On student-loan debt

According to data provided by the Education Data Initiative, student loan debt is an ongoing issue for the American economy, being the second-highest category of household debt. In the last 10 years, student loan debt has increased by $91 billion every year (on average). In the last two years, student loan debt grew by 3.6%; in the same time frame, the nation’s economy decreased by 3.4%. People who have accumulated student debt are more likely to save money, which decreases spending, and they’re less likely to own a house due to a low credit score, disrupting the housing market. Several other issues exist as well and don’t usually account for the emotional and mental toll on those who have student debt.

According to the Federal Student Aid Office of the U.S. Department of Education, loan-forgiveness programs currently exist for those employed full time in a governmental position, teachers, military service, and AmeriCorps. Because there are limited qualifications for student-loan debt forgiveness, those who wish to pursue jobs in teaching or public service would most likely benefit from going to college and accumulating debt.

According to Brookings Institution, it would cost the United States $1.6 trillion to forgive all federal U.S. student debt. That would be more than the cumulative amount of spending on any other federal help programs such as unemployment insurance over the past 20 years. Statistically, people who have college degrees are more likely to be white and employed, whereas those who use federal help programs are more likely to be Black or Hispanic and have lower levels of education. Therefore, the people who would benefit from student-debt erasure would be most likely white with higher incomes rather than the beneficiaries of federal programs aimed to provide opportunity to those who are a part of marginalized communities.

HANNAH BENDER

Fort Smith