Elijah Manley not only supports tuition free universal education, and abolishing student loan debt. If we can bail out the banks, we can bail out our people.
Student loan debt is crippling for college graduates.
Between 2003 and 2012 the number of 25-year-olds with student debt increased from 25% to 43%, and their average loan balance was $20,326 in 2012--a 91% increase since 2003. 10% of students graduate with over $40,000 in debt and about 1% have $100,000 in debt. The average student borrower graduated in 2011 with $26,600 in debt. According to the US Congress Joint Economic Committee, approximately 60% of 2011 college graduates have student loan debt balances equal to 60% of their annual income. Missing or being late for loan payments often results in a lower credit score and additional fees, thus escalating the debt problem and potentially jeopardizing future purchases and employment.
Student loan debt often forces college graduates to live with their parents and delay marriage, financial independence, and other milestones.
According to a 2012 Federal Reserve Study, 30-year-olds who have never taken out a student loan are now more likely to own homes than those who have taken out loans. Auto loans are also trending down at faster rates for those with student debt history than for those without. In 2013, student loan borrowers delayed retirement saving (41%), car purchases (40%), home purchases (29%), and marriage (15%). Less than 50% of women and 30% of men had passed the "transition to adulthood" milestones by age 30 (finishing school, moving out of their parents' homes, being financially independent, marrying, and having children); in 1960, 77% of women and 65% of men had completed these milestones by age 30.
Student debt overwhelms many seniors.
Whether they co-signed for a child or grandchild's education, or took out loans for their own educations, in 2012 there were 6.9 million student loan borrowers aged 50 and over who collectively owed $155 billion with individual average balances between $19,521 and $23,820. Of the 6.9 million borrowers, 24.7% were more than 90 days delinquent in payments. Almost 119,000 of older borrowers in default were having a portion of their Social Security payments garnished by the US government in 2012.
Many jobs require graduates to have no debt.