The argument in favor of the Student Loan Fairness Act is not unlike those for the Wall Street and Auto Bailouts. If the government spends some money now, and invests in recent graduates who are struggling with student loans, it will pay off handsomely in the long term. Right now student loan debt continues to grow despite the recession. In fact, student loan debt recently passed credit card debt in terms of total debt owed by americans.
Be Sure to check out our previous posts:
The Case Against H.R. 1330 – The Student Loan Fairness Act
The Student Loan Fairness Act – What it is and what it means to you
Its no secret that the burden of Student Loans is starting to cripple a generation. Borrowers who cannot keep up with their monthly payments increasingly face delinquencies. Not only is their huge stress associated with student loan delinquencies, but it has a devastating effect on one’s credit. People with delinquent or defaulted student loans are unable to purchase cars, get a mortgage, or even a credit card. This lack of consumer power, hurts the economy.
The problem of student loan delinquency, continues to grow:
Not only would assisting young people dealing with student loans be a boon for the economy, but many of these students were arguably duped into signing up for student loans without ever fully understanding the consequences. Given the emphasis american society places on a college education, for many students there was no meaningful choice as to whether or not they went to school and took out loans. The escalation of college costs combined with the rise of the for profit university has created a billion dollar marketplace that preys upon unsuspecting 18 year olds. The blame for fact that this problem got as out of hand as it did rests upon society as a whole. Therefore, all taxpayers should bear some of the burden as part of the correction of these issues.
Those who say that HR 1330 is only a band aid that does not fix the problem miss the point. Do we need to find a way to make sure that this doesn’t happen to others? Absolutely. However, generation of recent grads are bleeding because of student loans. A band aid is just what they need. Not only will it help them out, as a country the United States will be better of because of it.