Reforming Student Debt: Solutions and Consequences

Student debt has become a growing problem for the economy in the past years; it cannot be completely solve, but the increasing rate can reduce by giving a student loan limit for those who are at a higher risk of dropping out, implement high school students an obligatory orientation on financial aid, and put on severe consequences for those who are able to payback their loans but chose not to.
Students who are at a higher risk of dropping out, are the ones who most likely have a hard time payback the loans. According to the report Investing in Higher Education, “The largest increases occurred among lower income and older, independent students who largely attended for-profit and community colleges” (Council of Economic Advisers, 4). They are

According to the article, What You Don’t Know About Financial Aid (but Should), “It becomes clear over a

According to the article More Than 40% of Student Borrowers Aren't Making Payments, “Some borrowers aren’t repaying even when they can. Research from Navient shows that borrowers prioritize other bills—such as car loans, mortgages and heating bills—over student debt” (Mitchell). Talking numbers, there are 22 million Americans who are not paying their student loans, 43%, that means $200 billion seems that would not get pay back anytime soon. Also according to the article Student Loans Are Ruining Your Life. Now They’re Ruining The Economy, Too, “Delinquencies on student loans rose to 11.5% in the last quarter of 2013, even as credit card and mortgage delinquencies fell” (Frizell). And even though some cannot get a mortgage and a car loan, they still choose not to pay back their student loans. We get asked for our social security for basically anywhere- school, work, insurance, even in FAFSA- so how private and federal loans lose track of those who own? The solution is to get in contact with those who can payback those loans, if after 90 days they don’t get in contact or refuse to payback, the federal and private institutions should get in contact with their borrowers employers to get their income and charge them 1-2% from each of their paycheck to payback their loans until they voluntarily pay monthly