Total student loan debt in the US has topped $1.3 trillion.
It's not just an issue for people holding six figures' worth of loans — it's become a policy issue as well.
In September, the Obama administration announced a series of changes to
the Free Application For Federal Student Aid (FAFSA), the go-to form
for prospective college students applying for federal student aid.
In December, the administration announced the Revised Pay As You Earn (REPAYE) plan,
which lets select federal student loan borrowers cap their monthly
loan payments at 10% of their discretionary income.
These measures have been taken to make the burden of student loans more manageable. The Associated Press found that
Generation X, people ages 35-50, owe about as much money on their loans
as new graduates even after years of payments, and that student loan
payments are surpassing groceries as the biggest monthly expense for
many households.
Writing for TIME,
leading student financial aid expert Mark Kantrowitz estimates that
more than 25% of borrowers are graduating with "excessive" debt. He
explains that this debt load significantly influences how many borrowers
live their lives.
I
also found that students who graduate with excessive debt are about 10%
more likely to say that it caused delays in major life events, such a
buying a home, getting married, or having children. They are also about
20% more likely to say that their debt influenced their employment
plans, causing them to take a job outside their field, to work more than
they desired, or to work more than one job.
Things aren't getting better. Marketwatch estimates that America's total student loan debt grows over $2,000 every second. It's no wonder the government has taken notice.
