In the United States, we tell children that if they work hard and go to college they can grow up to be anyone and do anything. We fail to mention to these children that if they are not born into wealth they will likely need to take out student loans to pay for that college education.
Rachael, an animal lover looking for a career in animal care, took these words and like most students attended a college in her hometown. After successfully completing her degree, Rachael has $32,000 in Student Loans. This amount may sound insignificant, but when you consider that after two years of job hunting in her field of expertise, the best paying job available was at a local call center. A job that in no way takes advantage of her education or ability.
Today there are 6.7 million students in the U.S. in default and facing a similar situation. Much to my dismay, Congress went on their July 4th break today without voting to stop Student Loan Interest rates from doubling on July 1st. Interestingly enough our Government was able to vote on immigration reform but we can’t aid the future of our country.
Senate Bill H.R. 1330 that has been introduced, “Student Fairness” by Senator Elizabeth Warren, it basically caps interest rates and allows Students to repay loans at 10% of their income for 10 years and then the balance of their loan is forgiven. There is also a bill being introduced to once again allow a bankruptcy to entail Student Loans, but to date our Government has acted on nothing.
When you look at the statistics:
- Since 2002, student debt in America has quintupled from $200 billion to $1.1 trillion
- 62% of workers aged 30-39 have insufficient resources for retirement — meaning less money on critical necessities like housing, food and medicine
- If Congress doesn’t act by July 1st, the average student will owe an extra $2,564 — but if we pass Senator Warren’s plan, they’ll save $6,552