/02/27/politics/us-student-loan-debt-timeline/index.html
https://www.theguardian.com/tv-and-radio/2024/mar/18/john-oliver-student-debt
This is definitely a super important and prevalent topic for so many people in our direct community. I really like what you said about how crazy it is that we are expected to make this big life decision at 18 years old and then eventually I think we have to deal with the consequences of that decision for the rest of our lives. For many people, loans are a necessary part of college, but I think there could be ways for us to cap the costs of college so that even a basic paying job right out of college would allow for loans to be steadily payed back and not pile up. I also did not know about 99% failure rate for incorrecting billing and payments and stuff so that was so eye opening. Great post!
Student debt truly is one of the largest crises for the young adult population currently, and although the federal government has attempted to provide debt cancellations and support for student loans, there is still significant work to be done. In research I completed for my history of a public controversy project last semester, we found that supporting college degrees and student debt can actually provide net benefits for governments, as the population becomes more productive, so I absolutely agree that the government should help all students, in and out of state, pay for college.
I wrote about a similar topic this week, it is an issue plaguing our country. The value of higher education is stressed to us, but the debt will stick with us for the rest of our lives. You are right in that we make such important decisions at such a young age. It is always competitive to get a job right out of college and entry-level jobs often do not pay enough to live comfortably while paying off debt. I agree in that something needs to be done so that loans cannot continuously pile up on students, setting their financial freedom back years.