It’s kind of funny, really, in a sad, cynical sort of way.
The humorless joke I’m speaking about here is the ever-growing student loan reform argument that’s ironically heating up again after a new class of college graduates set off into the world.
With the student loan debt hitting a monstrous $1.1 trillion and an interest rate set to increase from 3.4 to 6.8 percent on July 1 unless action is taken, it’s getting harder to see the image of a young, ambitious college graduate can have their world as their oyster.
And student loan debt is hindering economic growth. With recent graduates withholding home purchases, business start-ups and investments, the economy is struggling to move forward.
There’s no huge fix for it right now. Current talks surrounding the issue revolve only on preventing interest rates from rising, but there’s no bail out system for someone attempting to fund their higher education. Sen. Elizabeth Warren, D-Massachusetts, did propose legislation that would give students a similar deal to the Wall Street honchos, which would surely have many young graduates shouting for joy. But there’s no guarantee that policy will pass through the combative House.
Then there’s the bill proposed that would allow students to refinance their old loans through a bill titled the Student Loan Fairness Act. Under the bill, students would be able to make 10 years of payments at 10% of their discretionary income. After that term, all standing debt would be forgiven. The act would also allow graduates who are eligible to convert their private loans to federal direct loans.
But let’s discuss how this all transpired in the first place. In a culture that nurtures the idea of higher education to lead to a “dream” job and a better means of living, wouldn’t it go hand and hand with more support? There’s plenty of talk at various graduations advising young hopefuls to be ambitious and push through the trials to persevere and be the people they are told to emulate.
Too much at one time? That’s okay. We are also a nation that fosters an idea of independence and personal resolve. A sort of self-righteous attitude that supports people moving at their own pace and relinquishing any ideas they have about others. There’s no more trying to keep up with the Joneses—we’re too smart, too independent, too innovative for that, right? So we grow a generation of millennial over-achievers who are also brilliant individualists, but fail to support them in their goals.
Who’s to blame here? Should our policies reflect our changing culture so that the needs of the public are properly met? That seems to make the best sense—no opposition here. Who would have a problem with bail outs or refinancing debts that we only brought upon ourselves?
Would there really be an operation-Wall Street scandal brought upon the young millenials? Picture the baby boomers throwing up signs and standing outside of apartments in hip neighborhoods shouting “you should have been more responsible!”
I’m not for a nation of withdrawing people’s hopes and dreams, but we also can’t create a certain ideal only to let people leap without any sort of trampoline under to catch them. If we are going to bail out individuals because of selfish spending habits, then we should be open to bailing out young graduates who were simply attempting to better themselves because we as a country told them so.
If the interest rate does increase and there is no reform on the student loan crisis, please refrain from sharing stories at college graduation of keeping on those handy pair rose-colored glasses. It’s only more salt in the wound.
