According to the World Economic Forum report published on their site stated that Rep. Alexandria Ocasio-Cortez injected a dose of reality into a hearing on America’s worsening student debt crisis.
Her own words “I literally made a student loan payment while I was sitting here,” she said, adding that her outstanding balance had been $20,237. Ocasio-Cortez is not unique—the median federal student debt load for graduates of her alma mater, Boston University, increased by nearly 50% between 1997 and 2016, to $25,625, according to a World Economic Forum analysis. Frequently, the reward for pursuing the degrees, decently paid vocation, or sense of community offered by American higher education is a crushing amount of debt.
Americans have racked up a total of $1.6 trillion Jan 2020 in student debt which was 1.5 trillion when this article was publishes in Sep of 2019, and they’re having more trouble paying it off. More than one-third of all severely delinquent debt in the country is the result of the growing pile of neglected student loans,
According to the world economic forum this problem has exposed increasingly desperate borrowers to scammers fraudulently offering the relief and spurred calls from presidential candidates Bernie Sanders and Elizabeth Warren to either forgive a large portion of this collective liability or simply wipe it off the books—a remedy that, in terms of dollar value, could dwarf the Marshall Plan, which funded for rebuilding of western Europe after World War II.
While spiraling student debt may be a national issue, however, it hasn’t affected everyone in the United States in quite the same way.
The World Economic Forum analyzed data published by the U.S. Department of Education, U.S. Census Bureau and Internal Revenue Service to create a visual story of Americas student loan burden. In order to address these costs, Bernie Sanders has proposed, in addition to canceling existing student debt, to make all public colleges and universities completely tuition free.
Democrat Elizabeth Warren has also proposed complete removal of the debt. Would that be possible in America that is the question?