A Nation Burdened Under Student Loans

Student loans play a huge role in colleges and universities around the United States. The amount of student loan debt is estimated to be a staggering number of around $1.5 trillion as of 2021. While the growth continues throughout the forthcoming years, the borrowers face a difficult pill to swallow. The promise of erasing student loan debt has yet to come into fruition but recent steps have shown that there is work being done.

On August 6th, President Biden announced an extension on the pause of federal student loan repayments until January 31, 2022. While many have voiced their relief, people are still calling for the full erasure of debt. Many have paid off other debts, ranging from credit cards to health bills. The pause has also given many a lifeline and a breather from the stress of unemployment and the anxiety that stems from the COVID-19 pandemic. Financial security is something almost all Americans strive for and the looming date approaching leaves many worried.

Paying for the higher education sector has disproportionately affected women and people of color the most. Statistics show that 71 percent of graduates enter the workforce with student loans and women hold 2/3rds of all student loans; while African American and hispanic and Latinx employees are twice as likely to have student loans as their white peers. Borrowers who weren’t able to complete their degree also face a harder time paying off their loans with around 31% of people behind on payments.

While completely eliminating student debt seems like an optimistic approach to solving the debt crisis, many have critiqued the argument. According to Forbes, “Who qualifies for student loan forgiveness is a more pressing question because it goes toward effective public policy and fairness, among other considerations.”

One of the main cons of eliminating student debt revolved around graduate school. Student loan debt cancellation would significantly benefit graduate school students who have around $100,000 in debt but would in turn be making significantly more post-grad.

When the excitement of college and the promise of a fulfilling career with a high income is thrown in your face, it’s easy for student loans to seem like a smaller deal than they actually are - especially when almost everyone surrounding you is facing some debt of their own. However, the reality is that many borrowers will face the burden and stress of most earnings going towards repayment and struggling with budgeting, surviving, and completely paying off the debt is a road many fall down to.

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