TYLER, Texas (KLTV) - We have heard a lot in the news recently about the student loan crisis. The federal government under President Trump is analyzing options on giving consumers some kind of relief from higher education debt, while the democratic presidential hopefuls all seem to have unique plans to address the issue.
In either case, the crisis of existing student loan debt cannot be ignored. It is approaching $1.5 trillion, and it is not getting better. To the individuals faced with loan payments, it can mean personal financial challenges for decades after college. College loans started as a neat concept – get an advance on future earnings to pay tuition now. But it has gotten ugly. Graduates realize quickly that student loan debt payments are overwhelming.
Some colleges have gone to financial counseling as part of the loan application process, others send out debt letters to alert borrowers on what their totals are and what payments will be. But it appears these are not working. There must be an added layer of oversight that prevents people from borrowing beyond their earning potential.
Perhaps some kind of cap or limit should be imposed based on the average earning in the profession the student is working towards. A $30,000 a year job can’t pay for one hundred thousand dollars in loans. At least not with any reasonableness. If borrowers can’t admit that, then they need some kind of limitations. If not that, then they need to move slower through the college experience, adding income along the way. It is a tough approach but it is required if we are ever to get some relief.