Today’s Student Loan Debt Crisis Examined
Many consumers face financial struggles because of student loan debt and the numbers keep rising. This year’s graduating class held an average student loan debt amount of $35,000 for a bachelor’s degree, making them the most indebted graduating class in history. Many of these students plan on pursuing higher education, which means these numbers will continue to rise.
These figures indicate that a change is needed- now more than ever. “The Real College Debt Crisis: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream,” addresses this need. Professors William Elliott III and Melinda Lewis, authors of the book, hope to offer useful solutions to the growing problem that is today’s student loan debt crisis.
Elliot and Lewis argue that the significant increase in student debt is attributed to the common belief that it is acceptable to go into debt for the social and financial gains a higher education provides. While experts agree that education is fundamentally important, the resulting student debt raises the question of whether there is a return on investment.
Elliott and Lewis support shifting college financing away from “debt-dependency.” Instead, they suggest working towards an asset-building model that enables anyone willing to put in the effort to grow their wealth over time. They recommend utilizing Children’s Savings Accounts (CSAs), to accumulate assets from birth as a form of financial aid.
Political attempts to address the student debt crisis often fail to acknowledge the lifelong effects on the ‘asset building capacity’ of young borrowers from different racial and economic backgrounds. This oftentimes effects the students who stand to benefit the most from attending college who struggle with debt following graduation. This has been termed the ‘Debt Divide’ – where those with the highest need for student loans are the most susceptible to the negative effects before and after graduation. There is a significant difference in student debt taken on by someone from a low-income background and student debt taken on by someone from a middle- or upper class background, who have the extended family resources to take on that debt. A long-term solution is still needed to the student loan debt crisis. Until there is a change as to how college educations are financed, the problem of student loan debt will remain.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
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