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A former FDIC chief claims student debt is the next economic disaster. Should the government provide more direct aid?

  • Yes, I think so.

    Increasing national awareness of college spending is the first step in exercising restraint. It is therefore imperative that the federal government and the colleges and universities begin tracking the percentage of their students who are graduating with excessive debt each year. This information can then be used to improve student loan counseling. Colleges must also be given better tools to limit student borrowing. For example, college financial aid administrators must be permitted to reduce federal loan limits based on the student’s enrollment status and academic major. Students who are enrolled half-time should not be able to borrow the same amount as students who are enrolled full-time.

  • Yes, the government should provide more direct aid.

    Yes, the government should provide more direct aid. A lot of the student loans going into default are as a result of the people coming out of school after 2008 not being able to find viable, decent paying work. People can barely survive on what they're making, let alone pay a student loan debt for an obselete academic credential.

  • Yes the government should provide more direct aid

    I want the government to provide more direct aid because student of less financial capability should be considered. In a situation where job opportunities are less guarantee after school leaving. I suppose it's just the concept of pushing a large percentage of an entire generation to borrow heavily from their future with nothing to show for it. At least people who have house debt have a place to live- they're paying into something and the government adds those folk to the tally of home buyers. But Student debt? That's going to throw off projections. 4+ years of no job history, no experience, and likely no references above retail outside of academia- I'm really surprised the government hasn't become more concerned about this trend now that the average debt is approaching levels of the average yearly household income.
    For those who are wondering, the student debt crisis isn't a bubble, bankruptcy laws ensure there's no way for it to 'pop,' and the price of education can't collapse overnight the way tulip bulbs can.

    That said, it's still a crisis. It's just a long-term demographic crisis that is going to grind the economy to a halt. Basically, Students spend their 20s paying off debt instead of buying a house, investing in retirement, marrying, and having a family. In aggregate, much less wealth is being accumulated by the younger generation.

  • Yes, the government should provide more direct aid.

    The government should provide more direct aid to students and borrowers with student loans. Student loan debt will likely be the next economic disaster in America. Many graduates are struggling to pay off loans, and have little relief available. Therefore, lawmakers must act to help graduates better deal with student loan debt; while helping current students pay for college without going into debt.

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