Student Debt | Week 42
“Avoid debt like the plague because it will destroy everything you have created the moment you can’t pay.“ – Bryce Ward 2/19/2021
1.7 Trillion dollars. That is how much the Federal Reserve estimated in 2020 that the United States has in Student Debt. With the start of 2021 came a new president in office and so new focuses. In the past couple of weeks, I have been hearing news reports of the government working to take on our Student Debt problem by forgiving a portion of each American’s Student Debt. I find it understandable as the world continues to deal with Covid-19; however, I feel this is simply a temporary Band-Aid fix to the overall problem.
Looking At The Long Term
I do agree with the idea that forgiving Student Debt can be beneficial to our current generation of students no matter what amount. However, what about the next generation or the one after that? High Schools will still be teaching students to prepare for college as the next step in their lives. If colleges continue down the path of increasing tuition and other shady pricing tactics, I do not doubt that our kids will be in the same debt boat we find ourselves today. So what can we do? Currently, the government gives out loans to students and allows colleges to be tax-exempt. I propose the complete withdrawal of government financial aid to colleges and revoke colleges’ ability to be tax-exempt. This will force colleges and students to redefine what Higher Education is and pay for it. Also, colleges will become more impacted by market pressures and forced to adapt or go under. Remember, college is not the only source of education in the world. Skills-based Bootcamps and other programs do exist.
Hey, thank you for reading this week’s post! I hope you found this week’s post interesting. I understand that my idea would be seen as tough love by many, but I believe that better education is the key to solving all of the world’s problems. What do you think? What can we do to solve our Student Debt problem and allow future generations easy access to education?