University of Georgia at Athens charged $4,488 in tuition and fees in the 2000-2001 school year but charged $10,836 in the 2014-2015 school year. This is an increase of 141 percent. In the same time, the median income in Georgia fell by 14 percent.
According to Phan Fei at ProPublica, the median income in the U.S. is falling but public college tuition is climbing. In the US as a whole, median income has fallen 7 percent since 2000, while tuition has risen 80 percent during the same time period.
People are burdened with education loan debt now, but it’s going to be even worse for students who are in attending classes now. Can we do anything about it?
Yes, we can. In 2009, we bailed out the big Wall Street banks with TARP loans and quantitative easing (QE). The TARP loans were just plain money loans and were paid back over time. QE involved the government, through the Federal Reserve, purchasing loans that were uncollected because the borrowers were in financial distress. The Federal Reserve did this repeatedly, until the banks were more stable. The debts involved in the QE process were never paid back. The government essentially wrote them off.
The Green Party, with Jill Stein, M.D. and Ajamu Baraka, Ph.D., wants to do the same thing with student debt. The government, probably working through the Federal Reserve, would buy the student loans from the holding entities [Sallie Mae, for instance], and then just forgive the loans. Wipe them out. Erase them.
What would be the results of this action? The effect on the individual debtor would be immediate and clear. He or she would have a better credit rating because of less debt and would have funds to actually buy things. The effect on the overall economy would take a little longer to become apparent but it would be inevitable. More people would be buying things, increasing overall demand, which would force more production, which would create more jobs. It would be a boost to the entire economy.
The only way we can do this any time soon is to vote for the Green Party candidates for President this year. Vote for Jill Stein and Ajamu Baraka.