Student debt has been a nationwide problem when it comes to anyone attending college; Student debt cripples the economy. Millions of Americans have grossly overpaid for their education. People should not have to pay in order to enhance their education; it should be a right. With the availability of so much “free money” available to students who want to take out a student grant, colleges and universities have had no motivation to keep costs down, and they haven’t. 

Tuition rates continue to fly up and students are required to go further and further into debt each year to obtain an education. Other countries with widely developed industries have figured out how to pay for higher education for its citizens, but here in America, we continue to treat it as a product used only for the rich.

Do we live in a true democracy if only the privileged few are able to obtain an education without sacrificing their future, or should the US be considered a plutocracy?

According to Education Data, “student loan debt increases by an average of $91 billion every year.” That is a disturbing milestone along the national path to poverty in America. If Congress does nothing, it’ll only get worse. 

Economic Effects: 

• Student debt reduces spending 
• Inhibits Business Growth
• Debt stresses social program

So far, the Democrats have been standing up for the Student Loan Cancellation. According to Forbes.com, “Biden supports $10,000 of wide-scale student loan cancellation…Biden has been clear that only Congress can cancel student loans, meaning that Congress must pass legislation on student loan forgiveness, and he will sign any legislation on student loan cancellation that Congress passes.” 

Student Loan Cancellation can help student loan borrowers, but this doesn’t mean it will cancel everyone’s student debt. In addition, “Biden is committed to fixing student loans, including making improvements to income-driven repayment, public service loan forgiveness and student loan servicer accountability, among other efforts”, says ‘Forbes’.

This legislation may be a start to fixing the huge problem of student debt in America. If this plan passes, this will make life easier for everyone, along with the economy. 

Sources:

Friedman, Z. (2021, June 30). Student Loan Debt Statistics in 2021: A record $1.7 trillion. Forbes. Retrieved October 12, 2021

Economic effects of student loan debt. EducationData. (2021, July 25). Retrieved October 12, 2021, from https://educationdata.org/student-loan-debt-economic-impact.