Reduce Student Debt Essay

Many structural and policy changes can meaningfully improve the lives and opportunities of the lowest 20% of income earners. Reducing student debt and providing students with more alternative repayment options would significantly improve our overall economy. Developing alternative ways for the lowest income population to get educated or learn new skills. Expanding the Earned Income Tax Credit will provide more economical support to families of lower income. Although many of these opportunities will improve the lives of the lower income families it will also affect all other income levels. It will take much coordination with the government to define and implement these suggestions.

The total outstanding student loan debt in the U.S. is $1.2

According to a Pew survey, 75% of Americans believe college is too expensive for most to afford. The cost of college has skyrocketed since 1978. Tuition and fees have risen a 1,120% since 1978. Nearly 35% of students were unable to attend their first-choice college because of the cost—despite being accepted. There have been many presidential discussions on this topic. Obama was trying to introduce plan to make tuition for two-year community colleges free. Under the president’s plan, called America’s College Promise, community college will be funded primarily by the federal government, with states covering the remainder. It would take a lot of parameters to develop the perfect solution but this is a step in the right direction. Alternatively, we saw in the Poverty Inc. segment, providing workers with skilled jobs instead of just giving them donations helped several families making a living. Providing young adults more opportunities for vocational schools can provide them a way to make a good living without getting into large student debt. The government can provide incentives for companies to push for getting young adults trained for these labor