How Student Debt Affects the American People

Chiya Stonewall, Lindblom Math & Science Academy, Fall 2024

A college education was once seen as a ticket to a brighter future for many Americans;

however, millions of Americans are buried under a foundation of debt due to a college

education. From young professionals starting their careers to middle-aged individuals still

paying off student loans, student debt affects every major milestone many Americans go

through.

The Education Data Initiative reports that middle-class Americans are most affected by college debt. “Borrowers from households in the middle-class income bracket owe on average $46,016 in student loan debt” (Hanson, 2024). So while high-income borrowers tend to have higher debt, those in the “middle” percentile, those with an income less than $100,000, are having to deal with debt that could be equal to their average income. Additionally, “graduate degree holders make up only 14% of the population over 25 years old, yet they contribute to 56% of the outstanding educational debt.” This data highlights that those with higher degrees, such as a doctorate, tend to borrow amounts larger than their average income. No matter the income level, everyone is affected by student debt. According to the Federal Student Aid Data Center, student debt continues to increase. From 2017-2024, student debt on all levels increased by about 28.06% (US Department of Education, 2024).

Morgan Cannon, a junior at Lindblom Math & Science Academy, stated, “I have to join various scholarship programs now so that I can hopefully have most of my tuition paid for. My family’s income is too much to receive financial aid.” Many other college-bound students find themselves in a similar situation to Morgan and want to find alternate ways to pay for college without taking out student loans and going into debt. Chee Vang, a Financial Aid Officer at the University of Wisconsin-Madison, shared, “The debt crisis underscores the urgent need for fairer financial aid solutions.” Colleges can work with students to find innovative ways to make college affordable while minimizing the amount of student debt. Reducing student debt requires a collective effort from colleges, scholarship programs, the government, and society to ensure that Americans can pursue their dreams without sacrificing future financial gains.

Sources: Education Data Initiative, Federal Student Aid Data Center