US student debt crisis

US student debt crisis: With the pause on student loan payments expiring at end of August, will Joe Biden give borrowers a break and extend it?

New York, US – Dara Zucker says she’s stuck. The 28-year-old has been making monthly payments on her student loans since she graduated with a degree in psychology from Kenosha, Wisconsin’s Carthage College in 2016, but her balance has only gone up.

“I feel stuck in my life,” she told Al Jazeera, about the $39,000 she still owes on her $35,000 loan.

Before The Pause On Federal Student Loan Payments Expires, Joe Biden Must Cancel All Student Loan Debt

And Zucker is not alone – Americans owe nearly $1.75 trillion in student loan debt, an increase from $481bn in 2006, according to the Federal Reserve Bank of St Louis, the highest level of student debt in the world.

As the country’s student loan debt crisis deepens, borrowers, policymakers, and economists agree that something must be done – but what exact steps need to be taken remains up for debate.

At the onset of the COVID-19 pandemic, the Trump administration halted student loan interest and later suspended loan payments as lockdowns spurred mass layoffs and business closures. President Joe Biden, who campaigned on a promise to “immediately cancel a minimum of $10,000 of student debt per person”, has repeatedly extended that moratorium.

These borrowers will refuse to pay student loans if Biden restarts payments in two weeks

However, the payment freeze expires at the end of August, and unless Biden extends it, 45.4 million student loan borrowers will be expected to resume monthly loan payments on September 1. The average monthly student loan payment in the United States is $393

Zucker, who says that she used the pause in payments to help her disabled parents buy groceries, just received a promotion and raise at the background check company where she works as a business development representative. But the raise also means her salary-dependent, the monthly student loan payment will double to $220 when payments resume.

“I’m grateful for my job and salary,” she said in an interview. “But the fact that I can make my payments and still can’t live my life as an adult by buying a house or having a wedding – I just can’t do those things.”

Two Weeks Before Payments Resume, Progressives Tell Biden ‘Time to Cancel Student Debt’

 ‘The big picture

American tuition at public four-year universities climbed 31.4 percent between 2010 and 2020, the Education Data Initiative research group found. Tuition in many other countries is either fixed or fully free, as in Germany, Iceland, and Sweden. A year of college at a four-year US university costs $35,551 on average, including tuition, fees, on-campus housing, books, supplies, and other expenses, according to the National Center for Education Statistics.

The colleges to which a student applies determine how much financial aid they are eligible for, depending on the cost of attendance and the family’s ability to contribute towards tuition and fees. The student may be eligible for federal grants, subsidized loans, and work-study. 

5 Things To Know About Debt Cancellation

The student can then apply for a loan to finance the remainder of the costs.

The federal government doles out the majority of the loans, with the private sector lending the remaining 7 percent. Borrowers are then required to begin making payments six months after leaving college, whether they graduated or not.

Several economists Al Jazeera interviewed said that universities and the higher education industry at large need to do a better job of informing students about the debt they are taking on and what it looks like to enter various types of repayment programs after graduation.

‘I feel stuck’: Inside the growing US student debt crisis

https://www.aljazeera.com › economy › i-feel-stuck-insi

18 hours ago — And Zucker is not alone – Americans owe nearly $1.75 trillion in student loan debt, an increase from $481bn in 2006, according to the Federal 

This is how student loan debt became a $1.7 trillion crisis

https://www.cnbc.com › 2022/05/06 › this-is-how-stude

May 6, 2022 — Today, around 44 million Americans owe a combined $1.7 trillion for their education. But it didn’t have to be this way. Legislation like the GI 

How the US student loan debt crisis started – The Guardian

https://www.theguardian.com › money › may › us-stud

May 26, 2022 — America’s students have a debt problem. A big one. More than 45 million Americans – more than the population of California – now owe a 

Student Debt Crisis Center (SDCC)

https://studentdebtcrisis.org

A 501(c)(3) nonprofit that centers the needs and voices of borrowers, and partners with allies, to impact public policy and end the student debt crisis.

Student Loan Debt Crisis in America (by the Numbers)

https://educationdata.org › student-loan-debt-crisis

Jan 5, 2022 — The student loan debt crisis grew over the course of decades to effect over 43 million Americans and the nation’s economic markets.

The Far-Reaching Impact of the Student Debt Crisis

https://scholarshipamerica.org › Blog

America’s college graduates owe over a trillion dollars in student loans. Seven out of ten college graduates leave school with loan debt.

After President Biden Cancels Student Debt

https://www.americanprogress.org › article › after-presi

Aug 3, 2022 — At its best, the American higher education system is an unparalleled The current student debt crisis is the result of a combination of 

The Student Loan Crisis Is Much Worse If This Claim Is True

https://www.forbes.com › zackfriedman › 2022/05/18

May 18, 2022 — Is this shocking claim about student loan forgiveness really true? that statistic from the National Center for Education Statistics as 

The Student Loan Crisis Is Worse Than You Think – Forbes

https://www.forbes.com › zackfriedman › 2021/11/13

Nov 13, 2021 — A new report from the Bipartisan Policy Center, a Washington, D.C. think tank, shows why student loan debt has ballooned 144% since 2007. Today, 

The Student Debt Crisis | American Federation of Teachers

https://www.aft.org › highered › student-debt-crisis

More than 45 million student loan borrowers owe student debt, a result of decades of disinvestment in public higher education that has shifted costs onto 

The Student Debt Crisis: Stories, Statistics, and Solutions

https://onlinemasters.ohio.edu › Blog

Jul 20, 2022 — In April 2022, the amount of U.S. student debt reached $1.75 trillion, affecting an estimated 46 million Americans. Student debt crisis 

The Making of the Student Debt Crisis, Explained | NEA

https://www.nea.org › new-from-nea › making-student-

Oct 25, 2021 — The author of “The Debt Trap,” a book that describes how the federal student loan program became a “national catastrophe” and offers 

How student loan became a crisis – The Hill

https://thehill.com › enrichment › education › 599377-

Mar 23, 2022 — The student debt crisis so far has led 43 million borrowers to collectively owe around $1.6 trillion. Some of the main drivers of that growing 

4 Reasons Why the Student Crisis Is so Bad: Report

https://www.businessinsider.com › News

Nov 11, 2021 — The student debt crisis has surged 144% over the past decade, forcing 45 million Americans to shoulder $1.7 trillion in loans. Rising tuition 

The student crisis in the U.S. – Statista

https://www.statista.com › Society › Education & Science

However, the student debt crisis may be a top contender for this dubious honor. About 45.5 million Americans owe more than 1.7 trillion U.S. dollars in 

A Look at the Shocking Student Loan Debt Statistics for 2022

https://studentloanhero.com › student-loan-debt-statistics

Jul 29, 2022 — About 48 million American borrowers owe nearly $1.75 trillion total in student loan debt. Here’s a look at U.S. student loan debt 

Biden is considering canceling some student debt. Here’s why 

https://www.cnn.com › 2022/05/26 › politics › biden-stud

Jun 2, 2022 — – With 45 million borrowers owing $1.5 trillion, the student debt crisis in the United States has exploded in recent years and has become a key 

Student Loan Crisis Breakdown – The Balance

https://www.thebalance.com › Loans › Student Loans

The student loan debt crisis is compounded by the number of borrowers falling delinquent on their loans. As of the fourth quarter of 2019, 11.1% of student loan 

Women’s Student Crisis in the United States – AAUW

https://ww3.aauw.org › research › deeper-in-debt

It clearly is: Women hold nearly two-thirds of the outstanding student debt in the United States — almost $929 billion as of early-2019. A chart showing women’s

 

 

 

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