Today, the national student loan debt in the United States has surpassed the value of both Facebook and Microsoft combined. At $1.4 trillion, the force behind student loan debt is a hugely powerful, demanding thousands of dollars in repayment interest from millions of people every year. But this bubble is about to burst; a nation consumed by debt means big trouble for the economy at large.
Tackling the student loan debt issue demands a hard look at the big picture. The cost of a college education itself has soared beyond even inflation and in the decade between 2006 and 2016, the cost rose 63%. Hitting students hard with financial demands, graduates leave their hallowed halls of learning with around $30,000 in debt and a demand of average monthly payments of nearly $400. Unsustainable and unfair, just paying off these loans won’t fix the problem - it will take reform. Simple level changes from increased payment periods to refinancing interest rates can help save borrowers thousands of dollars in the long run, but lasting economic success may be only possible with more radical solutions.
From increased payment period options, refinancing loans and interest, to outright federal loan forgiveness, reforming the financial demands of higher education won’t be easy. For a sustainable future, however, it is absolutely necessary. Take a look at this infographic for more on the current state of the student loan crisis and how we can overcome it.
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