![]() Even in “normal” times-i.e., not in the midst of a worldwide pandemic and economic downturn-borrowers have trouble repaying their loans. “What we’ve considered to be economic prosperity of the last 10 years, prior to the pandemic, was in fact economically punishing to younger cohorts forced through the wringer of increasingly costly higher education and into a labor market characterized by stagnant wages and deteriorating job ladders,” Steinbaum writes. This has happened in good economic cycles and in bad. But with wages not keeping up with the cost of higher education, more borrowers are unable to repay their balances, carrying the debt longer and “impairing economic well-being for a widening and diversifying swath of the population, inhibiting savings, increasing precarity, and draining the very incomes the student debt was supposed to increase.” Why is that? According to Steinbaum, the ever-increasing cost of college combined with decreased state funding of higher education, stagnant wages, and more higher education requirements to attain any job at all means more and more people need to take on more and more student loan debt to live a middle-class life. ![]() “The government is poised to take a bath on its student loan portfolio over the long term, even as that portfolio expands in size every year as the higher education system sucks up more federal funding,” the report reads. In the report titled The Student Debt Crisis Is a Crisis of Non-Repayment, the author, Marshall Steinbaum, a senior fellow in higher education at the organization, writes that because of a litany of factors, “much of outstanding federal student loan balances aren’t ever going to be repaid.” That’s according to a new report from the Jain Family Institute, a nonpartisan research organization, that analyzed the credit reports of 1 million people ages 18 to 35 with student loan balances between 20. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |