The "radical" case for abolishing student debt

www.cbsnews.com | 2/10/2018 | Staff
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The GOP tax bill is providing a $1.5 trillion windfall, which will mostly be enjoyed by the rich and corporations. But what if there were another way to spend that money that could benefit more middle-income Americans while eliminating some of the country's inequalities?

Look no further than getting rid of America's student debt, argue researchers at Bard College's Levy Economics Institute. They examined the potential impact of canceling the $1.4 trillion in student debt that 44 million Americans are carrying. Erasing it would be a "radical" solution to the student debt crisis, but it would pay off in bountiful dividends to the U.S. economy, noted one of the paper's authors, Marshall Steinbaum, in a blog post about the research.

Dream - Job - House - Momentum - Storm

The American dream of securing a good job, a house and upward financial momentum has created a perfect storm of student debt. Obtaining that lucrative job now requires a college or graduate degree, thanks to "credentialization," or employers' requirements that workers for previously entry-level jobs now hold college degrees. That's pushing more Americans to enroll in college at at time when public funding for universities has been slashed, putting more of the cost on students and their families.

"Both dynamics benefit higher education institutions, discriminatory and predatory credit market participants, and powerful employers, which thrive in a segmented market where a captive population must pass through their tollbooth to get to the middle class," Steinbaum noted.

Grandfather - University - Maryland - School - Law

When my grandfather went to University of Maryland School of Law in the late 1950’s the tuition was about $200 per year.

By 1970 it was about $400.

Today - Inflation

Today if it had kept up with inflation it would be about $2,600.

It’s actually more than $31,000.

Students

Students deserve better.

Student debt, he added, was once carried only by highly paid professionals who had attended graduate school, such as attorneys...
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