Student Debt Crisis: How We Got $1.6 Trillion in Student Loans

We’re breaking down the origins and structure of student loan debt — and how it’s affecting millions of Americans today

0:00 What’s the deal with student loans?
0:36 What a student loan really is (The history of student loans)
1:18 Privatized student loans????
2:28 Why private student loans are bad for you
4:17 I’m never going to pay these dang loans off, am I?
6:29 Is student loan forgiveness gonna happen?

For more student loan news, subscribe to NowThis News.

#StudentLoans #StudentDebt #LoanForgiveness #Politics #News #NowThis

Connect with NowThis

NowThis is your premier news outlet providing you with all the videos you need to stay up to date on all the latest in trending news. From entertainment to politics, to viral videos and breaking news stories, we’re delivering all you need to know straight to your social feeds. We live where you live.

@nowthisnews

[tokenetta]

Ppl say students made a choice to take these loans. But there's something predatory about pushing loans on ppl that just turned 18 with little to no financial literacy to understand the ramifications of pursuing higher education. If anything it should be treated as a crisis and our education system should be fundamentally changed.

[samanthab]

I had no idea it went private.When I was in school 77-81 they were such low interest that even if your parents could swing the fees, it was worth it to borrow.

[curiousworld]

When I went to college, I could pay my tuition by waiting tables. My children though, have a combined student loan debt of nearly $80k. This is madness; it won't be long, if we continue in this direction, that only the wealthy will be able to afford higher education.

[PriusRaj]

Two instant policy changes that NO ONE right or left should be upset with:

1. Tuition ceilings. Tuition should not cost more than $10k annually. Schools have too much administrative waste and spend millions on renovating pools and stadiums.

2. No interest on federal loans.

[nicolegeoffray]

Tuition should be free for every young person...this is ridiculous.

[HepCatJack]

If students aren't allowed to declare bankruptcy on student debts the way that everyone else is, then compound interest should be illegal on those debts so that only regular interest on the principal should be charged. This would make it much easier for students to pay back what they owe. Students that have paid back what would have been regular interest and principal should be considered as having paid back the debt.

A country cannot maintain an advantage on cutting hedge technology without a highly educated population.

Another possibility, would be to open up the expensive colleges to competition by allowing students self-trained on programs like those sold on Udemy to attempt certification and obtain an equivalent degree on the cheap.

[jessetorres]

I graduated from college 3 years ago, but still owe tens of thousands in debt, I've lost 2 jobs during this pandemic (though I do have a job now), and rent for most places is almost what I pay in student loans a month so I can't afford to move out on my own. I would love to be a more active member of the U.S. economy if I could afford to do so without so much Even if I only had 10% of my student loans forgiven that's still roughly 8 grand I don't have to worry about having to try to pay on time every month anymore.

[janetyingy]

“ You are not alone and you are not a loan” 😭

[DCMarvelMultiverse]

Also, to keep your head above financial water in many parts of America, you stay in college to get that leftover loan money. Also, you need that money to be put away in order to leave your home area to pursue a job in a faraway area where there are more opportunities to use your degree. It is also money to keep you afloat until you get a job. You stay in college to get that refund check to either pay bills because your job cannot do it or to save that money to move away. The deeper in debt you go either way. Plus, with the tax burden being on those earning under 60K, you try paying it back at $2K a month and your take home pay being $2K a month total if you are lucky. Finally IBR is wonky. If you earn a few bucks more, your IBR goes up a lot. To keep my ibr in scale with my earnings and to keep saving $70 a month, I had to request fewer hours at work which disqualified me from opportunities.

[finestkindmedicinal]

When the rich parasite off of the rest of us

[jaeboston]

Student loans are a racket. The loans were marketed to cover the outrageous tuition rates. They sold the idea that a college degree was the panacea for a happy successful life in America. We watched tuitions skyrocket and students burdened with debt that hindered financial success. I paid $ 375 per semester in 1979. The same University is now over $10, 500 in-state and
$ 24, 500 out of state.

[gmjtr]

College is a joke anyway. We need to tell these kids to stop spending so much money for a useless piece of paper.

[toscatattertail]

The cost of each consecutive degree (Bachelors, Masters, PhD) rises exponentially. Used to be you could get a Bachelors degree and teach with a decent salary...now you need a masters to do the same job for basically the same pay.
Sign Language Interpreters used to be able to get an Associates Degree in Interpreting, and lots of experience to sit for the National Exam ( if you were lucky you passed on the first try, if not you had to pay a reduced fee to take the exam again. Now they need a bachelor's degree at the minmum and there are rumors that soon they will need a masters.
Some degrees allow you to use pay back system where so much is creditted off your loan when you get a job in the field. That isn't happening anymore, my husband has bee teaching on the college level, not making enough to efficiently his loans (some Ph.D classes) and it's a struggle

[adanphu]

I still have ~8k student loans left. It was almost $14k before. I worked and studied very hard at times. So exhausting, painful, and damaging!!!

[arrows]

Whenever you see the unemployment rate being low and jobs up. It's not because more people got a job. It means most of the people are working 2-3 jobs to pay off student loans

[x-pilot]

Question: Why should the state offer free education?

Answer: Why should the state pay for roads, fire fighters, police, courts, prisons, armed forces … !?

[safalkharel]

the question should be why is biden not doing what he promised to do?? why is he chickening out now.

[ANJIN-pq]

The school's are simply too expensive. How's a student graduating with half a million in debt?

[lilibee]

There are many of us who will NOT vote for Biden again if he doesn’t keep his promise about student loans. He needs to remember that the youth who voted for him will be the adults who will vote him out of office if they can’t trust him. This will put a huge stain on the Democratic Party. Get it together DEMOCRATS!

[tammyjames]

At some point, if you get behind in your loans you will never zero balance. It is a revolving door of perpetual debt to continue feeding the government beyond death.