About 44 million people in the United States have student loans, equaling up to 1.6 trillion dollars according to CNBC. Before Covid-19, student debt started to accumulate causing problems among those who would not pay the loans back. But now, student loan issues have become an economic crisis.
According to the University of Washington, “Student loans have seen almost 157 percent in cumulative growth over the last 11 years”, and recently with current events, the issue has just increased . More people, specifically students, have taken out loans, and due to outside issues such as racial, economic, and social disparities, certain students have taken out money and are relying on such loans to get by, not just to pay for education. The federal government worries that the next generation will continue to take out loans and not pay them back. “The majority of the people have started to pay back $200 to $299 dollars per month, but due to unemployment, some have paid back even less per month,” as stated by the Brooklings. The growing number of loans taken out and the growing amount of money taken through these loans has started to concern federal workers. Certain programs have been put in place by the federal government to help the economic crisis and to better the student loan crisis such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which temporarily suspends the need to pay back monthly loans, yet the issue grows.
As the economic crisis known to us as student loans grows with each growing day. And the issue continues to grow each day due to outside reasons. The government has made some progress to help correct and fix the issue. But the main question is; will this be enough to fix the problem?