Pay As You Earn: Not the Solution to Student Debt Crisis
America / Culture / Debt / Economy

Pay As You Earn: Not the Solution to Student Debt Crisis

President Obama’s expansion of the Pay As You Earn program for student loan payment while earning support still fails to fix the root of the student debt problem. The expansion allows for more people to become eligible for their student loan payments to be capped at 10 percent of their monthly income, which is based … Continue reading

The Government is Making Money Off Students; Is that a Good Thing?
Economy / U.S. Domestic Policy

The Government is Making Money Off Students; Is that a Good Thing?

The last thing anyone expects the government to do is make money. Every day congressional lawmakers lament budget deficits, and the inability of the federal government to cover its spending with tax revenue is a perennial issue. But while Washington continues to struggle with the debt, there are a few government-affiliated organizations that are actually … Continue reading

Why Senator Warren’s Student Loan Proposal Doesn’t Add Up
Economy / Education / Fiscal policy

Why Senator Warren’s Student Loan Proposal Doesn’t Add Up

Last week, Senator Elizabeth Warren (D-Mass) unveiled her first piece of legislation on the Senate floor — a proposal to allow students to borrow at the same rates as banks. While this move galvanizes the populist movement, the economics behind it does not quite add up. The interest rate on direct subsidized loans for undergrads … Continue reading

Education

Hearing on student loan discharges ignores broader issues

Students increasingly take on massive amounts of debt to pay their high college tuitions. And they face diminished job opportunities upon competition of their degree. Just ask Danielle Jokela. Jokela, a resident of Chicago, spoke before a Senate judiciary subcommittee on her personal level of indebtedness (about $98,000 in outstanding student loan debt) and her … Continue reading