A chance to ease student debt at nonprofits

The American Dream has become something of an American trap. Get good grades, save money, go to college ... And then what? The Dream is supposed to be realized with a career and financial security, a bridge to a thriving next generation.

But that bridge is no longer secure, as too many graduates swim in debt for years after collecting diplomas.

Connecticut’s grads carry more debt than most of their peers. The average college debt in our state is $35,853, making Connecticut one of just six states that lap the $35,000 mark. It’s not really much better across the rest of the nation, where Utah’s average student debt is the lowest at $18,350. Still, that’s almost half of Connecticut’s counterpart.

Thursday’s surprising announcement from state Treasurer Shawn Wooden that he will not seek reelection included a provocative reference to the challenges of paying for education.

“With one of my sons going to college soon and the other right behind him, I’ve decided not to seek reelection as Treasurer,” Wooden wrote in a statement. “Like other working families, mine too faces the dayto-day pressures of family life. Things like juggling financial resources to pay for college …”

This percolating national conversation should gain steam as President Joe Biden has announced the sixth extension of the payment pause for federal student loan borrowers through August. With the mid-term elections only two months after that extension lapses, the clock is ticking on the possibility of Biden taking bolder steps toward loan forgiveness.

Meanwhile, Connecticut lawmakers have pitched a halfdozen proposals to relieve debt.

Senate Bill 250 strives to deliver as much as $20,000 in relief to Connecticut residents who graduate from a state college. Other initiatives include funding ombudsmen to guide students and to establish tax deductions on student loan interest.

They won’t all survive this brief session. One that should is “An Act Concerning Student Loan Forgiveness for Nonprofit Employees.”

The proposal is to offer $5,000 a year — capped at three years — for nonprofit employees. At most, that could put a $15,000 dent in a loan.

The pandemic was a stark reminder of the importance of nonprofits. Many of them endured despite their own financial setbacks during the past two years. The fallout of COVID-19 means there is a greater need than ever for agencies that provide the likes of mental health services and counseling for survivors of abuse.

Too often, nonprofit workers are forced to leave for the private sector to chase money, because money is chasing them. It’s not cheap to live in Connecticut, but we’re a better state when we have the best people serving neighbors in need.

And doesn’t that get to the heart of education in the first place? We want more people to have educational opportunities to strive toward a more empathetic society. Giving a boost to workers at nonprofits can not only retain homegrown talent, but lure some from other states.

Bills like this one are a reminder that the American Dream should be a promise, not a threat.

Too often, nonprofit workers are forced to leave for the private sector to chase money, because money is chasing them