New Report Finds Debt on Federal Student Loans Alone Now Tops One Trillion Dollars
Points to Need for Common Sense Solutions to Keep Higher Education a Path to Middle Class
MADISON - The Consumer Financial Protection Bureau today announced that the amount of debt on federal student loans alone exceeds one trillion dollars, and the total student loan debt in the U.S. has surpassed $1.2 trillion. Original research by One Wisconsin Institute found the dramatic, negative economic impact of student loan debt on home and new car purchasing. The following are the statements of One Wisconsin Now Executive Director Scot Ross:
“Students and their families have done the right thing – they’ve worked hard to get a higher education or job training, and they’ve taken on the responsibility to pay for it.
“But the news today that student debt from federal loans now tops one trillion shows the consequences of a system tilted against them.
Student loan debt is a clear and present danger to our economy. Under the current system, student loan debt has grown 20% between 2011 and May 2013, and these latest numbers show we’re well on the way to making the $1.2 trillion crisis a $2 trillion crisis.
“We need to act now to help make sure higher education is a path to the middle class, not a multi-decade debt sentence. And that means taking up common sense solutions, like allowing student loans to be refinanced, just like you can with a mortgage and allowing tax deductions for the interest paid on student loans.”
One Wisconsin Now is a statewide communications network specializing in effective earned media and online organizing to advance progressive leadership and values.