Over the past few decades, the student loan debt in the United States has spiked enormously. It is mainly because more and more students are getting enrolled in colleges for undergrad or postgrad programs. They aspire to have a secure and sound lifestyle which they cannot afford with just a high school diploma. According to the U.S bureau of labor statistics, individuals with a professional degree are likely to earn 1.5 times more than those with just a high-school certificate. In this regard, the government of America grants student loans to individuals seeking higher education. This way, an educated and skilled workforce will be created that would help in generating more revenue. Also, fewer people will rely on social welfare programs run by the state.
It is a great effort done from the government’s end; however, it has become a significant financial burden on numerous debtors. It is because it prevents them from achieving other economic milestones, for instance, buying a house and so on. The federal loan payments were paused due to the pandemic; however, they will resume by August. As for the government, there has been no indication from the white house hinting at the cancellation of student debt. It has infuriated the millennials, who are now questioning the government’s ability to propose concrete solutions to such serious problems.
Who In The Capitol Is Dealing With The Student Loan Quandary?
The members of Congress are responsible for developing policies to alleviate the student loan crisis in the country. However, when a report from the college investor came out, it was observed that the congress members liable for creating policies are less representative. The college investor searched every statement passed by the members of Congress and the senate on the financial situation. It was found that;
- Out of 435 Congress members, 44 have outstanding student loans in their household, either for themselves or anyone from their family.
- Form the 44 members, around ten representatives’ spouses, were debtors of the student loan.
- Three senate members have student loans. Of these three, one loan belonged to a member’s wife.
To most individuals, the student loan holding may seem biased; however, it is not. The loans are split among these 44 members among twenty-six democrats and 18 republicans. Moreover, the average student loan debtor in the House of Representatives is around fifty years of age. Also, most of these loans were signed up for either their spouses or children.
Why Won’t Congress Act-On Reforming Student Loan Policies?
The author of the College Investor report stated that it is imperative to understand the math and psychology of policymakers when it comes to forming student loan policies. He further stated that most politicians face difficulty formulating and implementing effective policies due to a lack of experience. Most politicians have high salaries with extremely low debts, which makes them quite strange in the scenario they’re representing. The second most prominent reason behind the congressional inactivity toward the student loan crisis is a wide generational gap. The average age of a senator is around 65, which is quite older than an average college graduate. As Congress is unfamiliar with how the financial burden feels, it has not come up with effective strategies.