Growth of Student Debt Slows, Concerns Do Not

In 2019, the discussion surrounding the student debt crisis in this country amplified to a level never before seen.

In September, the Institute for College Access & Success released its annual report on student debt for the class of 2018 and found that while the growth of student debt has slowed, it continues to increase.  While much of this slowed growth can be attributed to an increase in funding at the local and state level, it still remains to be seen what more the federal government will do to address the student debt crisis.

One suggestion made in the report is to further increase the amount of aid provided through the federal Pell Grant, which at its peak in 1975-76 saw the maximum grant amount cover over 75% of the average cost of attendance at a public university.

Today, the maximum Pell Grant barely covers 30% of the average cost of attendance.

It is no surprise then that 25% of loan borrowers were either delinquent or defaulted on their federal loans in 2018.

Ultimately, if the increase in cost of attendance at U.S. colleges and universities continues to outpace the amount of aid available to students, the student debt crisis will continue to suffocate our economy.

Follow the links below for additional coverage from the New York Times and USA Today.

New York Times: Two-Thirds of College Students Take On Debt, but Amount Is Rising More Slowly

USA Today: College student loans: Debt hits a new high in 2018, though growth slows, as free tuition plans spread