Canceling $50,000 in student loan per borrower seems like a reason to celebrate. We must stop the bleeding. According to a Brookings analysis by Looney et al., student debt has reached approximately $1.5 trillion, a significant increase from $250 billion in 2004. Furthermore, the analysis reveals that, after mortgages, student loans constitute the second-largest component of household debt. In some instances, it is conceivable that student loans surpass other debts, especially considering their hindrance to individuals aspiring to own homes.
Among various factors, the increase in student loan debt can be attributed to the rising number of lower-income individuals pursuing higher education, coupled with simultaneous tuition hikes. Is it worthwhile to attend school and take on debt? We can consider the argument that the traditional college path isn’t suitable for everyone (and I do acknowledge its validity).
Certainly, vocational or trade schools offer valuable opportunities. If anything, the recent widespread challenges in accepting election results as factual reflect a lack of familiarity with various subjects. Some suggest the only solution is to discover a budget plan that facilitates repayment. Some even imply that ‘all’ or at least ‘most’ could overcome these challenges, but they may not be willing to make necessary sacrifices.
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 is required is a lasting 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 previously mentioned observation that college graduates earn 80% more, along with the fact that the surge in student loans involves a growing number of lower-income students. Therefore, overhauling the education system in the US demands a profound transformation.
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 crisis
https://www.cnbc.com/…/how-student-debt-became-a…
Das, Bidisha. College vs. Trade School: Which Choice Is Right for You?