top of page
Search

Student Debt Crisis: The College SCAM

Updated: Jan 2


Student Debt Crisis

The student debt crisis has become a prominent issue in the United States, affecting millions of individuals and potentially posing a significant risk to the economy. With a total outstanding student loan debt exceeding $1.6 trillion, it surpasses all forms of consumer borrowing in the country, apart from home mortgages.



Click the following link to watch my YouTube videos about why college is a scam: College Is a SCAM!!! Video Playlist


I am RayCee the Artist, a professional portrait photographer, event photographer, and wedding photographer, and if you would like to schedule a photoshoot with me, please contact me at raycee@rayceeartist.com!


Also, be sure to follow me on Instagram and YouTube!

 

The Magnitude of the Problem

 

How Much Debt Exists?

 

Student debt has seen an explosive growth over the past few decades. As of 2023, the total federal student loan debt reached a staggering $1.6 trillion. When adding private student loans to the equation, the total amount owed rises to an estimated $1.7 trillion. Federal student loans surpass auto loans and credit card debt, making it the second-largest form of consumer debt in the United States.

 

The student debt crisis is not just about the collective amount owed. It's about the number of people affected. Approximately 44 million U.S. student loan borrowers are collectively responsible for this debt. This figure represents a substantial portion of the adult population, showing just how widespread this "higher education" issue has become.


 

Who Owes the Debt?

 

The student loan debt crisis affects a broad demographic. From recent college graduates to older adults, the burden of student loans spans across various age groups. Those under the age of 30 are more likely to have student loan debt. However, it's worth noting that nearly a quarter of the outstanding student debt is owed by Americans aged 50 and older.

 

In terms of education level, about half of the outstanding student debt was owed by borrowers who attended two- or four-year colleges or universities. The rest comes from graduate school borrowers.


 

The Impact of Student Debt

 

The burden of student loans has far-reaching implications. Borrowers are often forced to delay major life milestones such as buying a home, starting a business, or even starting a family due to their financial obligations.


 

The Causes of the Student Debt Crisis

 

Rising Tuition Costs

 

One of the primary drivers of the student debt crisis is the skyrocketing cost of college education. Tuition and fees have grown many times faster than income, leading to an increased reliance on student loans to cover educational expenses. In the 1968-1969 academic year, it cost $1,545 (adjusted for inflation) to attend a public four-year institution. Fast forward to the 2020-2021 school year, and this figure rose to $29,033.


 

Decreased State Funding

 

Another contributing factor to the student debt crisis is the reduction in state funding for public universities and colleges. This decline has forced institutions to increase tuition and fees, adding to the financial burden of students.


 

The Role of For-Profit Institutions

 

For-profit institutions have also played a role in the student debt crisis. These schools, often offering vocational and technical programs, have been accused of predatory lending practices, leading to high levels of debt among their students.


 

The Impact on the Economy

 

The student debt crisis has potential economic consequences. It could lead to reduced consumer spending, hinder new business growth, and delay homeownership. This could slow down economic growth and exacerbate income inequality.


 

Potential Solutions to the Crisis

 

Federal Government Debt Relief Measures

 

In response to the student debt crisis, the Biden-Harris administration proposed a student loan debt relief plan/student loan forgiveness plan in 2022, which aimed to forgive up to $20,000 in student loan payments per borrower. However, the U.S. Supreme Court declared the program unconstitutional in June 2023.

 

Following the Supreme Court decision, the White House announced the Saving on a Valuable Education (SAVE) Plan. This federal student aid plan aims to lower monthly payments for undergraduate borrowers to 5% of discretionary income and forgive loan balances after 10 or 20 years of payments, depending on income level.


 

Other Debt Forgiveness Measures

 

In addition to the SAVE plan, targeted debt forgiveness measures have also been implemented for student borrowers who attended predatory or fraudulent schools. Various income-based repayment (IBR) programs have been designed to lessen the monthly financial burden for low-income borrowers.


 

Conclusion

 

While the student debt crisis is a pressing issue that affects millions of Americans, it's crucial to understand its complexity. Multiple factors contribute to the crisis, including rising tuition costs, decreased state funding, and the role of for-profit institutions.

 

Addressing the student debt crisis requires a multi-faceted approach. Student debt relief measures, targeted forgiveness programs, and income-based repayment plans are some of the solutions being implemented. However, more comprehensive reform may be needed to tackle the root causes of the crisis and prevent it from escalating further.

 

While the student debt crisis may not pose the same systemic risk as the 2008 mortgage crisis, its impact on individuals and the economy should not be underestimated. As such, student loan programs and student loan repayments remain a critical issue that requires ongoing attention and action.



Click the following link to watch my YouTube videos about why college is a scam: College Is a SCAM!!! Video Playlist


I am RayCee the Artist, a professional portrait photographer, event photographer, and wedding photographer, and if you would like to schedule a photoshoot with me, please contact me at raycee@rayceeartist.com!


Also, be sure to follow me on Instagram and YouTube!


20 views

Recent Posts

See All
bottom of page