Trillion Dollar Crisis: The Case for Student Loan Forgiveness

From Huffington Post:


The financial tidal wave of 2008 left millions of American homeowners “underwater,” owing more on their homes than their properties are worth.

This has decimated consumer demand and destroyed countless dreams.

Yet homeowners are not the only group of Americans who find themselves “underwater.” After decades of skyrocketing tuition and stagnant wages, American students and graduates now often owe significantly more on their student loans than their degrees are — in dollar terms — worth.

This week, President Obama took a decisive stand for students, fighting to prevent a three-point hike in interest rates on federally-subsidized Stafford loans. Over the past several months, he has also proposed an accelerated income-based repayment program and new incentives for states to contain costs. These are steps in the right direction. But we need more decisive action to get America’s “underwater” students and graduates back on dry land.

The ever-growing cost of getting a degree is at the heart of the problem. Public institutions, where a majority of students are educated, have steadily increased tuition as public financing has declined. Amidst unprecedented state budget cutting, average public tuition increased by an astounding 8.3 percent in 2010 alone.

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