Everyone would agree with importance of education, especially for the students from middle-class as this is their only opportunity to have a better tomorrow. Politicians agree with the fact and willing to provide higher education to every student in the country, yet they have created a system that facilitate private colleges to increase fees and forces students to apply for the loan. This debt alone become a huge hurdle in their better future.
American students are sinking in student debt now, which has crossed a total about $1.5 trillion, more than credit card and auto loan debt. About every fourth student out of ten, who attended college, has taken out loans to help pay for the fee. These are kids of working and middle-class families who can’t afford to pay college fee which has increased up to 400 percent over the past 30 years.
The college board report suggest that, in 2016, the average debt of undergraduate student was around $28,400 – about 30 percent more since 2001. Female students are facing more problems as usually they are paid less after getting degrees, so pay their loans off comparatively slowly, incurring higher interest rates.
The millennial generation suffered the most. About 75 percent have some form of debt and they save less than previous generations. Around 25 have no personal savings. Two-third says they are living under very tight budget. One third says they have put off buying a house due to debt while 16 percent say they have put off having children.
According to reports, almost every fifth person is beyond the schedule and facing penalties, interest charges and hurting their credit in long run.
The reason for debt crisis is clear. The cost of attending college has risen beyond control while median house hold income growth has been relatively flat.
So should government forgive all this debt?
A recent paper by Scott Fullwiler, Stephanie Kelton, Catherine Ruetschlin and Marshall Steinbaum of the Levy Economics Institute found that if the government canceled the debt it owns and bought out the remaining private creditors, it would increase gross domestic product by between $86 billion and $108 billion per year over the next decade, adding between 1.2 million and 1.5 million jobs.
Republicans didn’t think “$1.5 trillion unreasonable” whey they forced that amount in tax cuts to benefit corporations and wealthiest Americans. Conservatives think we can afford to lard the pockets of the wealthy but can’t rescue a generation from middle-class families. That choice will surely not make America great again.