The Political Pivot on Student Debt: A Hot Platform Issue in the 2020 US Election

The student debt crisis has evolved from a personal financial struggle to a prominent political issue, with candidates in the 2020 election leveraging this concern to connect with voters. The issue gained momentum as the government's role in student loans became more visible, leading to a steady stream of initiatives aimed at addressing the growing burden of student debt.

The Evolution of Student Loan Policies

With the government guarantee for student loans, it became alarmingly easy for young people to incur significant debt to afford higher education. However, while the banks faced minimal risk, students paid high interest rates, often unable to refinance, even when interest rates lowered. This system was ripe with exploitation, with many unscrupulous schools promising high-paying jobs that never materialized, leaving graduates with hefty debts and low-paying jobs. State colleges also contributed significantly to this debt crisis, often without providing adequate guidance on choosing fields of study that would lead to job prospects post-graduation.

The Call for Realistic Solutions

Many parents and young people express frustration with political candidates’ proposals for resolving the student debt crisis, viewing them as unrealistic. Some politicians propose the absurd notion of 'killing Christmas' or 'killing Santa Claus,' referring to the idea that addressing student debt would imply more government spending or could hurt taxpayers. Instead, they suggest that any solution would come at the expense of taxpayers, further escalating the burden on those already in debt.

Realistic Proposals and Calls for Action

Instead of blue-sky promises, some advocates suggest more practical approaches. For instance, capping interest rates at 3% and limiting borrowing to $15,000 per year for an undergraduate degree could significantly limit what colleges charge for tuition and books, thereby reducing overall costs. Under such a system, students would need to weigh realistically the costs and benefits of their education decisions. Additionally, requiring students to attend community colleges or commute from home, while reducing tuition burdens, could help manage costs more effectively.

Conclusion: A Path Forward

The student debt crisis poses a significant challenge that demands careful and realistic solutions from political candidates. While the idea of forgiving student loans or offering free college is popular, it must be approached with a clear plan on how to fund such initiatives. Repurposing existing resources and encouraging realistic financial decisions by students could offer a more sustainable solution. It is time for politicians to move beyond grand, unfunded promises and focus on practical and transparent strategies that benefit the American people.

Remember, achieving longer-term stability and growth in the face of student debt may require a combination of measured approaches, including improved guidance for students and caps on borrowing. The path to a healthy economy and informed consumers starts with realistic expectations and actionable plans.