Over the last two decades, student loan debts have been controversial issue in the United States. A large percentage of college and undergraduate students default to repay their education loans. Most people fail to repay their student loans due to unemployment related issues. As a result, this issue has raised many concerns, and both the political class and the federal government officials have made various suggestions to solve the student’s loan issues.
Generally, student loan debt has affected many people graduating from colleges and universities because most fail to repay their debts due to the high repayment amount and unemployment challenges (Nova, 2019). Therefore, it is prudent for the federal government to intervene to solve this issue to improve education quality and free students from loan burdens.
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According to the Pew Research Center, approximately one-third of college and university graduates under age 30 have student loan debts ( Pew Research Center, 2020) . However, this population contributes a higher percentage of workforce needed at workplaces. As such, the federal government should address this issue to reduce loan repayment stress after completing a college education to enable graduates focus in building their careers.
Sen. Elizabeth Warren on the CNBC survey proposed that borrowers of student loans should be given partial loan forgiveness to encourage them to settle their loan debts. For example, Sen. Elizabeth Warren suggested that debt holders who earn less than $ 100,000 should get $ 50,000 of their loans forgiven. Those who earn between $ 100,000 and $ 250,000 should be eligible for less than $ 50,000 forgiveness, depending on their income (Nova, 2019). Sen. Elizabeth Warren’s plan is the best option that can encourage most borrowers to repay their loans.
In summary, student loan debt is a significant issue for many Americans. Most graduates fail to repay their loans due to substantial loan amounts. Thus, it prudent for the federal government to intervene and solve issues to encourage many students to earn a college degree and obtain well-paying jobs.
References
Nova, A. (2019, December 6). Student loan borrowers could see significant changes in 2020 . CNBC. https://www.cnbc.com/2019/12/06/2020-could-be-the-year-everything-changes-for-people-with-student-debt.html
Pew Research Center. (2020, May 30). 5 facts about student loans . https://www.pewresearch.org/fact-tank/2019/08/13/facts-about-student-loans/
