Who Is More to Blame For The Student Debt Crisis – Colleges or the Government?

There is no denying that college tuition rates and student debt have been rising steadily over the past several decades. Yet, the debate rages on regarding who is really to blame for the problem. Conversations about student debt often boil down to two different opinions. While some people blame the government for making loans easier to get, others claim that colleges are ultimately responsible for continuously raising tuition rates and other associated fees.

The effects of the recent pandemic combined with this being an election year have brought student loan debt under even greater scrutiny than usual. Recently, the federal government offered borrowers temporary relief from their student debt under the CARES Act, but the question still remains if this is really enough.

After all, that debt will eventually need to be repaid, and interest rates will return to continue making it hard for many college graduates to make ends meet and save for their future.

Why Are College Costs So High?

Universities and colleges claim that tuition and other fees must increase to help them meet the rising costs of running an educational program. While this does make sense, it also doesn’t completely add up when the numbers are crunched. The Wall Street Journal reports that college tuition rates have increased by nearly 1,375 percent of the rate of inflation since 1978. This calls into question exactly how much might be too much to pay for college when so many people struggle with debt after graduation.

Why Do People Blame the Government?

The federal government is often blamed for contributing to rising college costs by making loans available. People who argue this point claim that colleges wouldn’t be able to charge so much if these loans weren’t an option for students. While this is a possible valid point, the truth is that most people would just seek loans from private lenders

There are also some people who claim that the government should put limits on how much colleges can charge for their programs. Once again, this would be difficult to achieve, but there are actions that the government could take at some point. Since many colleges are tax-exempt entities, the government could potentially threaten to take away some of the benefits that colleges receive from this status.

Why Does It Seem Like Politicians Turn a Blind Eye to Student Loan Debt?

It often seems as though politicians mostly ignore the student loan debt issue until they want to win votes for an election. College degrees are still considered worth the cost since they open up job opportunities, and politicians themselves have benefited from an education. The truth is that many politicians are just not ready to make waves in a system that has been working well to turn out qualified graduates.

This is where our political movement comes into play. When large numbers of people begin to organize and communicate the need for zero interest student loans, politicians will be forced to listen and ultimately act.

What Should We Know About Student Debt This Year?

According to the Federal Reserve Bank of New York, student loans represent the highest category of non-housing debt, and there was an increase of $27 billion dollars in the first quarter of 2020 alone. With statistics such as this, it is clear that student loan debt is not going away anytime soon.

Yet, there are possible options available to help people manage their debt better while still being able to achieve the dream of earning their degree. Lower tuition rates would definitely help matters, but we also know that zero interest government loans are the simplest answer to a growing problem for now.

With our proposal, colleges still receive the money that they need to provide high quality educational programs. The government still gets paid back, and students have plenty of time to repay their loan without accumulating interest. When you think about it, this solution is win-win for everyone, and it successfully squashes any debate about who’s to blame regarding the current student loan crisis.