The Student Loan Debt Crisis: A Narrative Review
- Published: 02 December 2023
- Volume 9 , pages 3–9, ( 2024 )
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- April C. Bowie-Viverette ORCID: orcid.org/0000-0001-7269-8987 1 &
- Stephanie Saulnier ORCID: orcid.org/0000-0002-7556-9432 2
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Education is one undeniable pathway from poverty. Research has consistently shown the positive effects of higher education level on lifetime earnings. Financing to achieve this can lead to student loan debt, which has become a crisis affecting financial and health wellbeing among some borrowers and disparities in higher education access further exacerbated by the COVID-19 pandemic. Despite the fact that access to higher education has been deemed a right in Article 26 of the Universal Declaration of Human Rights, the student loan crisis threatens access for some. Lack of ratification of the document by the U.S. further pushes the need for critical discussion. Therefore, the purpose of this narrative review was to examine the state of the student loan debt crisis and raise implications for policy. WorldCat, SocINDEX, and Academic Search Complete databases were searched utilizing a combination of key words associated with college student loans and debt, economic justice. Findings showed student loan debt, repayment challenges, and inequities in higher education access remain widespread. There is a need for more social work–based empirical research on student loan debt and social work engagement that promotes critical conversations utilizing an economic justice perspective. Implications for social work practice, policy, and research are discussed.
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Bowie-Viverette, A.C., Saulnier, S. The Student Loan Debt Crisis: A Narrative Review. J. Hum. Rights Soc. Work 9 , 3–9 (2024). https://doi.org/10.1007/s41134-023-00281-0
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Public Opinion and Policy Implications of Student Loan Debt Forgiveness in the U.S.
By nia holland 2024 w.e.b. du bois fellow.
1. Introduction and significance
After the Servicemen's Readjustment Act of 1944, or the GI Bill, was signed into law by President Franklin D. Roosevelt, the United States experienced a significant increase in college enrollment. The GI Bill was designed to aid veterans in their readjustment to civilian life by covering the costs to pursue further education at a college or university. In the decade following the bill's enactment, the number of degrees awarded by colleges and universities in the United States more than doubled, largely due to the opportunities the bill provided (National Archives, 2022). This surge in educational access set a precedent for higher education as a pathway to economic stability and social mobility.
Since that time, college enrollment has continued to rise, along with the associated costs of attendance. According to the National Center for Education Statistics, college enrollment peaked between 2010 and 2011, with approximately 18.1 million students enrolled across the United States. However, the cost of attending college has risen even more dramatically. Between 2010 and 2022, tuition rose an average of 12% per year, and since 1963, it has increased 749% on an inflation-adjusted basis (Hanson, 2023). This substantial [JS1] increase in tuition has outpaced income growth, making higher education increasingly unaffordable for many (Council on Foreign Relations, 2024).
The rising cost of education has necessitated large student loan debt for many students, especially those from marginalized communities, who often have less generational wealth and face greater financial barriers. Currently, U.S. borrowers collectively owe nearly two trillion dollars in student loan debt. Students from Black, Latino, and American Indian communities often take on more debt than their White counterparts and are more likely to default on their loans. This is significant because these students are often in greater need of the social mobility that higher education can provide. Yet, the burden of student debt can prevent them from fully benefiting from their education, perpetuating cycles of poverty and inequality [JS2] .
Given the history of higher education financing in the U.S. and the disparate impact of student loan debt, it is crucial to explore broader public opinion on this issue. Although education and student loan debt have long been central issues in American politics, polling suggests that the issue is sometimes overshadowed by other concerns. For example, a 2017 CNN poll found that 24% of respondents named health care as the most important issue facing the country, compared to just 2% naming education. However, more recent polling by Reuters in January 2024 found that nearly half of those surveyed indicated government efforts to lower student debt burdens would be at least somewhat important in determining their vote, with 3% identifying it as the most critical issue, suggesting that student loan debt and affordability of higher education remain salient issues in the current American political landscape.
This exploratory paper examines current public opinion on student loan debt relief in the United States and discusses implications for education policy and future research.
2. Discussion and future implications
Public opinion on education, including the accessibility of higher education and student loan debt, has been a focus of various market research and polling organizations for years. These polls are critical not only for understanding current viewpoints but also for predicting which issues may shape upcoming state and national elections. They provide a framework for politicians to address these concerns during their terms in office.
In a 2021 web-based poll sponsored by Axios, approximately 2,000 U.S. adults were asked about various social issues, including the cost and value of higher education. One survey question asked, “How much do you support or oppose the following policies regarding higher education?...Forgiving, or erasing, all federal student loan debt?”. Over 50% of respondents said they either “Strongly support” or “Somewhat support” the complete erasure of all federal student loan debt, compared to only 26% who indicated they “Strongly oppose” federal student loan debt forgiveness (see Figure 1).
In a similar 2019 poll sponsored by NPR and PBS NewsHour, respondents were asked whether they believed forgiving student loan debt for lower-income individuals was a good or bad idea. The results were even more striking, with nearly 60% indicating it was a good idea, compared to only 36% who thought it was a bad idea (see Figure 2).
In both polls, support for federal student loan debt relief was significantly higher among Democrats than among Republicans or Independents. For example, 45% of Democratic respondents said they “strongly support” forgiving or erasing all federal student loan debt, compared to only 12% of Republican respondents. Regarding debt forgiveness for lower-income individuals, 85% of Democratic respondents supported the idea, compared to only 32% of Republican respondents.
3. Discussion and future implications
This exploratory analysis provides important insight into current public opinion regarding federal student loan debt forgiveness, suggesting that many Americans support some form of debt relief in response to the student debt crisis. Given the rapidly increasing cost of college and the resulting rise in student loan debt, this issue remains highly pertinent to public opinion and public policy.
Future research should explore other demographic factors, such as race and age, that may influence public opinion on student loan debt relief, as well as how these factors affect voting behavior. Additionally, a comparative politics approach could provide valuable insights into why and how the United States' approach to higher education policy and funding differs so significantly from other wealthy nations. Understanding these differences may be key to developing more equitable and effective education policies in the United States.
Axios. (2021). Axios/Ipsos Hard Truths Higher Education Poll: August 2021 (Version 2) [Dataset]. Roper Center for Public Opinion Research. doi:10.25940/ROPER-31118577 Cable News Network (CNN). (2017). CNN Poll: August 2017 - Poll 7 (Version 3) [Dataset]. Roper Center for Public Opinion Research. doi:10.25940/ROPER-31114428 Council on Foreign Relations. (2023). U.S. student loan debt: Trends and economic impact . https://www.cfr.org/backgrounder/us-student-loan-debt-trends-economic-impact Hanson, Melanie. “College Tuition Inflation Rate” EducationData.org, August 13, 2023, https://educationdata.org/college-tuition-inflation-rate Looney, A., & Yannelis, C. (2015, September 15). A crisis in student loans? How changes in the characteristics of borrowers and in the institutions they attended contributed to rising loan defaults . Brookings. https://www.brookings.edu/articles/a-crisis-in-student-loans-how-changes-in-the-characteristics-of-borrowers-and-in-the-institutions-they-attended-contributed-to-rising-loan-defaults/ National Archives. (2022, May 3). Servicemen's Readjustment Act (1944) . https://www.archives.gov/milestone-documents/servicemens-readjustment-act NPR/PBS NewsHour. (2019). NPR/PBS NewsHour/Marist Poll: December 2019 (Version 2) [Dataset]. Roper Center for Public Opinion Research. doi:10.25940/ROPER-31116969 Reuters. (2024). Reuters/Ipsos Large Sample Survey 1: January 2024 (Version 2) [Dataset]. Roper Center for Public Opinion Research. doi:10.25940/ROPER-31120717 U.S. Department of Education. (2023, July 18). Biden-Harris administration releases first set of draft rules to provide debt relief for millions of borrowers . https://www.ed.gov/news/press-releases/biden-harris-administration-releases-first-set-draft-rules-provide-debt-relief-millions-borrowers U.S. Department of Veterans Affairs. (2024, July 17). Post-9/11 GI Bill (Chapter 33) payment rates for 2022-2023 . U.S. Department of Veterans Affairs. https://www.va.gov/education/about-gi-bill-benefits/post-9-11/#:~:text=What%20benefits%20can%20I%20get,update%20those%20rates%20each%20year
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For people across the United States, student loan debt is a growing portion of the household balance sheet. More than 40 million Americans have . outstanding student loan balances. 1. In 2019, the total amount of student debt owed surpassed $1.5 trillion, now the largest source of non-mortgage debt. 2. The burden of student loan debt is causing ...
Understanding student loan borrowers' repayment behav-iors and borrowing satisfaction is a critical yet challeng-ing issue. A study of student loan borrowers' mental health revealed that having student loans is negatively associated with psychological function (Walsemann et al., 2015). Specifically, among all borrowers, those who completed two
Education is one undeniable pathway from poverty. Research has consistently shown the positive effects of higher education level on lifetime earnings. Financing to achieve this can lead to student loan debt, which has become a crisis affecting financial and health wellbeing among some borrowers and disparities in higher education access further exacerbated by the COVID-19 pandemic. Despite the ...
According to a recent report from the Federal Reserve, the national student debt amount in the third quarter of 2023 was over $1.7 trillion spread across over 43 million borrowers (Board of Governors of the Federal Reserve System, 2023).At the same time, roughly four million student loans enter default each year—affecting millions of borrowers and their families (Hanson 2023).
This research paper surveys the literature on the impacts of federal student loans in the United States at different life stages, from college enrollment to debt repayment. ... While research on student loans spans the international context with studies in Chile (Solis, 2017; Card and Solis, 2022), Sweden (Joensen and Mattana, 2021), and others ...
The ordered probit results in Column 1 Table 4 for the student-borrower subsample indicate that student-borrowers report higher levels of financial stress when they hold increasingly higher student loan debt amounts; log odds increase from 0.137 among students who borrow $10,000-19,999 to 0.424 among those who borrow $60,000 or more compared ...
Student loan debt is unprecedented and rising in many democracies (Antonucci 2016; Goldrick-Rab 2016; Callender & Mason 2017). ... the paper points to potential avenues for future research about student debt and wellbeing by considering indicative comments made by New Zealand university students as part of a series of in-depth interviews ...
A growing body of research suggests that student loan aid can increase undergraduate students' attainment and earnings.1 At ... Several papers document a negative relationship between student loan debt and other life-cycle outcomes, such as graduate school enrollment (Chakrabarti et al.2022), homeownership (Mezza et al.2020), job match ...
Research; Working Papers; Student Loans and Repayment: Theory,… Student Loans and Repayment: Theory, Evidence and Policy. Lance Lochner & Alexander Monge-Naranjo. Share. X LinkedIn Email. Working Paper 20849 DOI 10.3386/w20849 Issue Date January 2015. Rising costs of and returns to college have led to sizeable increases in the demand for ...
We evaluate the effects of the 2020 student debt moratorium that paused payments for student loan borrowers. Using administrative credit panel data, we show that the payment pause led to a sharp drop in student loan payments and delinquencies for borrowers subject to the debt moratorium, as well as an increase in credit scores.
This exploratory paper examines current public opinion on student loan debt relief in the United States and discusses implications for education policy and future research. 2. Discussion and future implications ... Future research should explore other demographic factors, such as race and age, that may influence public opinion on student loan ...
other hand feel overburdened with the cost of paying back their loans. This paper also provides a foundation for future research and identifies public policy shortcomings and suggests solutions. Keywords: student ... student loan debt has grown 60% in the last ten years and is forecast to grow to $2 trillion by 2021 (Byrne, 2018). ...
Indebted college graduates have lower net worth, less home equity, and compromised ability to accumulate assets, as compared to their peers with the same level of education but no student debt. They may also experience poorer educational outcomes, with independent effects on earning power and, then, later wealth accumulation.
This paper primarily joins a literature within household finance on student loans. This pa-per presents a simple framework for computing the present value of student loans, and uses it to present new results on the progressivity of loan forgiveness options. Amromin and Eberly
largest loan program, accounting for 75 percent of student-loan volume (labeled as unsubsidized 7 Total fall enrollment (undergraduate and graduate) rose from 15.9 to 21.0 million between 2001
A record 37% of young households had outstanding student loans in 2010 and a median student debt of $13,000. report May 14, 2014 Young Adults, Student Debt and Economic Well-Being
Socioeconomic backgrounds and borrowing through student loans. Although human capital theory is a common framework for understanding the impact of financial aid (Goldrick-Rab, Harris, and Trostel Citation 2009), two sociological theories relating to educational inequality, among others, provide important insight into borrowing behaviour.First, rational choice theory inherits the idea from ...
The report, by Scott Fullwiler, Research Associate Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum analyzes households' mounting reliance on debt to finance higher education, including the distributive implications of student debt and debt cancellation; describes the financial mechanics required to carry out the cancellation of debt held by the Department of Education (which ...
on student enrollment and degree attainment.Dynarski and Scott-Clayton(2013) present a broad overview of research on ˙nancial aid programs. 2For clarity throughout this paper, we refer to institutions that grant bachelor's degrees as "universities" and institutions that
This paper examines the history student loan debt crisis, examines the two propose solutions mentioned above, and does offers an analysis of them. iii ... A Snapshot of Student Loan Debt, Congressional Research Service, March 23, 2015. 5 David P. Smole, A Snapshot of Student Loan Debt, Congressional Research Service, ...