Can You Hear Me Now

My values, our values, aren’t about pointing fingers. They are about offering a helping hand.

Kathleen Blanco

The cost of higher education has changed quite a bit since I was a young man. I went to Arizona State University in the late 1970s and early 1980s when tuition was $500 a semester. Add another $500 for books and supplies and I was paying around $2000 a year. I had a government grant that paid half of that and lived off campus where I shared housing expenses with a roommate (the last one eventually became my wife). I did not take money from my parents and managed quite well with restaurant jobs where I washed dishes, bussed, waited tables, and tended bar. The occasional tutoring gig (like when I tutored Erma Bombeck’s daughter, Betsy, in algebra) provided a little pocket money.

Due to the affordability of my college education, I was able to leave ASU with a Bachelor of Science degree in Computer Science completely debt free. My degree then enabled the American dream of home ownership, children, gainful employment, and 40-plus years later, an adequately-funded retirement.

I haven’t done the math, but I expect that along the way I paid hundreds of thousands of dollars in state, local, and federal taxes and well over a million dollars in living expenses. To say that I haven’t contributed my share to the American economy would be a tremendous understatement.

While hard work and healthy smattering of good luck helped make this possible, graduating debt free was a huge contributing factor. Linda and I made the choice of raising our family of five on a single income and I don’t know how we would have fared if we were saddled with student loan debt.

As it was, we immediately applied my degree to supporting our family and community. Rather than sending large amounts of money to some faraway, faceless lenders, our income predominantly went to fueling our local community. Our success helped others with their own successes and as the late Senator Paul Wellstone said, “We all do better when we all do better.”

Do The Math

According to Forbes magazine:

In 1980, the price to attend a four-year college full-time was $10,231 annually—including tuition, fees, room and board, and adjusted for inflation—according to the National Center for Education Statistics. By 2019-20, the total price increased to $28,775. That’s a 180% increase.

Additionally:

• There is $1.75 trillion in total student loan debt (including federal and private loans)
• $28,950 owed per borrower on average
• 55% of students from public four-year institutions had student loans
• 57% of students from private nonprofit four-year institutions took on education debt
• Student loan debt exceeds accumulated car loans and credit card debt

Keona, my youngest daughter-in-law, understands the crushing weight of student debt all too well. A little over two years ago she was interviewed by Fortune Magazine and bravely told of how she tried to keep her loans to a minimum, but due to circumstances beyond her control, graduated with a balance of $62,000. Despite paying more than $28,000 since leaving school, she has barely made a dent in the principal. So, rather than investing in her community or building a healthy 401(k), she is paying off loans and will do so for many years to come.

You can read a detailed account of Keona’s story here.

Keona’s story is far from unique. As of 2023, there are over 42 million Americans in a similar situation. The age group with the most student loan debt is 35–49, with nearly $635 billion in outstanding debt.

Bait and Switch

I call this article “The Bait and Switch of Student Loans” for a very simple reason. Young people are told that in order to ensure a good life for themselves and their families, they need a college degree. Since that degree is often unaffordable, they are told to take out loans at often high interest rates (as high as 6.8% in the last 20 years). Assuming the student gets a degree, the dream of the good life is greatly hampered by years/decades of loan payments. The bait of the well paying degree is replaced by the switch of the earned money not being used for the promised lifestyle.

It’s far worse for the students that don’t finish their degree or the promised income of the degree doesn’t materialize. In those cases, they are left with nothing but crippling loan payments.

Digging Ourselves Out

We need to do a number of things simultaneously. First, we can address the problem of current student debt through loan forgiveness, cutting or lowering interest rates, lowering payments by extending terms, and/or rolling out income dependent repayment plans. These will provide immediate relief to those who cannot get ahead of their loan payments.

Next, we need to lower the cost of education. This begins by making community college two-year degrees free for everyone. A free two-year degree would solve several problems:

• A two-year degree can be all that a student requires to get started in a worthwhile career.
• Some students will quickly discover that a degree isn’t the right choice and be free to choose another path without the burden of repaying a loan.
• Free tuition would get the general education classes out of the way and allow four-year universities to focus on the student’s major.
• Students moving from a community college to a four-year university would be better prepared to succeed.

Four-year universities also need to significantly lower their costs. According to Forbes, “Tuition inflation has risen at a faster rate than the cost of medical services, child care, and housing.” This most likely requires a lot of help from state and federal government, but if we can slash taxes for the wealthiest Americans, we can help those that need the most assistance and who will provide the greatest good for our country.

It’s all important to expand Pell Grants. Pell Grants originally covered around 80% of college costs. Now they cover less than 28%. The current maximum of $7,395 falls well below what many low income students require to complete their degree program.

Our Students Are Our Future

I have been very supportive of what the Biden Administration has been proposing for student debt relief. Sadly, Republican led states have been successfully fighting to keep most of President Biden’s executive orders from taking effect. It’s disappointing that this has become such a contentious political football. Millions of Americans are hurting and these Republican Attorneys General and judges aren’t doing anything constructive to help them.

I understand that there are folks who feel that “if you took out a loan you need to pay it back.” While this is true for a car, cars are not the future of our country. An educated middle class that isn’t overwhelmed with debt helps everyone get ahead — even old folks like me who were lucky enough to live in a time when this country prided itself on educating its citizens.

Regardless of your political beliefs, this is an issue that needs addressing and if you aren’t willing to do something constructive, please get out of the way of those who are.

Thank you for reading.

A rolling tide
where each wave tastes the shore that much higher
where each swell brings land and sea that much closer

Like the rising sun spreading its blaze across the sky
until all the world is engulfed in illumination

These are the waves that were destined to be