Student loan debt has been growing every year - how can we start to reverse this?
Student loan debt in the United States has grown enormously in recent years and is now one of the largest forms of consumer borrowing in the country. Though the benefits of a college education outweigh the costs in many cases, many graduates are concerned about entering a weak job market and worry that lingering debt could hinder their financial futures.
A 2019 study by Federal Reserve economists found that although a college education still provides a boost in earnings, the increase in wealth a degree provides has declined significantly over the past fifty years, due to the rising cost of college and the increase in other forms of consumer debt.
Today, 45 million Americans owe more than $1.5 trillion in college debt, with the burdens falling disproportionately on borrowers of color, particularly women. 779,00 Americans currently owe more than $150,000 in loan debt.
Today, more than 30% of student loan borrowers are in default, late or have stopped making payments six years after graduation. Student debt holds some borrowers back from building intergenerational wealth — thus exacerbating the existing racial wealth gap. One survey found that 21% of borrowers have delayed getting married, 26% have pushed back having kids and 36% have put off buying a home.
Many experts and policymakers agree that both the rising cost of college and the existing volume of loans need to be addressed, but lack solutions to address the problem. They acknowledge that surging student debt is harming younger generations of students by preventing them from reaching their financial goals while exacerbating racial inequality, but assistance may be year away.
What is true now that wasn’t in 2000 or 2010, is that a job in the trades can provide the job security and the income that once only a college degree could promise. People holding career, technical, and skilled trade educations have proven more likely to be employed than those with academic credentials, reports the U.S. Department of Education. Not only were employment rates higher, skilled trades workers were considerably more likely to operate within their fields of study.
In a constantly changing economy, the trades are jobs that are not going away. No matter how the marketplace may shift, we will always need someone to keep the lights on and the water flowing. We need someone to build our houses and our offices, to pave our roads, and to ensure our phone and internet connections are blazingly fast.
If you’re looking to land your ideal job in the trades, there are a number of ways to get started. You might enroll in a licensure, certification, or apprenticeship program, or start learning on the job!
Start now at app.blocktrainapp.com
