Today the US government's student debt relief program was in the news. $108 billion dollars may seem like a significant amount, but the total government-backed student loans currently total $1.26 trillion dollars. $108 billion only represents 8.5% of the total government backed loans.
Though this is a step in the right direction it does not address the real problem, the rising costs of college tuition. The average cost of college tuition has outpaced inflation by nearly double within the last twenty years. Until this problem is addressed the younger generations in the US will be debt burdened like no other generation before. Debt forgiveness is just a bandaid fix and does not address the real issue of exponentially rising tuition costs.
-JC
Further Reading:
http://www.wsj.com/articles/u-s-to-forgive-at-least-108-billion-in-student-debt-in-coming-years-1480501802
Though this is a step in the right direction it does not address the real problem, the rising costs of college tuition. The average cost of college tuition has outpaced inflation by nearly double within the last twenty years. Until this problem is addressed the younger generations in the US will be debt burdened like no other generation before. Debt forgiveness is just a bandaid fix and does not address the real issue of exponentially rising tuition costs.
-JC
Further Reading:
http://www.wsj.com/articles/u-s-to-forgive-at-least-108-billion-in-student-debt-in-coming-years-1480501802