4 thoughts on “Policy Options Brief- Student Debt Crisis ( Danny L, Kayla J, Jocelyn R)”
This does an excellent job of highlighting the the amount of debt the average American graduates college with. However, it would also be helpful to know the average incomes of recent grades and the averages of those monthly payments. While numbers like a loan of $36,000 becoming $63,500 over the years is shocking, how does that burden the average recent graduate month-to-month? Personal stories of those in extreme debt from these loans would help strengthen the argument.
The options for addressing the problem were strong, but in the summary of the problem, you mention the added costs of books. There were no options that addressed these costs. Are there options that would help ease the burden of added costs (ie/ living stipends, making textbooks more accessible and affordable?). While these options might not solve the high cost of tuition and student loan crisis, they might help make the cost of attending college more attainable as a whole.
Policy option 2, Elizabeth Warren’s proposal to refinance student loans feels the most attainable given the current economic climate. It would be helpful to know what some of the opposition is against a plan like this and what options could be made to persuade the opposition.
The problem statement did a great job of addressing the seriousness of the issue and the surrounding factors. Identifying issues at the macro and micro level in terms of our nation as a whole and the individual universities sets the stage for understanding increasing student debt. I would suggest diving further into the effects of increasing student loan debt by researching what effects these lengthy payment have on individuals over the long term. What disadvantages, missed opportunities or lifetime burdens are imposed by those that choose to receive a higher level of education?
In terms of government assistance, I feel the flexibility and the number of alternatives provided by “President Obamas student loan forgiveness program” if beneficial for making repayment feasible for borrowers but does not address the reason for increasing debt and much higher tuition costs. One aspect that greatly assists individuals is the forgiveness program for those that enter into public service work. Not only does this aspect of the program assist those that choose to receive education but rewards those that work for public agencies.
The final policy option, I believe would do the greatest work in assisting students, however; seems infeasible. Many public universities are already loosing government funding and are therefore looking for more creative solutions to rising costs. This option would do the greatest good but would take heavy action from federal and state government to make higher education worth getting over the long term.
Good job on hitting very good points about the effects rising student debt is having on young people with regards to home ownership, children, and employment options. Also, mentioning that colleges spend large sums of money on athletic programs, administrative departments and luxurious amenities was excellent to explain the rising costs in education.
I agree with Emily in that there is a mention about increasing price of textbooks but not much is done with that information and how does it play overall into your policy option?
Things to consider:
-the rising student loan debt is not just a burden on young people but also on parents who refinance their homes to pay for their children’s education pushing them into debt.
-private loans vs. federal loans. Do you know the stats of people who borrow federally vs. privately?
Also, I’m not so sure what your position is with policy option #1. It is a good plan but also has some drawbacks so some clarity and a strong stance on why the support for that option will be helpful.
I like policy option #2 (maybe because I really like Elizabeth Warren) but I think it is more feasible and will really help people pay off their debt if the interest rate decreased because most people end up just paying off the interest which is already high than towards the principal and making a dent in their debt.
You do a good job outlining the scope of the problem, but there are several other important points to make. I read a shocking article in the New York Times, which stated that students with the lowest debt burdens have the highest default rates http://www.nytimes.com/2015/09/01/upshot/why-students-with-smallest-debts-need-the-greatest-help.html?ref=topics&_r=0 . This is a major point that we all seem to forget. Although it is ridiculous and immoral that college costs so much, the students that take out the most loans actually fare the best.
The article points out those students with the most debt usually have graduate degrees, and therefore make a higher salary. Students with low debt, usually do not graduate from four year or two year colleges, so they have debt but no degree. I would love if all four year colleges were free but this seems unrealistic, however making all community colleges free, is possible, and this will also lower the highest default group.
Another solution that I like is lowering the interest rate on student loans, and not incurring interest while students are in school. It is a travesty that mortgage and car loans are significantly lower than student loans. My own car loan is 4.8%, while my government student loan is 5.8%. We have to fix this problem.
This does an excellent job of highlighting the the amount of debt the average American graduates college with. However, it would also be helpful to know the average incomes of recent grades and the averages of those monthly payments. While numbers like a loan of $36,000 becoming $63,500 over the years is shocking, how does that burden the average recent graduate month-to-month? Personal stories of those in extreme debt from these loans would help strengthen the argument.
The options for addressing the problem were strong, but in the summary of the problem, you mention the added costs of books. There were no options that addressed these costs. Are there options that would help ease the burden of added costs (ie/ living stipends, making textbooks more accessible and affordable?). While these options might not solve the high cost of tuition and student loan crisis, they might help make the cost of attending college more attainable as a whole.
Policy option 2, Elizabeth Warren’s proposal to refinance student loans feels the most attainable given the current economic climate. It would be helpful to know what some of the opposition is against a plan like this and what options could be made to persuade the opposition.
The problem statement did a great job of addressing the seriousness of the issue and the surrounding factors. Identifying issues at the macro and micro level in terms of our nation as a whole and the individual universities sets the stage for understanding increasing student debt. I would suggest diving further into the effects of increasing student loan debt by researching what effects these lengthy payment have on individuals over the long term. What disadvantages, missed opportunities or lifetime burdens are imposed by those that choose to receive a higher level of education?
In terms of government assistance, I feel the flexibility and the number of alternatives provided by “President Obamas student loan forgiveness program” if beneficial for making repayment feasible for borrowers but does not address the reason for increasing debt and much higher tuition costs. One aspect that greatly assists individuals is the forgiveness program for those that enter into public service work. Not only does this aspect of the program assist those that choose to receive education but rewards those that work for public agencies.
The final policy option, I believe would do the greatest work in assisting students, however; seems infeasible. Many public universities are already loosing government funding and are therefore looking for more creative solutions to rising costs. This option would do the greatest good but would take heavy action from federal and state government to make higher education worth getting over the long term.
Good job on hitting very good points about the effects rising student debt is having on young people with regards to home ownership, children, and employment options. Also, mentioning that colleges spend large sums of money on athletic programs, administrative departments and luxurious amenities was excellent to explain the rising costs in education.
I agree with Emily in that there is a mention about increasing price of textbooks but not much is done with that information and how does it play overall into your policy option?
Things to consider:
-the rising student loan debt is not just a burden on young people but also on parents who refinance their homes to pay for their children’s education pushing them into debt.
-private loans vs. federal loans. Do you know the stats of people who borrow federally vs. privately?
Also, I’m not so sure what your position is with policy option #1. It is a good plan but also has some drawbacks so some clarity and a strong stance on why the support for that option will be helpful.
I like policy option #2 (maybe because I really like Elizabeth Warren) but I think it is more feasible and will really help people pay off their debt if the interest rate decreased because most people end up just paying off the interest which is already high than towards the principal and making a dent in their debt.
You do a good job outlining the scope of the problem, but there are several other important points to make. I read a shocking article in the New York Times, which stated that students with the lowest debt burdens have the highest default rates http://www.nytimes.com/2015/09/01/upshot/why-students-with-smallest-debts-need-the-greatest-help.html?ref=topics&_r=0 . This is a major point that we all seem to forget. Although it is ridiculous and immoral that college costs so much, the students that take out the most loans actually fare the best.
The article points out those students with the most debt usually have graduate degrees, and therefore make a higher salary. Students with low debt, usually do not graduate from four year or two year colleges, so they have debt but no degree. I would love if all four year colleges were free but this seems unrealistic, however making all community colleges free, is possible, and this will also lower the highest default group.
Another solution that I like is lowering the interest rate on student loans, and not incurring interest while students are in school. It is a travesty that mortgage and car loans are significantly lower than student loans. My own car loan is 4.8%, while my government student loan is 5.8%. We have to fix this problem.