FacebookTwitterGoogle+RedditEmail

Congrats, Graduates! Here’s Your Diploma and Debt

by

It’s that time of year again. Flowers are flowering, spring is springing, and across the country college graduates are graduating with their newly awarded degrees held high.

Also high is the mountain of student debt most of these recent graduates are taking on. All told, 44 million Americans now owe student debt — including 7 in 10 graduating seniors last year, who owe an average of $37,000.

If you’re not one of those tens of millions of people, you might’ve missed how out of control student debt has become. Total student debt is approaching $1.4 trillion, surpassing auto loans and credit card debt.

Between job searches and apartment hunting, post-graduate life is already stressful — and student debt makes it worse. The average monthly payment for borrowers in their 20s is $351.

If you’re making minimum wage, that’s 48 hours of work for your loans alone — never mind shelter and food. No wonder more than 4 in 10 have either stopped making payments or fallen behind.

There is nothing positive about student debt.

Many indebted graduates begin their work lives with damaged credit histories and greater economic vulnerability. They’re less able to start a business or work in public service. And they delay starting families and buying houses, which makes them less wealthy in the long run.

The only winners are the predatory loan servicing agencies.

One reason for the explosion of student debt is that states and the federal government have drastically cut education spending, forcing students and parents to pick up the costs. Public college spending is still $10 billion below pre-recession levels.

To make things worse, Trump’s secretary of education, billionaire Betsy DeVos, is reversing protections put in place by the Obama administration to protect student loan borrowers by regulating loan servicing companies and capping interest rates at 16 percent (at a time when bank loan rates are below 6 percent).

It shouldn’t be this way. And it doesn’t have to be.

Ask the millions of people who attended college between 1945 and 1975 and graduated with little or no debt. Millions of baby boomers paid tuition at the great flagship universities of this land just by working summer jobs. That wasn’t on a different planet — it was mere decades ago.

Some places are experimenting with new models. At the city level, San Francisco has taken the lead by creating a free tuition program for anyone who’s lived in the city for at least a year, regardless of income. It’s funded by a voter-approved tax on properties worth over $5 million.

At the national level, Senator Bernie Sanders and Representative Pramila Jayapal recently introduced the College for All Act, a plan Sanders got into the Democratic platform last summer. It would eliminate tuition and fees at public universities for those with incomes under $125,000 — all paid for by a small sales tax on Wall Street trades.

These ideas could mean a brighter future for students to come. But what about for those already crushed by debt?

For them, there’s a silver lining. When you owe $50,000, the bank owns you. But when the bank’s trying to bleed you for $1.4 trillion, you own the bank.

It’s time for the 44 million student debt households to flex our muscles and demand change.

Distributed by OtherWords.

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

June 27, 2017
Edward Hunt
Excessive and Avoidable Harm in Yemen
Howard Lisnoff
The Death of Democracy Both Here and Abroad and All Those Colorful Sneakers
Gary Leupp
Immanuel Kant on Electoral Interference
Kenneth Surin
Theresa May and the Tories are in Freefall
Slavoj Zizek
Get the Left
Robert Fisk
Saudi Arabia Wants to Reduce Qatar to a Vassal State
Ralph Nader
Driverless Cars: Hype, Hubris and Distractions
Rima Najjar
Palestinians Are Seeking Justice in Jerusalem – Not an Abusive Life-Long Mate
Norman Solomon
Is ‘Russiagate’ Collapsing as a Political Strategy?
Binoy Kampmark
In the Twitter Building: Tech Incubators and Altering Perceptions
Dean Baker
Uber’s Repudiation is the Moment for the U.S. to Finally Start Regulating the So-called Sharing Economy
Rob Seimetz
What I Saw From The Law
George Wuerthner
The Causes of Forest Fires: Climate vs. Logging
June 26, 2017
William Hawes – Jason Holland
Lies That Capitalists Tell Us
Chairman Brandon Sazue
Out of the Shadow of Custer: Zinke Proves He’s No “Champion” of Indian Country With his Grizzly Lies
Patrick Cockburn
Grenfell Tower: the Tragic Price of the Rolled-Back Stat
Joseph Mangano
Tritium: Toxic Tip of the Nuclear Iceberg
Ray McGovern
Hersh’s Big Scoop: Bad Intel Behind Trump’s Syria Attack
Roy Eidelson
Heart of Darkness: Observations on a Torture Notebook
Geoff Beckman
Why Democrats Lose: the Case of Jon Ossoff
Matthew Stevenson
Travels Around Trump’s America
David Macaray
Law Enforcement’s Dirty Little Secret
Colin Todhunter
Future Shock: Imagining India
Yoav Litvin
Animals at the Roger Waters Concert
Binoy Kampmark
Pride in San Francisco
Stansfield Smith
North Koreans in South Korea Face Imprisonment for Wanting to Return Home
Hamid Yazdan Panah
Remembering Native American Civil Rights Pioneer, Lehman Brightman
James Porteous
Seventeen-Year-Old Nabra Hassanen Was Murdered
Weekend Edition
June 23, 2017
Friday - Sunday
Jeffrey St. Clair
Democrats in the Dead Zone
Gary Leupp
Trump, Qatar and the Danger of Total Confusion
Andrew Levine
The “Democracies” We Deserve
Jeffrey St. Clair - Joshua Frank
The FBI’s “Operation Backfire” and the Case of Briana Waters
Rob Urie
Cannibal Corpse
Joseph G. Ramsey
Savage Calculations: On the Exoneration of Philando Castile’s Killer
John Wight
Trump’s Attack on Cuba
Dave Lindorff
We Need a Mass Movement to Demand Radical Progressive Change
Brian Cloughley
Moving Closer to Doom
David Rosen
The Sex Offender: the 21st Century Witch
John Feffer
All Signs Point to Trump’s Coming War With Iran
Jennifer L. Lieberman
What’s Really New About the Gig Economy?
Pete Dolack
Analyzing the Failures of Syriza
Vijay Prashad
The Russian Nexus
Mike Whitney
Putin Tries to Avoid a Wider War With the US
Gregory Barrett
“Realpolitik” in Berlin: Merkel Fawns Over Kissinger
Louis Yako
The Road to Understanding Syria Goes Through Iraq
FacebookTwitterGoogle+RedditEmail