Change Your World Week Winter 2022 (Archived)

With rising tuition costs, students are drowning in debt which in turn causes their wallets to be very limited. College students are often just starting to live on their own, so they are also juggling apartment expenses as well as the basic necessities of food and water, which makes their lives even harder. According to Education Data Initiative, “student loan debt is actively growing and had outrun rising tuition costs by 353.8%” (Hanson). Student debt has actually more than doubled over the past two decades, which can be visualized by the graph below. The reason for this is that more and more people are attending college. High school students are even attending college classes early and needing to take out a lot of loans due to very low incomes (Siripurapu and Speier). A question that may rise though is, who exactly are the students taking out the majority of these loans? “Almost 65 percent of students that are coming from the poorest percentile of the U.S have been able to withdraw and borrow at least ten thousand dollars in order to put towards their college tuition” (Davies and Harrigan). After college they will then have to pay those loans back. This being said, students going into more expensive fields, such as medical careers, are going to need to take out more loans due to the higher tuition costs that they face as well as more years in school. In the future they will most likely have higher paying salaries once they are in the field, making these loans reasonable to take out (Gillespie). 

While the student debt crisis is a prominent issue in our society, there are many problems that come with any solutions. Some propose greater student loan forgiveness or even the cancellation of student debt altogether. Another idea is allowing the discharge of student debt through bankruptcy. However, while these solutions are noble in nature, they cause more problems.

Forgiving student loans through forgiveness or bankruptcy would cause unintended negative attitudes. Matthew Noyes, an author at Foundation for Economic Education, stated that "Taking out a loan is a choice, and personal responsibility shouldn't be supplanted by taxpayer bailouts." (Noyes). Acquiring student loans is a choice made by people who desire an extended education. Forgiving loans would create an attitude of financial irresponsibility. Loan forgiveness through bankruptcy incentivizes students to take out loans without any intention of paying them back and allows for students to borrow more than they need. This makes bankruptcy look like a more viable option for students who do not have many assets. Students fail to realize the long-term disadvantages that bankruptcy can cause, like damage to their credit score. Also, this solution would allow colleges to keep increasing tuition costs. Forgiving any student loans would be seen as a giant government subsidy, giving colleges further reason to keep inflating tuition costs.

Wealthy students would benefit the most from any debt forgiveness plan. Emme Ayers at USA Today states, "Students from families earning more than $114,000 a year borrow the same rate as the lowest-income students - and they take out loans nearly twice as large." (Ayers). These wealthy borrowers would have help paying off their loans, even when they have the means to repay them. Ayers also says, "Students with advanced degrees - lawyers, doctors, and others - account for 40% of all student debt," and "the top 25% of income-earning households hold almost half of student loan debt." (Ayers). Adam Looney, PhD, Nonresident Senior Fellow at the Brookings Institute says, "More than 90% of children from the highest-income families have attended college by age 22 versus 35% from the lowest-income families." (Looney). Aiding student loans using financial resources would be a clear handout to the upper class because of the disproportionate borrowing by high-income individuals.

The cost of providing student debt relief for the federal government would be extremely high. This would, in turn, cause taxpayers to pay more as well. Daniel Funke, an author, and fact-checker at USA Today stated "If the federal government canceled all student loans, it would lose an estimated $1.8 trillion in outstanding debt." (Funke). This is $1.8 trillion in taxpayer money. One plan presented to congress by Elizabeth Warren (D-MA) and Chuck Schumer (D-NY) had the federal government forgiving up to $50,000 per borrower. Even a more conservative plan like this one would cost the federal government an estimated $1 trillion.

Groups of people would also be excluded from any loan forgiveness plans. One survey by Student Loan Hero surveyed 1,250 Americans in 2020 about loan forgiveness. Rebecca Safier, a surveyor, noted some key results of the survey saying "46% of Americans think mass student loan forgiveness is unfair to former borrowers, while 39.1% said it would be unfair to those who never had student loans." (Safier). Former borrowers. people who have already paid off their loans would be out thousands of dollars. They would receive no compensation for their money and time spent paying off their loans. If the government were to cancel all current student loans, future borrowers would not see any benefits either. Additionally, non-student taxpayers would be paying for benefits they would never see.

Solving the crisis of student loan debts is a problem that requires many people working together to reach a resolution.  

Future, current, and former college students have the power to organize rallies, put together petitions, and join organizations that are committed to solving the student debt crisis (Lux).  This power allows students to join forces and take action to combat their debt. Students can also “push for the positions and policies they support by writing US senators and representatives” (Student Loan Debt).  Former college students specifically can request loan forgiveness, which is a rare occasion in which the court may decide to cancel portions or full debts if they can identify evidence of “undue hardships” (Jaworski and Ward).

Private and public colleges have different roles and affiliations in terms of solving the student loan debt crisis.  Private colleges are privately funded, which means they run their schools off of the funds supported by their own endowment and students’ tuition. They have the power to work within their institution to maximize their usage with these funds, while decreasing the cost of tuition is their own battle.  Public colleges, however, receive funds from their state government, so they have the power to contact the government to come up with solutions to decrease tuition costs (Lux).  

State governments are the ones who fund public colleges, and they have the power to “fight for jurisdiction over student loans borrowers’ rights, protesting and even suing senators that block the borrower defense rule, and work within schools to decrease the cost of tuition (Kruse).  The federal government can modify student loan programs, weaken structures to investigate abuse by colleges, and create those forgiveness programs mentioned before (Kruse).  This allows the government to administer the colleges that may decide to do nothing about this crisis, giving the government the power to take over situations that have gone sour in terms of college tuition.  

The Student Debt Crisis Center is a “nonprofit organization that works directly with borrowers to help them navigate the loan repayment system and advocates for lasting and meaningful change by lobbying national and state legislators” (We are the SDCC).  This organization has the power to not only educate loan borrowers on how to be economically intelligent, but also encourages people to join their movement to help decrease the trillion of dollars of student debt we own as Americans.  

           What are people saying? It depends on who you ask! If you ask a student, who is taking on college debt, they will most likely tell you that they are for eliminating student debt. However, if you ask someone who studies the economy or business, they will most likely disagree with erasing, or using taxpayer money to repay the debt. Candidates running for office know that if they address this issue, depending on the stance they take, they are going to attract a certain demographic of voters. So, they say "Hey, I'll be the one to fix that for you, if you vote for me". Knowing dam well they aren't going to be able to persuade congress to do the job. We need to stand up together and make CONGRESS understand how important it is to the people in this country. If they won't listen, we need to take ACTION, we need to vote them out of office.

           That means recruiting people to go out and vote, raise awareness, find a sponsor to help fund rides to these polls! We are all Americans and we "Need to fight for your right to be heard"! Most people on the right" or Republicans are saying, you signed the contract and agreed to its terms, now you have to fulfill your end of the agreement. Most people on the "left" or Democrats, want to eliminate the debt. This is highly controversial! I know that this generation is smart enough to be able to find some middle ground! Congress and other political figures don't really have your best interest in their hearts, they are out to serve numero uno (themselves and what helps them). 

          I think we can all agree the rising price of tuition is out of control. Inflation in the economy, especially right now is "out of control". I also think we can agree on college education being vital to our nation's ability to compete in the global economy, and the success and future of America. So, we should make it as easy as possible for the students now, and the generations to come, to go to college and better our country. The "right" doesn't want, "curing the symptoms" to be the primary focus, they want to cure the source of the problem all together. The downside of that is there isn't much instant gratification, so it doesn't attract typical democrats, but its goal is to solve the problem for future generations and make it, so this solution doesn't come back to bite us. The "left" wants change instantaneously, they are saying this is a problem, people are suffering, we need to intervene right now! I agree as well. I think we can all agree to this, we need to get a plan rolling, that is going to fix this issue. However, there are "some" democrats that are interested in implementing policies that will help permanently fix the source of the problem, so there is hope that we can come together as Americans and find middle ground.

                  I know electing a new congress sounds very difficult, and it will be! This journey will not be completed overnight, there will be ups, downs, losses, days, and weeks with the feeling of hopelessness setting in, that's when we use these middle grounds that our generation made, to motivate and help each other keep marching through the storm! We are the majority, and they will be forced to listen! These politicians have been in these seats for so long they are "fused" to them. This isn't "just" about the student debt crisis; this is about the people of this great country we call America. Most of your forefathers fought and died to give us these freedoms that so seldom take advantage of! It's time to get some fresh blood in office, people that aren't out of touch with reality. Let's vote people that want to help us instead of themselves into office!

          There needs to be compromise, we need to stop dividing ourselves, and saying we are on opposing sides! We may come from different backgrounds or have different opinions, but we are all Americans, and we all want to live in a system that works well for everyone! 

Do you want to take action and try to lower the amount of money you pay for college? There are some great sources that can help you reach out and get help with expenses. At Delta College you can reach out to Financial Aid and have them help you find great resources that work for you. Also, it is important to apply for FAFSA and scholarships. If you really want major action though outside of Delta, call the Federal Student Aid Information Center(FSAIC) at 1-800-433-3243.

Another place of great interest may be the bottom link attached about the student debt crisis. Within this website you can sign petitions, speak your mind to lawmakers, tell your story, and more! If you are passionate about this topic and it is affecting you personally, going to this website can help you blow off some steam and make a change for yourself and others.

Remember: If you want to make a change, you have to take action. Put that frustration to work!

Ayers, Emma. “I Sold Bibles to Keep My Student Debt Low. Turns out, I Didn't Even Need That Degree.” USA Today, Gannett Satellite Information Network, 3 Dec. 2020, https://www.usatoday.com/story/opinion/voices/2020/12/03/student-loan-debt-forgiveness-joe-biden-column/3793204001/.

CollegeforAllfactsheet.pdf (aaup.org)

Davies, Antony, and James Harrigan. “The Causes of the Student Loan Debt Crisis: Students?” Giving Compass, 28 Aug. 2018, https://givingcompass.org/article/the-causes-of-the-student-loan-debt-crisis-students/?gclid=CjwKCAiAyPyQBhB6EiwAFUuakk4i4iZSzcKCqDNGHcExrGZ72-2Fm-Sjsr7RASPMe8mZcyBKQA4SQRoCi-YQAvD_BwE.

Friedman, Zack. “More Opposition to Student Loan Cancellation.” Forbes, Forbes Magazine, 14 May 2021, https://www.forbes.com/sites/zackfriedman/2021/05/12/more-opposition-to-student-loan-cancellation-heres-what-this-major-newspaper-said/?sh=1a5c2c626392.

Funke, Daniel. “Fact Check: Canceling Student Loan Debt Would Cost the Federal Government Billions.” USA Today, Gannett Satellite Information Network, 30 Oct. 2021, https://www.usatoday.com/story/news/factcheck/2021/10/29/fact-check-canceling-student-loan-debt-wouldnt-make-government-money/8573429002/.

Gillespie, Nick. “Are Millennials Responsible for Their Own Student Debt?” AllSides, 22 May 2019, https://www.allsides.com/news/2019-05-22-0821/are-millennials-responsible-their-own-student-debt.

Hanson, Melanie. “Student Loan Debt Crisis in America (by the Numbers).” Education Data Initiative, 9 Jan. 2022, https://educationdata.org/student-loan-debt-crisis.

“How Did the US Reach $1.6 Trillion in Student Debt?” USAFacts, USAFacts, 15 Mar. 2021, https://usafacts.org/articles/how-did-us-reach-16-trillion-student-debt/?utm_source=google&utm_medium=cpc&utm_campaign=ND-Education-Childcare&gclid=CjwKCAiAyPyQBhB6EiwAFUuakiE8cS4_njtYy7fRRaBl3QTAifxNw0LWGOh9sx2tKPY6OfueoDhuGhoCSogQAvD_BwE.

Jaworski, Bob and Kara Ward. "Stakeholders Debate Public Policy Issues Surrounding Consumer Debt in America." Holland and Knight, 5 Dec 2019, https://www.hklaw.com/en/insights/publications/2019/12/stakeholders-debate-public-policy-issues-surrounding-consumer-debt.

Kruse, Megan. "Addressing the Student Loan Debt Crisis: Federal vs. State Solutions." TEXAS LBJ School, 19 Aug 2019, https://lbj.utexas.edu/addressing-student-debt-crisis-federal-vs-state-solutions.

Looney, Adam. “How Progressive Is Senator Elizabeth Warren's Loan Forgiveness Proposal?” Brookings, Brookings, 9 Mar. 2022, https://www.brookings.edu/blog/up-front/2019/04/24/how-progressive-is-senator-elizabeth-warrens-loan-forgiveness-proposal/.

Lux, Michael. "Identifying the Stakeholders in Solving the Student Debt Crisis." The Student Loan Sherpa, 20 Jul 2021, https://studentloansherpa.com/identifying-stakeholders-solving-student-loan-crisis/.

PolitiFact | Uncle Sam is on track to make $66 billion profit off 6 years of student loans, Elizabeth Warren says

ProCon.org. “Student Loan Debt Elimination - Pros & Cons.” ProCon.org, Encyclopedia Britannica, 27 Jan. 2022, https://www.procon.org/headlines/should-student-loan-debt-be-easier-to-discharge-in-bankruptcy-top-3-pros-cons/#27.

Safier, Rebecca. “50% Say Mass Student Loan Forgiveness Unfair to Former Borrowers: Survey.” Student Loan Hero, 26 July 2021, https://studentloanhero.com/featured/mass-student-loan-forgiveness-unfair-survey/.

Schwartz, Hart. “Will Student Loan Debt Affect Vehicle Ownership?” The Fuse, 12 Feb. 2018, http://energyfuse.org/will-student-loan-debt-affect-vehicle-ownership/.

Siripurapu, Anshu, and Mia Speier. “Is Rising Student Debt Harming the U.S. Economy?” Council on Foreign Relations, Council on Foreign Relations, 2022, https://www.cfr.org/backgrounder/rising-student-debt-harming-us-economy#:~:text=Students%20are%20generally%20borrowing%20more,often%20free%20or%20heavily%20subsidized.

"Student Loan Debt Forgiveness and Elimination- Top 4 Pros and Cons." ProCon.org, Britannica, 21 Jan 2022, https://www.procon.org/headlines/should-student-loan-debt-be-easier-to-discharge-in-bankruptcy-top-3-pros-cons/.

Warren, Schumer, Pressley, Colleagues: President Biden Can and Should Use Executive Action to Cancel up to $50,000 in Federal Student Loan Debt Immediately | U.S. Senator Elizabeth Warren of Massachusetts (senate.    

"We are the Student Debt Crisis Center." SDCC, 2021, https://studentdebtcrisis.org/.