The student debt is a travesty – it’s representative of the broken education system.
The student debt story
If you are someone living in America, you’re probably getting suffocated under its pressure. If you’re someone outside, you are just confused about how this system works.
The inflation trends have affected the student debt so much that even graduates end up spending decades to pay off a debt they took during their college days.
It’s a hot topic everywhere and the real victims are the students, as surveys have shown.
A recent study has revealed that this year may turn out to be the worst year for student loans, with borrowers owing more than 1.5 trillion dollars in student loans.
According to the College Board, this has been caused by the rapid increase in tuition fees at public and private schools, which rose at roughly three times the rate of inflation between 2007 and 2018.
As many as 44.7 million Americans currently have student loan debt, according to a 2018 report by the Federal Reserve Bank of New York.
The study claims that most people with student debt are young. But adults, 60 and older — who either struggled to pay off their own loans or took on debt for their children or grandchildren — are the fastest-growing age cohort among student loan borrowers.
Persis Yu, an attorney at the nonprofit National Consumer Law Center, said seniors are a sizable portion of the clients she sees.
“The number of seniors with student loan debt has exploded. We’re not just talking about kids and millennials. It impacts a large swath of our population.”
The average monthly student loan repayment ranges from $200-$300, according to a report from the Federal Reserve.
But many borrowers are still struggling to repay their debts.
The national default rate (a US Department of Education measurement of the number of borrowers who start repayment, then default in the next two to three years) was 10.8 percent among those who began repayment in 2015, according to the most recent available data.
Experts say that borrowers with low balances are the most likely to default.
But let’s leave the statistics alone. Look at what the real people, who are victims of this debt trap, say about it.
The list below is a collection of tweets from people explaining how the US student debt loan has impacted their lives since graduating.
And most of them might shock you or be sadly relatable.