Student Loan Debt Hits a New High

1.2 Trillion dollars.

Let that sink in and after you get finished with that, this site will help you visualize what a trillion dollars actually is

In one way I reckon that large student debt is evidence that people are seeking their education, which is a wonderful thing. It enriches one’s life in numerous way, not just having the parchment that makes you acceptable to employers.
But on the other hand, I cannot help but ponder why an education is causing so many SO much financial burden. $1000+ student loan repayments, just 6 months after you’ve graduated? What kind of situation do the holders of these loans expect graduates to be in?
If you look at it from a business standpoint, opportunities are rarely richer or more guaranteed than loaning money to people who need to get an education in order to make money and hope to have a middle class lifestyle. It’s almost like ransoming education. School is so expensive, (or should I say the “better” schools)… it might be justified by the quality of education, but its also the weight that the degree holds, which allows for more opportunities for the holder, along with many other factors, but for loaners the more it costs for the learner the higher stream of income that one can expect. On $100,000 in student loans, one can expect a return of perhaps $125,000? Sweet! A college education is supposed to allow one to “make it”, but how can you make it when a mountain of student loan debt is weighing on you before you really have a chance to get started.
The first years of one’s career are the most lean, and they become even leaner when you have a $500 bill coming right along with it.

I propose that student loan debt be treated like a mortgage, because it is more akin to a lifelong investment than it is to a payday loan, which is what it seems like now. It should be structured at an interest rate that is no more that 1.25% and should be spread out over 30 years. That means a student borrowing $100,000 for the life of their education would be paying $105 a month. I think that is fair and solid. It would prevent predatory lending to students and allow them to not be burdened with a huge sum before they are able to establish themselves.

1.2 Trillion is a lot of money.

America’s College Promise Proposal

THE WHITE HOUSE

Office of the Press Secretary

FOR IMMEDIATE RELEASE

January 9, 2015

FACT SHEET: White House Unveils America’s College Promise Proposal:

Tuition-Free Community College for Responsible Students

Nearly a century ago, a movement that made high school widely available helped lead to rapid growth in the education and skills training of Americans, driving decades of economic growth and prosperity. America thrived in the 20th century in large part because we had the most educated workforce in the world.  But other nations have matched or exceeded the secret to our success. Today, more than ever, Americans need more knowledge and skills to meet the demands of a growing global economy without having to take on decades of debt before they even embark on their career.

Today the President is unveiling the America’s College Promise proposal to make two years of community college free for responsible students, letting students earn the first half of a bachelor’s degree and earn skills needed in the workforce at no cost. Continue reading