By Max Corbett '25
Most NEST+m students are about to face a serious obstacle. Within the next few years, many of us are going to reckon with the harsh reality that we will be deeply in debt, due to having to pay around 70k per year for college. However, it shouldn’t be this way. We shouldn’t have to be burdened with these enormous debts just to practice our right to an education.
The significant amount of debt American college students accrue is not an issue in many other countries in the world. In the U.S., student debt is uniquely high, with the average college student owing $37,113 (after 4 years). With 19% of all bankruptcies in the U.S. being from college students, it’s clear that college isn’t accessible for all, as many students in the US aren’t able to afford paying 37,113 to pay towards their education. These students don’t have equal access to the “American Dream.”
Despite these circumstances, there are many advocates fighting for an end to the college debt crisis. One such advocate is Ben Kaufman, who leads the investigation work at the Student Borrower Protection Center (SBPC), a non-profit organization that attempts to alleviate the debt problem many American students face. According to Kaufman, “1 in 4 student loan borrowers went into default (failure to pay off debt) before COVID.” Although the Cares Act (a COVID relief act) temporarily forgave student debt, many students still faced challenges. “The Department of Education and student loan servicing companies were incorrectly reporting people delinquent when they weren’t,” Kaufman explains.
Even though students don’t have to pay money towards their loans during the pandemic, students' credit scores are still being negatively affected. According to Kaufman, this damage towards credit scores leaves borrowers less likely to “own a home [or] own a car,” and “more likely to put off starting a family [or] starting a business.” This has a wide reaching impact on not only college students, but also on the nation as a whole. Young adults saving money in order to pay off their debts leads to them being less reliable consumers, which puts strain on our consumer-oriented economy. Clearly, the debt crisis doesn’t just affect college students - it affects our whole economy.
American values of equity have been another victim of this debt crisis. According to a shocking statistic found in a study by Brandeis (a university in Massachusetts), “20 years into repayment the typical white borrower paid about 95% of their balance, while the typical minority borrower owes 95% of their balances.” This exacerbates the racial wealth gap, with minorities having to face greater challenges for the chance at equal opportunities. This stops many from climbing the social ladder after college, as “if you have to take out more debt, the less you will be able to use your degree to build wealth,” Kaufman explains. This denies millions of Americans from social mobility, as higher education is not a viable way to get out of poverty and truly pursue the “American Dream.”
Despite the major damage student debt causes, there is currently no federal bill designed to erase student debt and make college affordable for all. However, the SBPC does support legislation on the state level with the intention to “strengthen existing consumer protections under the law,” in a bid to hold the industry accountable for the real damage that it causes to students' future careers and livelihoods.
The importance of addressing this issue can not be understated. This burden will soon be one on our shoulders, as we go to college and have to face the struggles of debt. We can not allow this to happen, and cannot allow our generation to be yet another victim of this debt crisis. As Kaufman says, “your ability to pursue a better life shouldn’t be dependent on if your parents are wealthy.”
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