America’s $1.5 trillion student-loan industry is a failure
Ask economists and policy makers to what extent we should be worried about 20 and 30-somethings’ historically high levels of student debt and you’ll get a broad spectrum of answers. After all, this group is also the most educated ever and higher education is becoming increasingly necessary to guarantee a decent standard of living in the U.S.
But ask many borrowers in this generation whether they worry about how the loans will affect their future and you’ll get a slew of bleak replies: It’s stopped them from getting their car fixed, switching jobs, buying a home and having children. Even a tax credit aimed at helping working low- and moderate-income Americans can be seized to repay defaulted student loans.
They feel that the $1.5 trillion in student debt has crippled their progress towards financial stability. A paper released Tuesday by the Roosevelt Institute aims to put some economic rationale behind those sentiments…